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Hello All,

I'm trying to figure out what's going on with the statements of an oil company that's buying back shares. The company is Energy XXI (Nasdaq: EXXI). The 10-K is here:

http://ir.energyxxi.com/common/download/sec.cfm?companyid=EX...

This is a link to their SEC docs database:

http://ir.energyxxi.com/filings.cfm?DocType=Annual&Year=...

They're at the start of a sizeable $250MM buyback. It was formally initiated in May. The FY for Energy XXI closes June 30. So, there wasn't a whole lot of time between the announcement and the FY close. That had me wondering how much they had bought in.

Unfortunately, there's a discrepancy I can't understand. My first stop was the Statement of Cash Flows. Under financing flows, there's a line item "repurchase of company common stock" with -$58,666 listed. That's straightforward enough...

Next stop was the balance sheet. Shares outstanding were 78.84 million in 2012 and 76.49 in 2013. That's 2.35 million bought back. Do the math on $58.7 million/2.35 million shares and its $24.94 per share. That matches the share price over the period fairly well. Checks out...

Looking further down the balance sheet, I found a line item for "Treasury stock at cost, 2,938,900 shares" with a value of -$72,663. Huh?

Final step was the consolidated statement of shareholders' equity. I scanned down to line item "repurchase of company common stock" and find -$72,663. That matches the Treasury stock figure off the balance sheets. Why is there a discrepancy between the cash flow statement and the other statements? Shouldn't all these sheets agree? What am I missing?

Thanks for any insight,

Peter
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