"Energy XXI achieved a 25% increase in production volumes relative to the immediately preceding quarter, and a 90% increase relative to the prior year's fiscal first quarter," Energy XXI Chairman and CEO John Schiller said. "Our volumes remained on an upward trajectory in October, averaging 26,500 barrels of oil equivalent per day (BOE/d), despite the shut-in of our Rabbit Island field due to maintenance on a third-party natural gas pipeline. The shut-in affected about 2,000 BOE/d of net production beginning in mid-October and is expected to last through November."
For the 2008 fiscal first-quarter, revenues were $143.6 million and earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) totaled $102.4 million, compared with revenues of $65.8 million and EBITDA of $45.1 million in the 2007 fiscal first quarter. Net income was $1.9 million, or $.02 per diluted share, compared with net income of $1.9 million, or $.02 per diluted share, in the 2007 fiscal first quarter.
Net cash provided by operating activities totaled $76.7 million for the 2008 fiscal first quarter, compared with $17.7 million in the 2007 fiscal first quarter. Discretionary cash flow was $79.0 million in the 2008 fiscal first quarter, compared with $40.3 million in the 2007 fiscal first quarter.
For the 2008 fiscal first quarter, sales volumes averaged 26,200 BOE/d, compared with 13,800 BOE/d in the 2007 fiscal first quarter. The net realized price received for the company's production in the 2008 fiscal first quarter averaged $59.63 per BOE, including $3.94 per BOE contributed by hedging, compared with a net realized price of $52.03 per BOE, including $1.68 per BOE contributed by hedging, in the 2007 fiscal first quarter.
During the 2008 fiscal first quarter, capital expenditures, excluding acquisitions, totaled $79.5 million. In addition, producing property acquisitions totaled $33.4 million, including $29.9 million involving a partnership with Castex Energy. The fiscal-year 2008 capital budget, excluding acquisitions, is unchanged at approximately $260 million.
1st Quarter Operational Highlights:
During the fiscal first quarter, Energy XXI was successful in four of five exploration wells and one of three development wells. Further detail on the exploration and development program is provided in the attached Operations Report.
"Volume growth last year was driven by a very active development drilling program, particularly at our South Timbalier 21 field offshore Louisiana, whereas growth this year revolves around the optimization of production at the former Pogo properties acquired in June," Energy XXI President and Chief Operating Officer Steve Weyel said. "We have made good progress with the newly added properties, which continue to achieve volume growth ahead of our expectations, without having drilled a single well. We plan to ramp up the offshore drilling program later in the year, but for now we are concentrating on operating enhancements, getting higher rates from the existing producing wells while improving the on-line performance of the acquired facilities."
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