Slide 1: Investor Presentation June 2008
PPT-044-INV_MEET_6-08 Investor Presentation June 2008
Slide 2: Forward Looking Statements
EXCO Resources, Inc. 2 PPT-044-INV_MEET_6-08 Forward Looking Statements This presentation contains forward-looking statements, as defined in Section 27A of the Securities Ac t and Section 21E of the Securities Exchange Act of 1934, or the Exchange Act. These forward-looking statements relate to, amo
Slide 3: Forward Looking Statements (continued)
EXCO Resources, Inc. 3 PPT-044-INV_MEET_6-08 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 contr
Slide 4: Disciplined Growth Strategy
EXCO Resources, Inc. 4 PPT-044-INV_MEET_6-08 Disciplined Growth Strategy EXCO’s formula for creating equity value enables us to deliver strong, sustainable equity returns over the long term Disciplined Growth Strategy Acquire Long-Life Properties in Key Areas Aggressively Develop Asset Base IRR Targ
Slide 5: Key Investment Highlights
EXCO Resources, Inc. 5 PPT-044-INV_MEET_6-08 Key Investment Highlights • Outstanding Track Record – 44.4% annualized growth in common share value since 1998 – 40% and 69% compounded growth rates in production and reserves since 2004 • Outstanding Reserve Base(1) – 2.1 Tcfe proved reserves – 2.4 Tcfe
Slide 6: Peer Valuation Comparison
EXCO Resources, Inc. 6 PPT-044-INV_MEET_6-08 Peer Valuation Comparison 1) Enterprise value based on first quarter 2008 balance sheet and adjusted for latest disclosed equity offerings, acquisitions, and dispositions with the stock price as of close on 6/04/08 2) Proved reserves as of 12/31/07 and ad
Slide 7: Reserve Base
EXCO Resources, Inc. 7 PPT-044-INV_MEET_6-08 12 Bcfe Proved 233 Bcfe 3P 1,333 Bcfe 3P+ 2 Mmcfe/d Proved Reserves = 2.1 Tcfe 3P Reserves = 4.5 Tcfe 3P+ Reserves = 15.4 – 23.4 Tcfe Current Production = 400 Mmcfe/d Rockies 144 Bcfe Proved 339 Bcfe 3P 639 Bcfe 3P+ 30 Mmcfe/d Permian Basin 584 Bcfe Prove
Slide 8: Inventory for the Future
EXCO Resources, Inc. 8 PPT-044-INV_MEET_6-08 Inventory for the Future Includes over 23,800 drilling locations representing 14.0 – 22.0 Tcfe of reserves Appalachia 6,500+ 7,000-12,000 ETX/NLA 2,100+ 2,388-5,388 Mid-Continent 500+ 100 Permian 700+ 300 Rockies 2,000+ 1,100 Appalachia 8,165 787 ETX/NLA
Slide 9: Undrilled, Low-Risk Upside by Region
EXCO Resources, Inc. 9 PPT-044-INV_MEET_6-08 Rockies Permian Basin East Texas / North Louisiana Undrilled, Low-Risk Upside Totals Approximately 3.1 Tcfe PUD Reserves = 611 Bcfe PRB Reserves = 827 Bcfe POS Reserves = 1,644 Bcfe 226 Bcfe • Lance, Fort Union, Tensleep, Frontier, Mesa Verde formations •
Slide 10: Estimated Unbooked Potential
EXCO Resources, Inc. 10 PPT-044-INV_MEET_6-08 Rockies Permian Basin Appalachia Mid-Continent East Texas / North Louisiana 300 Bcfe Potential • 15,000 net acre field extension completed • Wolfcamp / Clearfork oil play being evaluated by 3D • 20,000 acre Tannehill shallow oil being worked – evaluating
Slide 11: Marcellus and Huron Shale Fairways
EXCO Resources, Inc. 11 PPT-044-INV_MEET_6-08 Marcellus and Huron Shale Fairways We believe our Appalachian Division assets contain 7 - 12 Tcfe of potential shale reserves Marcellus • Total Marcellus shale acreage – 442,000 gross – 393,000 net • Marcellus fairway acreage – 280,000 gross – 260,000 ne
Slide 12: Haynesville Shale
EXCO Resources, Inc. 12 PPT-044-INV_MEET_6-08 Haynesville Shale We believe our East Texas / North Louisiana division assets contain 2-5 Tcfe of Haynesville shale potential • Total Haynesville shale acreage – 127,000 gross – 107,000 net • 2008 activities – Drilled and cored two vertical evaluation we
Slide 13: Midstream Operations
EXCO Resources, Inc. 13 PPT-044-INV_MEET_6-08 • TGG 57 mile, 20” Extension – Adding 100+ Mmcf/d of throughput to the original 53 mile TGG system. Adds additional sales points and targets a new area where we have an established customer base. Fully operational by 2nd half of 2008. • Talco / NWG – loc
Slide 14: 2008 Capital Budget and Drilling Schedule
EXCO Resources, Inc. 14 PPT-044-INV_MEET_6-08 2008 Capital Budget and Drilling Schedule 63% 19% 12% 4% 2% Drilling & Completion $574 MM (727 projects) Operations & Other $106 MM Shale Leasing $170 MM Exploitation $35 MM (82 projects) Our currently approved development budget totals $923(1) million,
Slide 15: Liquidity and Financial Position
EXCO Resources, Inc. 15 PPT-044-INV_MEET_6-08 Liquidity and Financial Position (1) Excludes unamortized bond premium (2) Excludes $7 million in offering costs (3) Net of $4.3 million in letters of credit at both March 31, 2008 and May 1, 2008 (in thousands) March 31, 2008 May 1, 2008 Cash $ 9,113 $
Slide 16: Current Hedge Position
EXCO Resources, Inc. 16 PPT-044-INV_MEET_6-08 Current Hedge Position NYMEX Swaps Gas Mmcf Contract price per Mmcf Oil Mbbls Contract price per Bbl Percent Hedged(1) Q2 2008 26,695 $ 8.27 355 $ 68.23 80% Q3 2008 26,900 8.29 358 68.20 79% Q4 2008 26,910 8.39 358 68.16 77% 2009 100,530 8.18 1,215 69.11
Slide 17: Net Asset Value Summary
EXCO Resources, Inc. 17 PPT-044-INV_MEET_6-08 Net Asset Value Summary In millions, except per share and per unit Low High Proved Reserves 2.1 Tcfe at $3.25 to $3.75 per Mcfe $6,698 $7,729 Low-risk Unproved Upside 2.4 Tcfe at $0.50 to $0.75 per Mcfe 1,236 1,854 Potential Upside 10.9 - 18.9 Tcfe -- --
Slide 18: 2008 Guidance
EXCO Resources, Inc. 18 PPT-044-INV_MEET_6-08 2008 Guidance 2008E(1) ($ in thousands, except per unit amounts) Low High Production: Oil – Mbbls 2,007 2,037 Gas – Mmcf 132,149 134,749 Mmcfe 144,191 146,991 Per day – Mmcfe 394 402 Differentials to NYMEX: Oil per Bbl ($3.11) ($2.93) Gas per Mcf 97% 100
Slide 19: Quarterly 2008 Guidance
EXCO Resources, Inc. 19 PPT-044-INV_MEET_6-08 Quarterly 2008 Guidance 2ndQ 2008E 3rdQ 2008E 4thQ 2008E ($ in thousands, except per unit amounts) Low High Low High Low High Production: Oil - Mbbls 490 500 500 510 510 520 Gas - Mmcf 32,600 33,400 33,300 34,200 34,200 35,100 Mmcfe 35,500 36,400 36,300
Slide 20: Regional Overviews
PPT-044-INV_MEET_6-08 Regional Overviews
Slide 21: Long Reserve Life and Multi-Year Project Inventory Across All Regions
EXCO Resources, Inc. 21 PPT-044-INV_MEET_6-08 Long Reserve Life and Multi-Year Project Inventory Across All Regions As of March 31, 2008(6) (1) December 31, 2007 proved reserves with $8 natural gas and $60 oil pricing, adjusted for differentials and excluding hedge effects (2) December 31, 2007 prov
Slide 22: East Texas/North Louisiana Division Overview
EXCO Resources, Inc. 22 PPT-044-INV_MEET_6-08 East Texas/North Louisiana Division Overview Portfolio Highlights Reserves Locations Bcfe Gross / Net PD 717 PUD 288 475 / 353 TP 1,005 Prob 502 393 / 293 Poss 826 1,645 / 1,272 3P 2,333 2,513 / 1,918 Potential 2,000-5,000 2,100 / 1,624 Total 4,333-7,333
Slide 23: East Texas/North Louisiana Low-risk and Potential Upside
EXCO Resources, Inc. 23 PPT-044-INV_MEET_6-08 East Texas/North Louisiana Low-risk and Potential Upside Gladewater • Downspacing • Geoscience evaluation ongoing • Horizontal drilling Longwood/Waskom • Complete in Hosston • Downspacing Vernon • Drill 31 wells in 2008 • Testing field limits • Downspaci
Slide 24: Appalachia Division Overview
EXCO Resources, Inc. 24 PPT-044-INV_MEET_6-08 Appalachia Division Overview Portfolio Highlights Reserves Locations Bcfe Gross / Net PD 372 PUD 212 1,649 / 1,467 TP 584 Prob 167 581 / 498 Poss 409 3,931 / 3,496 3P 1,160 8,165 / 7,237 Potential 7,000-12,000 6,500 / 6,500 Total 8,160-13,160 14,665 / 13
Slide 25: Appalachia Low-risk and Potential Upside
EXCO Resources, Inc. 25 PPT-044-INV_MEET_6-08 Appalachia Central PA 343,000 net acres 617 Bcfe 3P reserves 4,954 3P drilling locations 2008 drilling – 214 wells Northwest PA 92,000 net acres 128 Bcfe 3P reserves 1,232 3P drilling locations 2008 drilling – 34 wells Eastern OH 278,000 net acres 121 Bc
Slide 26: Mid-Continent Area Division Overview
EXCO Resources, Inc. 26 PPT-044-INV_MEET_6-08 Mid-Continent Area Division Overview Portfolio Highlights • TXOK acquisition 2005; APC acquisition 2007 • Producing wells: 1,638 (gross) / 937 (net) Reserves Locations Bcfe Gross / Net PD 264 PUD 52 117 / 75 TP 316 Prob 58 69 / 36 Poss 94 362 / 166 3P 46
Slide 27: Mid-Continent Low Risk and Potential Upside
EXCO Resources, Inc. 27 PPT-044-INV_MEET_6-08 Mid-Continent Low Risk and Potential Upside Mocane-Laverne • Drill 37 wells in 2008 • 234 drilling locations • Increase density drilling • Atoka recompletions • Basal Chester opportunities • Evaluating 3D applicability to detect deeper hydrocarbons • Eva
Slide 28: Permian Basin Division Overview
EXCO Resources, Inc. 28 PPT-044-INV_MEET_6-08 Permian Basin Division Overview Portfolio Highlights • Producing wells: 287 (gross) / 229 (net) Reserves Locations (Bcfe) Gross / Net PD 89 PUD 55 172 / 164 TP 144 Prob 94 206 / 188 Poss 101 306 / 257 3P 339 684 / 609 Pot 300 700 / 588 Total 639 1,384 /
Slide 29: Permian Low-risk and Potential Upside
EXCO Resources, Inc. 29 PPT-044-INV_MEET_6-08 Permian Low-risk and Potential Upside Ackerly • 2 horizontal tests in 2008 Beggs Ranch • Shallow oil prospect • 20,000 net acres • 45 mi2 3D seismic shoot in 2008; evaluating Sugg Ranch • 600 Drilling locations • Drill 147 wells in 2008 • Will have 100+
Slide 30: Rocky Mountains Overview
EXCO Resources, Inc. 30 PPT-044-INV_MEET_6-08 Rocky Mountains Overview Portfolio highlights • Producing wells: 66 (gross) / 54 (net) Reserves Locations (Bcfe) Gross / Net PD 7 PUD 5 11 / 9 TP 12 Prob 8 12 / 10 Poss 213 127 / 88 3P 233 150 / 107 Pot 1,100 2,000 / 1,940 Total 1,333 2,150 / 2,047 • Cur
Slide 31: Rocky Mountains Low-risk and Potential Upside
EXCO Resources, Inc. 31 PPT-044-INV_MEET_6-08 Rocky Mountains Low-risk and Potential Upside Wyoming Leasehold • 133,000 net acres total in Wind River, Powder River and Big Horn Basins • Will drill 9 wells in 2008 in Wind River and Big Horn Basins • Considering JV opportunities Birdseye Prospect • 7,