Yesterday, 5:41 PM
Yesterday, 9:15 AM
Wed, Oct. 7, 9:14 AM
Mon, Oct. 5, 7:27 PM| Mon, Oct. 5, 7:27 PM | 17 Comments
Mon, Oct. 5, 10:32 AM
- The energy sector is an early leader in today's trading even after Standard & Poor's issued negative outlooks for Exxon Mobil (XOM +0.3%) and Chevron (CVX +1.9%) after Friday's close, citing high debt levels and low energy prices.
- XOM "has substantially more debt than during the last cyclical commodity price trough in 2009, while upstream production and costs are at similar levels,” S&P said, adding that “a sustained period of lower oil and gas prices will significantly reduce the company’s operating cash flow in 2015 and 2016 from 2014 levels, resulting in rising debt balances as the company sustains its capital investments and dividends.”
- The ratings agency anticipates CVX "will outspend internally generated cash flow to fund major project capital spending and dividends."
- While S&P stopped short of credit downgrades - it held CVX’s long-term credit rating at AA and XOM’s at AAA - it did downgrade 12 others: CHK, WLL, UPL, DNR, LINE, BBG, LGCY, TPLM, ARP, CWEI, MPO, EXXI.
- Outlooks also were lowered for NOG and EVEP.
- Ratings were affirmed for COP, WPX, WTI and CRK.
Thu, Oct. 1, 10:24 AM
- Energy XXI (NASDAQ:EXXI) says an internal investigation revealed CEO John Schiller borrowed funds from acquaintances and some of the company’s vendors, and received a personal loan from a member of the company’s board before the director’s appointment.
- Schiller’s dealings in 2007, 2009 and 2014 were not illegal and did not impact the company’s financial reporting or statements, but the failure to disclose the personal loans was not in compliance with the company’s code of business conduct and ethics, CFO Bruce Busmire says.
- EXXI says it is revising its vendor policies to address any potential conflicts of interest that could arise from Schiller’s personal loans and will ban such loans in its business conduct and ethics code.
- The disclosures came as EXXI reported a FQ4 net loss of $1.69B, largely because it wrote down the value of its oil and gas properties by $1.85B amid cheap energy prices.
Tue, Sep. 29, 5:55 PM
Mon, Sep. 14, 6:19 PM
- Energy XXI (NASDAQ:EXXI) files to delay reporting its Form 10-K, and says it will restate previously issued consolidated financial statements for the fiscal years ended June 30, 2014, 2013, 2012 and 2011, as well as the seven quarters leading up to March 2015.
- The restatement primarily reflects the recognition of unrealized gains and losses on derivative financial instruments and the reclassification of amounts associated with settled contracts.
- EXXI says that while the non-cash adjustments impact net income and revenues for each period, they do not impact the economics of the hedge transactions or net cash flows from operating, investing or financing activities, and do not affect liquidity or EBITDA results.
Sun, Sep. 13, 5:30 PM
Tue, Sep. 8, 9:14 AM
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%.
- Losers: VTL -79%. ACI -31%. BZUN -25%. WBAI -23%. JMEI -20%. BTU -17%. MDR -17%. CSIQ -17%. VIPS -16%. FIT -16%. SFUN -15%. LC -15%. PLUG -15%. EXXI -15%. QIHU -14%. MACK -14%. ACHN -14%. KNDI -13%. CYBR -13%. OHGI -13%. Z -13%. TCK -13%. JKS -13%. AVEO -12%. OAS -12%. WLL -12%. MCUR -12%.
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
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