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* Fiscal 2009 EBITDA totaled $277 million
* Full-year volumes averaged 19,300 BOE per day
* Reserve additions replaced 165 percent of production
* Fiscal 2010 initial capital budget set at $75 million to $85 million
* Insurance settlement expected to provide $53 million cash
HOUSTON, Sept. 4, 2009 (GLOBE NEWSWIRE) -- Energy XXI (Bermuda) Limited (Nasdaq:EXXI) (LSE:EXXI) today announced fiscal fourth-quarter and full-year financial and operating results for the period ended June 30, 2009, and reviewed its fiscal 2010 capital program and expectations.
For the full year, net cash provided by operating activities totaled $224.9 million while earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) was $277.0 million, compared with $366.1 million and $451.0 million, respectively, in fiscal 2008. Reflecting non-cash write-downs in the second and third fiscal quarters, the company reported a net loss for fiscal 2009 of $571.6 million, or $3.95 per share, on revenues of $433.8 million and production of 19,300 barrels of oil equivalent per day (BOE/d), compared with net income of $26.9 million, or $0.30 per diluted share, on revenues of $643.2 million and production of 26,200 BOE/d in fiscal 2008.
For the 2009 fiscal fourth quarter, revenues were $101.1 million and EBITDA totaled $66.5 million, compared with 2008 fiscal fourth-quarter revenues of $178.8 million and EBITDA of $119.2 million. Fourth-quarter 2009 net cash provided by operating activities totaled $50.5 million, as volumes averaged 18,700 BOE/d. In the 2008 fiscal fourth quarter, net cash provided by operating activities was $148.7 million and volumes averaged 26,400 BOE/d. The net realized price received for the company's production in the 2009 fiscal fourth quarter averaged $59.36 per BOE, compared with $74.49 per BOE in the 2008 fiscal fourth quarter. The company recorded a fiscal 2009 fourth-quarter net loss of $17.2 million, or $0.12 per share, compared with 2008 fiscal fourth-quarter net income of $8.2 million, or $0.08 per diluted share.
"With production impacted by hurricane outages, and revenues further affected by volatile oil and natural gas prices, Energy XXI still delivered solid volumes and cash flows in fiscal 2009," Energy XXI Chairman and CEO John Schiller said. "We ended the year with a strong foundation, with nearly $90 million of cash on hand and a capital program designed to under-spend cash flow while holding volumes essentially flat for fiscal 2010."
YEAR-END RESERVES
The company's June 30, 2009 fiscal year-end proved reserves were estimated at 53.1 million BOE, compared with 51.5 million BOE at June 30, 2008. The increase was achieved even though 2009 fiscal year-end reserves were reduced 2.9 million BOE by revisions due to the year-over-year decline in prices for crude oil and natural gas. During fiscal year 2009, Energy XXI added 11.6 million BOE of proved reserves through discoveries, extensions of existing fields and performance-related revisions, while producing 7.1 million BOE, equating to a 165 percent proved reserves replacement rate excluding the price-related revisions. Reserve additions were primarily driven by development activities in the shallow-water Gulf of Mexico and the Cote de Mer natural gas discovery onshore Louisiana.
Netherland, Sewell & Associates, Inc. (NSAI), independent oil and gas consultants, engineered 86 percent of the company's proved reserves, on a valuation basis, with the remainder engineered in-house. All of the company's proved reserves are in the United States, 64 percent are proved developed, 58 percent are oil and natural gas liquids, and 42 percent are natural gas. Approximately 21 percent of the company's proved developed non-producing reserves are expected to be moved to the producing category in October as the company's Cote de Mer and Fastball discoveries are placed on-line, and another 11 percent will be returned to the producing category upon completion of hurricane repairs to associated facilities. Attached tables provide additional reserves detail, including cost-incurred data.
"Adjusting for price revisions, Energy XXI grew reserves more than 9 percent organically in fiscal 2009, compared with acquisition-driven growth in previous years," Schiller said. "We added nearly twice as many reserves as we produced during the year and our exploration drilling for deep and ultra-deep targets on the Gulf of Mexico shelf can potentially drive major additional future increases."
NSAI estimated the Blackbeard discovery at South Timbalier Block 168 offshore Louisiana holds as much as 142 million BOE (20 million BOE net to the company) of contingent resources based on data obtained to-date. A flow test of the well to prove commercial producibility may be required before the contingent resources can be moved to the proved, probable or possible reserves categories, and future drilling activity on the flanks of the structure could add significantly to the discovery's size. |