Energy XXI: Buying Accretive Growth Whether the Market Likes It or Not
A couple of weeks ago, Energy XXI ( NASDAQ: EXXI ) bought EPL Oil & Gas ( NYSE: EPL ) in an accretive deal that initially sent the stock down. The stock has recovered to pre-announcement levels, but the deal suggests a more premium pricing for the stock is due, instead of scraping along the bottom near three-year lows. Energy XXI is a leading oil and natural gas production firm on the Gulf of Mexico shelf. The company has a history of growing via acquiring and exploiting the assets for increased production and reserves. The oil-heavy producer continues to expand reserves and significantly repurchase shares below net asset value, or NAV. Read the full article here . Disclosure: No positions mentioned. Please review the disclaimer page for more details.