Energy XXI Double Checks Its Books
Energy XXI (Bermuda) Limited (AIM: EGY) reports that as a result of a further review of its 1st Quarter Results for the three months ended September 30, 2006, as announced on November 20, 2006, for inclusion in a future update to its Form 10 filing with the Securities and Exchange Commission, the Company discovered an error in its hedge accounting.
Correcting this error as well as certain other adjustments, the Company's operating cash flow (operating income plus DD&A) is $45.1 million versus the previously reported $46.8 million, while the net income is $1.9 million versus the previously reported $3.1 million.
The effect on the balance sheet was to increase Other Comprehensive Income, the category where unrealized hedge gains are accumulated, from $23.6 million to $33.1 million. A complete copy of the financials with the accompanying footnotes will be announced via RNS and posted on the investor section of the Energy XXI website at www.energyxxi.com as soon as they are completed and reviewed by the Company's auditors next week.
The Company remains confident of its prospects for the current financial year.
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