Exco Resources Inc · OTC:EXCE
Exco Resources — FY2016 Earnings Presentation
16 slides from Exco Resources's earnings presentation, Mar 21, 2017
Slide 1: Fourth Quarter & Full Year 2016 Review
Fourth Quarter & Full Year 2016 Review Hal Hickey Chief Executive Officer Harold Jameson Chief Operating Officer Tyler Farquharson Chief Financial Officer March 20, 2017
Slide 2: Strategic Plan Update
Strategic Plan Update Focus Area # Improvement Plan Update Improve Debt Structure To Issued $300MM in new 1.5 Lien Notes and exchanged $683MM in existing 2nd Lien Provide Structural Liquidity Term Loans for new 1.75 Lien Term Loans. These instruments allow for the Company to pay interest in either c
Slide 3: $300 Million Issuance Of Secured Debt To Provide Liquidity For Drilling Program
$300 Million Issuance Of Secured Debt To Provide Liquidity For Drilling Program Item Key Highlights Secured Debt With Low Interest is payable on the 1.5 Lien Notes in cash at a rate of 8% per annum, or at EXCO’s Cash Coupon With option, payable in EXCO’s common shares or additional 1.5 Lien Notes at
Slide 4: Capital Transaction Detail
Capital Transaction Detail Sources & Uses Cap Table $MM 1 $MM 2 % Sources Of Cash 12/31/2016 Pro Forma Change New 1.5 Lien Notes 300 Cash And Restricted Cash2 20 42 110% Credit Agreement1 229 0 (100)% 1.5 Lien Notes 0 300 N/A Subtotal, Sources of Cash 300 Uses of Cash 1.75 Lien Term Loans 0 683 N/A
Slide 5: EXCO Overview: Three Concentrated Resource Positions
EXCO Overview: Three Concentrated Resource Positions Operating Area Overview 1 Core Basins 2 East Texas and North Louisiana Net Acres/%HBP1 96,300/87% Appalachia Q4 ‘16 Operated Rigs 0 Q4 ‘16 Net Production (Mmcfe/d) 209 12/31/16 Proved Reserves (Bcfe)2 1,110 East Texas / North Louisiana South Texas
Slide 6: Improve Drilling And Completion Performance To Improve Capital Returns
Improve Drilling And Completion Performance To Improve Capital Returns NLA Cumulative Gas vs. Time ETX Cumulative Gas vs. Time Mcf; Days 1 Mcf; Days 2 3,500,000 4,500,000 4,000,000 3,000,000 60% 3,500,000 2,500,000 23% 3,000,000 2,000,000 87% 2,500,000 1,500,000 2,000,000 1,000,000 1,500,000 1,000,0
Slide 7: High Quality Drilling Inventory
High Quality Drilling Inventory Drilling Inventory1 Breakeven Price Required for 25% IRR ($/Mcf)2; Gross/Net Locations 1 $4.00 250 331 Gross Locations (95 Net) with Breakeven Prices Below $3.00/Mcf $3.53 $3.43 $3.50 $3.23 $3.18 $3.03 200 $3.00 $2.81 $2.86 $2.78 $2.49 168/78 $2.50 $2.46 $2.33 $2.23 1
Slide 8: Financial And Operational Results
Financial And Operational Results Quarter-to-Date Year-to-Date 4Q 16 3Q 16 4Q 15 4Q 16 4Q 15 Factors Unit Actual Actual % Change1 Actual % Change1 Actual Actual % Change1 Rig Count # 0 0 0 3 (100) 1 4 (75) Gross/Net Wells Drilled # 0/0.0 0/0.0 0 6/2.7 (100) 6/5.2 37/17.8 (71) Gross/Net Wells Turned
Slide 9: Actuals To Guidance Comparison
Actuals To Guidance Comparison Three Months Ended 4Q 16 4Q 16 Guidance 1Q 17 Guidance Factors Unit Actual Low High Low High Wells Spud (Gross/Net) # 0/0.0 0/0.0 5/3.9 Wells Turned To Sales (Gross/Net) # 1/0.4 0/0.0 0/0.0 Production Oil Mbbl 381 335 355 300 320 Natural Gas Bcf 21.9 21.5 22.3 19.4 20.
Slide 10: Hedge Positions
Hedge Positions Twelve Months Ended Twelve Months Ended 12/31/17 12/31/18 Factors Unit Volume Price Volume Price Natural Gas Bbtu, Fixed Price Swaps - Henry Hub $/Mmbtu 38,300 3.02 3,650 3.15 Collars - Henry Hub Bbtu 10,950 Sold Call Options $/Mmbtu 3.28 Purchased Put Options $/Mmbtu 2.87 Oil Fixed
Slide 11: Appendix
Appendix
Slide 12: Key Transaction Terms
Key Transaction Terms Item Format • $300MM 1.5 Lien Notes 1 • $683MM of existing 2nd Lien Term Loans exchanged for new 1.75 Lien Term Loans Issue Price • 100% 2 Closing Date • March 15, 2017 3 Maturity Date • March 20, 2022 4 Use of Proceeds • Repay revolver borrowings, transaction fees and general
Slide 13: Single Well Economics – Internal Type Curves
Single Well Economics – Internal Type Curves NLA NLA NLA NLA Caddo Caddo Bossier ETX ETX ETX DeSoto X-Unit Standard X-Unit Shelby Highlander Highlander Unit Core Lateral Lateral Lateral HSVL HSVL BSSR 1 Target Lateral Length Ft 4,500 7,500 4,500 7,500 7,500 6,500 6,500 2 Gross Locations # 20 46 23 1
Slide 14: Non-GAAP Measures and Reconciliations
Non-GAAP Measures and Reconciliations Consolidated EBITDA and Adjusted EBITDA Reconciliations Three Months Ended Year Ended (in thousands) December 31, 2016 September 30, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Net income (loss) $ (34,699) $ 50,936 $ (65,595) $ (225,258) $ (1,192,
Slide 15: Important Information for Investors and Shareholders
Important Information for Investors and Shareholders This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. The requisite shareholder approval matters are expected to be submitted to the shareholders of
Slide 16: 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