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Energy XXI (Bermuda) Limited (NASDAQ:EXXI) was downgraded by stock analysts at Needham & Company LLC from a “buy” rating to a “hold” rating in a report issued on Tuesday.

The analysts wrote, “With fiscal 2014 in the books, we’re rolling our NAV forward to fiscal 2015. Unfortunately, the outlook is not as optimistic as we had been forecasting. Not only does the company’s PV-10 imply a lower unit value for its reserves, but a lower production outlook and higher capital spending cause an increase in net debt. As a result, our NAV falls to $18 (from $34). We’re downgrading shares of EXXI to Hold (from Buy) and removing our target price. While the stock has been an underperformer this year (-39% YTD vs. +8% for the EPX), the combination of a rising cost structure, lack of production growth, and above-average debt levels are likely to restrict outperformance in the near-term. Factors that could cause us to reassess our rating include improvements in its development drilling program, reductions in leverage, and/or success from its exploration initiatives.”

Shares of Energy XXI (NASDAQ:EXXI) opened at 16.22 on Tuesday. Energy XXI has a 1-year low of $15.37 and a 1-year high of $33.93. The stock’s 50-day moving average is $18.99 and its 200-day moving average is $21.8. The company has a market cap of $1.522 billion and a price-to-earnings ratio of 25.78.

Energy XXI (Bermuda) Limited (NASDAQ:EXXI) last posted its quarterly earnings results on Wednesday, August 13th. The company reported ($0.06) earnings per share for the quarter, missing the analysts’ consensus estimate of $0.26 by $0.32. The company had revenue of $324.13 million for the quarter, compared to the consensus estimate of $320.25 million. On average, analysts predict that Energy XXI will post $1.16 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which is scheduled for Friday, September 12th. Shareholders of record on Friday, August 29th will be given a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 2.91%. The ex-dividend date of this dividend is Wednesday, August 27th.

Other equities research analysts have also recently issued reports about the stock. Analysts at Zacks downgraded shares of Energy XXI (Bermuda) Limited from a “neutral” rating to an “underperform” rating in a research note on Friday. They now have a $15.50 price target on the stock. Separately, analysts at KLR Group reiterated a “buy” rating on shares of Energy XXI (Bermuda) Limited in a research note on Friday, August 15th. They now have a $24.00 price target on the stock, up previously from $6.00. Finally, analysts at Canaccord Genuity reiterated a “buy” rating on shares of Energy XXI (Bermuda) Limited in a research note on Friday, August 15th. They now have a $30.00 price target on the stock, down previously from $36.00. One research analyst has rated the stock with a sell rating, five have assigned a hold rating, four have given a buy rating and one has assigned a strong buy rating to the stock. The stock has an average rating of “Hold” and an average target price of $26.72.

Energy XXI (NASDAQ:EXXI) Limited (Energy XXI) is an independent oil and natural gas exploration and production company with operations focused in the United States Gulf Coast and the Gulf of Mexico.

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