Slide 1: Investor Presentation
Job Number Investor Presentation March 2009 EXCO Resources, Inc.
Slide 2: Forward Looking Statements
Job Number 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: • o
Slide 3: Forward Looking Statements (continued)
Job Number 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 are cautioned not to place
Slide 4: Key Investment Highlights
Job Number Key Investment Highlights Our track record and reserve base have positioned us as a Top 25 oil and natural gas company • Outstanding Track Record – 83% and 77% compounded growth rates in production and reserves since 2005 – Three year drill-bit F&D (1) of $2.32 per Mcfe and $2.77 per Mcfe
Slide 5: Corporate Financial Highlights
Job Number Corporate Financial Highlights 2008 2007 (in thousands, except per share and production) Amount Per Share Amount Per Share Oil and natural gas revenues $ 1,404,826 $ 875,787 Cash settlements on oil and natural gas derivatives $ (109,300) $ 108,413 Adjusted net income available to common s
Slide 6: Summary of Reserves and Potential
Job Number Summary of Reserves and Potential (reserves in Bcfe) Non-shale Haynesville Marcellus/Huron Total Proved reserves 2,187 40 25 2,252 (1) Probable/possible reserves 1,815 2,414 - 4,229 Potential 1,888 1,778 - 3,046 6,975 - 11,975 10,641 - 16,909 Total 5,890 4,232 - 5,500 7,000 - 12,000 17,12
Slide 7: Reserve Base
Job Number Reserve Base Our focus areas contain between 17 and 23 Tcfe of reserves Proved Reserves = 2.3 Tcfe 3P Reserves = 6.5 Tcfe 3P+ Reserves = 17.1 – 23.4 Tcfe Current Production = 405 Mmcfe/d Rockies <0.1 Tcfe Proved Appalachia <0.1 Tcfe 3P 1.1 Tcfe 3P+ 0.5 Tcfe Proved 2 Mmcfe/d 1.0 Tcfe 3P 7.
Slide 8: Operational Highlights
Job Number Operational Highlights Haynesville Shale • Technical initiative in 2008 laid foundation for horizontal development – Shifted focus from traditional Cotton Valley to Haynesville development – Spent 2008 analyzing logs and core samples to understand geology – Drilled and tested vertical wel
Slide 9: Operational Highlights
Job Number Operational Highlights Haynesville Horizontal Announced IP Map EXCO Lattin 24 #4 24.2 Mmcfe/d IP EXCO Sammo 18 #5 21.4 Mmcfe/d IP EXCO Oden 30H #6 22.9 Mmcfe/d IP EXCO Acreage EXCO Resources, Inc. 9
Slide 10: Operational Highlights
Job Number Operational Highlights Marcellus Shale • Marcellus horizontal results – Completed two horizontal Marcellus wells in Pennsylvania • Limited lateral lengths of 500’ and 1,700’ primarily due to faulting, with rates from 1.0 to 3.4 Mmcf/d from one stage and four stage fracs • Shot and interpr
Slide 11: Operational Highlights
Job Number Operational Highlights Marcellus Shale Activity 2009 EXCO Planned Well 2008 EXCO Drilled Well EXCO Resources, Inc. 11
Slide 12: Operational Highlights
Job Number Operational Highlights East Texas/North Louisiana Midstream Activity • Our midstream subsidiaries include TGG (intrastate pipeline) and Talco (gathering) • Throughput has increased from approximately 460 Mmcf/d at year end 2007 to 600 Mmcf/d today • 57-mile, $38 million expansion of our T
Slide 13: Midstream
Job Number Midstream East Texas/North Louisiana – Positioned for Growth EXCO Resources, Inc. 13
Slide 14: Net Asset Value Summary
Job Number Net Asset Value Summary $8 Gas & NYMEX In millions, except per share and per unit $80 Oil Strip Pricing Proved Reserves: Proved Developed –1.6 Tcfe at $3.50 and $2.30 per Mcfe $5,600 $3,680 Proved Undeveloped– 0.7 Tcfe at $1.00 and $0.30 per Mcfe 700 210 Total Proved – 2.3 Tcfe at $2.74 a
Slide 15: 2009 Focus
Job Number 2009 Focus • Manage spending in low commodity price environment, while protecting our acreage and reserves position and meeting our commitments • Focus on opportunities that provide growth and strong returns – Continue delineating and developing Haynesville shale – Evaluate Bossier shale
Slide 16: 2009 Capital Budget
Job Number 2009 Capital Budget • Although our Board of Directors approved a 2009 Capital Budget totaling $582 million, with current commodity prices we will likely spend less. We are planning to drill 186 wells in 2009 vs. 475 in 2008 2008 Capital (dollars in millions) Spending 2009 Budget Drilling,
Slide 17: Liquidity and Financial Position
Job Number Liquidity and Financial Position • $2.5 billion combined borrowing bases reaffirmed on October 20, 2008 • $700 million of interest rate swaps at an average LIBOR rate of 2.66% (1) Excludes unamortized bond premium (2) Due January 15, 2010. LIBOR plus 6% with LIBOR floor of 4% (3) Reaffirm
Slide 18: Current Derivatives Position
Job Number Current Derivatives Position NYMEX Contract Contract Contract natural gas price per NYMEX oil price per Percent price per (1) (in thousands, except price) Mmbtu Mmbtu Bbls Bbl hedged Equivalent Q1 2009 24,870 $ 8.26 390 $ 80.62 74% $ 8.71 Q2 2009 25,080 8.15 394 80.64 71% 8.61 Q3 2009 25,
Slide 19: 2009 Budget and Guidance Comparison
Job Number 2009 Budget and Guidance Comparison Guidance (dollars in thousands, except per unit amounts) Low High Midpoint Production: Oil - Mbbls 2,015 2,055 2,035 Gas - Mmcf 139,000 145,100 142,050 Mmcfe 151,100 157,500 154,300 Per day - Mmcfe 414 432 423 Differentials to NYMEX: Oil per Bbl $ (3.75
Slide 20: Summary
Job Number Summary • Long life production generating stable cash flow • Exposed to two exciting shale plays • Strategic ownership of midstream assets to enhance takeaway ability • Very well hedged in current environment • Expect to generate free cash for debt reduction EXCO Resources, Inc. 20
Slide 21: Appendix
Job Number Appendix EXCO Resources, Inc.
Slide 22: Operating Results
Job Number Operating Results Three months ended Twelve months ended December 31, % December 31, % (in thousands) 2008 2007 change 2008 2007 change Revenues: (excludes derivatives) Oil $ 33,273 $ 41,391 -20% $ 216,727 $ 117,073 85% Natural gas 215,567 224,169 -4% 1,188,099 758,714 57% Midstream 23,58
Slide 23: Unit Operating Statistics
Job Number Unit Operating Statistics December 31 % December 31 % 2008 2007 Change 2008 2007 Change Production volumes: Oil – Mbbls 593 469 26% 2,236 1,645 36% Gas – Mmcf 33,472 31,828 5% 131,159 111,419 18% Total - Mmcfe 37,030 34,642 7% 144,575 121,289 19% Mmcfe/d 403 377 7% 395 332 19% Realized pr
Slide 24: Year End Total Proved Reserves
Job Number Year End Total Proved Reserves Our proved reserves, using December 31, 2008 spot prices, on a constant price basis, of $5.71 per Mmbtu and $44.60 per Bbl were as follows: Equivalent Oil Natural gas natural gas (Mbbls) (Mmcfe) (Mmcfe) Proved developed 14,815 1,354,729 1,443,619 Proved unde
Slide 25: Non-GAAP Reconciliations
Job Number Non-GAAP Reconciliations Adjusted Net Income (1) The assumed income tax rate is 40% for all periods. (2) Deferred tax valuation allowance has been adjusted to reflect favorable impacts of adjustments. (3) Per share amounts are based on weighted average number of common shares outstanding
Slide 26: Non-GAAP Reconciliations
Job Number Non-GAAP Reconciliations Cash Flow From Operations Three months ended Twelve months ended December 31, % December 31, % (in thousands) 2008 2007 change 2008 2007 change Cash flow from operations, GAAP $ 162,949 $ 197,531 $ 974,966 $ 577,829 Net change in working capital (80) 821 (49,866)
Slide 27: Non-GAAP Reconciliations
Job Number Non-GAAP Reconciliations Midstream Operating Segment Three months ended Twelve months ended December 31, December 31, (in thousands) 2008 2007 2008 2007 Midstream operations: Midstream revenues (before intersegment eliminations) $ 41,721 $ 12,160 $ 147,636 $ 45,763 Midstream expenses (bef
Slide 28: Non-GAAP Reconciliations
Job Number Non-GAAP Reconciliations EBITDA and adjusted EBITDA reconciliations Three months ended Twelve months ended December 31, December 31, (in thousands) 2008 2007 2008 2007 Net income (loss) $ (1,161,389) $ (1,995) $ (1,733,471) $ 49,656 Interest expense, net 60,471 34,575 161,638 181,350 Inco
Slide 29: Non-GAAP Reconciliations
Job Number Non-GAAP Reconciliations (1) Earnings before interest, taxes, depreciation, depletion and amortization, or “EBITDA” represents net income adjusted to exclude interest expense, income taxes, depreciation, depletion and amortization. “Adjusted EBITDA” represents EBITDA adjusted to exclude a