Exco Resources Inc · OTC:EXCE
Exco Resources — Howard Weil Energy Conference 2015
25 slides from Exco Resources's conference presentation, Mar 25, 2015
Slide 1: EXCO Resources, Inc. Howard Weil Energy Conference March 2015
Exhibit 99.1 EXCOHoward Scotia March 2015 Resources, WeilInc. Energy Conference
Slide 2: Recent Events Update
Update Compass Divested $83 Credit Provides EXCO’s zational Amended 2015 Cost Negotiating Lowered Organiz expenses headcount Dividend P restricted chnical Inventory Program Refrac Completed Large North E Upside Bossier East Potential South Testing production Participated 2S (1) natural realized olid
Slide 3: Align 2015 Capital Program with Reduced Capital Budget
Align 2014 –Capital reserves Reduced 2015 Reducing Converts total Capital capital program to 2015 spuds asset proved rig Budget Program spending drilling count base focused ofand 121 of from by activity levels unproved $275 reduced on Type annatural Million with average in 2015 tolocations South exp
Slide 4: 2015 Capital Budget – Allocated Drilling Rig Count
–Allocated 2015 Drilling Rig Spuds 18 44 (i 4C includes gross wells) Capital(1) Operated ompletions Add 35% Essentially Produce Maintain llti gross dCount 14 15 26 Capital capital budget program 0.5 proved 22 lower /iand carry-in /5net Only drilling 1gross capital 11.7 10.7 attractive $80 39high / c
Slide 5: East Texas / North Louisiana Results
East Q4 net LA 203 Net Eight new completion resulted projects lower Shelby Bossier performing Completed encouraging Exploiting drilling to economics 10 at 5–Plan Applying 481 non-operated 22 current gross years 2014 /shale non flowback Texas spuds spud 84well EXCO break-even Area longer shale TX) 11
Slide 6: East Texas Haynesville and Bossier Wells
East Eight Haynesville targeting Wells strategically the 2015 latest pounds foot, flowback pressure Well higher proved reserves wells –Bcf/1,000’ as 1,000 of 6Largest Dollars Longer 2014 Offset five lateral capital much acreage opportunity Texas and performance program evolution (>11 well feet drill
Slide 7: East Texas / North Louisiana Economics and Sensitivities
East60 34% Selected 30% 50% 5% 10% 80% 75 40 $3.00 Strip $3.50 $4.00 60% ETX (ELL NLA 0% Core Current (1) (2) (3) 7Note: 20 Strip Return Selected 10% Texas 30% 70% 26% $4.00 90% Shelby Holly 8,000’) 7,450’) 6,900’) Wellhead Strip—1.75 133 80 0 Capital price Wellhead 20% 35% 16% 100 sensitivities and
Slide 8: North Louisiana Base Production Initiatives
Focused maturing and Initial Six Gas Pressure ~4,300 Diagnostics 550 shut-in Pipeline effectively Current Third psi reserves grate Mcf/d Positive compression –Compression pressure field 8North Artificial Working Base Initial pMonitoring Completed 120 Before Haynesville reduce ~1,500 rate compression
Slide 9: South Texas Buda Wells Concentrated Position
Q4wells 209 Concentrated 52,900 Recent 13 Buda First Estimated Open Participating Plan South PDP Wells Participation Total Producing Avg. 912/31/14 2014 producing to and operated WI Wells evaluations hole drilled Texas net Eagle spud with average in-progress 68% cost at completion; acres Well 23 Agr
Slide 10: Demonstrated Efficiency and Cost Reductions
Demonstrated of –completion Increased 60 50 49 2014 cross Reduced $12.0 $10.0 $10.9 Improve capital 35 38 42 measures per 40 30 24 cross-$8.3 Optimized 2productivity Avg. 2010 Commissioned South operating $7.4 $8.3 16 22 $9.0 $8.0 $7.0 $6.0 $5.0 p$6.6 25 20 15 14 production Base North decline $4.0 $
Slide 11: Appalachia Production Maintenance
Maintain Appalachia to ~127 ~157,000 Long maintenance revisions Most declines well Oct 64 61 56 Oct. 70 60 50 production Plan one 01wells –2015) Q4 Q3 Q2 Q1 40 30 20 Net 2014 2013 11 0Preserves 55 41 Experienced carry 64 62 55 2014 prospective 2013 of Production—Mmcfe/d 2.7 to Mmcfe/d horizontal rec
Slide 12: Multi-Year Value Creation Opportunity
Multi-Year Shifting East prices and North future South –lreserves Appalachia 12 hRecent Opportunity Drive Success Bossier Base Buda managing Texas Texas Louisiana years production delineation additional development well shale ofValue refrac performance costs todrilling add Creation return initiative
Slide 13: Positive Momentum in Debt Reduction
Positive EXCO $2,100 $2,000 $$1,900 1,800 $1,700 reduction debt $1 ~$602mm Total 1,300 $1,500 $1,400 13in300 800 millions $1,600 Debt has Deleveraging ofworked aggressively Momentum to reduce debt and enhance liquidity
Slide 14: Debt and Liquidity Position
Debt Pro ($ Cash Amended borrowing Senior 2022 Total Current Amount Suspended and Letters financial Available Plus: Liquidity asset significant No –2018 mature 14 Added Amendments until Credit $750 $500 innear Forma interest thousands) and base S Senior Cash debt Notes million of in ibank term agree
Slide 15: South Texas Offers Process Update
South Made KKR $37,500 34 remainder –would EXCO 15 forecast Acquired Total Transaction The One Offer Offers Not additional has all first number Texas Committed lower has consideration isper on 34 accepted based of offer not production Uncertainty wells flowing Offer the 2015 wells closed of included
Slide 16: Well Positioned Operations Summary
Well Preserve Maintain adjusted Amended Protect of Ten liquidity pace Suspended development Expect proven Demonstrated Divested Realized operating Ability Efficient Continue Evaluating Inventory Future Monitor Hedges 2015 Significant Estimated Adjusted 16 Natural years Positioned budget North to ope
Slide 17: Appendix
EXCO Resources, Inc. Appendix
Slide 18: Year-End 2014 Proved Reserves and PV-10
Year 1,800 1,600 are million 1,124 168 131 (136) Reserves 1,400 1,200 1,000 800 Pro total 27% 600 400 200 591 737 Total Developed of 04P Acquisition Discoveries Revisions Other Divestitures Price Proved using (1) $4.35 12 (2) (3) 2014, 18 Q13 dtotal month The PV-10 1,264 1forma (127) proved from End
Slide 19: 2015 Guidance
2015 1Q Low Production: Total Average Realized Natural Costs Oil Gathering Depletion, Production General Interest (1) (2) (3) (4) (5) 19 Average Guidance Excludes Interest 2015 (Mbbls) (per and High First Production and Natural Gas Expense, Bbl) and Daily FY Price Expenses: and Low Quarter Depreciat
Slide 20: Derivative Summary
2015 Volume Natural Three-Way Purchased Oil Fixed Sold –Derivative 55% Mmbtu impact Expected (1) (2) prices (3) 20Three-way Fixed The Effective Basis (Bbls): of Put Call 2016 Price between of expected 2015 Gas price Strike Option differential 2015 Option Options basis Put Summary(1) contracts 2017 C
Slide 21: Type Curve Summary Economics
Type East ELL) CAPEX EUR Average Mmcfe/d % IRR NPV-10% Five Year (1) (2) 21 Gas Strip See @ Texas Year 1Curve 2 3 4 5(BCF, 1.3 3,040,988 1,979,680 984,918 577,931 386,788 /December slide % ($m, WI NRI price BCF/1,000’ IP Production ($m, Oil Shelby gross) Summary 9.5 40.8% seven 31.8% gross) economic
Slide 22: December 31, 2014 NYMEX Price Deck
December NYMEX Gas 2015 2016 2017 2018 2019 2020 Terminal 22 Oil $3.01 $3.46 $3.76 $3.96 $4.12 $4.26 $4.50 futures 31, $56.76 $63.21 $66.83 $68.67 $69.85 $70.65 2014 $72.50 prices Price asDeck of December 31, 2014
Slide 23: Forward-Looking Statements
Forward This or These market contain should obligation revise from in the future disruption estimates geological risks exploratory discovery, cash timing availability marketing political title competition; litigation; general environmental elimination tax receipt decisions potential actions fluctuat
Slide 24: PV-10 and Adjusted EBITDA Notes
Proved The December of average prices. accepted principles acquisitions characteristics represents after 932”). loss costs were Reconciliation There Earnings EBITDA” EBITDA stock-based and comparisons recommendations. indenture our differ are prescribed operating, financing calculation Adjusted gove
Slide 25: Adjusted EBITDA Reconciliation
Three (in Depletion, EBITDA Accretion Impairment (Gain) Equity Cash Share Adjusted Interest Income Amortization Deferred Other Changes Net 25 thousands) income (gains) cash settlements based operating Months loss (income) expense tax in provided income $and EBITDA of depreciation 167,719 on expense