Energy XXI (Bermuda) Limited announced fiscal third-quarter financial and operating results for the period ended March 31, 2008.
"Our fiscal third-quarter operating results reflect the continued success of our acquire-and-exploit strategy," Energy XXI Chairman and CEO John Schiller said. "Energy XXI remains on track to deliver a solid performance from our core producing properties during our 2008 fiscal year ending June 30, with the potential to significantly boost reserves through high-impact exploration."
For the 2008 fiscal third quarter, revenues were $167.1 million and earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) totaled $117.5 million, more than double the 2007 fiscal third-quarter revenues of $77.6 million and EBITDA of $54.5 million. Net income was $10.3 million, or $0.12 per diluted share, which included a loss of $2.7 million, or $0.03 per diluted share, for non-cash mark-to-market charges on open oil and gas derivative contracts. In the 2007 fiscal third quarter, net income was $9.6 million, or $0.11 per diluted share, which included a mark-to-market gain of $1.6 million, or $0.02 per diluted share, for open oil and gas derivative contracts.
Net cash provided by operating activities totaled $112.5 million for the 2008 fiscal third quarter, compared with $76.2 million in the 2007 fiscal third quarter. Discretionary cash flow was $96.2 million in the 2008 fiscal third quarter, compared with $47.5 million in the 2007 fiscal third quarter.
For the 2008 fiscal third quarter, sales volumes averaged 26,100 barrels of oil equivalent per day (BOE/d), compared with 14,500 BOE/d in the 2007 fiscal third quarter. The net realized price received for the company's production in the 2008 fiscal third quarter averaged $70.33 per BOE, including an $8.92 per BOE reduction due to hedging, compared with a net realized price of $59.54 per BOE, including a $7.95 per BOE contribution from hedging, in the 2007 fiscal third quarter.
During the 2008 fiscal third quarter, capital expenditures totaled $62.8 million. The fiscal-year 2008 capital budget, excluding acquisitions, is expected to approximate $300 million, which reflects about $40 million of added spending primarily associated with incremental exploration activity and development costs associated with successful exploration.
3RD QUARTER OPERATIONAL HIGHLIGHTS
During the fiscal third quarter, Energy XXI continued to implement its exploration and development program, details of which are provided in the attached Operations Report.
"The last few months have been encouraging for us from an operations standpoint," Energy XXI President and Chief Operating Officer Steve Weyel said. "We initiated drilling and recompletion work at the Main Pass properties acquired last June, with good results that should positively impact our fourth quarter. We drilled a discovery at our Lake Salvador project onshore Louisiana, helping validate the extensive pre-drill work we have done in the area. We side-tracked and resumed drilling at the high-potential Cote de Mer prospect. More recently, we gained access to 425,000 gross acres across the ultra-deep prospect trend on the shallow-water Gulf of Mexico shelf, including the re-entry of the Blackbeard West wellbore. While production volumes continued to be frustrated by infrastructure outages during the quarter, our operated properties have performed ahead of our expectations."
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