Exco Resources Inc · OTC:EXCE

Exco Resources — 2013 Barclays CEO Energy Conference

18 slides from Exco Resources's conference presentation, Sep 12, 2013

  1. Slide 1: EXCO Resources, Inc. Barclays CEO Energy Conference

    EXCO Resources, Inc. 9/12/13 – 9/13/13 Barclays CEO Energy Conference

  2. Slide 2: Management Participants

    2 2013 Barclays CEO Energy Conference Management Participants Doug Miller Chairman and CEO Mark Mulhern CFO & EVP

  3. Slide 3: EXCO Resources, Inc. Company Overview

    3 2013 Barclays CEO Energy Conference EXCO Resources, Inc. EXCO/HGI Production Partners TGGT Holdings, LLC  Haynesville Shale: Operate ~400 horizontal wells  Eagle Ford Shale: Operate ~120 horizontal wells; developing within partnership with KKR  Marcellus Shale: Operate ~110 horizontal wells  ~

  4. Slide 4: Introduction

    4 2013 Barclays CEO Energy Conference Introduction  Solid year to date 2013 financial results – Resulting from discipline around capital deployment and cost management  Established foundation for additional future growth through Eagle Ford and Haynesville acquisitions  Concentration of producing

  5. Slide 5: Strategic Focus

    5 2013 Barclays CEO Energy Conference Strategic Focus  Grow EBITDA/Cash Flow of the company through successful execution of recent acquisitions and evaluation of additional drilling partnerships to minimize CAPEX and add production/revenue  Acquire bankable producing properties after 1st year decl

  6. Slide 6: Recent Acquisition Strategic Rationale

    6 2013 Barclays CEO Energy Conference Approximately 60% of purchase price allocated to proved developed wellbores  Significant cash flow from producing assets; trailing 12 month EBITDA of approximately $165 million  Substantial proved assets provide cash flow for future development Recent Acquisit

  7. Slide 7: Financial Topics

    7 2013 Barclays CEO Energy Conference Financial Topics  Eagle Ford KKR Development Structure  2013 EBITDA and CAPEX Update  Liquidity Review

  8. Slide 8: Eagle Ford KKR Development Structure

    8 2013 Barclays CEO Energy Conference Eagle Ford KKR Development Structure  EXCO purchased 100% of the PDP assets in the Eagle Ford  The undeveloped Eagle Ford locations are drilled and developed under a development agreement with entities advised by Kohlberg Kravis Roberts & Co. L.P. (“KKR”), inc

  9. Slide 9: Eagle Ford KKR Development Structure: Key Points

    9 2013 Barclays CEO Energy Conference Eagle Ford KKR Development Structure  Key points – KKR drilling return is capped at 1.2x invested drilling capital – Cash flow in 1st year gets credited at buyout (KKR generates vast majority of their return from 1st year production) – PV-10 is calculated but E

  10. Slide 10: Single Well Net Production Example

    10 2013 Barclays CEO Energy Conference ‐ 1 2 3 4 5 6 7 8 9 10 1 0 / 3 1 / 2 0 1 3 1 0 / 3 1 / 2 0 1 4 1 0 / 3 1 / 2 0 1 5 1 0 / 3 1 / 2 0 1 6 1 0 / 3 1 / 2 0 1 7 1 0 / 3 1 / 2 0 1 8 1 0 / 3 1 / 2 0 1 9 1 0 / 3 1 / 2 0 2 0 1 0 / 3 1 / 2 0 2 1 1 0 / 3 1 / 2 0 2 2 1 0 / 3 1 / 2 0 2 3 1 0 / 3 1 / 2 0 2

  11. Slide 11: Total Program Illustrative Example

    11 2013 Barclays CEO Energy Conference Total Program Illustrative Example – 300 wells over 4 years Capital to Drill  300 Eagle Ford Wells @ $7.2 million per well $720 $1,080 $360 Drilling Capital Plan for Eagle Ford CNOOC KKR EXCO $2.2 Billion total drilling costs over 4 years of which EXCO’s share

  12. Slide 12: Total Program Illustrative Example – KKR Perspective

    12 2013 Barclays CEO Energy Conference Total Program Illustrative Example – KKR Perspective ($ in millions) KKR Total Invested Capital 1,080$ Undrilled locations 300 Undrilled locations 300 Drilling multiple 1.2x AFE (8/8ths) 7.2$ Assumed buyout PV-10 (CHK int) 4.0$ Capital return 1,296$ Acquired CH

  13. Slide 13: 2013 EBITDA Bridge

    13 2013 Barclays CEO Energy Conference 50 89 15 296 450 0 50 100 150 200 250 300 350 400 450 500 Initial 12/31/12 Guidance 1H 2013 Update CHK Acquistion 3Q - 4Q Performance YE '13 Forecast E B I T D A ( $ 0 0 0 ' s ) 2013 EBITDA Bridge  Original 2013 Guidance: $296 million  1st Quarter 2013 Guidan

  14. Slide 14: 2013 CAPEX Bridge

    14 2013 Barclays CEO Energy Conference 2013 CAPEX Bridge  2Q updated CAPEX guidance range of $313 to $353 million

  15. Slide 15: Liquidity Review

    15 2013 Barclays CEO Energy Conference Liquidity Review EXCO/ HGI Partnership TGGT ($ in thousands) 6/30/2013 7/31/2013 6/30/2013 6/30/2013 Cash and restricted cash 118,600$ 85,660$ 17,223$ 14,926$ Amount drawn on bank credit facility 474,234$ 735,000$ 369,000$ 450,000$ Asset sale tranche ‐ 269,096

  16. Slide 16: Conclusions

    16 2013 Barclays CEO Energy Conference Conclusions  Scheduled quarterly acquisitions of producing properties  Producing properties that can be readily financed through a secured borrowing base  Acquisitions help offset declining reserve base  Lowers overall risk of business and increases predict

  17. Slide 17: Forward-looking statements

    17 2013 Barclays CEO Energy Conference 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: •

  18. Slide 18: Forward-looking statements (continued)

    18 2013 Barclays CEO Energy Conference 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. We caution users of the financial stateme

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