Exco Resources Inc · OTC:EXCE
Exco Resources — Merger or Acquisition (May 2010)
9 slides from Exco Resources's merger presentation, May 10, 2010
Slide 1: Marcellus Shale Joint Venture with BG Group plc
Exhibit 99.2 Marcellus Shale Joint Venture with BG Group plc May 10, 2010
Slide 2: Transaction Overview
146-Marcellus JV Announcement 5-07-10 Transaction Overview Agreement with BG Group plc • Signed agreement with BG Group plc (“BG Group”) for joint development of EXCO’s Marcellus shale and related Appalachian assets (the “JV”) – EXCO will sell to BG Group membership interests in companies that hold
Slide 3: Transaction Rationale
146-Marcellus JV Announcement 5-07-10 Transaction Rationale • Joint Venture contemplates: – Accelerated development of existing acreage – Accumulation of additional leasehold and drilling opportunities • Why we chose BG Group – Current partner in successful Haynesville joint venture – World leader i
Slide 4: Reserve Base Reconciliation
146-Marcellus JV Announcement 5-07-10 Reserve Base Reconciliation (1) Pro forma for Common acquisition and Appalachian JV Before Appalachia Transaction Joint Venture Pro Forma Proved reserves (Tcfe) 1.2 (0.1) 1.1 3P reserves (Tcfe) 3.4 (0.3) 3.1 Total 3P reserves + resources (Tcfe) 16.5 (5.8) 10.7 C
Slide 5: Accelerated Development Plan
Accelerated Development Plan Appalachia Development Scenarios 25 20 15 10 5 - 2010E 2011E 2012E 2013E 2014E 2015E Year JV low plan JV high plan Stand-alone plan • JV accelerates development of existing acreage • NPV acceleration for remaining 50% interest • Capture operating efficiencies sooner • De
Slide 6: Liquidity and Financial Position
Liquidity and Financial Position Common Appalachian Pro Forma Consolidated ($ in thousands) March 31, 2010 Acquisition Joint Venture March 31, 2010 (1) Cash $ 117,792 - $ - $ 117,792 Bank debt (L + 200 - 300bps) 762,543 223,000 (800,000) 185,543 Senior notes (7 1/4%)(2) 444,720 - - 444,720 Total deb
Slide 7: Net Asset Value Summary
Net Asset Value Summary Pro forma for the Common acquisition and Appalachian JV In millions, except per share and per unit Low Case High Case E&P Proved Reserves - 1.1 Tcfe at $2.00 & $2.50 per Mcfe $ 2,100 $ 2,625 Unproved Reserves (Conventional) - 0.9 Tcfe at $0.20 & $0.40 per Mcfe 180 360 Unprove
Slide 8: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements, as defined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, or the Exchange Act. These forward-looking statements relate to, among other things, the following: • our future f
Slide 9: Forward Looking Statements (continued)
Forward Looking Statements (continued) We believe that it is important to communicate our expectations of future performance to our investors. However, events may occur in the future that we are unable to accurately predict, or over which we have no control. You are cautioned not to place undue reli