(Adds details, background, shares)
Feb 16 (Reuters) - Oil and natural gas producer Energy XXI
Ltd EXXI.O said it would not make an interest payment due on
Tuesday, to continue talks with debtholders related to its
capital structure improvement.
Energy XXI is one of the companies that have been battered
by the 70 percent slump in crude prices since June 2014 that has
forced oil and gas producers to restructure debt or seek
bankruptcy protection.
The company also declared a dividend of one preferred share
purchase right for each outstanding common share, as part of a
tax benefit plan adopted by its board.
The rights will be exercisable if a person or group acquires
4.9 percent or more of the company's common shares.
The company's shares were up about 4 percent at 49 cents in
mid-morning trading.
Houston-based Energy XXI, which owns assets in South
Louisiana and in the Gulf of Mexico, is one of the U.S.
producers with the highest levered breakeven prices, of above
$60 per barrel, more than double the current U.S. crude spot
prices.
The company, which has a grace period of 30 days to make the
interest payment, said it had retained PJT Partners LP and
Vinson & Elkins LLP to advise its board on reviewing its debt.
Energy XXI had $3.62 billion in long-term debt, excluding
current maturities, as of Dec. 31. The company had $269 million
in cash and short-term investments as of Jan. 31.
Net loss attributable to the company's shareholders widened
to $1.31 billion in the second quarter ended Dec. 31, from
$278.8 million a year earlier, Energy XXI said on Tuesday.