Exco Resources Inc · OTC:EXCE
Exco Resources — Investor Presentation (September 2016)
31 slides from Exco Resources's investor presentation, Sep 22, 2016
Slide 1: Investor Presentation September 2016
Investor Presentation September 2016 Exhibit 99.1
Slide 2: 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
Slide 3: Agenda
Agenda Haynesville Transformation Appendix EXCO Overview Executive Summary
Slide 4: EXCO Overview: Three Concentrated Shale Resource Positions
EXCO Overview: Three Concentrated Shale Resource Positions Overview 1 Core Basins 2 Net Production3 13-16; Mmcfe/d 3 Acreage as of July 31,2016. Based on ten year June 30, 2016 strip prices and pro forma for recent divestiture of assets in Pennsylvania and STX settlement Net production excludes prod
Slide 5: $1B+ Of Gas Focused Pro Forma Proved Reserves As Of June 30, 2016
$1B+ Of Gas Focused Pro Forma Proved Reserves As Of June 30, 2016 With High Percentage Of PDP 1P PV-10 By Area; % 1 1P PV-10 By Category; % 2 1P PV-10 By Commodity; % 3 1P NYMEX Reserves Breakdown1 Jun 30, 2016; Mixed Measures 4 Note: Reserves are pro forma for recent divestitures and assumes capita
Slide 6: EXCO Pro Forma Capitalization
EXCO Pro Forma Capitalization Includes $25.4mm of restricted cash. See appendix for further detail on restricted cash components. FactSet as of 7/31/16. Liquidity reflects $10.2mm in Letters of Credit.
Slide 7: Restructure Gathering And Transportation Contracts To Enhance Liquidity
ETX/NLA Gross Transportation Commitments 16; $MM 1 Execution Strategy 2 The Company is engaging its midstream and transportation providers to restructure these commitments More must be done to restructure contracts; opportunities include: Market unutilized portion of transportation to increase utili
Slide 8: Contractual Obligations And Commercial Commitments
Contractual Obligations And Commercial Commitments Contractual Obligations and Commercial Commitments 16 – 20 and Thereafter; $M 1 Contractual Obligations and Commercial Commitments 16 – 20 and Thereafter; $M 2 Gathering minimum volume commitments Marketing and transportation minimum volume commitme
Slide 9: Reduce LOE And G&A Load To Reduce Fixed Cost Burden
LOE By Quarter 15-16; $MM 1 Headcount Reduction 15-16; Mixed Measures 2 Reduce LOE And G&A Load To Reduce Fixed Cost Burden 47% LOE Reduction Since Q1 15 60% Headcount Reduction Since Q1 15 $44MM1 G&A Run Rate $29MM2 G&A Run Rate Represents Q1 ‘15 GAAP G&A of $15.2MM adjusted to exclude $1.7mm of eq
Slide 10: Agenda
Agenda Haynesville Transformation Appendix EXCO Overview Executive Summary
Slide 11: EXCO Haynesville Relative Positioning
EXCO Haynesville Relative Positioning EXCO Haynesville Relative Positioning 1 Haynesville Shale Area Map 2 Source: IHS Performance Evaluator, investor presentations and company information. Horizontal wells with a first production date between 1/1/12 – 4/1/16 targeting Haynesville and Bossier horizo
Slide 12: New Completion Designs And Refrac Opportunities Are Re-Rating Play
On-going New Completion Designs And Refrac Opportunities Are Re-Rating Play Proppant to Mcf Breakdown 1 Haynesville Re-Frac Analysis 2 The play has been economically re-rated through the application of modern completion designs using lessons learned from other resource plays and also benefitting fro
Slide 13: North Louisiana Holly Offset Well Results
North Louisiana Holly Offset Well Results Activity Summary 1 Activity Map 2 Net Production 2013-2015, Mmcfe/d 3 Well Name Operator Lat. Length 3 Months Cum Prod 6 Months Cum Prod Proppant Ft Mmcf / ‘000ft Mmcf / ‘000ft lbs/ft EXCO Holly Type Curve (EUR 2.1 Bcf/’000ft) EXCO 4,500 290 521 2,700 1 Whit
Slide 14: EXCO's Recent Results in North Louisiana
EXCO’s Recent Results in North Louisiana Standard length laterals drilled in Q2 2016 set company records, averaging 25 days from spud to rig release Record low D&C cost of $5.8 mm/well for standard laterals First three long laterals averaged 43 days with expected D&C cost of $8.5 mm/well Long latera
Slide 15: Operational Highlights: North Louisiana Bossier Test
Operational Highlights 1 Area Of Operations 2 Key Takeaways 3 The North Louisiana Bossier Test Was A Success And Provides Future Opportunity Potential Bossier “Pay” Acreage Key Developments Successfully completed and turned to sales the Branch Ranch 5-3 Bossier test well in January 2015 The new well
Slide 16: Agenda
Agenda Haynesville Transformation Appendix EXCO Overview Executive Summary
Slide 17: EXCO Overview: Three Concentrated Shale Resource Positions
EXCO Overview: Three Concentrated Shale Resource Positions Operating Area Overview 1 Core Basins 2 Net Production3 13-16; Mmcfe/d 3 As of July 31, 2016. Based on ten year June 30, 2016 strip prices and pro forma for recent divestiture of assets in Pennsylvania and STX settlement. Net production excl
Slide 18: Operating Area Overview: North Louisiana
Operating Area Overview 1 Area Of Operations 2 Net Production 13-16; Mmcfe/d 3 North Louisiana Overview Attribute Key Features Total Acreage1 51,500 net acres (38,000 shale) 100% HBP Active Wells 416 operated wells flowing to sales Production Q2 ‘16: 146 Mmcfe/d Targeted Formations Haynesville Bossi
Slide 19: NLA Improve Economics Through Disciplined Execution And Cost Reductions
NLA Lateral Length And Days To Drill 10-16; ft, Days 1 NLA D&C Cost Per Lateral Foot 10-16; $/ft 2 NLA Drilling Cost Per Foot 10-16; $/ft 3 NLA Proppant Per Lateral Foot 10-16; lbs/ft 4 Improve Economics Through Disciplined Execution And Cost Reductions EXCO has a strong track record of reducing cos
Slide 20: Operating Area Overview: East Texas
Operating Area Overview 1 Area Of Operations 2 Net Production 13-16; Mmcfe/d 3 East Texas Overview Attribute Key Features Total Acreage1 45,800 net acres 74% HBP Active Wells 104 operated wells flowing to sales Production Q2 ‘16: 76 Mmcfe/d Targeted Formations Haynesville Bossier Highlights Transfer
Slide 21: ETX Improve Economics Through Disciplined Execution And Cost Reductions
ETX Lateral Length And Days To Drill 10-16; ft; Days 1 ETX D&C Cost Per Lateral Foot 10-16; $/ft 2 ETX Drilling Cost Per Foot 10-16; $/ft 3 ETX Proppant Per Lateral Foot 10-16; lbs/ft 4 Improve Economics Through Disciplined Execution And Cost Reductions EXCO has a strong track record of reducing cos
Slide 22: Operating Area Overview: South Texas
Operating Area Overview 1 Area Of Operations 2 Net Production 13-16; Boe/d 3 South Texas Overview As of July 31, 2016. Attribute Key Features Total Acreage1 54,250 net acres 93% HBP Active Wells 235 operated wells Production Q2 ‘16: 5.4 MBoe/d Targeted Formations Eagle Ford Highlights HBP acreage pr
Slide 23: Operating Area Overview: Appalachia
Operating Area Overview 1 Area Of Operations 2 Net Production 13-16; Mmcfe/d 3 Appalachia Overview Attribute Key Features Total Acreage1 201,800 net acres (130,400 shale) 89% HBP (shale) Active Wells 126 operated Marcellus wells flowing to sales 1,986 conventional wells flowing to sales Closed the s
Slide 24: Agenda
Agenda EXCO Overview Haynesville Transformation Executive Summary Appendix
Slide 25: Financial And Operational Results
Financial And Operational Results Excludes equity-based compensation expenses of $9.3 mm, $3.8 million and $1.4 mm for the three months ended June 30, ‘16, March 31, ‘16 and June 30, ‘15, respectively, and $13.1 mm and $3.1 mm for the six months ended June 30, ‘16 and June 30, ’15, respectively. Int
Slide 26: Actuals To Guidance Comparison
Actuals To Guidance Comparison Excludes equity based compensation expense. Interest expenses exclude the amortization of debt issuance costs, discount on notes and capitalized interest. In addition, cash payments under the Exchange Term Loan are not considered interest expense per ASC 470-60 and are
Slide 27: Hedge Positions (Including Trades Since June 30)
Hedge Positions (Including Trades Since June 30) Factors Unit Six Months Ended 12/31/16 Twelve Months Ended 12/31/17 Twelve Months Ended 12/31/18 Volume Price Volume Price Volume Price Natural Gas Fixed Price Swaps - Henry Hub Bbtu, $/Mmbtu 28,520 2.88 23,700 2.99 3,650 3.15 Fixed Price Swaptions -
Slide 28: Unit NLA DeSoto Core NLA Caddo X-Unit Lateral NLA Caddo Standard Lateral NLA Bossier
Unit NLA DeSoto Core NLA Caddo X-Unit Lateral NLA Caddo Standard Lateral NLA Bossier X-Unit Lateral ETX Shelby HSVL ETX Shelby Bossier ETX Highlander STX Eagle Ford Core Tier 1 STX Eagle Ford Core Tier 2 1 Target Lateral Length Ft 4,500 7,500 4,500 7,500 7,500 7,500 6,500 7,500 7,500 2 Gross Locatio
Slide 29: Appendix: June 30, 2016 Price Deck
Appendix: June 30, 2016 Price Deck Henry Hub Natural Gas Prices WTI Crude Oil Prices Year $/Mcf $/Bbl 2016 3.03 48.85 2017 3.18 52.40 2018 3.02 53.81 2019 3.00 54.69 2020 3.06 55.51 2021 3.19 56.31 2022 3.35 57.04 2023 3.53 57.86 2024 3.70 57.86 2025 3.88 57.86 Terminal 3.88 57.86
Slide 30: Appendix: Detailed Description of EXCO's Restricted Cash Position
Appendix: Detailed Description of EXCO’s Restricted Cash Position EXCO’s Restricted Cash Position Restricted cash is principally comprised of EXCO’s share of an evergreen escrow account with BG Group/Shell that is used to fund the company’s share of development operations in East Texas and North Lou
Slide 31: EBITDA, Adjusted EBITDA, Adjusted Operating Cash Flow and Free Cash Flow Reconciliations
EBITDA, Adjusted EBITDA, Adjusted Operating Cash Flow and Free Cash Flow Reconciliations
Exco Resources — Investor Presentation (September 2016) on 6ix