Exco Resources Inc · OTC:EXCE
Exco Resources — Q1 2017 Earnings Presentation
14 slides from Exco Resources's earnings presentation, May 10, 2017
Slide 1: First Quarter 2017 Review
First Quarter 2017 Review Hal Hickey Harold Jameson Tyler Farquharson Chief Executive Officer Chief Operating Officer Chief Financial Officer May 10, 2017
Slide 2: Strategic Plan Update
Strategic Plan Update Focus Area # Improvement Plan Update Liability Management 1 Improve Debt Structure To Provide Structural Liquidity Issued $300MM in new 1.5 Lien Notes and exchanged $683MM in existing 2nd Lien Term Loans for new 1.75 Lien Term Loans. These instruments allow for the Company to p
Slide 3: Shareholder Approval and NYSE Update
Shareholder Approval and NYSE Update Issue Requirements/Considerations 1 Recent Capital Transactions NYSE 1% Rule: Requires consent of shareholders if a related party (director, officer and holder of more than 5% of outstanding shares) is issued in excess of 1% of the total outstanding number of sha
Slide 4: Operating Area Overview
Operating Area Overview 1 Core Basins 2 Net Production 16-17; Mmcfe/d 3 EXCO Overview: Three Concentrated Resource Positions As of December 31, ’16 Currently operating 4 rigs Proved reserves were based on December 30, 2016 NYMEX futures prices, in each case adjusted for geographical and historical d
Slide 5: Capital Program Overview
Capital Program Overview 17; Mixed Measures 1 Capital Budget By Type 17; $MM 2 Drilling and Completion3 17; # 3 Category Descriptions Drilling Currently running 4 rigs; plan to hold 4 rig program through 2017 Drilling focused in NLA Haynesville for highest economic returns NLA Bossier appraisal test
Slide 6: Well Performance: Improve Drilling and Completion Performance
NLA Cumulative Gas vs. Time Mcf; Days 1 ETX Cumulative Gas vs. Time Mcf; Days 2 Well Performance 3 NLA Caddo 7,500’ Type Curve Progression 2016+; Bcf/1000’ 4 Improve Drilling and Completion Performance to Improve Capital Returns Wells with ~2,700 lb/ft completions performance exceeding expectations
Slide 7: Drilling Inventory
Drilling Inventory1 Breakeven Price Required for 25% IRR ($/Mcf)2; Gross/Net Locations 1 High Quality Drilling Inventory EXCO has more than 19 years of economic drilling locations with a 4 rig program drilling 41 wells per year Excludes South Texas locations Breakeven figures are wellhead returns
Slide 8: Financial and Operational Results
Financial and Operational Results Percentage change calculated using net wells drilled and net wells turned to sales Adjusted General and Administrative is a non-GAAP measure. See appendix for definition and reconciliation Cash interest expenses exclude interest paid or accrued in-kind, the amortiza
Slide 9: Actuals to Guidance Comparison
Actuals to Guidance Comparison Excludes equity based compensation Interest expenses exclude interest paid or accrued in-kind, the amortization of debt issuance costs, discount on notes and capitalized interest. In addition, cash payments under the second lien term loan ("Exchange Term Loan") and a p
Slide 10: Appendix
Appendix
Slide 11: Hedge Positions
Hedge Positions Factors Unit Nine Months Ended 12/31/17 Twelve Months Ended 12/31/18 Volume Price Volume Price Natural Gas Fixed Price Swaps - Henry Hub Bbtu, $/Mmbtu 27,500 3.05 3,650 3.15 Collars - Henry Hub Bbtu 8,250 Sold Call Options $/Mmbtu 3.28 Purchased Put Options $/Mmbtu 2.87 Oil Fixed Pri
Slide 12: Single Well Economics – Internal Type Curves
Single Well Economics – Internal Type Curves Economics based on NYMEX futures prices as of March 31, 2017, including natural gas prices per MMBtu of $3.31 for 2017, $3.04 for 2018, $2.83 for 2019, $2.82 for 2020, $2.83 for 2021, $2.84 for 2022, $2.88 for 2023, $2.94 for 2024 and $3.00 thereafter Uni
Slide 13: Adjusted EBITDA Reconciliation
Three Months Ended (in thousands) March 31, 2017 December 31, 2016 March 31, 2016 Net income (loss) $ 8,193 $ (34,699) $ (130,148 ) Interest expense 19,952 16,252 19,257 Income tax expense 1,028 1,027 — Depletion, depreciation and amortization 11,508 11,987 29,001 EBITDA (1) $ 40,681 $ (5,433 ) $ (8
Slide 14: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements, as defined in Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. These forward-looking statements rela