The Energy Report
Notable Quotes
"With the LOI signed, we urge investors to bolster positions in FCU." (12/22/15) Fission Uranium Corp. - David Sadowski, Raymond James More >
"FCU is taking the right steps regardless of whether PLS is ultimately acquired or developed into a mine." (12/22/15) Fission Uranium Corp. - Heiko Ihle, Rodman & Renshaw More >
"I am quite excited about POE in 2016." (12/16/15) Pan Orient Energy Corp. - Chen Lin, What Is Chen Buying? What Is Chen Selling? More >
"BKX's Oklahoma asset has significant value." (12/16/15) BNK Petroleum Inc. - Michael Charlton, iA Securities More >
"EFR is one of the few companies in a position to write long-term sales contracts and deliver into them at several times its current production rate." (12/17/15) Energy Fuels Inc. - The Gold Report Interview with Eric Coffin More >
EXXI: Favorable GOM Comp
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CHRIS PIKUL, Morgan Keegan
(09/20/2010)
"Following year-end results, McMoRan, Energy XXI's partner in the ultra-deep shelf exploratory program, has agreed to buy out the shallow-water assets from Plains, another partner in the program. Given deal terms of $75M cash and 51M MMR shares, we calculate deal metrics of $13.50/Mcfe of proved reserves and $18K/Flowing Mcfe—a healthy premium to EXXI's current valuation of about 4.50/Mcfe and $13,400/Flowing Mcfe. An update on Blackbeard East suggests some hydrocarbon-bearing sands have been encountered. . .appears to be encouraging results so far. With two significant delineation wells underway at Davy Jones and Blackbeard, we think the risk-reward outlook for EXXI remains very attractive, despite recent uncertainty surrounding GOM operators. Therefore, we reiterate our Outperform rating and $35 price target despite a more favorable market M&A comp." |
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Under SEC rules, analysts are required to disclose their interest in securities that they cover. We strongly encourage you to contact them to understand any potential conflicts of interest they may have.
More Experts
"FCU's deal with CGN helps to financially and technically derisk PLS." (12/21/15) Fission Uranium Corp. - David Talbot, More >
"NXE is our top pick across all commodities." (12/22/15) NexGen Energy Ltd. - The Energy Report Interview with Rob Chang More >
"FCU will continue to explore and add pounds to what is already a world-class project." (12/22/15) Fission Uranium Corp. - The Energy Report Interview with Rob Chang More >
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"FCU intends to sell $82M or 19.9% of the company to CGN Mining." (12/22/15) Fission Uranium Corp. - Jeb Handwerger, Gold Stock Trades More >