Exco Resources Inc · OTC:EXCE
Exco Resources — Shareholder Meeting (August 2007)
11 slides from Exco Resources's shareholder meeting presentation, Aug 30, 2007
Slide 1: EXCO Annual Meeting Company and Financial Overview
August 30, 2007 EXCO Annual Meeting Company and Financial Overview
Slide 2: Corporate Overview
45% Equity IRR since 1998 Target 50% of EBITDA for capital spending Free cash flow to fund additional acquisitions and pay down debt $6.0 billion of Enterprise Value $2.0 billion market cap $2.0 billion convertible preferred at $19 per share $2.0 billion of debt 4.2 Tcfe of total reserves(1) 1.9 Tcf
Slide 3: Equity Return Factors - Operational
Equity Return Factors - Operational Property characteristics Long-Life Strong per unit cash flow margin Low-cost, low-risk repeatable development drilling Additional acquisition opportunities Disciplined capital program Target 50% of EBITDA for development program Realize single digit organic produc
Slide 4: Equity Return Factors - Financial
Equity Return Factors - Financial Proper capitalization Maximize bank debt Lowest cost with most flexibility Proper hedging supports ability to leverage Use of preferred stock when appropriate Pursue joint venture opportunities Minimize common stock issuances Ability to create liquidity events Marke
Slide 5: Financial Highlights
Financial Highlights (In millions, except volume, wells drilled and productive wells ) Years Ended December 31 Results of Operations 2004 2006 Six Months June 30, 2007 Oil and natural gas revenues (before effects of derivative financial instruments) $ $ 202.9 $ 355.8 $ 370.9 Adjusted EBITDA (1) $ $
Slide 6: 2006-2007 Acquisition Activity
EXCO Resources, Inc. 2006-2007 Acquisition Activity (in thousands) (1) Net of Gulf Coast properties sold to Crimson Exploration, Inc. for $245.4 million in cash and 750,000 shares of Crimson common stock valued at $4.6 million Asset Acquisitions Effective Dates Values Allocated West Texas properties
Slide 7: Transactions Overview Vernon and Southern Gas
Transactions Overview Vernon and Southern Gas Purchase price allocation $1.9 billion to proved reserves $61 million to unproved reserves and acreage $117 million to associated gathering assets Reserves 720 Bcfe of proved reserves 89% proved developed 187 Bcfe of probable and possible reserves Purcha
Slide 8: EXCO Reserve Base
Total consolidated proved reserves(1)(3) = 1,895 Bcfe Total 3P reserves(1)(2)(3) = 4,175 Bcfe EXCO Reserve Base Appalachia 429.3 Bcfe Proved (23%) 730.3 Bcfe Total (17%) 41.0 Mmcfe/d (11%) Ohio Pennsylvania Kentucky West Virginia East Texas/North Louisiana 997.9 Bcfe Proved (53%) 2,455.5 Bcfe Total
Slide 9: 2007 Expected Capital Budget and Drilling Schedule
EXCO 2007 Expected Capital Budget and Drilling Schedule(1) 2007 Capital Budget Totals $502.9 Million(1) $MM 402.9 9.4 31.0 48.6 $MM 308.4 70.3 64.6 48.6 (1) Includes $11 million of IT and other capitalized items 2007 Drilling Locations PUD PROB POSS TOTAL East Texas/North Louisiana 91 46 32 169 NCE
Slide 10: Non-GAAP Reconciliations
Non-GAAP Reconciliations
Slide 11: Non-GAAP Reconciliations
Non-GAAP Reconciliations Condensed consolidated EBITDA and adjusted EBITDA reconciliations (1) Earnings before interest, taxes, depreciation, depletion and amortization, or “EBITDA” represents net income adjusted to exclude interest expense, income taxes, depreciation, depletion and amortization. “A