Energy XXI planning to pay down debt, under-spend cash flow, CEO says

By Jennifer Lanning Drey

Portland, Ore., April 13 - Energy XXI (Bermuda) Ltd. will continue to pay down debt and look to improve its balance sheet going forward, John Schiller, chief executive officer of Energy XXI, said during a Tuesday presentation at the IPAA Oil & Gas Investment Symposium in New York.

The company is projecting it will under-spend its cash flow in fiscal 2010 and 2011, Schiller also said during the presentation.

Energy XXI expects a cash outflow of $265 million in fiscal 2010 versus EBITDA of about $330 million, according to the slides accompanying Schiller's presentation.

"We'll be developing and doing ultra-deep [shelf exploration] and still spinning off free cash flow, which puts us in a great position in terms of realizing some great gains off the ultra deep," he said.

Energy XXI looks to maintain a balance between exploration and development spending, he said.

Schiller also noted that the company has a $350 million revolving credit facility with less than $100 million drawn on it.

Energy XXI is a Bermuda-based oil and natural gas exploration and production company.

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