Slide 1: Investor Presentation August 2008
PPT-053-INV_PRES_08-08 Investor Presentation August 2008
Slide 2: Forward Looking Statements
EXCO Resources, Inc. 2 PPT-053-INV_PRES_08-08 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, amo
Slide 3: Forward Looking Statements (continued)
EXCO Resources, Inc. 3 PPT-053-INV_PRES_08-08 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 cont
Slide 4: Disciplined Growth Strategy
EXCO Resources, Inc. 4 PPT-053-INV_PRES_08-08 Disciplined Growth Strategy EXCO’s formula for creating equity value enables us to deliver strong, sustainable equity returns over the long term Disciplined Growth Strategy Acquire Long-Life Properties in Key Areas Aggressively Develop Asset Base IRR Tar
Slide 5: Historical Results
EXCO Resources, Inc. 5 PPT-053-INV_PRES_08-08 Historical Results $114 $206 $614 $845 2005 2006 2007 2008E $129 $766 $990 $287 2005 2006 2007 2008E Cash Flow From Operations (millions)(1,3) Adjusted EBITDA (millions)(1) 24 50 121 146 2005 2006 2007 2008E 668 1,224 2,175 406 2004 2005 2006 2007PF Prod
Slide 6: Key Investment Highlights
EXCO Resources, Inc. 6 PPT-053-INV_PRES_08-08 Key Investment Highlights • Outstanding Track Record – 40+% annualized growth in common share value since 1998 – 84% and 75% compounded growth rates in production and reserves since 2005 • Outstanding Reserve Base(1) – 2.2 Tcfe proved reserves – 2.7 Tcfe
Slide 7: Peer Valuation Comparison
EXCO Resources, Inc. 7 PPT-053-INV_PRES_08-08 Peer Valuation Comparison Valuation Analysis 1) Enterprise value based on share price as of closing price on August 20, 2008. Long term debt is as of 6/30/08 plus any announced acquisitions or divestitures with corresponding increase or reduction to debt
Slide 8: Reserve Base
EXCO Resources, Inc. 8 PPT-053-INV_PRES_08-08 <0.1 Tcfe Proved 0.2 Tcfe 3P 1.3 Tcfe 3P+ 2 Mmcfe/d Proved Reserves = 2.2 Tcfe 3P Reserves = 4.9 Tcfe 3P+ Reserves = 16.1 – 24.3 Tcfe Current Production = 400 Mmcfe/d Rockies 0.1 Tcfe Proved 0.3 Tcfe 3P 0.6 Tcfe 3P+ 30 Mmcfe/d Permian Basin 0.6 Tcfe Prov
Slide 9: Inventory for the Future
EXCO Resources, Inc. 9 PPT-053-INV_PRES_08-08 Inventory for the Future Includes over 23,800 drilling locations representing 14.5 – 22.7 Tcfe of reserves Appalachia 6,500+ 7.0-12.0 ETX/NLA 2,100+ 2.6-5.8 Mid-Continent 500+ 0.1 Permian 700+ 0.3 Rockies 2,000+ 1.1 Appalachia 8,165 0.8 ETX/NLA 3,021 2.0
Slide 10: Marcellus and Huron Shale Fairways
EXCO Resources, Inc. 10 PPT-053-INV_PRES_08-08 Marcellus and Huron Shale Fairways We believe our Appalachian Division assets contain 7 - 12 Tcfe of potential shale reserves Marcellus • Total Marcellus shale acreage – 443,000 gross – 395,000 net • Marcellus fairway acreage – 298,000 gross – 276,000 n
Slide 11: Haynesville / Bossier Shale
EXCO Resources, Inc. 11 PPT-053-INV_PRES_08-08 Haynesville / Bossier Shale We believe our East Texas/North Louisiana assets contain 2 - 6 Tcfe of potential shale reserves EXCO acreage in areas shaded yellow Total Haynesville shale acreage – 139,000 gross – 119,800 net • 2008 Haynesville plans – 2008
Slide 12: Midstream Operations East Texas / North Louisiana
EXCO Resources, Inc. 12 PPT-053-INV_PRES_08-08 EXCO Current Haynesville Activity Haynesville Competitor Activity EXCO Leasehold ETX / NLA CV Fields Gathering Lines Intrastate Lines Planned Intrastate Expansion • Strategically positioned for industry activity • Current throughput 538 Mmcf/d • Q2 2008
Slide 13: Net Asset Value Summary
EXCO Resources, Inc. 13 PPT-053-INV_PRES_08-08 Net Asset Value Summary In millions, except per share and per unit Low High Proved Reserves 2.2 Tcfe at $3.25 to $3.75 per Mcfe $7,069 $8,156 Low-risk Unproved Upside 2.7 Tcfe at $0.50 to $0.75 per Mcfe 1,371 2,056 Potential Upside 10.9 - 18.9 Tcfe -- -
Slide 14: 2008 Capital Budget and Drilling Schedule
EXCO Resources, Inc. 14 PPT-053-INV_PRES_08-08 2008 Capital Budget and Drilling Schedule 65% 18% 11% 4% 2% Drilling & Completion $594 MM (608 projects) Operations & Other $106 MM Shale Leasing $170 MM Exploitation $35 MM (82 projects) Our currently approved development budget totals $943(1) million,
Slide 15: Liquidity and Financial Position
EXCO Resources, Inc. 15 PPT-053-INV_PRES_08-08 Liquidity and Financial Position (1) Excludes unamortized bond premium (2) Excludes $7.7 million in offering costs (3) Net of $3.9 million in letters of credit at June 30, 2008 and August 1, 2008 (in thousands) June 30, 2008 August 1, 2008 Cash $ 34,142
Slide 16: Current Hedge Position
EXCO Resources, Inc. 16 PPT-053-INV_PRES_08-08 Current Hedge Position NYMEX Swaps Gas Mmcf Contract price per Mmcf Oil Mbbls Contract price per Bbl Percent Hedged(1) Q3 2008 26,900 8.29 388 72.15 79% Q4 2008 26,910 8.39 450 78.60 78% 2009 100,530 8.18 1,580 80.61 73% 2010 40,748 8.03 1,203 104.53 32
Slide 17: 2008 Guidance
EXCO Resources, Inc. 17 PPT-053-INV_PRES_08-08 2008 Guidance 2008E(1) ($ in thousands, except per unit amounts) Low High Production: Oil – Mbbls 2,062 2,082 Gas – Mmcf 132,170 133,970 Mmcfe 144,582 146,482 Per day – Mmcfe 395 400 Differentials to NYMEX: Oil per Bbl ($2.91) ($2.79) Gas per Mcf 100.7%
Slide 18: Quarterly 2008 Guidance
EXCO Resources, Inc. 18 PPT-053-INV_PRES_08-08 Quarterly 2008 Guidance 3rdQ 2008E 4thQ 2008E ($ in thousands, except per unit amounts) Low High Low High Production: Oil - Mbbls 500 510 510 520 Gas - Mmcf 33,300 34,200 34,200 35,100 Mmcfe 36,300 37,300 37,300 38,200 Per day - Mmcfe 395 405 405 415 Di
Slide 19: Regional Overviews
PPT-053-INV_PRES_08-08 Regional Overviews
Slide 20: Long Reserve Life and Multi-Year Project Inventory Across All Regions
EXCO Resources, Inc. 20 PPT-053-INV_PRES_08-08 Long Reserve Life and Multi-Year Project Inventory Across All Regions As of June 30, 2008(1) (1) Pro Forma for Appalachia and East Texas acquisitions (2) Appalachia shale acreage is subset of Appalachia shallow acreage (3) Haynesville shale acreage is s
Slide 21: Undrilled, Low-Risk Upside by Region
EXCO Resources, Inc. 21 PPT-053-INV_PRES_08-08 Rockies Permian Basin East Texas / North Louisiana Undrilled, Low-Risk Upside Totals Approximately 3.4 Tcfe PUD Reserves = 0.7 Tcfe PRB Reserves = 1.0 Tcfe POS Reserves = 1.7 Tcfe 0.2 Tcfe • Lance, Fort Union, Tensleep, Frontier, Mesa Verde formations •
Slide 22: Estimated Unbooked Potential
EXCO Resources, Inc. 22 PPT-053-INV_PRES_08-08 Rockies Permian Basin Appalachia Mid-Continent East Texas / North Louisiana 0.3 Tcfe Potential • 15,000 net acre field extension completed • Wolfcamp / Clearfork oil play being evaluated by 3D • 20,000 acre Tannehill shallow oil being worked – evaluatin
Slide 23: East Texas/North Louisiana Division Overview
EXCO Resources, Inc. 23 PPT-053-INV_PRES_08-08 East Texas/North Louisiana Division Overview Portfolio Highlights Reserves Locations Bcfe Gross / Net PD 750 PUD 369 567 / 439 TP 1,119 Prob 681 622 / 506 Poss 916 1,824 / 1,410 3P 2,716 3,013 / 2,355 Potential 2,600-5,800 2,100 / 1,624 Total 5,316-8,51
Slide 24: East Texas / North Louisiana Low-risk and Potential Upside
EXCO Resources, Inc. 24 PPT-053-INV_PRES_08-08 East Texas / North Louisiana Division Low-risk and Potential Upside Gladewater • Downspacing • Geoscience evaluation ongoing • Horizontal drilling Longwood/Waskom • Complete in Hosston • Downspacing Vernon • Drill approximately 31 wells in 2008 • Testin
Slide 25: Appalachia Division Overview
EXCO Resources, Inc. 25 PPT-053-INV_PRES_08-08 Appalachia Division Overview Portfolio Highlights Reserves Locations Bcfe Gross / Net PD 372 PUD 212 2,091 / 1,890 TP 584 Prob 167 1,584 / 1,436 Poss 409 4,490 / 4,034 3P 1,160 8,165 / 7,237 Potential 7,000-12,000 6,500 / 6,500 Total 8,160-13,160 14,665
Slide 26: Appalachia Division
EXCO Resources, Inc. 26 PPT-053-INV_PRES_08-08 Appalachia Division Central PA 391,000 net acres 623 Bcfe 3P reserves 4,954 3P drilling locations 2008 drilling – 142 wells Northwest PA 96,000 net acres 130 Bcfe 3P reserves 1,232 3P drilling locations 2008 drilling – 30 wells Eastern OH 281,000 net ac
Slide 27: Mid-Continent Area Division Overview
EXCO Resources, Inc. 27 PPT-053-INV_PRES_08-08 Mid-Continent Area Division Overview Portfolio Highlights • 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 94 362 / 166 3P 468 548 / 277 Pot 100 500 / 250 Total 568 1,048
Slide 28: Mid-Continent Low Risk and Potential Upside
EXCO Resources, Inc. 28 PPT-053-INV_PRES_08-08 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 hydrocarbons • Ev
Slide 29: Permian Basin Division Overview
EXCO Resources, Inc. 29 PPT-053-INV_PRES_08-08 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 Total 639 1,384 /
Slide 30: Permian Low-risk and Potential Upside
EXCO Resources, Inc. 30 PPT-053-INV_PRES_08-08 Permian Low-risk and Potential Upside Ackerly • May drill horizontal well in 2008 Beggs Ranch • Shallow oil prospect • 20,000 net acres • 45 mi2 3D seismic shoot in 2008; evaluating Sugg Ranch • 500+ drilling locations • Drill 130 wells in 2008 • Will h
Slide 31: Rocky Mountains Overview
EXCO Resources, Inc. 31 PPT-053-INV_PRES_08-08 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 2,150 / 2,047 • Cu
Slide 32: Rocky Mountains Low-risk and Potential Upside
EXCO Resources, Inc. 32 PPT-053-INV_PRES_08-08 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 four wells in 2008 in Wind River and Big Horn Basins • Considering JV opportunities Birdseye Prospect