Energy XXI Ltd.OTCPK - Current
Taking A Look At Energy XXI: A Study In Effective Crisis Management
Wesley Kress • 90 Comments
Wesley Kress • 90 Comments
A Risky 92% Upside At CorEnergy
Dane Bowler • 58 Comments
Dane Bowler • 58 Comments
Thu, Apr. 14, 2:44 PM
- CorEnergy Infrastructure Trust (CORR -10.8%) is sharply lower despite seeking to reassure investors that a subsidiary of newly bankrupt Energy XXI (EXXI -73.1%) that leases subsea pipelines off the Louisiana coast remains outside Chapter 11 and are intact.
- CORR says the bankruptcy filing of EXXI - guarantor of the Grand Isle gathering system lease - and its failure to make interest payments to its creditors would have constituted defaults, but it provided a conditional waiver to certain remedies available to it as a result of non-monetary defaults.
- Now read Grand Isle gathering system is underwater, literally
Thu, Apr. 14, 2:23 PM
- April defaults for U.S. high yield bonds, headlined by bankruptcy filings from Peabody Energy (NYSE:BTU) and Energy XXI (EXXI -72%) plus a missed payment for Linn Energy (LINE -15.4%), now total $14B, after Q1 defaults came in at $15.7B, according to a report from Fitch Ratings.
- The trailing 12-month rate for junk bond defaults has surged to a two-year high 3.9%, Fitch says - 12% of all energy companies, 23% of E&P companies with EXXI's $2.8B in outstanding debt, and a 70% rate in the coal subsector including BTU's $8.4B debt.
- U.S. crude oil prices have staged a mini-recovery to ~$40/bbl but remain below typical breakeven production costs, so B- or lower-rated E&Ps are struggling in the secondary market, with 57% of those companies bid below $0.50, the ratings agency says.
- Now read Energy XXI: It's just business, nothing personal
Thu, Apr. 14, 4:54 AM
- Energy XXI (NASDAQ:EXXI) has filed for Chapter 11 bankruptcy, becoming the latest victim of the squeeze in the energy sector.
- "Over the last several months, we have worked to actively manage our balance sheet, and after thoroughly evaluating our options...we determined that this is best course of action for Energy XXI and all our stakeholders," the company said in a statement.
- The oil and gas explorer intends to eliminate about $2.8B worth of debt from its balance sheet through the restructuring.
- Previously: Bloomberg: Energy XXI plans bankruptcy filing as soon as tomorrow (Apr. 13 2016)
Wed, Apr. 13, 4:56 PM
- Energy XXI (NASDAQ:EXXI) -41.7% AH following a Bloomberg report that it is preparing to file for bankruptcy protection as soon as a grace period for missed interest payments expires tomorrow.
- EXXI missed two interest payments on $1.6B of debt on March 15 after suspending dividends on preferred shares and warning that it may seek bankruptcy protection.
- Now read Oil and gas distressed stocks: Russian roulette is a dangerous game - Energy XXI case study
Tue, Mar. 15, 8:26 AM
- Energy XXI (NASDAQ:EXXI) says it has delayed paying the interest due on the debt of its Gulf Coast subsidiary, commencing a 30-day grace period.
- However, EXXI says it paid the interest on the debt of one of its other subsidiaries, EPL Oil and Gas, that originally was due on Feb. 16 and was deferred.
- EXXI had warned that it could file for bankruptcy as soon as this week if it failed to refinance its debt.
- EXXI +14% premarket.
Thu, Mar. 10, 12:48 PM
Thu, Mar. 10, 9:15 AM
Wed, Mar. 9, 4:57 PM
- Energy XXI (NASDAQ:EXXI) -38.8% AH after saying it may seek Chapter 11 bankruptcy protection as soon as next week if oil prices remain low and it fails to refinance its debt.
- EXXI missed an $8.8M interest payment on senior notes on Feb. 16 and has been trying to reach a deal with debt holders to restructure its balance sheet before a 30-day grace period ends on March 17.
- EXXI also says it may have to liquidate assets for less than their value on its balance sheet.
- The SEC filing that cautioned about the potential of a bankruptcy filing actually came out Monday night.
Tue, Mar. 8, 12:49 PM
Thu, Mar. 3, 2:48 PM
- CorEnergy Infrastructure Trust (CORR +3.9%) is higher after responding to news that two of the three major tenants for its oil and gas pipelines, Ultra Petroleum (UPL +95.7%) and Energy XXI (EXXI +26.7%), are facing financial troubles.
- CORR says its major tenants - which also includes Arc Logistics Partners (ARCX +1.2%) - are all in compliance with their lease requirements, including timely payments of March rents.
- UPL included going concern language in its recent annual report and warned of potential bankruptcy and default on its lease agreement related to the Pinedale liquids gathering system in Wyoming; CORR owns Pinedale, and says it expects to refinance the remaining balance of its Pinedale term loan prior to maturity at the end of March, leaving ~$65M of liquidity for acquisitions and other corporate purposes.
- Earlier: Ultra Petroleum shares +60%, now up 236% the last two days
Tue, Mar. 1, 7:45 AM
- Energy XXI (NASDAQ:EXXI) says it received notice from NASDAQ that its shares did not meet the minimum bid price of $1/share, based on the closing bid price for the last 30 consecutive business days.
- EXXI has an automatic 180-day grace period from the date of the notification, or until Aug. 22, to regain compliance.
Tue, Feb. 16, 12:12 PM
- Energy XXI (EXXI -4.2%) is lower after reporting a larger than expected FQ2 loss and saying it will not make an interest payment due today, as it continues talks with its debtholders on alternatives to improve its capital structure.
- EXXI says it has retained PJT Partners LP and Vinson & Elkins as advisers in reviewing its debt; the company has a 30-day grace period to make the interest payment.
- EXXI also says its total FQ2 net production averaged 54.5K boe/day (70% liquids), and lowers its FY 2016 guidance to 52K-57K boe/day, down from 54K-59K boe/day; its projected range for full-year capex remains $130M-$150M.
Tue, Feb. 16, 8:08 AM
- Energy XXI (NASDAQ:EXXI): FQ2 EPS of -$1.93 may not be comparable to consensus of -$1.23.
- Revenue of $184.62M (-63.3% Y/Y) misses by $19.67M.
Nov. 16, 2015, 11:48 AM
- Apache (APA -0.2%) and Anadarko Petroleum (APC +0.3%), whose brief merger possibilities broke apart last week, are run by CEOs with smaller golden parachutes than similar-sized oil and gas companies, according to a Bloomberg analysis.
- The dollar incentive for takeovers for APA CEO John Christmann was $8.4M as of the company’s fiscal year-end when he was COO, and APC CEO Al Walker’s was $31.2M at year-end 2014, regulatory filings show; by comparison, Cheniere Energy (LNG +5.9%) CEO Charif Souki has a $147.8M payout, the highest of 83 U.S. oil and gas companies with a market value less than $45B as of their fiscal year-end.
- According to the Bloomberg report, among companies with the smallest golden parachute for its CEO is SM Energy (SM +1.5%), whose payout for Javan Ottoson would be $1.26M as of Dec. 31, 2014, when he was COO.
- The biggest parachute relative to company size is the $36.2M that would be due to Energy XXI (EXXI +0.6%) CEO John Schiller Jr., whose award was equal to ~15% of the company’s $249M market cap at its June 30 fiscal year-end.
Nov. 9, 2015, 6:13 AM
- Energy XXI (NASDAQ:EXXI): FQ1 EPS of -$1.64 may not be comparable to consensus of -$1.35.
- Revenue of $257.82M (-44.1% Y/Y) beats by $42.87M.
Nov. 8, 2015, 5:30 PM