Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

Investor_presentation by xiuliliaofz

VIEWS: 8 PAGES: 43

									         Investor Presentation

         NASDAQ: EXXI   AIM:EXXI   www.energyxxi.com   March 2012




3/2/12
Disclaimer

This presentation contains statements about future events and expectations that can be
characterized as forward-looking statements, including, in particular, statements about the
Company’s plans, strategies and prospects. The use of the words “anticipate,” “estimate,” “expect,”
“may,” “project,” “believe” and similar expressions are intended to identify forward-looking
statements. Although the Company believes that the plans, intentions and expectations reflected in
or suggested by such forward-looking statements are reasonable, they do involve certain
assumptions, risks and uncertainties, and the Company cannot assure you that those expectations
will prove to have been correct. Actual results could differ materially from those anticipated in these
forward-looking statements as a result of the factors described in this presentation. Many of these
factors are beyond the Company’s ability to control or predict. The Company cannot assure you that
its future results will meet its expectations and investors are cautioned not to place undue reliance
on any forward-looking statement made by the Company or its authorized representatives. All
subsequent written and oral forward-looking statements attributable to the Company and persons
acting on its behalf are qualified in their entirety by the cautionary statements contained in this
paragraph and elsewhere in this presentation.

The Company does not have any obligation or undertaking to disseminate any updates or revisions
to any forward-looking statement contained in this presentation or the admission document to reflect
any change in the Company’s expectations about the statement or any change in events, conditions
or circumstances on which the statement is based.




                                                                                                          2
Highlights
                                                                    Major EXXI Fields
 The 3rd Largest Producer on the
  Gulf of Mexico Shelf

   72% of Production is Oil
 Operate 6 of the 11 Largest Oil
  Fields on the Gulf of Mexico
  Shelf
 Reserves and Production are
  ~86% Operated
 70% of Proved Reserves Fall                                           Financial Profile
    Under the Proved Developed         Ticker                                                              EXXI
    Category                           Market Cap (2/28/12)                                         $3.4 Billion*
                                       Insider Ownership                                                  ~5.5%
   35% of Probable Reserves are
    Associated with Currently Active   FY 2012 Est. Budget                                             $500 MM

    Wellbores                          Proved Reserves                                              116.6 MBOE
                                       Acreage (net)                                                    254,891
                                       Production                                                 42,700 BOE/d**
                                         *Fully diluted, 87 million shares
                                        **Actual production for quarter ended December 31, 2011



                                                                                                                    3
Strong Focus – 72% Crude

Energy XXI operates
6 of the 11 largest oil
fields on the                                                                             West Delta 73
                                                                                          3,950
                                                                                          4,400 BOE/d
                                                                                                               West Delta 30
                                                                                                               West Delta 30
                                                                                                               3,000 BOE/d
                                                                                                               2,380 BOE/d
Gulf of Mexico shelf                                                 Grand Isle 16, 18
                                                                     Grand Isle 16, 18
                                                                       9,590 BOE/d
                                                                       2,700 BOE/d                                          Main Pass
                                                                                                                           Main Pass
                                                                                                                           61, 61-7374
                                                                                                                               73 &
                                          Laphroaig-Pontiff                                                               10,740 BOE/d
                                                                                                                          10,000 BOE/d
                                            1,200 BOE/d




                                                                     South Timbalier 21
                                                                     South Timbalier 21
                                                                        2,350 BOE/d
                                                                       2,700 BOE/d



                                                        South Timbalier 54
                                                          3,630 BOE/d                                                  South Pass 49
                                                                                                                        2,100 BOE/d
                                                                                                    South Pass 89
                                                                                                    South Pass 89
                                                                                                     3,100 BOE/d
                                                                                                     6,150 BOE/d
                                                                                                                               Viosca Knoll 1003
                                                                                                                                  675 BOE/d
                   East Cameron 334/335         Eugene Island 330
                                                 Eugene Island 330
                        1,260 BOE/d                1,040 BOE/d
                                                     300




                                                                                                            Green = Oil        Red = Gas
 Net Recent Run Rates for Major EXXI Fields


                                                                                                                                              4
Continued Reserve Growth
    Yearly Proved Reserves Growth        Yearly 3P Reserves Growth




                               116.6
                                                                     196.2




                 75.6


                                                    104.1
   53.1
                                       81.7




   2009         2010           2011    2009         2010             2011

              Crude     Gas                       Crude     Gas




                                                                             5
    Low Cost Development of 3P Reserves
                                                                                    3P: 196 MMBOE

                                                           POSS DEV                    POSS
                                                           4 MMBOE                    UNDEV
                                                           $3.41/BOE                30 MMBOE
                                                                                    $4.98/BOE
                                                                                                     PDP
                                                            PROB                                  60 MMBOE
                                                            UNDEV
                                                          30 MMBOE
                                                          $6.99/BOE


                                                                                           PUD
                                                            PROB DEV                    35 MMBOE                PDN
                                                            16 MMBOE                    $11.69/BOE           22 MMBOE
                                                            $2.39/BOE                                        $7.25/BOE
         Total Resources
  196.2 MMBOE, PV-10 $5,470 MM1                                                                                   Major Field 3P Reserves

                      Possible                                                                            GI 43             Other
                        34.3                                                                            6 MMBOE          33 MMBOE
                                                                                                                                      Bayou Carlin
                      MMBOE                                                                                3%               17%
                                                                                                  SFWB                                 39 MMBOE
                                          Proved                                                6 MMBOE                                   20%             ST 21
                                           116.6                                                   3%                                                  14 MMBOE
                                                                                                          ST 54
                                          MMBOE                                                                                                            7%
              Probable                                                                                 10 MMBOE
                45.3                     PV-10                                                             5%
              MMBOE                      $3,750 MM1                                                       MP 73
                                                                                                                                                          SP 49
                                                                                                        7 MMBOE
                                                                                                                      MP 61                            12 MMBOE
                                                                                                           4%
                                                                                                                    30 MMBOE                               6%
                                                                                                                       15%            WD 73
                                                                                                                                    26 MMBOE           WD 30
                                                                                                                                       14%           14 MMBOE
1 Before tax, as of 6-30-11, using 2-21-12 strip pricing. Crude pricing is Brent.                                                                        7%



                                                                                                                                                          6
Shifting From Acquisition to Development
                  CAPEX Allocation                       Acquisition Cost ($MM)
600
       Drill & Complete, Recomplete &             1200
       Facilities
       Abandonment
                                                                            $1,012
500    G&G, Land, Admin
                                                  1000
       G&A


400
                                                  800




                                                                              ExxonMobil Acquisition
300
                                        430       600

                              232
200                                               400
           110
                                                         $293




                                                          MIT Acquisition
100                                               200
                              78
             78
                                        23
                               6        10
              7               43
             28                         37                                                              $6
  0                                                  0
      FY10 - $223MM FY11 - $359MM FY12 - $500MM          FY10               FY11                       FY12




                                                                                                              7
Record Growth
300                                                1.25
                                                                                                            $824.8
                                           $1.11                                                 $3.76                  4
                                                           800
                                                   1                                                                    3.5
                                          $226
                                                                                                                        3
200                         $0.76                  0.75    600
                                 $187
                                                                                             $502.4
                                                                                                                        2.5
                        $164
             $155
                                                   0.5
                                                           400                                                          2

      $107                  $0.36
                                                                     $277.0       $283.7                                1.5
100                                                0.25

                    $0.19                                  200                                                          1
                                                   0                          $0.56
                                                                                                                        0.5
 -$0.17                                                    -$19.77                                  $0.42
  0                                                -0.25     0                                                          0
      Dec 10 Mar 11 Jun 11 Sep 11 Dec 11                             FY09             FY10   FY11           FY12*
                                                                                                      *Annualized 1st Half
                    EBITDA          EPS                                          EBITDA        EPS


              EXXI continues to deliver value to shareholders

                                                                                                                       8
Consistently Improving Balance Sheet
                     EBITDA ($MM)                                         Net Income ($MM)
                                                                                                       $97
$250                                           $225     $100

$200                                                     $80

$150                                                     $60
         $107
$100                                                     $40

 $50                                                     $20    $11

  $0                                                      $0
         Dec 10    Mar 11    Jun 11   Sep 11   Dec 11          Dec 10     Mar 11    Jun 11   Sep 11   Dec 11




                    Net Debt ($MM)                                      Net Debt / Total Cap (%)
$1,300    $1,270                                        100%

                                                         80%
$1,100
                                                $950            58%
                                                         60%
 $900                                                                                                  44%
                                                         40%

 $700
                                                         20%


 $500                                                     0%
          Dec 10    Mar 11   Jun 11   Sep 11   Dec 11          Dec 10      Mar 11   Jun 11   Sep 11   Dec 11



                                                                                                               9
Current Rig Activity = >25% of GOM Shelf Activity


                                                                                                            West Delta 73
                                                                              Grand Isle 16                 Nabors P-17
                                                                                Ensco 90                      Magnum
                                                                    Multi-well Development Program           Completing
            Cameron Parish, LA
                 Unit 201
              Lineham Creek                                                                                        Main Pass 60/61
           Operations Underway                               South Timbalier 54
                                                                                                                   Hercules 205 Rig
                                                                Ensco 99 Rig
                                                                                                                       Bullfrog
                                                                  Camshaft
                                                                                                                       Drilling
                                                          Running Production Casing


          South Marsh Island 230
              Rowan EXL 3
              Davy Jones #1
               Completing




                                                                                                          South Timbalier 144
                                                                                                        Rowan Ralph Coffman Rig
                                                                                                            Blackbeard East
                                   Eugene Island 223                                                         Demobilizing
                                    Rowan EXL1 Rig
                                         Lafitte
                                   Exploration Drilling
                                                                                                      Ship Shoal 188 #3
                                                                                                     Rowan Louisiana Rig
                                                                      Eugene Island 330              Blackbeard West #2
                                                                         Ensco 75 Rig                 Drilling Out Liner
                                                               Multi-Well Development Program

 *Green indicates operated rigs


                                                                                                                                  10
 Energy XXI Rig Schedule
Field                               Jan-12            Feb-12        Mar-12           Apr-12      May-12   Jun-12   FY13 Jul-12   FY13 Aug-12

South Marsh Island 230
                                                Davy Jones
Rowan EXL 3

West Delta 73
                                             Magnum                     Miller
Nabors P-17

Main Pass 60
                                                      Bullfrog
Hercules 205

Grand Isle 16
                                      Winters
Hercules 201

Eugene Island 223
                                                                 Lafitte - MMR
Rowan EXL 1

Grand Isle 16 / South Tim 54   BB
                               -3                   Camshaft
Ensco 99

Grand Isle 16/ South Tim 54
                                                                       Costello
Ensco 90

Main Pass 61
                                                                           Carinos
Rowan Coffman

Eugene Island 330
                                             D-16
Ensco 75

South Timbalier 144
                                       Blackbeard East
Rowan Coffman

Ship Shoal 188
                                                          Blackbeard West Shallow
Rowan LA

West Delta 73
                                                                                          Golden Bear
Rowan EXL 3

Lineham Creek
                                                                                       Lineham Creek
Unit 201

                               Development             Rig        Operated by     Exploration
                                   Well              Workover       Others           Well


                                                                                                                                        11
    Multi-Year Drilling Inventory 2012–15
FY 2012                                      2013                                2014                                 2015
                                                        95+ Additional Opportunities Identified for 2016 and Beyond
Sunny (R22ST)^              Pontiff #2         Hyden Pud         Glendullan*         Maroon Pud      Quito*              Lancer*
EI 330 (5 wells)            Traynor*           Torrey            Brahma, Winne*      Hood*           Bogota*             Speyside*
Winters^                    RI N-Prospect*     Southwest         Maduro*             Jumbo South*    Brasilia            Talisker*
Bullfrog*                   Cote De Mer        Flywheel*         Upmann              Stricker*       Berkman*            Grissom*
Magnum                      Carinos            Alternator*       Punch               Walker Pud      Stargell*           Chardonnay
Camshaft                    Bordeaux           Habanitas*        Don Lino            Glenlossie*     Laphroaig 8         Orion D*
Costello                    Angelenos*         Titleist          Rainier*            Aniston*        Glenlossie 2*       Lee*
Pi Deep                     Don Lino South*    Rosko_N           Tilapia*            Twin Sisters*   Ryan*               Price*
Golden Bear*                Red Pud            Rosko_S1          Swisher Sweet       Gurkha*         Stargel*            Shaw*
Quandry                     West Pud           Scully            Aliadros            RI DA 008*      Sirus*              Sheridan*
Sparkplug                   Bearclaw Pud       Mulder            Carburetor*         SP 49 D70*      Gehrig B*           Bacchus*
Weimer                      Crestone Pud       Inchgrower        Marcus*             SP 49 A-10ST    Eskimo*             Rosko N3
Wombat*                     Elbert Pud         Chrome*           Clutch*             Pontiff #3      Cohiba*             Kojak Pud
Big Sky                     Trophy*                              Dudley*             Marler Pud      Filter*             Stealth 2
Rosebank                    Crete*                               SP 49 A-21 Offset   Rosko N2        Callaway 1          Stealth 3
Miller                      Whaler*                              Stealth 1           Pegasus         Momus               Whaler Sout
                            Quintero                             Viceroy             Grizzly*        Asiago              Stealth 4
                                                                 El Diente Pud       Whistler Pud    Mozarella           Winnebago 2
                                                                 SP 49 A-21ST                        ST 21 124ST         Chambord
GREEN – denotes Oil                                                                                  SP 49 Loc 8 Twin    Dailuaine*
RED– denotes Gas                                                                                     SP 49 Infill 1      Tormore*
                                                                                                     SP 49 SP33 1        North Gouda
*denotes exploration well
^denotes completed well                                                                              SP 49 SP33 2        Guererro*

Note: Inventory list does not include ongoing recompletion program

                                                                                                                                       12
Operations Overview




                      13
ExxonMobil Oil Production Increases 40%

                             25



                             20
  Thousand Barrels per Day




                                                                         7.6

                             15                                 6.1
                                   6.5           6.1

                             10

                                                                         13.8
                                                                12.0
                             5     9.9          10.3



                             0
                                  3Q F11       4Q F11          1Q F12   2Q F12

                                           MBbl/d Crude   MBOE/d Gas




                                                                                 14
Main Pass Complex – 100% WI
                        Gross Field BOE/d                                   Ashton and Onyx Wells Re-
18000                                                                        Defined Salt Model
16000                                                        13,585
                                                             BOE/d          Both Wells Tested Salt
14000
                                                                             Flanks Updip to Production
12000

10000                                                                       Ashton TD’d at 8,353’ TVD
 8000                                                                        and Encountered Seven Pay
 6000
                                                                             Sands
 4000
                                                                            Onyx TD’d at 5,642’ TVD and
 2000                                                                        Encountered Two Pay Sands
   0
   Jun-07 Jan-08 Aug-08 Mar-09 Oct-09 May-10 Dec-10 Jul-11 Mar-12           Onyx Production Increased
                                                                             to 3,100 Barrels per Day

        Well     Type of Activity      Reservoir            Status                     Program Stats

 Ashton/Onyx    Development Drill   Big A Sand, LP-1G     Completed       Capital ($MM)                     30.5

    Carinos     Development Drill       BA-4AA          Scheduled - Mar   Payout (avg. # months per well)   6
  Don Tomas     Development Drill     BA-4AA, BA-5      Scheduled - Apr




                                                                                                                15
 Grand Isle 16 Well Activity
                         Gross Field BOE/d
 14,000
                                                                     12,113
                                                                     BOE/d
 12,000                                                                                      Successfully Recompleted 10 Wells
 10,000
                                                                                             Plan To Spud “Costello” March 2012
  8,000
                   EXXI                                                                      Winters On-Line February 21, 2012,
  6,000     acquired operations
                                                                                              reaching 45 MMcf/d & 711 Bbl/d
  4,000
                                                                                             Current Production: 12,113 BOEPD
  2,000

       0
       Dec-10   Feb-11   Apr-11     Jun-11   Aug-11    Oct-11   Dec-11   Feb-12   Apr-12

Program Summary
   Well              Type of Activity                  Reservoir               Status                        Program Stats
J-30 ST1        Recompletion                            B-2                   Complete
                                                                                                Capital ($MM)                     62.1
                Recompletion - Single w/2          B-3 (Primary)
J-32 ST1                                                                      Complete
                Alt                            B-2A & B-1 (Alternates)
P-38            Recompletion - Dual                 C-1 and B-4               Complete          Payout (avg. # months per well)    7.4
P-27 ST3        Recompletion                             BF-1                 Complete
Q-43            Recompletion                              C-2                 Complete
J-21            Recompletion                              C-1                 Complete
BB-2/BB-5       TT Recompletions                       K-7 Upper              Complete
Sunny           Development Drill - Dual           C-4 and B-4                Complete
                Recompletion - Single w/1          B-1 (Primary)
T-33 ST1                                                                      Complete
                Alt                               BF-1 (Alternate)
BB-3            Recompletion                           K-4A                   Complete
Winters         Development Drill                         K-2                 Complete
Costello        Development Drill                     C-4 and C-4A        Scheduled - Mar


                                                                                                                                         16
Grand Isle 16 – Winters
  Winters Well Log K-2 Sand                K-2 Sand Structure Map



                                                              LKG -16,564




                                                  Winters




                                          Salt



                               Drilled to 17,400’ MD / 16,547’ TVD
                               Encountered 83’ Net Pay in K-2 sands
                               First Production – Feb. 23, 2012
                               Ramped to 45 MMcf/d & 711 Bbl/d


                                                                            17
Grand Isle 16 – Costello
                                                  C-4 Sand Structure Map
Costello Type Log C-4/C-
        4A Sands




                            Expected to Spud March 2012
                            Single Completion Targeting the C-4/C-4A Sands With Two Packs
                            Planned TD = 12,883’ MD
                            Planned IP = 1,000 BOE/d
                            First Production – April 2012

                                                                                         18
West Delta 73 - Well Activity
                                   Gross Field BOE/d
 7,000
              EXXI acquired operations Compressor                                              4 PUD Development Wells with Planned
 6,000                                                Repairs              5,000                IP of 3,250 BOE/d Net
                                                                           BOE/d
 5,000
                                                                                               1 Exploration Well with Planned IP of
 4,000                                                                                          2,200 BOE/d Net

 3,000                                                                                         9 Slots Available to Drill with Platform
                                                                                                Rig
 2,000

 1,000
                  Tropical Storm Lee
                                                                                               Current Production 5,000 BOE/d

    0
     Dec-10    Feb-11     Apr-11    Jun-11   Aug-11   Oct-11    Dec-11   Feb-12    Apr-12


Program Summary
    Well                Type of Activity              Reservoir                   Status                      Program Stats
Magnum              Development Drill                    F-35               In Progress          Capital ($MM)                     55.2
Miller PUD          Development Drill                  F-45 RA           Scheduled - Mar
                                                                                                 Payout (avg. # months per well)   6.6
Quandry             Development Drill                  F-40 RA           Scheduled - Apr
Golden Bear             Exploratory Drill                K-30            Scheduled - Apr
Big Sky 2           Development Drill                  F-30 RA           Scheduled - May




                                                                                                                                          19
West Delta 73 – Magnum
      MAGNUM LOG                           F-35 SAND STRUCTURE MAP




F30
         -7893
                 OO/W -7960


                                  MAGNUM


F35
         -8000




                                 Drilled to 8,500’ TVD
F40
                                 Oil Accumulations Found in F-30, F-35 and F-40
                                 50’ Net Oil Pay
         -8207   OO/W -8265

 -8236
                                 Planned IP: Est. 1,000 BOE/d
                 OO/W -8260
                                 First production: March 2012


                                                                                   20
 West Delta 73 – Miller Dev Drill
       WD 73 TYPE LOG                   PLIOCENE F-45 SAND STRUCTURE MAP

                                                               MMR #2 PTD 23,100’
                                                                                             A’

F20
      Insert
      type log                                                                Rob L


F30   for
 F
      Miller                                                                   Operc

Sds
F35   here                             MILLER

                                                                          Time Slice Level
                                                                             (Gyrodina)



F40

F45


                        F45

                               Expected Spud March 2012
                               Primarily targeting the F-45 sand; F-35 sand secondary
                                objective
                               Proposed Depth: 8,923’MD / 8,500’ TVD
                               Planned IP: 900 BOPD
                               First Production: April 2012

                                                                                                  21
West Delta 73 – Golden Bear
   WD 73 #C-38st2              K-30 STRUCTURE / AMPLITUDE MAP




                     Expected to Spud April 2012

                     Proposed TD: 14,100’MD / 12,900’TVD

    98 BCF; 2 MBO    Reserve Potential: 56 BCF

                     Planned IP: > 30 MMCF/d


                                                                22
South Timbalier 54 Well Activity
                                 Gross Field BOE/d
6,000
                                    EXXI                                  4,600
                        acquired operations August 9th                    BOE/d
                                                                                         3-well Program with Planned IP of
5,000                                                                                     5,250 BOE/d

4,000                                                                                       •   1 Gas Well (Exploration)

3,000
                                                                                            •   2 Oil Wells (Development)

2,000


1,000


   0
    Dec-10     Feb-11   Apr-11   Jun-11   Aug-11   Oct-11    Dec-11   Feb-12   Apr-12


 Program Summary
        Well             Type of Activity             Reservoir                  Status                       Program Stats
 B-33              TT Recompletion                          H-3                Completed         Capital ($MM)                     39.5
 E-14 ST 2         TT Recompletion                          G-3                Completed
                                                                                                 Payout (avg. # months per well)   4
                                                   G-6B, G-7, G-8,
 Camshaft          Development Drill                                           Completing
                                                       G-9A
 Sparkplug         Development Drill               H-1 thru H-3B          Scheduled - Mar
 Wombat            Exploration Drill                        H-11          Scheduled - May




                                                                                                                                          23
South Timbalier 54 – Camshaft
  Camshaft Log                 G-9A Sand Structure Map




                                              Camshaft




                  Drilled to 12,000’ TVD
                  Logged ~180 net feet of pay in the G-6B, G-8, G-9A sands
                  Currently Dual-Completing the G-9A and G-8 Sands
                  Planned IP = 1,700 BOE/d
                  First Production – March 2012

                                                                          24
Probing the Depths




                     25
    Ultra-Deep Well Summary
                Davy Jones #1                                                       Blackbeard West
                SMI Block 230                                                         ST Block 168
                  20’ water                                                             80’ water




                                                   Blackbeard West #2
                                                      SS Block 188
                Davy Jones Offset                       72’ water
                  SMI Block 234
                    20’ water




                          Lafitte
                                                                                            Blackbeard East #1
                       EI Block 223
                        140’ water                                                             ST Block 144
                                                                                                 85’ water


Davy Jones #1                         Lafitte                                     Blackbeard East
 200’ net Wilcox pay                  211 net feet pay including pay zones in    178 net feet pay in Miocene
 Drilled and cased to 29,122’           Cris-R and Frio                           1st Frio sand offshore
 Production early 2012                Coring @ 33,854’                           300’ of Sparta section
                                       PTD 34,000’ TVD                            Drilled and cased to 33,318’ TVD


Davy Jones Offset                     Blackbeard West #2
                                                                                  Blackbeard West
 120 net feet of pay in Wilcox        Spud on November 25, 2011
                                                                                   Identified 4 hydrocarbon bearing sands in
 192 net feet of potential pay in     Running Liner to 17,650’
                                                                                     Miocene below 30,000’
  Tuscaloosa and Lower Miocene         Targeting Miocene sands below salt weld
                                                                                   Set record for deepest well drilled below
 Drilled and cased to 30,731          PTD 26,000’ TVD
                                                                                     mud line in GOM



                                                                                                                           26
Davy Jones #1 Well Update
 Mud Motor Recovered
 5” Liner Cleaned Out to 29,800’
 Drilling Mud Displaced With Completion Fluid
 Set Bridge Plug; Logged w/PNL
 Run and Set Perforating Guns


 Remaining Operations
     Run tubing and install tree
     Run perforating gun firing head
     Flow test well in current quarter




                                                 27
   Blackbeard – Summary




 Located in 85 Feet of Water




Blackbeard West - Shallow         Blackbeard West                         Blackbeard East
 Spud on November 25, 2011        Identified 4 hydrocarbon bearing       Drilled to 33,882’ (new record)
 Running Liner to 17,650’          sands in Miocene below 30,000’         178 net feet of pay in Miocene
 Targeting Miocene sands below    Set record for deepest well drilled    1st Frio sand offshore Central LA
  salt weld                         below mud line in GOM                  300 feet of Sparta section
 PTD 26,000’                                                              Cased and suspended pending
                                                                            completion

                                                                                                        28
   Blackbeard West #2 – Summary
                                           ST 168 Unit




                                     Ship Shoal                                   South Timbalier

 Located in 75 Feet of Water

                                                              BBW #3                                BBW


 A Large 3-way Structural Closure
                                        Younger Miocene Pay
Underneath and Adjacent to a Salt             Zones

Weld

 PTD 26,000’TVD

Targeting the Upper Miocene
Amplitudes Seen Below the Salt
Weld and Serves as a Unit well
                                                                       5000 ft Target
                                                                          Interval

 Running Liner @ 17,650’                      Upper Miocene




 WI 22.9% NRI 17.5%



                                                                                                          29
    Lafitte – Summary
 Located at Eugene Island Block 223 in 140’   NE                                                               SW
  of water

 Very Large 3-way Structure / 2,000’ Column
  Potential

 Targeting Miocene, Frio & Sparta Sections
                                                    Current Depth
 Coring @ 33,854’                                     33,764’
  Target = Sparta section

 PTD 34,000’TVD

 WI 18% NRI 14.35%
                                                           SALT
                                                                    (Potentially in Upper Lower Miocene)

                            Lafitte




                                                                                                           30
Ultra-Deep Resource Potential*
                                                                                 Gross               EXXI
Prospect                                                  Sand Age             Resource          Net Resource
                                                                             Potential (Tcfe)   Potential (Tcfe)
                                                            Wilcox                3.88               0.48

Davy Jones #1 and #2                                     Tuscaloosa               0.39               0.05

                                                    Lower Cretaceous              0.35               0.04

                                                           Miocene                0.90               0.15
Blackbeard West
                                                          Oligocene             Not yet evaluated by NSAI

                                                           Miocene                2.41               0.35
Blackbeard East
                                                         Frio/Sparta            Not yet evaluated by NSAI

Lafitte                                                 Miocene/Frio              0.54               0.09

                                                                    Total:        8.47               1.15


*Energy XXI estimates provided by Netherland, Sewell & Associates




                                                                                                                   31
      Key Investment Highlights
                      % Oil Production

 70%
         69.1%     69.5%
                            65.9%     67.1%    68.5%
                                                       71.6%
                                                                   3rd Largest Producer on the Gulf
 60%
                                                                    of Mexico Shelf
 50%                                                                  72% of production is oil
        Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11
                                                                      Large resource potential
                Oil/Gas Price Relationship*
                                                                      Multi-year drilling inventory
 40                                                    33.7x
 30               22.5x    22.4x     24.9x     24.5x             Strong Financial Results
 20     16.4x

 10                                                                   Crude prices at a premium to Brent
  0
       Sep 10    Dec 10    Mar 11    Jun 11   Sep 11   Dec 11         Consistently improving balance sheet

         % of Pre-Hedged Revenues from Oil
 100%
                   89.5%              89.4%    89.9%
                                                       93.0%            EXXI is positioned for the future.
          85.9%              87.9%
  90%
  80%
  70%
  60%
          Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11

*Based on EXXI’s realized pre-hedge oil/gas prices


                                                                                                             32
Contact
NASDAQ: EXXI   AIM:EXXI   www.energyxxi.com




Stewart Lawrence, IRO                    Greg Smith, Director of IR

Energy XXI (Bermuda) Limited             Energy XXI (Bermuda) Limited
1021 Main Street, Suite 2626             1021 Main Street, Suite 2626
Houston, Texas 77002                     Houston, Texas 77002

713.351.3006                             713.351.3149

slawrence@energyxxi.com                  gsmith@energyxxi.com
Addendum




           34
Energy XXI: Growing Larger and Stronger
          Production (MBOE/d)                                Reserves (MMBOE)

  50                                              140.0
                                   42.7                                             116.6
                                                  120.0
  40                                                                  54%
                                                  100.0
                       29.4
                                                               75.6
  30
          20.9
                                                   80.0
                                                                                                Growing
                                                   60.0
  20
                                                   40.0
                                                                                                 Production
  10
                                                   20.0

   0                                                 -                                          Replacing
       FY 2Q 2010 FY 2Q 2011 FY 2Q 2012                      6/30/2010            6/30/2011
                                                                                                 Reserves
          FY11 Replacement of                              Net Debt/($k/BOE/d)
              Production                          50.00
20.0
                                                           $37.89
                                                                         $43.13
                                                                                                Generating
                                                  40.00
15.0                   24%          2.4                                              48%         Strong Free
                                                  30.00
10.0
                                    3.9
                                                                                      $22.24     Cash Flow
             12.8                                 20.00
 5.0                                9.6
                                                  10.00
 0.0
          Production           Replacement
                                                     -
       Production             Drill and Recomp.
                                                          FY 2Q 2010 FY 2Q 2011 FY 2Q 2012
       Adds to Exxon          Revisions



                                                                                                               35
 Enhanced Balance Sheet & Liquidity
                                                                      ($ Millions)

                                                   6/30/2009   6/30/2010     6/30/2011   12/31/2011


Cash and cash equivalents (incl. cash at parent)     $89         $14            $28         $79
Short-term debt                                       $4          $3             $4         $2


Long-term debt (principal amounts):
Revolving credit facility                            235         109            108         28
Senior Notes/Other Lien                              624         619           1,000       1,000
Other long-term debt                                  ---         1                  0       1
 Total long-term debt                                859         729           1,108       1,029


Net Debt                                             $774        $718          $1,084       952


Total Proved Reserves (MMBOE)                        53.1        75.6           116.7      116.7*


 Net Debt / Total Proved                            $14.58      $9.50          $9.29       $8.16
 Net Debt/Total Capitalization (Book)               85.9%       62.2%          53.4%       43.9%
 Net Debt/Total Capitalization (Market)             91.1%       42.9%          27.4%       25.5%
 *As of 6/30/11


                                                                                                    36
Aggressive Debt Paydown




                          37
Operating Data per BOE
                                                   Quarter Ended
                              9/30/10   12/31/10   03/31/11   06/30/11   9/30/11   12/31/11


MBOE/d                         25.9       29.4      41.4       42.1       40.8      42.7
Oil %                          69%       70%        66%        67%        69%       72%
Revenue (Pre-hedge)           57.73      64.57      71.24      78.90     74.05      83.40
LOE
 Insurance Expense             2.58       2.36      1.76       2.30       1.99      1.81
 Workover/Maintenance          3.19       1.52       1.11      4.51       1.77      3.26
 Direct LOE                   12.74      12.56      14.66      15.55     15.17      13.80
 Gathering & Transportation    0.01       0.29      1.28       1.79       1.64      0.86
DD&A                          22.67      23.27      24.52      22.24     22.60      22.28
G&A                            7.80       5.84      6.22       4.58       5.15      5.64
Production Taxes/Other         2.31       2.00      2.85       2.32       0.40      3.90

Hedging Impact                 2.64      (0.23)     (1.78)     (5.05)     1.86      3.27
EBITDA                        31.74      39.77      41.75      42.80     49.79      57.40


                                                                                            38
     Hedge Profile
                $425                                                                                    100%


                                                                                                        90%
                                                                                                                                        Est. Net Effective Price**
                                                                                                                                                  FY 12       FY 13
                                                                                                        80%                            Crude      $116.96 $115.37
                                                                                                                                       Nat Gas    $3.02      $3.53
                                                                                                        70%




                                                                                                               Percent of PDP Hedged
                                                                                                        60%
Revenue ($MM)




                                                                                                        50%


                                                                                                        40%


                                                                                                        30%


                                                                                                                                       Total Est. Rev. @ Strip*
                                                                                                        20%
                                                                                                                                       Total Revenue Hedged - NG Collars & 3Way Collars
                                                                                                                                       Total Revenue Hedged - Brent Collars & 3W Collars
                                                                                                        10%                            Total Revenue Hedged - Brent Put Spreads
                                                                                                                                       Total Revenue Hedged - WTI Collars
                                                                                                                                       Total Revenue Hedged - WTI 3W Collars
                  $0                                                                                    0%
                                                                                                                                       Nat Gas Hedge Vol. (% of Compliance PDP)
                       Q3 - FY Q4 - FY Q1 - FY Q2 - FY Q3- FY Q4 - FY Q1 - FY Q2 - FY Q3 - FY Q4 - FY
                         12      12      13      13     13      13      14      14      14      14                                     Crude Hedge Vol. (% of Compliance PDP)
      *Strip: $105.04/bbl & $3.39Mmbtu plus forecasted HLS spread $7.52 as of February 29, 2012
     ** Includes effects of WTI & NG Hedge monetizations


                                                                                                                                                                                           39
   Updated Hedging Position*
                     Fiscal              Instrument
 Period                                                         Daily Volumes      Average Price                                 Index
                     Quarter             Type

CRUDE OIL
1/2012-3/2012       Q3 2012              Put Spreads            5,000 bbl/day      $65.00 sub-floor; $85.00 floor                BRENT
1/2012-6/2012       Q3-Q4 2012           Collars                7,700 bbl/day      $72.60 floor,$100.19 cap                      WTI
1/2012-6/2012       Q3-Q4 2012           Collars                5,000 bbl/day      $87.00 floor,$114.24 cap                      BRENT
1/2012-6/2012       Q3-Q4 2012           Three-Way Collars      9,837 bbl/day      $66.93 sub-floor, $86.93 floor, $133.55 cap   BRENT
7/2012-6/2013       Q1-Q4 2013           Collars                5,600 bbl/day      $72.90 floor,$101.87 cap                      WTI
7/2012-6/2013       Q1-Q4 2013           Three-Way Collars      5,000 bbl/day      $70.00 sub-floor, 90 floor,$136.32 cap        WTI
7/2012-6/2013       Q1-Q4 2013           Collars                6,700 bbl/day      $82.62 floor,$122.08 cap                      BRENT
7/2012-6/2013       Q1-Q4 2013           Three-Way Collars      8,400 bbl/day      $65.76 sub-floor, $85.97 floor, $135.45 cap   BRENT
7/2013-12/2013      Q1-Q2 2014           Collars                3,500 bbl/day      $73.57 floor, $105.63 cap                     WTI
7/2013-12/2013      Q1-Q2 2014           Collars                8,500 bbl/day      $80.00 floor, $126.78 cap                     BRENT

7/2013-6/2014       Q1-Q4 2014           Three-Way Collars      3,800 bbl/day      $62.99 sub-floor, $83.99 floor, $140.42 cap   BRENT

7/2013-6/2014       Q1-Q4 2014           Three-Way Collars      7,200 bbl/day      $70.00 sub-floor, 90 floor,$136.74 cap        WTI
7/2014-12/2014      Q1-Q2 2015           Three-Way Collars      3,000 bbl/day      $65.00 sub-floor, $85.00 floor, $140.00 cap   BRENT

7/2014-12/2014      Q1-Q2 2015           Three-Way Collars      9,500 bbl/day      $70.00 sub-floor, 90 floor,$137.17 cap        WTI

NATURAL GAS
7/2012-6/2013       Q1-Q4 2013           Three-Way Collars      30,000 MMBtu/day   $4.07 sub-floor, $4.93 floor, $5.87 cap       NYMEX
7/2013-12/2013      Q1-Q2 2014           Three-Way Collars      30,000 MMBtu/day   $4.07 sub-floor, $4.93 floor, $5.87 cap       NYMEX




  *Updated positions effective 1/1/2012-12/31/2014, updated 3/1/2012

                                                                                                                                         40
Realized Gains – Beating WTI
$120

$115

$110

$105

$100

$95

$90

$85

$80

$75




                                                      EXXI   WTI


                    EXXI realized crude prices have consistently beat WTI

   Note: Crude prices excluding the impact of NGLs.



                                                                            41
    Blackbeard East – Summary



                                             Blackbeard
                                             West



 Located in 85 Feet of Water

                                                                TD


 Very Large 3-way Structure /
2,500’ Column Potential

 Final TD 33,882’MD/ 33,318’TVD          Structural Cross Section Through Blackbeard Complex

 Logged Pay Within the Miocene and
Frio (Oligocene) Sections, plus 300’ of
highly fractured Sparta section

 Cased to 33,318’ TD; Will test the
Sparta section

 WI 18% NRI 14.35%



                                                                                                42
Barataria - Lafitte - Captain Blood Cross Section
                      Barataria         EAST                  Lafitte                  Captain Blood   SOUTH
              WEST
                                                  Drilling

                       +9.85 Miles
                       -                                                 +15.2 Miles
                                                                         -




             S A LT
                                                                           SALT

                                                             Salt Weld

  -20,000’                                                                                                     -20,000’



                                                             Salt
                                     TD 32,997’




  -30,000’                                                                                                     -30,000’




                                                                                                               -40,000’
  -40,000’




                                                                                                                          43

								
To top