This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Why Energy XXI (EXXI) is Tumbling on Friday

Stocks in this article: EXXI

NEW YORK (TheStreet) -- Energy XXI (EXXI) was tumbling in Friday's session weighed down by second-quarter profits less than expected.

By midafternoon, shares had taken off 11% to $20.55.

The Bermuda-based offshore oiler recorded per-share earnings of 14 cents, a far cry from the 41 cents expected by Thomson Reuters-surveyed analysts. Revenue of $296.82 million came in short of $306.75 million forecast.

Net income tumbled to $10.4 million from $41.3 million in the year-ago quarter. Lower-than-expected profits were due to a higher effective income tax rate, lower realized crude oil sales prices, and hedge ineffectiveness.

Quarterly production averaged 45,100 barrels of oil equivalent (boe) a day, a 1.1% increase on the year-ago quarter. Oil volumes were slightly higher to 30,200 boe a day, up from 29,400 boe a day a year earlier. This marks the third consecutive quarter of increases in oil volume.

"With success at West Delta and Main Pass, we continue to hit our oil production targets," said CEO John Schiller in a statement. "Facilities are being upgraded to allow for a ramp up in drilling activity in the back half of this fiscal year. With six horizontal oil wells set to be drilled at West Delta 73 and 30, we expect a strong finish to our fiscal year in June."

Over the three months to December, capital expenditures topped $189.9 million, with $50.1 million invested in exploration and $139.8 million in development and other costs. Quarterly acquisition expenditures were an additional $12.5 million. For fiscal 2014, a total $705 million, excluding acquisitions, is expected to be reinvested.

TheStreet Ratings team rates ENERGY XXI (BERMUDA) as a Hold with a ratings score of C. The team has this to say about their recommendation:

"We rate ENERGY XXI (BERMUDA) (EXXI) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and a generally disappointing performance in the stock itself."

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,481.24 +81.57 0.50%
S&P 500 1,923.24 +19.23 1.01%
NASDAQ 4,368.4370 +52.3630 1.21%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs