EXXI: Favorite Gulf Company

PIERRE CONNOR, Capital One Bank (04/01/2011)
"Updated S-1 out yesterday. . .Production capabilities have been increased from 50K HHP/month to 75K HHP/month; power ends from 20/month to 30/month, and fluid ends from 100/month to 130/month. . .We met with EXXI management yesterday and came away confident that the company will ultimately generate more prospects (exploration/workovers/recompletions) than it estimated at the time the transaction was announced in December once it has the opportunity to fully analyze the potential of the 9 acquired fields. . .EXXI continues as our current favorite GOM name with 17% upside to our new $41 target price compared to 1% upside for our median GOM operator."

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