Moody's: Energy XXI view to stable

Moody's Investors Service said it changed Energy XXI Gulf Coast, Inc.'s rating outlook to stable from positive and affirmed its B2 corporate family rating, B2-PD probability of default rating and B3 senior unsecured notes rating.

The speculative grade liquidity rating was changed to SGL-3 from SGL-2, reflecting adequate liquidity.

The outlook was changed to stable from positive.

"The change in outlook to stable reflects the announced debt-financed share buyback program, combined with slower than expected growth in reserves and production," Moody's vice president and senior analyst Saulat Sultan said in a news release.

"EXXI's focus on bringing spending more in line with cash flows is positive. However, its horizontal drilling program and less emphasis on ultra-deep efforts is a departure from prior strategy and adds to uncertainty about its future direction," Sultan added in the release.

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