Our attorneys are investigating losses in Energy XXI Ltd. Bermuda (stock ticker “EXXI”).
According to its website, EXXI is an independent oil and natural gas development and production company that focuses on developing drilling on properties it owns.
EXXI is currently trading at $0.02 per share on the OTC Markets. The stock reached a peak of close $40 per share at certain points over the past five years, but has dramatically fallen in value with the volatility of oil prices in the past two years. EXXI lost over 95% of its value in less than a year.
As many North American oil and gas companies did over the last two years, EXXI filed chapter 11 bankruptcy in April 2016. Since the beginning of 2015, there have been a total of 110 oil and gas company bankruptcies in North America.
Prior to seeking chapter 11 bankruptcy protection, EXXI struck a tentative deal on the terms of a $1.45 billion debt-for-equity swap with a group of its bondholders. In December 2016, the court confirmed EXXI’s bankruptcy plan.
EXXI is one of the many oil- and gas-related companies that have dropped precipitously in value due to the volatility of the oil commodity and oil markets. The price of oil has always been volatile, as it is subject to a variety of factors such the world’s total production, global initiatives to supplant oil with other forms of energy and, sometimes, the musings and whims of a few world leaders.
Consequently, the underlying investments based on the commodity are often subject to the same volatility.
With oil prices steadily increasing for much of the 2000s, reaching a peak of $154.00 per barrel in June 2008, many oil and gas companies looked to the future through rose-colored glasses and pure optimism.
Many companies took on a great deal of debt to buy up wells and other oil and gas businesses. EXXI was one such company, purchasing EPL Oil & Gas Inc. in a $1.51 billion deal that made EXXI the largest publicly-traded producer of crude oil in the Gulf of Mexico in March 2014. EXXI purchased EPL at a 34% premium over EPL’s trading price at the time.
In some cases, brokers and brokerage firms looked at the future of oil with the same optimism and failed to take this volatility into account and unsuitably recommended their customers purchase oil and gas investments.
Our attorneys have represented and currently represent many aggrieved investors in an attempt to recover their losses.
If you lost money investing in Energy XXI Ltd. Bermuda (EXXI) and/or any other oil and gas private placements, publicly-traded drilling partnerships, partnership bonds, or other oil- and gas-related securities, you may be entitled to recover some of your investment losses.
For more information about the law firms, the lawyers, and the oil and gas investment practice area, please visit the oil and gas investment website at: www.oilgasfinraarbitration.com. You can also contact toll-free Mr. Silver at: (800) 975-4345 for a confidential, no-cost consultation on the potential for recovery of your investment losses. Our attorneys represent clients nationwide in securities cases to recover investment losses. No fee unless we obtain a recovery for you.