MLV Reiterates Hold On Energy XXI Following Fiscal Q1:15 Earnings

MLV analyst Chad Mabry reiterated a Hold rating on Energy XXI (NASDAQ:EXXI), as the company reported fiscal Q115 CFPS of $1.72, missing MLV’s estimate of $1.82 and consensus of $1.90. Adj. EPS of ($0.12) was also shy of MLV’s ($0.01) and consensus of $0.12. No price target was provided.

Mabry noted, “Management is making drastic capital spending cuts in response to the precipitous drop in oil prices. It is also targeting $300-$500 million of cash proceeds from property sales (~6 MBoe/d, or ~10% of production) and $300-$600 million from other asset rationalizations which are expected by fYE’15. While the capex cut is a positive for liquidity, it has a net negative impact on our NAV and estimates. We’re maintaining our Hold rating at the moment but could reassess as the company’s various planned monetizations come to fruition.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Chad Mabry has a total average return of -26.5% and a 10.3% success rate. Mabry has a -34.1% average return when recommending EXXI, and is ranked #3361 out of 3372 analysts.

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