Exco Resources Inc · OTC:EXCE
Exco Resources — Debt Investor Presentation (August 2006)
23 slides from Exco Resources's debt investor presentation, Aug 16, 2006
Slide 1: Lender Presentation $750 Million Second Lien Term Loan
Lender Presentation $750 Million Second Lien Term Loan August 2006 EXCO Operating, LP
Slide 2: 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 3: Forward Looking Statements (continued)
Forward Looking Statements (continued) Our revenues, operating results, financial condition and ability to borrow funds or obtain additional capital depend substantially on prevailing prices for oil and natural gas. Declines in oil or natural gas prices may materially adversely affect our financial
Slide 4: Transaction Overview
Transaction Overview
Slide 5: Transaction Overview
Transaction Overview On July 24, 2006, EXCO Resources, Inc. (“EXCO”) announced an agreement to acquire Winchester Energy Company, Ltd. (“Winchester”) from Progress Energy, Inc. for $1.2 billion EXCO Operating, LP will be formed as a new subsidiary of EXCO to acquire Winchester and certain East Texas
Slide 6: Sources and Uses
Sources and Uses $ Millions Sources: Senior Secured Revolving Credit Facility (1) $6 6 7 Senior Secured Second Lien Term Loan 750 EXCO Equity Investment (2) 2 75 Total Sources $ 1, 6 92 Uses: Purchase of Winchester $1,200 Purchase of EXCO Assets (2) 4 75 Fees and Expenses 1 7 Total Uses $1,6 92 (1)
Slide 7: Asset Overview
Asset Overview
Slide 8: EXCO Operating, LP Snapshot
EXCO Operating, LP Snapshot (1) Based upon total proved reserves as of July 1, 2006 and June 2006 production annualized Net Production ( 6 /0 6 ): 111.1 Mmcfe/d 10 5 . 1 Mmcfe/d gas 994 Bbls/d oil Total Proved Reserves ( 7 /0 6 ) : 594 Bcfe ( 57 % PD, 96 % gas) Reserve Life (1) : 1 4 . 6 years Total
Slide 9: Asset Highlights
Asset Highlights The EXCO Operating, LP assets are primarily located in two states: East Texas Fields Upshur, Gregg, Smith, Shelby and Rusk Counties 305.7 Bcfe of total proved reserves 54.9 Mmcfe of daily production Louisiana Fields Caddo and Desoto Parishes 288.1 Bcfe of total proved reserves 56.2
Slide 10: Asset Highlights
Asset Highlights (1) Does not include 1 Bcfe from miscellaneous locations outside the key fields/areas The assets are primarily located in seven key fields/areas (1) : Holly/Caspiana Desoto Parish, LA 216 Bcfe of total proved reserves Longwood/Greenwood/Various ETX Caddo Parish, LA/Various Counties,
Slide 11: Total Oil and Gas Reserves
Total Oil and Gas Reserves(1) As of 7/06 (1) Pro forma reserves effective July 1, 2006; NYMEX 6/22/06 pricing Additionally, EXCO Operating, LP owns a pipeline with an estimated fair market value of $150 million Oil/Liq. Gas Equiv. PV 10 Net Reserve Category Mbbls MMcf MMcfe $000 Proved Developed Pro
Slide 12: Reserve Summary
Reserve Summary Proved Reserves by Commodity Total Reserves by Category Proved Reserves by Category Proved Reserves by Entity 46% 43% 11% PDP PUD PDNP 69% 31% Winchester EXCO 60% 34% 6% Proved Probable Possible 96% 4% Oil Natural Gas
Slide 13: Net Production Volumes
Net Production Volumes 68% 32% Winchester EXCO. June 2006 Production Oil/Liq. Bopd Gas Mmcfpd Equiv. Mmcfpd Louisiana 481.0 51.7 54.6 East Texas 513.0 53.4 56.5 Total Production 994.0 105.1 111.1
Slide 14: Total Well Count
Total Well Count As of 6/06 Net Wells (All) Gross Wells (All) (1,097 Total) (770 Total) All Wells Operated Wells Area Gross Net Gross Net Louisiana 3 11 228 271 226 East Texas 786 5 42 707 528 Total Well Count 1,0 97 770 978 754 58% 42% Winchester EXCO 54% 46% Winchester EXCO
Slide 15: Business Strategy – EXCO Operating, LP
Business Strategy – EXCO Operating, LP Grow production and reserves while maintaining free cash flow Long life reserves, onshore East Texas and North Louisiana Development potential Growth projects – low risk probables and possibles Operating efficiencies and cost reductions Free cash flow to repay
Slide 16: Investment Considerations
Investment Considerations Geographically concentrated properties with multi pay potential High working interest, more than 90% of properties are operated Midstream assets group provides timely hookups, enhanced production surveillance and operating control $13 - $15 million of stable annual cash flo
Slide 17: Hedging Overview
Hedging Overview (1) July 1 - December 31, 2006 90% of proved developed production hedged from 2007 to 2010 2006 1 2007 2008 2009 2010 Gas (Mmbtus) Swaps 10,093,902 26,563,400 25,024,500 21,566,400 3,205,200 $ 8.91 $ 9.13 $8.85 $8.32 $7.38 Collars 2,034,000 Ceiling $ 9.55 Floor $ 6.25 Oil (Bbls) Swa
Slide 18: Summary Pro Forma Historical Financials and Credit Statistics
Summary Pro Forma Historical Financials and Credit Statistics Note: Historical financials are preliminary and subject to change (1) Total revenue does not include historical effects of hedging (2) Historical G&A expenses not available. EBITDA does not include the impact of G&A. Current estimated ann
Slide 19: EXCO Resources, Inc. Overview
EXCO Resources, Inc. Overview
Slide 20: Company History
Company History Bought control of EXCO in December 1997 Prior to that, certain members of management grew Coda Energy from $0 to $380 million and sold Coda in November 1997 From 12/31/97 to 6/30/06 (1) : $1.7 billion of proved reserve acquisitions 1.2 Tcfe in 139 transactions Proved reserves grew fr
Slide 21: Recent Activity
Recent Activity February 2006: Completed IPO on February 14, 2006 with sale of 53.6 million shares and net proceeds of $662 million Retired $735.5 million of Equity Buyout and TXOK acquisition debt Redeemed $158.8 million of preferred stock and recorded the acquisition of TXOK properties April 2006:
Slide 22: Diversified Reserve Base
Appalachia 442.6 Bcfe Proved (34%) 546.9 Bcfe Total (28%) 42.5 Mmcfe/d (21%) Permian Basin 91.1 Bcfe Proved (7%) 213.3 Bcfe Total (10%) 13.0 Mmcfe/d (6%) Other Areas 5.1 Bcfe Proved (<1%) 8.5 Bcfe Total (<1%) 1.5 Mmcfe/d (<1%) (1) SEC 12/31/05 total proved reserves, pro forma for the TXOK acquisitio
Slide 23: Liquidity and Financial Position
(1) Pro forma for the contribution of the EXCO Assets to EXCO Operating, LP, which is non-recourse to EXCO and shown unconsolidated (2) Excludes unamortized bond premium (3) Pro forma borrowing base as indicated by lead lender Liquidity and Financial Position (In million s) June 30 , 2006 Pro Forma
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