Energy XXI To Acquire Gulf Of Mexico Shelf Properties From Exxon Mobil: Energy XXI’s Move To Further Expand Its Business In The Gulf Of Mexico - Deal Analysis From GlobalData

Date: November 1, 2010
Pages: 7
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US$ 500.00
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Publisher: GlobalData
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: ECF5070AA91EN
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Energy XXI To Acquire Gulf Of Mexico Shelf Properties From Exxon Mobil: Energy XXI’s Move To Further Expand Its Business In The Gulf Of Mexico - Deal Analysis From GlobalData
Energy XXI To Acquire Gulf Of Mexico Shelf Properties From Exxon Mobil: Energy XXI’s Move To Further Expand Its Business In The Gulf Of Mexico - Deal Analysis From GlobalData

Summary

Energy XXI (Bermuda) Limited (Energy XXI), an independent oil and natural gas exploration and production company, executed a purchase and sale agreement to acquire certain shallow water Gulf of Mexico shelf oil and natural gas interests from affiliates of ExxonMobil Corporation (Exxon Mobil), an integrated oil and gas company, for a purchase consideration of $1,010m. Energy XXI will finance the acquisition by utilizing cash in hand, its corporate revolver of $750m, and $450m through an unsecured bridge loan. As per the terms of the agreement, Energy XXI has placed a 10% cash deposit into an interest-bearing account. The assets include nine fields on the Gulf of Mexico shelf, located between Energy XXI's existing core South Timbalier and Main Pass operations in water depths of 470 feet or less. The six largest fields account for 89% of the net production. The transaction is subject to preferential rights-to-purchase held by other working interest owners in the properties, as well as customary closing conditions and adjustments. It is expected to close by December 20, 2010. The transaction implies deal values of $50,500 per boe of daily production, $20.42 per boe of proved reserves, $15.30 per boe of proved and probable reserves and $7,718.58 per acre of land. The purchase is subject to preferential rights-to-purchase held by other working interest owners in the properties, in addition to customary closing conditions and adjustments. The effective date is December 1, 2010. Closing is expected by December 20, 2010.

Scope
  • Rationale behind Energy XXI acquiring Gulf of Mexico properties from ExxonMobil
  • Strategic Benefits for the companies involved
  • Geography covered - US, Deal Financials and Valuations
  • Information on ExxonMobil, Energy XXI

Reasons to buy
  • Develop a sound understanding of the major M&A's, Partnerships, And Joint Ventures taking place in North American Oil & Gas industry
  • Identify the most lucrative segments to leverage on the growth oppurtunities available in the US oil & gas market
  • Get a detailed analysis of a deal to enable you to take better decisions
1 TABLE OF CONTENTS

1.1 List of Tables
1.2 List of Figures

2 ENERGY XXI TO ACQUIRE GULF OF MEXICO SHELF PROPERTIES FROM EXXONMOBIL

2.1 Deal Overview
2.2 Deal in Brief
2.3 Energy XXI to Become One of the Largest Oil Producers in the Gulf of Mexico Shelf
2.4 Energy XXI’s Intends to Build Geographically Strong Portfolio
2.5 Energy XXI has been Raising Funds Through Equity Offerings for Both Organic and Inorganic Growth
2.6 ExxonMobil has Divested Number of Assets in 2010
2.7 Energy XXI is Acquiring the Gulf of Mexico Assets at a Discount Compared to Other Recent Transactions
2.8 Deal Financials and Valuations

3 APPENDIX

3.1 Methodology
3.2 Contact Us
3.3 Disclaimer

LIST OF TABLES

Table 1: Energy XXI (Bermuda) Limited, Equity Offerings Details, 2009-10
Table 2: ExxonMobil, Divestitures Details, 2010
Table 3: Gulf of Mexico, Assets Transactions Details, 2009-2010
Table 4: Companies Involved
Table 5: Financials of the Deal
Table 6: Target Information
Table 7: Target’s Production and Reserves Information
Table 8: Company Valuation Multiples
Table 9: Commodity Prices in $, Last Close
Table 10: Acquirer Information
Table 11: Vendor Information 6

LIST OF FIGURES

Figure 1: Energy XXI, Core Properties Before the Current Acquisition

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