Energy XXI Ltd - FORM 8-K - EX-99.5 - November 30, 2010

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EX-99.8 - Energy XXI Ltdv204198_ex99-8.htm
EX-99.1 - Energy XXI Ltdv204198_ex99-1.htm
EX-99.4 - Energy XXI Ltdv204198_ex99-4.htm
EX-99.2 - Energy XXI Ltdv204198_ex99-2.htm
EX-99.3 - Energy XXI Ltdv204198_ex99-3.htm
EX-99.6 - Energy XXI Ltdv204198_ex99-6.htm
EX-99.9 - Energy XXI Ltdv204198_ex99-9.htm
EX-99.7 - Energy XXI Ltdv204198_ex99-7.htm
Exhibit 99.5
 
Our Summary Historical Consolidated Financial Data

The following table below shows our summary historical consolidated financial data as of and for the years ended June 30, 2008, 2009 and 2010 and as of and for the three months ended September 30, 2009 and 2010 and for the twelve months ended September 30, 2010. The summary historical consolidated financial data for the years ended June 30, 2008, 2009 and 2010 are derived from our audited financial statements incorporated by reference into this offering memorandum. The summary historical consolidated financial data as of and for the three months ended September 30, 2009 and 2010 and the twelve months ended September 30, 2010 are derived from our unaudited financial statements incorporated by reference into this offering memorandum. Results of operations that were achieved for the three months ended September 30, 2009 and 2010 are not necessarily indicative of the results of operations for the entire year or any future period.
 
The information in the tables below does not give effect to the Exxon acquisition. The summary historical consolidated financial data should be read in conjunction with our audited and unaudited consolidated financial statements and related notes included in our Parent’s Current Reports on Form 8-K filed on September 23, 2009, December 2, 2009, November 8, 2010 and November 18, 2010, as well as our Parent’s Annual Report on Form 10-K for the fiscal year ended June 30, 2010 and our Parent’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010.
 
                     
Three Months Ended
    
Twelve Months
Ended
  
   
Year Ended June 30,
    
September 30,
    
September 30,
  
   
2008
    
2009
    
2010
    
2009
    
2010
    
2010
  
                     
(Unaudited)
    
(Unaudited)
  
   
(In thousands)
  
                                                 
Revenues
    
  
      
  
      
  
      
  
      
  
      
  
  
Crude oil sales
  
$
394,661
    
$
292,763
    
$
387,935
    
$
66,293
    
$
115,830
    
$
437,472
  
Natural gas sales
    
240,447
      
141,067
      
110,996
      
18,614
      
28,170
      
120,552
  
Total Revenues
    
635,108
      
433,830
      
498,931
      
84,907
      
144,000
      
558,024
  
Costs and Expenses
    
  
      
  
      
  
      
  
      
  
      
  
  
Lease operating expense and production taxes
    
150,546
      
127,600
      
146,829
      
26,700
      
44,868
      
164,997
  
Impairment of oil and gas properties
    
—
      
576,996
      
—
      
—
      
—
      
—
  
Depreciation, depletion and amortization
    
300,033
      
214,641
      
179,040
      
34,698
      
53,441
      
197,783
  
Accretion of asset retirement obligations
    
8,167
      
14,635
      
23,487
      
5,146
      
5,974
      
24,315
  
General and administrative expense
    
22,533
      
21,171
      
45,915
      
7,313
      
17,648
      
56,250
  
Loss (gain) on derivative financial instruments
    
7,227
      
(10,147
)
   
(4,739
)
   
(6,279
)
   
(1,138
)
   
402
  
Total Costs and Expenses
    
488,506
      
944,896
      
390,532
      
67,578
      
120,793
      
443,747
  
Operating Income (Loss)
    
146,602
      
(511,066
)
   
108,399
      
17,329
      
23,207
      
114,277
  
Other Income (Expense)
    
  
      
  
      
  
      
  
      
  
      
  
  
Interest income
    
1,286
      
872
      
26,938
      
138
      
10
      
26,810
  
Interest expense
    
(101,655
) 
    
(94,019
)
   
(92,838
)
   
(24,101
)
   
(21,466
)
   
(90,203
)
Total Other Income (Expense)
    
(100,369
) 
    
(93,147
)
   
(65,900
)
   
(23,963
)
   
(21,456
)
   
(63,393
)
Income (Loss) Before Income Taxes
    
46,233
      
(604,213
)
   
42,499
      
(6,634
)
   
1,751
      
50,884
  
Income Tax Expense (Benefit)
    
16,255
      
(50,006
)
   
5,918
      
6,556
      
—
      
(638
)
Net Income (Loss)
  
$
29,978
    
$
(554,207
)
 
$
36,581
    
$
(13,190
)
 
$
1,751
    
$
51,522
  
EBITDA(1)
  
$
446,635
    
$
280,571
    
$
287,439
    
$
52,027
    
$
76,648
    
$
312,060
  
 
(1)
We define EBITDA as earnings before interest, taxes, depreciation, depletion and amortization and impairment. EBITDA is not a measure of performance calculated in accordance with accounting principles generally accepted in the United States (“GAAP”). Although not prescribed under GAAP, we believe the presentation of EBITDA is relevant and useful because it helps our investors to understand our operating performance and makes it easier to compare our results with other companies that have different financing and capital structures or tax rates. EBITDA should not be considered in isolation of, or as a substitute for, net income as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. EBITDA, as we calculate it, may not be comparable to EBITDA measures reported by other companies. In addition, EBITDA does not represent funds available for discretionary use.
 
 
The following table presents a reconciliation of our consolidated net income to our consolidated EBITDA for the periods presented:
 
                     
Three Months Ended
    
Twelve
Months
Ended
  
   
Year Ended June 30,
    
September 30,
    
September 30,
  
   
2008
    
2009
    
2010
    
2009
    
2010
    
2010
  
                           
(Unaudited)
    
(Unaudited)
  
   
(In thousands)
  
                                                 
Net income (loss)
  
$
29,978
    
$
(554,207
)
 
$
36,581
    
$
(13,190
)
 
$
1,751
    
$
51,522
  
Income tax expense (benefit)
    
16,255
      
(50,006
)
   
5,918
      
6,556
      
—
      
(638
)
Interest expense – net
    
100,369
      
93,147
      
65,900
      
23,963
      
21,456
      
63,393
  
Depreciation, depletion, amortization and impairment
    
300,033
      
791,637
      
179,040
      
34,698
      
53,441
      
197,783
  
EBITDA
  
$
446,635
    
$
280,571
    
$
287,439
    
$
52,027
    
$
76,648
    
$
312,060
  
 
   
June 30,
  
September 30,
  
  
2008
  
2009
  
2010
  
2009
  
2010
  
  
 
  
 
  
 
  
(Unaudited)
  
  
(In thousands)
Balance Sheet Data:
    
  
      
  
      
  
      
  
      
  
  
Cash and Cash Equivalents
  
$
2,664
    
$
79,620
    
$
6,416
    
$
97,865
    
$
6,074
  
Working Capital (Deficit)(1)
    
(190,139
)
   
(6,969
)
   
(31,453
)
   
13,607
      
(79,024
)
Oil and Gas Properties – Net
    
1,561,276
      
1,102,596
      
1,378,222
      
1,040,188
      
1,388,863
  
Total Assets
    
1,869,997
      
1,306,301
      
1,542,728
      
1,302,960
      
1,534,704
  
Long-term Debt Including Current Maturities
    
951,697
      
988,382
      
773,803
      
983,720
      
752,126
  
Total Liabilities
    
1,658,357
      
1,259,727
      
1,057,832
      
1,284,580
      
1,069,255
  
Stockholders’ Equity
    
211,640
      
46,574
      
484,896
      
18,380
      
465,449
  
 
 
(1)
Working capital is defined as current assets minus current liabilities.
 
   
June 30,
  
Three Months Ended
September 30,
  
  
2008
  
2009
  
2010
  
2009
  
2010
  
  
 
  
 
  
 
  
(Unaudited)
  
  
(In thousands)
Cash Flow Data:
    
  
      
  
      
  
      
  
      
  
  
Net Cash Flows Provided by Operating Activities
  
$
403,007
    
$
240,809
    
$
97,710
    
$
28,356
    
$
92,571
  
Net Cash Flows Used in Investing Activities
    
(383,161
)
   
(261,304
)
   
(109,905
)
   
(2,490
)
   
(63,031
)
Net Cash Flows Provided by (Used in) Financing Activities
    
(32,447
)
   
97,451
      
(61,009
)
   
(7,621
)
   
(29,882
)
 
 

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