Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



5-Star Stocks Poised to Pop: Energy XXI

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas explorer Energy XXI (Nasdaq: EXXI  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Energy XXI's business and see what CAPS investors are saying about the stock right now.

Energy XXI facts

Headquarters (Founded) Hamilton, Bermuda (2005)
Market Cap $1.76 billion
Industry Oil and gas exploration and production
Trailing-12-Month Revenue $558 million
Management CEO John Schiller, Jr. (since 2005)
CFO David Griffin (since 2005)
Return on Equity (Average, Past 3 Years) (3.2%)
Cash/Debt $12.88 million / $765.93 million
Competitors Denbury Resources (NYSE: DNR  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 94% of the 147 members who have rated Energy XXI believe the stock will outperform the S&P 500 going forward. These bulls include hammertongs and All-Star Geofiz, who is ranked in the top 5% of our community.

Just last week, hammertongs brought Energy XXI's recent buy to our community's attention: "Just purchased gas and oil fields from Exxon (NYSE: XOM  ) . This increases their reserves and product by 70% and I don't think the price of gas and oil will be going down in the long term no matter how many Volts hit the road."

In fact, Energy XXI's $1 billion acquisition will make it the third-biggest oil producer in the Gulf of Mexico's shallow waters behind Apache (NYSE: APA  ) and Chevron (NYSE: CVX  ) . And with the stock trading at a price-to-cash flow (7.7) discount to rival Denbury (8.6), as well as partner McMoRan Exploration (NYSE: MMR  ) (8.9), Energy XXI seems like an offshore opportunity worth diving into.

CAPS All-Star Geofiz elaborates on the bull case:

In my opinion, [Energy XXI] is the better way to play the ultradeep shelf than through [McMoRan]. Reserves, while apparently very large, are quite a long way off due to technological challenges (specifically, wellheads and completions) and to extremely low gas prices, which will extend at least through 2011 and most likely well into 2012. [Energy XXI] has high quality liquids production to take up the slack in the meantime. They may operate at a small loss due to capital requirements, but the payoff will be very large in the longer term.

What do you think about Energy XXI, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chevron is a Motley Fool Income Investor recommendation. The Fool owns shares of Denbury Resources and ExxonMobil. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1383954, ~/Articles/ArticleHandler.aspx, 10/26/2016 2:01:34 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,175.25 5.98 0.03%
S&P 500 2,137.17 -5.99 -0.28%
NASD 5,245.61 -37.79 -0.72%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 1:46 PM
APA $60.80 Up +0.23 +0.38%
Apache CAPS Rating: ***
CVX $100.71 Down -0.06 -0.06%
Chevron CAPS Rating: ****
DNR $2.65 Down -0.02 -0.75%
Denbury Resources CAPS Rating: ***
EXXIQ $0.13 Down -0.05 -26.74%
MMR.DL $0.00 Down +0.00 +0.00%
McMoRan Exploratio… CAPS Rating: ****
XOM $86.76 Up +0.04 +0.05%
ExxonMobil CAPS Rating: ****