Out Fox The $treet

Energy XXI Ltd ( NASDAQ: EXXI     ) provides a prime example of how the market doesn't like a company in transition or involved in a high-premium merger. Even with the backdrop of a strong market for energy exploration and production stocks, Energy XXI trades at multi-year lows. The upcoming merger with EPL Oil & Gas ( NYSE: EPL     ) provides the opportunity to exploit several large offshore fields while taking advantage of the seismic capabilities of that company. Read full article here . Disclosure: No positions mentioned. Please read this disclaimer page for more details.

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.