Exco Resources Inc · OTC:EXCE
Exco Resources — Howard Weil 38th Annual Energy Conference 2010
21 slides from Exco Resources's conference presentation, Mar 23, 2010
Slide 1: Howard Weil 38th Annual Energy Conference
Exhibit 99.1 th Howard Weil 38 Annual Energy Conference March 23, 2010
Slide 2: EXCO Resources, Inc.
EXCO Resources, Inc. Well positioned to exploit significant shale resource base • 1.2 Tcfe (1) of Proved Reserves • Significant Unproved Upside • ~1.0 million net acres • Current net production of ~265 Mmcfe/d • 800 employees • Successfully shifted focus from acquisitions to developing shale acreage
Slide 3: Shifting Our Strategy
Shifting Our Strategy Execution of our strategy provided the assets for tremendous future growth • Acquisition driven historically – Sought long-life assets with low risk drilling, strong basis, and proximity to markets – Focused on areas with follow-up acquisition opportunities – Entered East Texas
Slide 4: Keys to EXCO's Strategy
Keys to EXCO’s Strategy Right Assets Right People Right Strategy We have a significant position We have a dedicated, industry We are financially and in two of the most prolific leading technical staff and a operationally positioned resource plays in North America management team with a to effectivel
Slide 5: Reserve Base
Reserve Base(1) Restructured portfolio focused on shale resources Appalachia Proved Reserves = 1.2 Tcfe 3P Reserves = 3.0 Tcfe Proved: 0.3 Tcfe 3P: 0.5 Tcfe 3P+ Reserves = 15.8 Tcfe 3P+: 11.6 Tcfe Current Net Production = 265 Mmcfe/d Production: 38 Mmcfe/d Gross acreage: ~727,000 Gross acreage: ~1,1
Slide 6: Delivered What We Promised
Delivered What We Promised Achieved our 2009 strategic plan; positioned for significant growth • Prepared to deliver significant, 450 $3,500 sustained organic production growth 400 $3,000 – 50%+ organic growth rate for 2010 350 – 30% + compound annual $2,500 300 organic growth over the next five yea
Slide 7: Capital Flexibility
Capital Flexibility Continue to adjust spending based on commodity prices 2010(1) 2011(2) NYMEX gas price $ 4.00 $ 6.00 $ 4.00 $ 6.00 Production (Mmcfe/d) 315 - 329 315 - 329 450 - 475 475 - 500 EBITDA ($ in millions) ~ $460 ~ $550 ~ $500 ~ $800 CAPEX ($ in millions) ~ $482 ~ $482 ~ $550 ~ $700 • Ca
Slide 8: 2010 Focus
2010 Focus Organic growth via the Haynesville and Marcellus Shales • 2010 expected capital spending of $482 million – 102 operated horizontal Haynesville / Bossier wells – 6 operated horizontal Cotton Valley wells – 11 Marcellus operated horizontal wells – 38 Canyon Sand wells • Grow our acreage pos
Slide 9: Haynesville Assets and Efforts
Haynesville Assets and Efforts Implementing our growth strategy • ~53,900 net Haynesville acres – Actively working to acquire additional EXCO / BG acreage JV Area • 23 Mmcf/d average IP in DeSoto Parish – PUD’s booked at an average of 6.6 Bcf – Average of 2.5 PUD locations booked per PDP well • Curr
Slide 10: Haynesville IP Rate Consistency
Haynesville IP Rate Consistency 23 Mmcf/d average IP in DeSoto Parish 2010 EXCO Operated Haynesville IP's DeSoto Parish, LA 30,000 • First 36 wells in DeSoto 25,000 Parish have averaged 23.0 Mmcf/d IP’s 20,000 • Year to date 2010 wells have averaged 23.3 Mmcf/d 15,000 IP’s 10,000 • Excludes 2 wells
Slide 11: EXCO Gross Operated Haynesville Shale Production
EXCO Gross Operated Haynesville Shale Production Current Gross Operated Production 360 Mmcf/d; project to exit 2010 at ~795 Mmcf/d gross 1,000 YE 2010: 900 Midpoint projection at 795 Mmcf/d 800 360 Mmcf/d Gross Production 700 600 500 3/14/08: XCO TD’s first Haynesville vertical well 400 12/4/08: XCO
Slide 12: First Haynesville Well - Oden 30 H-6
First Haynesville Well - Oden 30 H-6 EUR projections – Large 3P potential EXCO Resources, Inc. Oden 30 H-6 • EXCO’s first operated DeSoto Parish, Louisiana horizontal Haynesville well • IP of 22.9 Mmcf/d December 2008 10,000 Current Reservoir Simulation EUR = 9.5 Bcf in 30 years • 3.5 Bcf cumulative
Slide 13: Choke Management
Choke Management Consistently restricting drawdowns Oden Heirs 30H # 6 First well with restricted choke Waldron 7-5 First 30 days to sales First 30 days to sales 24,000 120 24000 120 22,000 110 22000 20,000 100 20000 100 18,000 90 18000 16,000 80 16000 80 14,000 70 14000 12,000 60 12000 60 10,000 50
Slide 14: Bossier
Bossier Drill seven wells during 2010, primarily in DeSoto Parish Top Bossier +/- 10,000’ Top Haynesville +/- 11,500’ Top Limestone +/- 11,900’ • Potential net gas in place on the JV acreage is ~17 Tcf • Recovery factor to be determined • First completion April 2010 14
Slide 15: EXCO Midstream Operations
EXCO Midstream Operations East Texas / North Louisiana – Positioned for growth • Completed 36 inch, 29 mile Haynesville header system • Throughput capacity in excess of 1.5 Bcf/d • Constructing 1 Bcf/d of treating capacity 15
Slide 16: Current Marcellus Activity
Current Marcellus Activity ~186,000 net acres in the over-pressured fairway • Drill to test the play – Drilled 11 vertical wells to date; two verticals scheduled during 2010 – Plan 11 horizontals in 2010 – Recently TD’d horizontal at 13,396’ TMD (4,650’ lateral); frac scheduled late March • Acquire
Slide 17: Liquidity and Financial Position
Liquidity and Financial Position Financial flexibility to capitalize on opportunities in a low gas price environment Consolidated ($ in thousands) December 31, 2009 March 1, 2010 Cash(1) $ 127,316 $ 178,973 Bank debt (L + 175 - 250bps) 747,564 747,564 Senior notes (7 1/4%)(2) 444,720 444,720 Total d
Slide 18: Derivatives Position
Derivatives Position As of December 31, 2009, including Q1 2010 transactions NYMEX Contract Contract Contract natural gas price per NYMEX oil price per Equivalent price per Percent Mmcf Mcf Mbls Bbl Mmcfe Equivalent hedged(1) Q1 2010 12,190 $ 7.50 110 $ 114.96 12,852 $ 8.10 55% Q2 2010 13,803 7.16 1
Slide 19: Net Asset Value Summary
Net Asset Value Summary In millions, except per share and per unit Low Case High Case E&P Proved Reserves - 1.2 Tcfe at $2.00 & $2.50 per Mcfe $ 2,400 $ 3,000 (1) Unproved Reserves (Conventional) - 1.0 Tcfe at $.20 & $.40 per Mcfe 200 400 Unproved Reserves (Haynesville) - 2.4 Tcfe at $.30 & $.50 per
Slide 20: Forward Looking Statements
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, the following: • our future f
Slide 21: Forward Looking Statements (continued)
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 cautioned not to place undue reli
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