UPDATE: Miller Tabak Initiates Energy XXI at Buy on Oil Growth

Miller Tabak initiated coverage on Energy XXI (NASDAQ: EXXI) with a Buy rating and a $46 price target.

Miller Tabak said, "The company is set to rapidly grow production and cash flow as they execute on three key growth initiatives: 1) Increased recoveries at known oil fields through horizontal drilling 2) Joint-venture with Exxon Mobil (XOM – NR) to explore the Vermilion prospects with results from Pendragon well expected in January 3) Ultra-deep water optionality through non-operated working interests in projects by leg by Chevron (CVX-NR) and McMoRan (MMR-NR). We believe the next 2-3 years will see a period of strong oil growth that will generate significant free cash flow."

Energy XXI closed at $31.91 on Thursday.

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