Energy XXI Ltd (NASDAQ:EXXI), Corporate Updates and Crude Price Impact


Dallas, Texas 12/08/2014 (FINANCIALSTRENDS) – Energy XXI Ltd (NASDAQ:EXXI), an independent oil and natural gas exploration and production company, recently hit a new 52-week bottom. The stock has plunged 55% over the past one month.

The stock is currently trading approximately 90% below from its 52-week high of $27.21. Its market capitalization has eroded significantly and now it values at $308.4 million. The sharp plunge in crude prices is one of the key drivers badly affecting many weaker players, even in the U.S.

On the corporate front, the company filed about the stepping down of its CFO and change in its Certifying Accountant.

Corporate Updates

Energy XXI Ltd (NASDAQ:EXXI) informed the SEC about stepping down of David West Griffin as CFO of the company. He also stepped down from all other positions with the company, its subsidiaries or affiliates. Mr. Griffin will receive eligible reimbursement under the Executive Employment Agreement previously signed between him and the company.

In a separate filing with the SEC, the company reported that UHY LLP has resigned as its independent registered public accounting firm, effective December 1, 2014. The resignation was served following acquisition of UHY’s Texas practice by BDO USA, LLP. In addition, Energy XXI’s Audit Committee also approved the engagement of BDO as its new Certifying Accountant.

The company noted in its filing that audit reports prepared by UHY on its consolidated financial statements didn’t contain any adverse opinion or disclaimer of opinion for the two most recent financial years.

Crude Price Impact

Brent crude is already trading around $70 and is likely to decline further with Saudi Arabia and other OPEC members set to keep production output intact. However, it would badly impact marginal producers across the world, including operators in the U.S. shale areas.

Even major players like Continental Resources, Inc. (NYSE:CLR) and Talisman Energy Inc. (USA) (NYSE:TLM) have witnessed more than 30% fall over the past one month.