Monday, December 20, 2010

Energy XXI (Nasdaq:EXXI) Closes Exxon (NYSE:XOM) Deal

Energy XXI (EXXI) announced they have closed the deal with ExxonMobil (NYSE:XOM), where the acquired natural gas and shallow water shelf oil in the Gulf of Mexico from them.

They said in a press release:

"Pro forma for the acquisition, estimated proved plus probable reserves increase 72 percent to 158.1 million BOE from 92.1 million BOE at the company's June 30, 2010 fiscal year end. Production increases to approximately 46,000 BOE per day, up more than 77 percent from the 25,900 BOE per day average in the most recent fiscal quarter ended Sept. 30, 2010.

The transaction was funded through a combination of cash on hand, borrowings against the company's $700 million corporate revolver, as amended, and proceeds from the previously disclosed private placement by the company's operating subsidiary, Energy XXI Gulf Coast, Inc., of $750 million of 9.25% senior unsecured notes due 2017, which closed earlier today. Actual funding requirements at closing totaled $1.01 billion, including the 10 percent deposit that had been placed in escrow. The purchase remains subject to post-closing adjustments to reflect actual operating results since the effective date of Dec. 1, 2010."

Energy XXI closed Friday at $27.08, up $0.66, or 2.50 percent. Exxon closed at $72.17, down $0.05, or 0.07 percent.

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