- Energy XXI (EXXI) CEO/Chairman John Schiller says his company's deal to acquire offshore producer EPL Oil & Gas (EPL) is a chance to capitalize on synergies that oil producers don’t typically get when offshore leases simply trade hands.
- EXXI is more focused on optimizing oil production rates in the Gulf - "getting more oil out of old oilfields" - while EPL is stronger in geosciences activities such as using seismic equipment, he says.
- EXXI investors weren't happy with the 34% premium paid for EPL, sending shares -7.8% today, but Schiller believes the merged company will be able to wring out costs that should make up for the premium.
- Schiller's strong belief in shallow-water production will be put to the test; even with the risks of hurricanes disrupting production or the threat of sub-$100 oil prices, EXXI forecasts shallow-water Gulf of Mexico projects will remain among the most profitable.
- Combining the two companies’ offshore fields will make EXXI the third-largest producer in the Gulf of Mexico shelf, behind PE-backed Fieldwood Energy and Chevron.
From other sites
at CNBC.com (Dec 15, 2014)
at CNBC.com (Dec 10, 2014)
at CNBC.com (Nov 28, 2014)
at CNBC.com (Oct 2, 2014)
at CNBC.com (Sep 9, 2014)
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