Exco Resources Inc · OTC:EXCE
Exco Resources — Barclays Capital CEO Energy-Power Conference 2010
21 slides from Exco Resources's conference presentation, Sep 14, 2010
Slide 1: Barclay's Capital CEO Energy-Power Conference
Exhibit 99.1 Barclay’s Capital CEO Energy-Power Conference September 15, 2010 PPT-169 – Barclay’s September 2010
Slide 2: Key Investment Highlights
PPT-169 – Barclay’s September 2010 Key Investment Highlights • EXCO is positioned for growth – Targeting 30% growth for the next five years • Strong position in Haynesville/Bossier and Marcellus shale plays – 8,800 potential drilling locations • Joint Ventures with BG Group – Accelerates development
Slide 3: Delivering What We Promise
PPT-169 – Barclay’s September 2010 Delivering What We Promise Joint venture partner – Joint ventures with BG Group position EXCO for dramatic upstream and midstream growth – Combined JV’s netted $1.8 billion of cash and $550 million carry on future drilling through sale of 50% in all production, acr
Slide 4: Production Profile
PPT-169 – Barclay’s September 2010 Production Profile Positioned for growth while exceeding our economic hurdles in low price environment 450 $4,500 400 $4,000 350 $3,500 300 $3,000 250 $2,500 200 $2,000 150 $1,500 100 $1,000 50 $500 - $- Actual production Production guidance midpoint Net debt outst
Slide 5: Company Overview and Reserve Base
PPT-169 – Barclay’s September 2010 Company Overview and Reserve Base(1) High quality portfolio focused on shale resources Proved Reserves = 1.2 Tcfe • Reserve life of 10.3 years 3P Reserves = 3.6 Tcfe 3P+ Reserves = 12.5 Tcfe and 62% Proved Developed Appalachia Current Net Production = 320 Mmcfe/d P
Slide 6: Liquidity and Financial Position
PPT-169 – Barclay’s September 2010 Liquidity and Financial Position Pro forma Consolidated ($ in thousands) June 30, 2010 June 30, 2010 Cash(1) $ 173,273 $ 173,273 Bank debt (L + 200 - 300bps) 477,500 197,870 7 1/4% (2) Senior notes due 2011 444,720 - 7 1/2% (2) Senior notes due 2018 - 750,000 Total
Slide 7: Derivatives Position
PPT-169 – Barclay’s September 2010 Derivatives Position As of June 30, 2010 NYMEX Contract Contract Contract natural gas price per NYMEX oil price per Equivalent price per Mmcf Mcf Mbls Bbl Mmcfe Equivalent Q3 2010 13,940 $ 7.16 113 $ 114.96 14,616 $ 7.72 Q4 2010 13,940 7.21 113 114.96 14,616 7.76 2
Slide 8: Capital Spending Summary
PPT-169 – Barclay’s September 2010 Capital Spending Summary Approximately 75% of 2010 spending focused on shales $ in millions Total 2010 Budget (1) Development capital expenditures $ 327 Leasing 62 Seismic 20 Gas gathering and water pipelines 23 Corporate and other 40 Capital expenditures before ac
Slide 9: Haynesville Overview
PPT-169 – Barclay’s September 2010 Haynesville Overview • 80,000 net Haynesville acres EXCO / BG with significant held by production position JV Area • Optimizing drilling and completion methods to improve recoveries and reduce costs • Average IP rate from our operated Haynesville horizontal Holly F
Slide 10: Shelby Trough Focus Area
PPT-169 – Barclay’s September 2010 Shelby Trough Focus Area Haynesville and Middle Bossier assets Bossier • Located in Shelby Trough 9 Mmcf/d IP in Shelby, San Augustine & Nacogdoches Counties, TX Bossier Haynesville 12 Mmcf/d IP 12 Mmcf/d IP • 10 operated horizontal Bossier shale wells flowing to P
Slide 11: Haynesville IP Rate Consistency
PPT-169 – Barclay’s September 2010 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 Core DeSoto Parish Area 30,000 IP rate of 23 Mmcf/d 25,000 20,000 15,000 10,000 5,000 0 • Since operations have commen
Slide 12: Pad Drilling
PPT-169 – Barclay’s September 2010 Pad Drilling EXCO’s first 4 well, 80 acre spacing super pad - IP rate of 92 Mmcf/d • 4 wells drilled with 2 rigs on a 9 acre pad in DeSoto Parish • Completed with 2 frac fleets 2 well heads • 20 million pounds of proppant – 400 truckloads or 100 railroad cars • 23
Slide 13: EXCO Gross Operated Haynesville Shale Forecast
PPT-169 – Barclay’s September 2010 EXCO Gross Operated Haynesville Shale Forecast (1) 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
Slide 14: Haynesville Well Costs and Rate of Return
PPT-169 – Barclay’s September 2010 Haynesville Well Costs and Rate of Return Haynesville Well Cost Break-Down 12 $10.2 $9.3 $9.9 @ $10mm Well D&C Costs 10 1.2 0.9 1.0 Gas price required to 1.4 1.0 8 1.0 IP achieve 20% pre-tax IRR 2.6 (Mmcf/d) (per Mcf) 6 2.8 2.5 1.8 XCO Core (1) 20 $4.00 - $4.25 4 2
Slide 15: Haynesville Type Curve
PPT-169 – Barclay’s September 2010 Haynesville Type Curve Significant upside from potential shallower decline rates b = 1.75 20 Mmcf/d EUR = 9.6 Bcfe 10 Mmcf/d b = 1.25 EUR = 7.6 Bcfe 1 Mmcf/d 100 Mcf/d b = 1.00 EXCO’s current EUR = 6.6 proved type Bcfe curve 10 Mcf/d Year: 1 2 3 4 5 6 7 8 9 Avg Hay
Slide 16: Marcellus Overview
PPT-169 – Barclay’s September 2010 Marcellus Overview Well positioned acreage Central PA Area AvgIP’s 4-7 Mmcf/d Major Operators: EXCO, Anadarko, Rex, EOG Northeast PA Area AvgIP’s 6-12 Mmcf/d Major Operators: Talisman, Cabot, Chesapeake, East Southwest PA Area AvgIP’s 4-10 Mmcf/d Major Operators: R
Slide 17: Central Pennsylvania Area
PPT-169 – Barclay’s September 2010 Central Pennsylvania Area Current Marcellus activity • 2010 Drilling program – 12 horizontal wells in 2010 – Exit year with 3 rigs running • Completion activity – Last well IP’d at 4.0 Mmcf/d from a 4,500’ lateral • Current and 30 day average production rates of 3.
Slide 18: Marcellus Type Curve and Economics
PPT-169 – Barclay’s September 2010 Marcellus Type Curve and Economics 10 Mmcf/d Gas price required to IRR at Lateral = 4,500’ Well Cost achieve 20% pre tax NYMEX strip IP = 4,500 Mcf/d ($MM) IRR (per Mcf) pricing(1) b = 1.49 EUR = 4.5 Bcfe $ 4.5 $3.75 - $4.00 40% 1 Mmcf/d $ 5.5 $4.25 - $4.50 25% $ 6
Slide 19: TGGT Midstream Operations
PPT-169 – Barclay’s September 2010 TGGT Midstream Operations Additional expansion projects in Shelby Trough TGGT East TX / North LA System • TGGT throughput currently totals more than 1.1 Bcf/d • Throughput capacity growing to 2.0 Bcf/d • Will have amine and glycol facilities with capacity to treat
Slide 20: Forward Looking Statements
PPT-169 – Barclay’s September 2010 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-169 – Barclay’s September 2010 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
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