Mon, Aug. 24, 6:41 PM
- The plunge in oil prices may lead to some oil companies going out of business within a few weeks, according to Energy Aspects senior oil analyst Amrita Sen, who points to Linn Energy ([LINE]], LNCO) and Energy XXI (NASDAQ:EXXI) as bankruptcy candidates after exhausting more than 75% of the credit available to them.
- Sen names Midstates Petroleum (NYSE:MPO), Resolute Energy (NYSE:REN), W&T Offshore (NYSE:WTI), Breitburn Energy (NASDAQ:BBEP) and Comstock Resources (NYSE:CRK) as seeing their borrowing facilities "reduced the most" among companies tracked by the firm.
- "The amount of money available to these U.S. producers to borrow is half, less than half in some cases, compared to a year ago," Sen writes, which "makes it very, very difficult for them to continue investing, continue drilling," but she also predicts that supplies will tighten by the end of next year, and prices could easily more than double from current levels.
Mon, Aug. 24, 9:19 AM
- Gainers: GAS +29%.
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Thu, Aug. 13, 6:19 PM
- Energy XXI (NASDAQ:EXXI) says it is cutting capex but expects to produce roughly the same amount of oil and gas for a fraction of the cost as it reaps the benefit of lower costs and more efficient operations.
- EXXI sets its FY 2016 capital spending budget at ~$140M, down from $640M-$670M it estimates spending during the fiscal year ended June 30.
- But EXXI also expects to pump 54K-59K boe/day in the new fiscal year, about the same as prior-year production of 58.9K boe/day; oil and natural gas liquids comprise two-thirds of its output estimates.
- EXXI says its extraction costs are now ~$52/boe, down 30 Y/Y from the same time a year ago.
- The company also says its recompletion program at the South Pass 78 oil field south of New Orleans has yielded strong results; after recompletion of nine wells, production reached 5,450 boe/day vs. 2,100 boe/day when the program began earlier this year, and recompletion of a tenth well is in progress.
Tue, Jul. 21, 12:45 PM
Thu, Jul. 9, 9:18 AM
Wed, Jul. 8, 5:41 PM
Tue, Jul. 7, 5:36 PM
Wed, Jul. 1, 12:49 PM
Wed, Jul. 1, 11:59 AM
- Energy XXI (EXXI -7%) says it sold the oil-rich East Bay field near the mouth of the Mississippi River to an undisclosed private buyer for $21M, as it continues to seek ways to boost cash flow amid the global crude slump.
- EXXI says it will retain a 5% overriding royalty interest for up to five years on the field, as well as 50% of the field's deep rights, while the buyer will assume plugging and abandonment liability.
- EXXI also says it closed on the $245M sale of the Grand Isle Gathering System; the company will continue to operate the system on behalf of the buyer, CorEnergy Infrastructure Trust.
- In an operations update, EXXI says FQ4 production averaged ~59K boe/day net, with oil production averaging 41.6K boe/day net.
Mon, Jun. 22, 5:36 PM
Mon, Jun. 22, 4:52 PM
- CorEnergy Infrastructure Trust (NYSE:CORR) agrees to acquire Energy XXI's (NASDAQ:EXXI) Grand Isle Gathering System for $245M, with plans to increase its dividend following completion of the deal.
- Grand Isle is a subsea, midstream pipeline system with related onshore facilities serving oil-producing fields in the shallow portion of the Gulf of Mexico.
- CORR says it plans to finance the deal with a combination of a follow-on offering of 11.25M common shares, a new $75M issue of convertible debt and an expansion of its existing senior credit facilities.
Mon, Jun. 22, 3:59 PM
- Energy XXI (EXXI -2.1%) reached a deal before the open with the Bureau of Ocean Energy Management to provide $150M in supplemental bonding requirements for its Gulf of Mexico assets, avoiding a potential sum several times higher.
- The amount brings EXXI's total supplemental bonding to $319M at an annual premium expense of $4.8M, with ~$10M collateral posted; EXXI also maintains $226M in letters of credit to third parties on additional assets in the Gulf.
- Global Hunter analysts say the terms fall well below worst-case scenarios of ~$500M in incremental bonding, requiring $50M million in collateral and a $10M annual fee; the terms leave EXXI with ~$140M available on its revolver and $602M in cash on hand at the end of FQ3.
Thu, Jun. 11, 5:38 PM
Fri, Jun. 5, 5:37 PM
Fri, May 29, 5:36 PM
Fri, May 22, 5:40 PM
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