Slide 1: Financial and Operating Overview
EXCO EXCO Resources, Inc. Financial and Operating Overview May 2006
Slide 2: Management Participants
Management Participants Doug Miller Chairman and CEO Steve Smith Vice Chairman and President Paul Rudnicki Financial Planning Manager ECO} EXCO Resources. Inc.
Slide 3: Forward Looking Statements
Forward Looking Statements “hig ques 200 vn conn fad ning ae mens a defied in Secon 7A of he Sects Act nd Section UE ofthe Secuns Eahangy Act of 1924 08 {he Bsdngs Act Thos foround okay eames we, atong oer tans te felbwang ou ft mein end opening pentane and eu We re bscd the fora ooking statment on
Slide 4: Forward Looking Statements (continued)
Forward Looking Statements (continued) ‘Oar arvene,opentng eu, nial condition nd ity to bom Fads on tinea oil depend evant on prevang pis foro nd ntl pe Decks inc atin gus pws may mately stray aft on fan coniion,Iy, ity to ban aoring end opening wl, Lower cor sate gas tbe do may anc th moat foi or f
Slide 5: Summary of Recent Developments
Summary of Recent Developments 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 propert
Slide 6: Investment Highlights
Investment Highlights ® High quality asset base in established basins — Continued emphasis on East Texas and Appalachia + Spud 10 wells in 1+t Quarter in East Texas and 41 in Appalachia + Thru May 15, 2006, spud 16 wells in East Texas and 69 in Appalachia + Closed $115 million acquisition in Appalac
Slide 7: Investment Highlights
Investment Highlights ® Successful acquisition and operations track record Finished acquisition of TXOK and booked 224 Befe in February 2006 Increased proved reserves from 668 Befe (including TXOK) to 863 Befe Spud 122 wells since January 1, 2006 —no dry holes drilled Continue to operate over 85% of
Slide 8: Diversified Reserve Base
EXCO Resources, Inc. Diversified Reserve Base * Total pro forma proved reserves® =863 Bcfe * Total pro forma reserves” = 1,218 Befe | East Texas fNorth Louisiana © Mor O18 Gass © Mr
Slide 9: Quarter 2006 Financial Review
1 Quarter 2006 Financial Review ECO} EXCO Resources. Inc.
Slide 10: Quarter 2006 Highlights
EXCO Resources, Inc. 1 Quarter 2006 Highlights Q1 2006 Reported ProForma” Qi 2005 (in millions, except for production) il and natural gas revenues $39.0 Net income (loss) ($28.7) Operating cash flow ($40.0) Adjusted EBITDA Average production — Mmcfe/d (1 taco te at dpe of rotation fom TXOK Actin ne
Slide 11: Unit Operating Statistics
Unit Operating Statistics Production volumes: Oil —Mbbis 126 Gas —Mmef 5,156 Total -Mmefe 5,912 Realized pricing: Oil per Bbl $47.09 Gas per Mef $ 640 Per Mcfe $3 658 Production costs per Mefe: Operating costs Production taxes Total production costs AL (1) Dore notincade cosh cetioments of desivativ
Slide 12: Operating Results
Operating Results Revenues and other income: Oil $ 8,993 $ 3,060 52% Natural gas 61,347 28,351 86% Other income 2,031 1,642 422% Cash settlements on derivatives” (2,795) 928 25% Total revenues 69,576 33,981 95% Cost and expensi Operating costs 7,035 2,617 Production taxes 4,450 2,079 Total productio
Slide 13: Pro Forma Unit Operating Statistics
Pro Forma Unit Operating Statistics Production volumes: Oil —- Mbbls Gas —-Mmef Total —Mmcfe Realized pricing”: il per Bbl Gas per Mc Per Mefe Production costs per Mefe: ‘Operating costs Production taxes Total production costs 13 0) Does netinchad cash elements of derivatives EXCO Resources. Inc.
Slide 14: Pro Forma Operating Results
14 Pro Forma Operating Results Revenues and other income: Oil ‘Natural gas Other income Cash settlements on derivatives Total revenues Cost and expenses: Operating costs Production taxes Total production costs General and administrative” Total costs and expenses Adjusted EBITDA? As Reported $ 8,993
Slide 15: Liquidity and Financial Position
Liquidity and Financial Position eh 31, 2006 May 11, 2006 (In thousands, Cash $ 35,422 $ 16,362 Debt: Bank debt $ 108,500 283,500 Senior notes” 444,720 444,720 Total debt 353,220 728,220 Shareholders’ equity 1,069,760 Total capitalization $ 1,622,980 Debt to total capitalization 34% Borrowing base $
Slide 16: Derivatives Summary
Derivatives Summary As of March 31, 2006, including all trading activity through May 19, 2006 (in thousands, except prices) Weightet preeper Bi EXCO Resources. Inc.
Slide 17: 1st Quarter 2006 Operational Review
1** Quarter 2006 Operational Review ECO} EXCO Resources. Inc.
Slide 18: Snapshot
EXCO Resources, Inc. Snapshot Average Daily Sales, Mmefe/d Total Proved Reserves, Befe Reserve Life, Years Drilling Locations Number Proved Approximate Net Acreage Well Count. Gross Net Employees ‘SEC 12/31/05 tot proved eserves. Based upon SEC 12/31/05 total proved reserves and qurer 2006 average d
Slide 19: Proved Reserves and Current Production Estimates
EXCO Resources, Inc. Proved Reserves and Current Production Estimates Production (Mmcfe/d) EXCO West Texas acquisition Appalachian acquisition Total 127 EXCO Resources. Inc.
Slide 20: 2006 Q1 Drilling Activity
EXCO Resources, Inc. 2006 Q1 Drilling Activity Budgeted Wells Wells Awaiting Drill Wells Spud Q1 Drilling Completion Completed Dry Holes Q12006 2006 _at 3/31/06 at 3/31/06 12006 _Q12006 Appalachia TXOK® EXCO U.S. 6 Total 55 Thru 5/15/2006 (Q) TXOK inctdes Fl quater activity EXCO Resources. Inc. 20
Slide 21: 2006 Capital Budget
EXCO Resources, Inc. 2006 Capital Budget“) Budget SMM) Original drilling budget 134 West Texas acquisition 20 Appalachian acquisition Total drill wells Exploitation projects Operations and other Corporate Total EXCO Resources. Inc.
Slide 22: 2006 Pro Forma Capital Program
EXCO Resources, Inc. 2006 Pro Forma Capital Program) Drilling & Exploitation Economic Summary ked _ Risked” Investment, $MM Reserves Developed, Bcfe Finding Cost, per Mcfe Finding Cost by Area, per Mcfe: Appalachia U.S. (excluding Appalachia) 122, @)_ Inches fil your of TKOK endsecentacqisions @)_ R
Slide 23: Recent Acquisition Activity: West Texas
Recent Acquisition Activity West Texas Acquisition 50% interest in approximately 19,000 acres for $85.7 million closed on April 5, 2006. An additional 5,000 acres at $4.3 million is under contract for closing in January 2007. Production of approximately 4 Mmcfe per day from 38 producing wells Approx
Slide 24: Recent Acquisition Activity: Appalachian Basin
Recent Acquisition Activity Appalachian Basin Acquisition Acquired privately held company for $115 million on April 28, 2006 Primarily located in Pennsylvania, Ohio and West Virginia Production of approximately 5 Mmefe per day from 1,187 producing wells Approximately 162 Befe of proved reserves = 96
Slide 25: Pending Acquisition: East Texas
Pending Acquisition East Texas Acquisition Signed PSA on acquisition of producing and undeveloped oil and gas properties for $51.6 million on April 10, 2006 Located in the Cotton Valley trend in East Texas Production of approximately 4 Mmcfe per day from 17 producing wells Approximately 28 Befe of p
Slide 26: Questions and Answers
Questions and Answers EXCO EXCO Resources. Inc.
Slide 27: Supplemental Data
Supplemental Data ECO} EXCO Resources. Inc.
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of condensed consolidated cash flow from operating activities (Unaudited, in thousands) Net eash provided by (used in) operating activities § (114,974) Net change in working capital 11258 1,261) Net cash used in operating activites of en discontinued operation
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Condensed consolidated EBITDA and adjusted EBITDA reconciliations (Unaudited, in thousands) Quarter ended Quarter ded March 31, 2005 March 31, 2006 etiacome $ 37182 Interest epense Income taxespene ee) Depreciation depletion and aeration EBrmDs®) Accretion of dconten amet re
Slide 30: Searchable text section of graphics
Searchable text section of graphics shown above [LOGO] Financial and Operating Overview May 2006 Management Participants Doug Miller Chairman and CEO Steve Smith Vice Chairman and President Paul Rudnicki Financial Planning Manager [LOGO] Forward Looking Statements This 1 st quarter 2006 review conta