Exco Resources Inc · OTC:EXCE
Exco Resources — Merger or Acquisition (June 2009)
9 slides from Exco Resources's merger presentation, Jun 30, 2009
Slide 1: Haynesville Shale Joint Venture with BG Group plc
104-JV Announcement 6-30-09 Exhibit 99.1 Haynesville Shale Joint Venture with BG Group plc June 30, 2009 EXCO Resources, Inc.
Slide 2: Forward Looking Statements
104-JV Announcement 6-30-09 Forward Looking Statements 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, t
Slide 3: Forward Looking Statements (continued)
104-JV Announcement 6-30-09 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 we have no control. You are cauti
Slide 4: Transaction Overview
104-JV Announcement 6-30-09 Transaction Overview Agreement with BG Group plc and status of divestiture program • Signed agreement with BG Group plc (“BG Group”) for joint development of EXCO’s Haynesville shale and related East Texas / North Louisiana upstream assets; – EXCO will sell a 50% interest
Slide 5: Transaction Rationale
104-JV Announcement 6-30-09 Transaction Rationale • Joint Development Agreement contemplates: – Accelerated development of existing acreage – Accumulation of additional leasehold and drilling opportunities • Why we chose BG Group – World leader in developing and marketing natural gas • Strong techni
Slide 6: Reserve Base Reconciliation
104-JV Announcement 6-30-09 Reserve Base Reconciliation (1) Pro forma for BG Group transaction and divestiture program to date Before 2009 E.TX / N.LA Transactions Divestitures Joint Venture Pro Forma Proved reserves (Bcfe) 2,252 (269) (290) 1,693 Total 3P reserves (Bcfe) 6,481 (425) (1,734) 4,322 P
Slide 7: Reserve Base
104-JV Announcement 6-30-09 Reserve Base Pro forma for BG transaction and divestiture program to date Proved Reserves = 1.7 Tcfe 3P Reserves = 4.3 Tcfe 3P+ Reserves = 13.0 – 18.7 Tcfe Current Production = 295 Mmcfe/d Appalachia 0.5 Tcfe Proved 0.9 Tcfe 3P 7.9 – 13.0 Tcfe 3P+ 54 Mmcfe/d Mid-Continent
Slide 8: Liquidity and Financial Position
104-JV Announcement 6-30-09 Liquidity and Financial Position Pro forma for BG Group transaction and divestiture program to date 2009 E.TX / N.LA Debt As of March 31, 2009 Actual Divestitures(1) Partnership Reduction Pro Forma Cash $ 45.5 $ 461.2 $ 904.0 $ (1,365.2) $ 45.5 Bank debt (L + 175 - 250bps
Slide 9: Summary
104-JV Announcement 6-30-09 Summary • Transformational transactions for EXCO – More geographic focus in high growth potential areas – Monetizes a portion of our midstream assets and shares cost and risk of expansion – Significantly reduces our debt and interest costs; enhances our balance sheet • Re