U.S. Gulf Coast onshore and offshore producer Energy XXI (NASDAQ: EXXI) detailed updated capital budget information Sept. 29.
The Houston-based company expects $815 million of capex for fiscal year 2015, which began July 1. The amount could range between $785 million and $840 million. It was reduced from $875 million, the company added.
Less money--$449 million compared with $475 million in the original budget--is devoted to development drilling, completions and recompletions, Energy XXI said. Reduced capex resulted from deferred additional drilling on West Delta 30, less non-essential facilities spending and lower general and administrative costs, the company added.
There is $3.61 billion in net debt as of June 30, and about $675 million in liquidity. Of that amount, $550 million is available under the revolving credit facility, while there is about $120 million in cash at the Bermuda level, the company added.
"We have plenty of liquidity and have crude oil and natural gas hedges in place to give us the financial flexibility to complete our capital program. As we move through the fiscal year, we are looking at additional ways to reduce debt including asset sales, monetization of a portion of our ultradeep drilling and completion program, and continued management of our capital investment," said CFO West Griffin.
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