Exco Resources Inc · OTC:EXCE
Exco Resources — Howard Weil Energy Conference 2008
37 slides from Exco Resources's conference presentation, Apr 7, 2008
Slide 1: Howard Weil Energy Conference April 8, 2008
EXCO Resources, Inc. PPT-031-HowardWeilNrgyConf_4-8-08.ppt Howard Weil Energy Conference April 8, 2008
Slide 2: Forward Looking Statements
EXCO Resources, Inc. 2 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Forward Looking Statements This presentation contains forward-looking statements, as defined in Section 27A of the Securities Ac t and Section 21E of the Securities Exchange Act of 1934, or the Exchange Act. These forward-looking statement
Slide 3: Forward Looking Statements (continued)
EXCO Resources, Inc. 3 PPT-031-HowardWeilNrgyConf_4-8-08.ppt 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
Slide 4: Key Investment Highlights
EXCO Resources, Inc. 4 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Key Investment Highlights • Outstanding Track Record – 40.4% annualized growth in common share value since 1998 – 40% and 69% compounded growth rates in production and reserves since 2004 • Outstanding Reserve Base(1) – 2.1 Tcfe proved res
Slide 5: Peer Valuation Comparison
EXCO Resources, Inc. 5 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Peer Valuation Comparison 1) Enterprise value based on fourth quarter 2007 balance sheet and adjusted for latest disclosed equity offerings, acquisitions, and dispositions with the stock price as of close on 4/02/08 2) Proved reserves as o
Slide 6: Reserve Base
EXCO Resources, Inc. 6 PPT-031-HowardWeilNrgyConf_4-8-08.ppt 12 Bcfe Proved 233 Bcfe 3P 1,333 Bcfe 3P+ 2 Mmcfe/d Proved Reserves = 2.1 Tcfe 3P Reserves = 4.5 Tcfe 3P+ Reserves = 15.0 – 23.0 Tcfe Current Production = 395 Mmcfe/d Rockies 144 Bcfe Proved 339 Bcfe 3P 639 Bcfe 3P+ 30 Mmcfe/d Permian Basi
Slide 7: Inventory for the Future
EXCO Resources, Inc. 7 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Inventory for the Future Includes over 23,000 drilling locations representing 13.6 - 21.6 Tcfe of reserves Appalachia 6,500+ 7,000-12,000 2-5 years ETX/NLA 1,500+ 2,000-5,000 2-4 years Mid-Continent 500+ 100 3-5 years Permian 700+ 300 2-5
Slide 8: Undrilled, Low-Risk Upside Totals Approximately 3.1 Tcfe
EXCO Resources, Inc. 8 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Rockies Permian Basin East Texas / North Louisiana Undrilled, Low-Risk Upside Totals Approximately 3.1 Tcfe PUD Reserves = 611 Bcfe PRB Reserves = 827 Bcfe POS Reserves = 1,644 Bcfe 226 Bcfe • Lance, Fort Union, Tensleep, Frontier, Mesa Ve
Slide 9: Estimated Unbooked Potential
EXCO Resources, Inc. 9 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Rockies Permian Basin Appalachia Mid-Continent East Texas / North Louisiana 300 Bcfe Potential • 15,000 net acre field extension completed • Wolf camp / Clearfork oil play being evaluated by 3D • 20,000 acre Tannehill shallow oil being wor
Slide 10: Marcellus and Huron Shale Fairways
EXCO Resources, Inc. 10 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Marcellus and Huron Shale Fairways • Total Marcellus shale acreage – 413,550 gross – 381,704 net • Marcellus fairway acreage – 253,476 gross – 243,403 net in > 100’ thick and overpressured • Drill four horizontal Marcellus wells – First s
Slide 11: Haynesville Shale
EXCO Resources, Inc. 11 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Haynesville Shale Total Haynesville shale acreage – 123,000 gross – 101,000 net • 2008 plans – Drilled 1 vertical well; waiting on completion – Drilling 2nd vertical well; plan on drilling three more across acreage – Evaluate additional v
Slide 12: 2008 Increased Capital Budget and Drilling Schedule
EXCO Resources, Inc. 12 PPT-031-HowardWeilNrgyConf_4-8-08.ppt 2008 Increased Capital Budget and Drilling Schedule Drilling & Completion $513 MM (696 projects) Exploitation $32 MM (82 projects) Operations & Other $218 MM Midstream $19 MM • Our development budget totals $782 million(1), which includes
Slide 13: Liquidity and Financial Position
EXCO Resources, Inc. 13 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Liquidity and Financial Position (1) Excludes unamortized bond premium (2) Excludes $7 million in offering costs (3) Net of $4.3 million in letters of credit at both December 31, 2007 and February 20, 2008 • Recently entered into $700 mil
Slide 14: Current Hedge Position
EXCO Resources, Inc. 14 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Current Hedge Position Mitigates market risk and locks in future cash flow for development and acquisition program • Target hedging 65-80% of production volumes for 3-5 years • Hedging program covers long term debt • Only 13% of Proved Re
Slide 15: Net Asset Value Summary
EXCO Resources, Inc. 15 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Net Asset Value Summary In millions, except per share and per unit Low High Proved Reserves 2.1 Tcfe at $2.50 to $3.00 per Mcfe $5,153 $6,183 Low-risk Unproved Upside 2.4 Tcfe at $0.50 to $0.75 per Mcfe 1,236 1,854 Potential Upside 10.5 -
Slide 16: Regional Overviews
PPT-031-HowardWeilNrgyConf_4-8-08.ppt Regional Overviews
Slide 17: Long Reserve Life and Multi-Year Project Inventory Across All Regions
EXCO Resources, Inc. 17 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Long Reserve Life and Multi-Year Project Inventory Across All Regions As of January 1, 2008(6) (1) December 31, 2007 proved reserves with $8 natural gas and $60 oil pricing, adjusted for differentials and excluding hedge effects (2) Decem
Slide 18: East Texas/North Louisiana Division Overview
EXCO Resources, Inc. 18 PPT-031-HowardWeilNrgyConf_4-8-08.ppt East Texas/North Louisiana Division Overview Portfolio Highlights Reserves Locations Bcfe Gross / Net PD 717 PUD 288 475 / 353 TP 1,005 Prob 502 393 / 293 Poss 826 1,598 / 1,236 3P 2,333 2,466 / 1,882 Potential 2,000-5,000 1,500 / 1,160 T
Slide 19: East Texas/North Louisiana Low-risk and Potential Upside
EXCO Resources, Inc. 19 PPT-031-HowardWeilNrgyConf_4-8-08.ppt East Texas/North Louisiana Low-risk and Potential Upside Gladewater • Downspacing • Geoscience evaluation ongoing • Horizontal drilling Longwood/Waskom • Complete in Hosston • Downspacing Vernon • Drill 24+ wells in 2008 • Testing field l
Slide 20: Appalachia Division Overview
EXCO Resources, Inc. 20 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Appalachia Division Overview Portfolio Highlights Reserves Locations Bcfe Gross / Net PD 372 PUD 212 1,649 / 1,467 TP 584 Prob 167 581 / 498 Poss 409 3,931 / 3,496 3P 1,160 8,165 / 7,237 Potential 7,000-12,000 6,500 / 6,500 Total 8,160-13
Slide 21: Appalachia
EXCO Resources, Inc. 21 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Appalachia Central PA 388,029 net acres 237 Bcfe 3P reserves 3,608 3P drilling locations 2008 drilling – 132 wells Northwest PA 77,401 net acres 97 Bcfe 3P reserves 921 3P drilling locations 2008 drilling – 29 wells Eastern OH 324,425 net
Slide 22: Mid-Continent Area Division Overview
EXCO Resources, Inc. 22 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Mid-Continent Area Division Overview Portfolio Highlights • TXOK acquisition 2005; APC acquisition 2007 • Producing wells: 1,638 (gross) / 937 (net) Reserves Locations Bcfe Gross / Net PD 264 PUD 52 117 / 75 TP 316 Prob 58 69 / 36 Poss 94
Slide 23: Mid-Continent Low Risk and Potential Upside
EXCO Resources, Inc. 23 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Mid-Continent Low Risk and Potential Upside Mocane-Laverne • Drill 37 wells in 2008 • 234 drilling locations • Increase density drilling • Atoka recompletions • Basal Chester opportunities • Evaluating 3D applicability to detect deeper hy
Slide 24: Permian Basin Division Overview
EXCO Resources, Inc. 24 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Permian Basin Division Overview Portfolio Highlights • Producing wells: 287 (gross) / 229 (net) Reserves Locations (Bcfe) Gross / Net PD 89 PUD 55 172 / 164 TP 144 Prob 94 206 / 188 Poss 101 306 / 257 3P 339 684 / 609 Pot 300 700 / 588 To
Slide 25: Permian Low-risk and Potential Upside
EXCO Resources, Inc. 25 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Permian Low-risk and Potential Upside Ackerly • 2 horizontal tests in 2008 • 40 more possible Beggs Ranch • Shallow oil prospect • 20,000 net acres • Drilling 6 well test program • 45 mi2 3D seismic shoot in 2008 Sugg Ranch • 600 Drilling
Slide 26: Rocky Mountains Overview
EXCO Resources, Inc. 26 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Rocky Mountains Overview Portfolio highlights • Producing wells: 66 (gross) / 54 (net) Reserves Locations (Bcfe) Gross / Net PD 7 PUD 5 11 / 9 TP 12 Prob 8 12 / 10 Poss 213 127 / 88 3P 233 150 / 107 Pot 1,100 2,000 / 1,940 Total 1,333 2,1
Slide 27: Rocky Mountains Low-risk and Potential Upside
EXCO Resources, Inc. 27 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Rocky Mountains Low-risk and Potential Upside Wyoming Leasehold • 133,000 net acres total in Wind River, Powder River and Big Horn Basins • Will drill 9 wells in 2008 in Wind River and Big Horn Basins • Considering JV opportunities Birdse
Slide 28: Appendix
PPT-031-HowardWeilNrgyConf_4-8-08.ppt Appendix EXCO Resources, Inc.
Slide 29: Year End Total Proved Reserves
EXCO Resources, Inc. 29 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Year End Total Proved Reserves Year-end 2007 SEC Proved Reserves(1) 1,865 Price Revisions to $8 gas and $60 oil(2) 37 Year-end 2007 Proved Reserves 1,902 Appalachia Acquisition(3) (closed 2/20/08) 159 Pro Forma with Appalachia Acquisition
Slide 30: Year End 2007 Reserve Detail
EXCO Resources, Inc. 30 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Year End 2007 Reserve Detail (1) Mcf e - One thousand cubic feet equivalent calculated by converting one Bbl of oil to six Mcf of natural gas (2) Performance revisions were 139,325 Mmcfe offset by 59,550 Mmcfe of positive price revisions
Slide 31: Operating Results
EXCO Resources, Inc. 31 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Operating Results (1) Stock based compensation (2) Non-GAAP measure - please see tables on slides 24 to 26 for reconciliation to most comparable GAAP measure Period- to-Period Change 4th Quarter Twelve Months 4th Quarter Twelve Months (In
Slide 32: Unit Operating Statistics
EXCO Resources, Inc. 32 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Unit Operating Statistics (1) Does not include the effects of derivative financial instruments (2) Does not include stock based compensation which would have increased operating costs per Mcfe by $0.06 and $0.03 f or Q4 2007 and f or the
Slide 33: 2008 Guidance
EXCO Resources, Inc. 33 PPT-031-HowardWeilNrgyConf_4-8-08.ppt 2008 Guidance (1) Includes $3.5 million to $4.5 million of costs related to the withdrawal of the EXCO Partners IPO in Q1 2008 (2) 2008 estimate based on NYMEX $8.00 natural gas and $60.00 oil 2008E ($ in thousands, except per unit amount
Slide 34: Quarterly 2008 Guidance
EXCO Resources, Inc. 34 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Quarterly 2008 Guidance (1) Includes $3.5 million to $4.5 million of costs related to the withdrawal of the EXCO Partners IPO in Q1 2008 (2) 2008 estimate based on NYMEX $8.00 natural gas and $60.00 oil 1st Q 2008E 2nd Q 2008E 3rd Q 2008E
Slide 35: Non-GAAP Reconciliations
EXCO Resources, Inc. 35 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Non-GAAP Reconciliations (1) Operating cash flow before working capital changes is presented because management believes it is a useful financial indicator for companies in our industry. This non-GAAP disclosure is widely accepted as a me
Slide 36: Non-GAAP Reconciliations
EXCO Resources, Inc. 36 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Non-GAAP Reconciliations EBITDA and adjusted EBITDA reconciliations (Unaudited, in thousands) Three months ended December 31, 2006 Three months ended December 31, 2007 Year ended December 31, 2006 Year ended December 31, 2007 Net income (
Slide 37: Non-GAAP Reconciliations
EXCO Resources, Inc. 37 PPT-031-HowardWeilNrgyConf_4-8-08.ppt Non-GAAP 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. “Adjus