Exco Resources Inc · OTC:EXCE
Exco Resources — Investor Presentation (July 2010)
21 slides from Exco Resources's investor presentation, Jul 12, 2010
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation July 2010
Slide 2: Company Overview
PPT-161-July Investor Presentation Company Overview (1) Significant shale upside with a solid base of conventional assets • 1.2 Tcfe of Proved Reserves – 300 Mmcfe/d of current net production, reserve life of 10.9 years and 62% Proved Developed – 260 Bcf of shale assets booked as proved with potenti
Slide 3: Reserve Base
PPT-161-July Investor Presentation Reserve Base Concentrated portfolio focused on shale resources Appalachia Proved Reserves = 1.2 Tcfe 3P Reserves = 3.6 Tcfe Proved: 0.2 Tcfe 3P: 0.2 Tcfe 3P+ Reserves = 12.5 Tcfe 3P+: 5.9 Tcfe Current Net Production = 300 Mmcfe/d Production: 17 Mmcfe/d Gross acreag
Slide 4: Recent Events
PPT-161-July Investor Presentation Recent Events • Significant liquidity created through 2009 asset sales and joint venture with BG Group – Reduced debt by $2.2 billion or 74% since YE 2008 – Increased liquidity to approximately $1.0 billion • Continued success in the Haynesville – Completed 64 oper
Slide 5: Liquidity and Financial Position
PPT-161-July Investor Presentation Liquidity and Financial Position Common Appalachian Southwestern Pro Forma Consolidated ($ in thousands) March 31, 2010 Acquisition Joint Venture HNVL Acquisition March 31, 2010 (1) Cash $ 117,792 $ - $ - $ - $ 117,792 Bank debt (L + 200 - 300bps) 762,543 220,800 (
Slide 6: Production Profile
PPT-161-July Investor Presentation Production Profile Achieved our 2009 strategic plan; positioned for significant growth 450 $3,500 400 $3,000 350 $2,500 300 250 $2,000 200 $1,500 150 $1,000 100 $500 50 - $- Actual production Production guidance midpoint Outstanding net debt • Completed significant
Slide 7: Net Asset Value Summary
PPT-161-July Investor Presentation Net Asset Value Summary Pro forma for the Common acquisition, Appalachian JV, and SWN HVNL acquisition 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 Unproved Reserves (Conventi
Slide 8: Unmatched NAV Growth
PPT-161-July Investor Presentation Unmatched NAV Growth Southwestern transaction will enhance growth profile 2010E (1) 2014 Target (2) Production (Mmcfe/d) 319 900 - 1,000 Proved Reserves (Tcfe) 1.2 5.0 - 6.0 EBITDA (Millions) $506 $1,250 - $1,600 Cash Flow (Millions) $458 $1,200 - $1,550 Capital Ex
Slide 9: Production and Cash Flow Growth
PPT-161-July Investor Presentation Production and Cash Flow Growth (1) Target cash flow neutral spending (dollars in millions) 2010 2011 2012 2013 2014 Average Rig Counts: Haynesville/Bossier Area 17 22 27 27 27 Marcellus Area 2 5 10 14 16 Permian Area 2 2 3 2 - Total 21 29 40 43 43 Production (Mmcf
Slide 10: Quarterly 2010 Guidance
PPT-161-July Investor Presentation Quarterly 2010 Guidance Will update for Southwestern transaction with Q2 2010 earnings call Q1 2010 Q2 2010E Q3 2010E Q4 2010E 2010 (dollars in thousands, except per unit amounts) Actual Low High Low High Low High Low High Production: Oil - Mbbls 159 130 141 128 13
Slide 11: Capital Spending Summary
PPT-161-July Investor Presentation Capital Spending Summary Focus on the shales $ in millions 2010E 2010 Capital Spending Haynesville / Bossier $ 278 Haynesville / Marcellus 134 Bossier 47% Marcellus Conventional 64 23% Corporate 28 Total CAPEX 504 Investment in TGGT Holdings, LLC 80 Total CAPEX inc
Slide 12: Current Derivatives Position
PPT-161-July Investor Presentation Current Derivatives Position NYMEX Contract Contract Contract natural gas price per NYMEX oil price per Equivalent price per % Hedged Mmcf Mcf Mbls Bbl Mmcfe Equivalent forecast(1) Q2 2010 13,803 $ 7.16 111 $ 114.96 14,471 $ 7.72 55% Q3 2010 13,940 7.16 113 114.96
Slide 13: Haynesville Assets and Efforts
PPT-161-July Investor Presentation Haynesville Assets and Efforts AR TX • ~78,500 net Haynesville acres with EXCO / BG LA significant held by production position JV Area • Average IP rate from our operated Haynesville horizontal wells in DeSoto Parish continues to be approximately 23 Mmcf per day •
Slide 14: Shelby Area
PPT-161-July Investor Presentation Shelby Area Haynesville and Middle Bossier assets Bossier • Located in Shelby Trough in Shelby, 9 Mmcf/d IP San Augustine & Nacogdoches Counties, TX • Nine horizontal shale wells flowing to Bossier sales (8 Haynesville, 1 Bossier) 12 Mmcf/d IP • Large acreage holdi
Slide 15: Haynesville IP Rate Consistency
PPT-161-July Investor Presentation Haynesville IP Rate Consistency 23 Mmcf/d average IP in DeSoto Parish(1) EXCO Operated Haynesville IP's DeSoto Parish, LA IP, Mcf/d 35,000 Average Desoto Parish IP rate of 30,000 23 Mmcf/d 25,000 20,000 15,000 10,000 5,000 0 • Excludes 4 wells in DeSoto Parish (2 t
Slide 16: Haynesville Type Curve - DeSoto Parish, LA
Haynesville Type Curve - DeSoto Parish, LA Conservatively booked with significant upside based on actual decline rates b = 1.75 EUR = 9.6 Bcfe b = 1.25 EUR = 7.6 Bcfe b = 1.00 EUR = 6.6 Bcfe EXCO’s current proved type curve 16
Slide 17: EXCO Gross Operated Haynesville Shale Forecast
PPT-161-July Investor Presentation EXCO Gross Operated Haynesville Shale Forecast Poised to deliver significant growth in Haynesville production ~2,000 Mmcf/d Production (High Case) ~1,700 Mmcf/d Production (Low Case) ~1,600 Mmcf/d Production ~ 939 Mmcf/d Production Currently ~500 Mmcf/d Gross Firm
Slide 18: Marcellus Activity
PPT-161-July Investor Presentation Marcellus Activity • Drilling program underway – Plan at least 11 horizontals in 2010 – Built-for-purpose drilling rig under long term contract delivered February 2010 – Contracted to add two additional rigs • Completed two horizontal wells with IP’s of 2.9 and 2.2
Slide 19: TGGT Midstream Operations
PPT-161-July Investor Presentation TGGT Midstream Operations Additional expansion projects in Shelby Trough A BG Group – EXCO alliance TGGT East TX / North LA System • TGGT throughput currently totals approximately 1.1 Bcf/d • Construction of 36 inch, 29 mile Haynesville header system completed • Th
Slide 20: Forward Looking Statements
PPT-161-July Investor Presentation 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 th
Slide 21: Forward Looking Statements (continued)
PPT-161-July Investor Presentation 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 ar