We report observations of a low stored energy, low inductance compact capillary discharge operated in xenon. Even though the stored electrical energy is less than 1 J, significant output in the optical windows at 110 and 135 Å is measured. The soft X-ray emission is time-resolved and the conversion energy of the source is obtained. A lower bound to the conversion efficiency at 110 Å 6 2% and 135 Å 6 1% of 3.6% and 1.6% is obtained, respectively. The use of moir e-schlieren optical diagnostic allows the evolution of the line electron density. In particular, we observe a significant degree of compression in a tight on axis pinch as well as radial compression waves. The temporal evolution of the X-ray emission, which occurs during the current reversal and later, is discussed in relation to work in argon discharges and in relation to model calculations. V C 2013 AIP Publishing LLC. [http://dx.