Exco Resources Inc · OTC:EXCE
Exco Resources — Deutsche Bank 2009 Energy, Utilities and Power Conference
20 slides from Exco Resources's conference presentation, May 27, 2009
Slide 1: Deutsche Bank 2009 Energy, Utilities and Power Conference
PPT-098-InvMeeting Exhibit 99.1 Deutsche Bank 2009 Energy, Utilities and Power Conference May 28, 2009 EXCO Resources, Inc.
Slide 2: Forward Looking Statements
PPT-098-InvMeeting 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 follo
Slide 3: Forward Looking Statements (continued)
PPT-098-InvMeeting 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
Slide 4: Company Overview
PPT-098-InvMeeting Company Overview Significant shale upside with a solid base of conventional assets • 2.3 Tcfe of Proved Reserves – 405 Mmcfe/d of production, reserve life of 15.2 years and over 70% Proved Developed – Only 65 Bcfe of shale assets booked as proved • Significant Unproved Upside – 4.
Slide 5: Reserve Base
PPT-098-InvMeeting 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 Tc
Slide 6: EXCO Operated Haynesville Horizontal Activity
PPT-098-InvMeeting EXCO Operated Haynesville Horizontal Activity Production exceeds 90 Mmcf/d gross, 50 Mmcf/d net DeSoto Parish: • Average IP rate of 23.9 Mmcf/d EXCO Sharp 1 #1 • IP range of 21.4 – 26.1 Mmcf/d 8.6 Mmcf/d IP EXCO Sammo 18 #5 21.4 Mmcf/d IP Significant Operational Efficiencies: EXCO
Slide 7: Haynesville Horizontal Type Curve
PPT-098-InvMeeting Haynesville Horizontal Type Curve Consistent results outperforming original estimate EXCO Operated Haynesville Horizontals DeSoto Parish, LA 30,000 30 25,000 25 Average production from EXCO’s first four DeSoto Parish horizontals 20,000 20 Original 6 – 8 Bcf type curve 15,000 15 10
Slide 8: Haynesville Shale Operated Completion Schedule
PPT-098-InvMeeting Haynesville Shale Operated Completion Schedule (1) DeSoto Parish Activity IP Rates Average Quarter Completions (Mmcf/d) WI 4Q 2008 1 22.9 100% 1Q 2009 2 21.4 & 24.2 97% 2Q 2009 (2) 5 24.9 & 26.1 ~64% 3Q 2009 7 TBD ~56% 4Q 2009 6 TBD ~55% • As of May 2, 2009, we have six operated h
Slide 9: ETX/NLA Midstream Activity
PPT-098-InvMeeting ETX/NLA Midstream Activity Strategic assets allow for timely well hookups • Coordination between Midstream operations and E&P – All EXCO Haynesville wells have tested to sales – No wells waiting on pipeline • Legacy Assets – Strong demand for access due to industry Haynesville act
Slide 10: Midstream
PPT-098-InvMeeting Midstream East Texas/North Louisiana – Positioned for Growth EXCO Resources, Inc. 10
Slide 11: Marcellus Shale
PPT-098-InvMeeting Marcellus Shale • Our plans to exploit our 360,000 net acres, which contain an estimated 7 - 12 Tcfe of resources include: – Drill three horizontals and two vertical wells in 2009 – Add new build rig later in 2009 – Implement active development program in 2010 • Now completing two
Slide 12: Operational Highlights
PPT-098-InvMeeting Operational Highlights Marcellus Shale Activity 2009 EXCO Planned Well 2008 EXCO Drilled Well EXCO Resources, Inc. 12
Slide 13: 2009 Focus
PPT-098-InvMeeting 2009 Focus • Focus on opportunities that provide growth and strong returns – Continue delineating and developing Haynesville shale – High-grade Marcellus program in preparation for 2010 development – Limit non-shale drilling to satisfy certain drilling and acreage commitments – Ex
Slide 14: Liquidity and Financial Position
PPT-098-InvMeeting Liquidity and Financial Position (dollars in thousands) March 31, 2009 May 1, 2009 Cash $ 45,508 $ 74,667 Bank debt (LIBOR + 175 - 250bps) $ 2,302,399 $ 2,297,159 1 (1) Senior notes (7 /4 %) 444,720 444,720 (2) Senior unsecured term loan (10%) 300,000 300,000 Total debt $ 3,047,11
Slide 15: Current Derivatives Position
PPT-098-InvMeeting Current Derivatives Position March 31, 2009 NYMEX Contract Contract Contract natural gas price per NYMEX oil price per Percent price per (in thousands, except price) Mmbtu Mmbtu Bbls Bbl hedged (1) Equivalent Q2 2009 25,080 $ 8.15 394 $ 80.64 74% $ 8.61 Q3 2009 25,290 8.15 398 80.
Slide 16: Net Asset Value Summary
PPT-098-InvMeeting Net Asset Value Summary $8 Gas & $80 NYMEX In millions, except per share and per unit Oil Strip Pricing Proved Reserves: Proved Developed – 1.6 Tcfe at $3.50 and $2.50 per Mcfe $5,600 $4,000 Proved Undeveloped – 0.7 Tcfe at $1.00 and $0.35 per Mcfe 700 245 Total Proved – 2.3 Tcfe
Slide 17: Summary
PPT-098-InvMeeting Summary • Long life production generating stable cash flow • Strong position in two prolific 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
Slide 18: Quarter Highlights
PPT-098-InvMeeting Quarter Highlights Reported strong results despite market conditions Q1 2009 Q1 2008 Q4 2008 (in thousands, except per share and production) Amount Per Share Amount Per Share Amount Per Share Oil and natural gas revenues $ 172,208 $ 324,843 $ 248,840 Cash settlements on oil and na
Slide 19: Capital Forecast
PPT-098-InvMeeting Capital Forecast Approved Current (dollars in millions) 2009 Budget Forecast East Texas/North Louisiana $ 284 $ 284 - Appalachia 65 56 (9) Mid-Continent 31 7 (24) Permian/Rockies 36 12 (24) Midstream 141 118 (23) Corporate and other 25 23 (2) Total capital budget $ 582 $ 500 (82)
Slide 20: Quarterly 2009 Guidance
PPT-098-InvMeeting Quarterly 2009 Guidance Q1 2009 Q2 2009E Q3 2009E Q4 2009E 2009E (dollars in thousands, except per unit amounts) Actual Low High Low High Low High Low High Production: Oil - Mbbls 527 491 504 497 509 503 527 2,018 2,067 Gas - Mmcf 33,184 33,900 34,700 34,300 35,100 34,700 36,400 1
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