New energy companies deliver lots of surprises, but often the results may not be entirely surprising to those watching the company. It's in this vein that I mention that thanks to recent acquisitions, Energy XXI (Nasdaq: EXXI) has started reaping the benefits of moves that I had talked about not long ago. The fiscal third-quarter results released on Wednesday should raise hopes of Foolish investors, who are interested in the long term growth that this company has to offer.

Number crunching
Bermuda-based Energy XXI -- which operates oil and natural gas properties onshore in Louisiana and Texas, and offshore in the Gulf of Mexico -- has made remarkable progress. Revenues in the quarter shot up to $258.6 million, an increase of 72% from the corresponding quarter last year. Net profit increased to $18.3 million, versus $11 million last year, increasing by 66%. Production has increased, which is what fueled this phenomenal growth.

The company's CEO, John Schiller, has attributed this growth to the acquisition of ExxonMobil's (NYSE: XOM) shelf assets in the Gulf of Mexico in December, as well as increased production and cash flow.

It definitely seems that acquisitions over the last five years, amounting to $2.5 billion, are bearing fruit. Management appears to be on the right track. Efficiency in operations is what Fools would look for -- and Schiller and Co. have got that right. Total sales volumes, this quarter, grew to 41,400 barrels of oil equivalent per day (Boe/d), a healthy 41% growth from the corresponding quarter last year.

The crux of the results
Given the company's substantial asset base, I would want to check the operating income against the total assets, and this comes to 5.6%, a marginal growth from 5.1% at the end of the previous quarter but a drop from 5.9% from the corresponding quarter a year back.

However, this need not cause alarm as the company is still relatively new, having started operations only in 2005 (which is considered quite recent for companies engaged in exploration and production). To help put that number in perspective, more established companies like Denbury Resources (NYSE: DNR) have struggled recently with corresponding returns of 2.3% and 3.2% in the last two quarters.

Foolish takeaway
Energy XXI is slowly but steadily reaping fruit for all the hard work put in over the past few years since its inception. I'm also happy to note that the company reduced its debt balance by $80 million over the past quarter.

That said, the company still needs to work hard to reduce its debt-to-equity ratio, which is about 147%. But, with what I've seen so far, I'm confident that it's only a matter of time before the company can pay off its debts. With quarter-over-quarter free cash flow showing an increase to $202 million from $50 million, this augurs well for the future -- and for Foolish investors.