Energy XXI was formed in 2005 with a successful $300 million IPO on the London Stock Exchange Alternative Investment Market (AIM). Since then, the company has implemented an “acquire and exploit” growth strategy to build a geographically focused portfolio with some of the highest per-unit margins in the industry. It began with an agreement in March 2006 to purchase Marlin Energy Offshore for $421 million. Soon after the purchase closed, the company agreed to acquire some South Louisiana properties for a total of $308 million. By August 2006, the South Louisiana acquisition had closed and the company was able to raise $86.5 million through a warrant exercise.
Energy XXI continued its geographically focused “acquire and exploit” strategy the following year. In April 2007, the company agreed to acquire POGO’s Gulf of Mexico assets for $419.5 million. This acquisition closed in June 2007 and by August, the company was dual listed on the NASDAQ exchange under the EXXI ticker symbol.
The company continued to grow even during the economic downturn of 2008 and 2009. Energy XXI raised $237 million through a warrant tender in 2008 to clean up its capital structure. By November 2009, the company announced an acceptance of debt exchange for $347 million in senior notes. This coincided with the company’s $283 million acquisition of MitEnergy, which consolidated interests with the POGO fields acquired in 2007.
In January 2010, Energy XXI announced a major discovery at the Davy Jones ultra-deep well on the Gulf of Mexico Shelf. In addition, the company announced a 1-for-5 share consolidation to make the stock more attractive to a broader range of institutional investors. Five years after the company’s formation, Energy XXI became the third-largest producer on the Gulf of Mexico shelf with the $1.01 billion acquisition of properties from ExxonMobil. This strategy culminated with the $1.01 billion acquisition of some Gulf of Mexico Shelf properties from ExxonMobil, making it one of the largest acquisitions in recent history.
Since then, the company has added two high-potential exploration joint ventures targeting untapped oil around salt domes on the Shelf. In September 2012, Energy XXI announced a joint venture exploration deal with ExxonMobil. This was soon followed by another joint venture announcement with Apache in March 2013.
2014 proved to be a major milestone in the company’s history. In March 2014, Energy XXI announced the acquisition of EPL Oil & Gas for $2.3 billion. As a result of the merger, Energy XXI has become the largest publicly traded independent producer on the Gulf of Mexico Shelf.
Energy XXI is focused on developing core properties while ramping up a complementary exploration program designed to provide organic growth for the future.
JUNE / Company formation
OCTOBER / Successfully competed $300MM IPO on the London AIM
april / Acquired Marlin Energy Offshore, LLC for $448MM
june / Acquired South Louisiana properties for $311MM
april / Acquired POGO’s GoM assets for $415MM
august / NASDAQ listing (ticker: Exxi)
november / Acquired Mit Energy assets for $276MM
january / Announced major discovery at Davy Jones Ultra-Deep well in the GoM Shelf
december / Acquired ExxonMobil GoM Shelf properties for $1.01BN
september / Secured GoM Exploration Joint Venture with ExxonMobil
january / Acquired Bayou Carlin Onshore S. Louisiana for $80MM
march / Signed GoM joint venture with Apache
march / Acquired EPL Oil & Gas for $2.3BN
june / Grand Isle Gathering System closes for $245MM
august / Acquired M21K equity interests for $25MM