This article was originally published by Seeking Alpha on Oct. 10, 2014
Summary: Energy
XXI has struggled to post any meaningful growth over the last couple of years. The
company’s shares have fallen by more than 60% this year. However, the company
is gearing up for a revival in the near term. So far, the company’s turnaround
story appears to be on track.
Energy XXI
(NASDAQ:EXXI) is a small oil-focused exploration and production company
operating mainly in the shallow waters of the U.S. Gulf of Mexico Shelf that
has struggled to post any meaningful growth over the last several years; but it
could be a turnaround story in the making.
Horror Show
Energy XXI's
shares have plummeted this year, falling by more than 60% since January, partly
due to the weakness in oil prices that has hit offshore oil producers.
Additionally, Jim Cramer has recently said that this is the worst stock he has
ever been associated with. "They've got to be in there doing something
good soon," Cramer said, "it is a horror show."
During
FY2012, Energy XXI increased its oil production to more than 30,000 barrels a
day from less than 15,000 barrels a day in FY2010. This triple-digit growth was
partly due to the massive $1 billion acquisition of oil-weighted Gulf of Mexico
shallow water properties from Exxon Mobil (NYSE:XOM) in late 2010 that were
already producing at an average of 20,000 barrels of oil equivalents a day.
Since then,
the company has not reported any meaningful growth. During FY2014, the
company's oil production increased from more than 28,000 … read full article at
Seeking Alpha.
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