Exco Resources Inc · OTC:EXCE
Exco Resources — KeyBanc 2013 DFW E&P Bus Tour
16 slides from Exco Resources's conference presentation, Sep 25, 2013
Slide 1: KeyBanc 2013 DFW E&P Bus Tour
Exhibit 99.1 EXCO Resources, Inc. KeyBanc 2013 DFW E&P Bus Tour 9/25/2013
Slide 2: Management Participants
September Investor Presentation Management Participants Doug Miller Chairman and CEO Hal Hickey President & COO Mark Mulhern CFO & EVP 2
Slide 3: EXCO Resources, Inc. Company Overview
September Investor Presentation EXCO Resources, Inc. Company Overview Premier shale gas producer well positioned for future value creation Renewed focus on opportunistic acquisition activity – Current acquisition economics remain cheaper to buy than to drill today Haynesville Shale: Operate ~400 Con
Slide 4: Introduction
September Investor Presentation Introduction Solid year to date 2013 financial results – Resulting from discipline around capital deployment and cost management Established foundation for additional future growth through Eagle Ford and Haynesville acquisitions Concentration of producing properties a
Slide 5: Strategic Focus
September Investor Presentation Strategic Focus Grow EBITDA/Cash Flow of the company through successful execution of recent acquisitions and evaluation of additional drilling partnerships to minimize CAPEX and add production/revenue Helps mitigate growth risks st Acquire bankable producing propertie
Slide 6: Recent Acquisition Strategic Rationale
September Investor Presentation Recent Acquisition Strategic Rationale Approximately 60% of purchase price allocated to proved developed wellbores Significant PDP Significant cash flow from producing assets; trailing 12 month EBITDA of Cash Flow approximately $165 million Substantial proved assets p
Slide 7: Financial Topics
September Investor Presentation Financial Topics Eagle Ford KKR Development Structure 2013 EBITDA and CAPEX Update Liquidity Review 7
Slide 8: Eagle Ford KKR Development Structure
September Investor Presentation Eagle Ford KKR Development Structure EXCO purchased 100% of the PDP assets in the Eagle Ford The undeveloped Eagle Ford locations are drilled and developed under a development agreement with entities advised by Kohlberg Kravis Roberts & Co. L.P. (“KKR”), including KKR
Slide 9: Eagle Ford KKR Development Structure: Key points
September Investor Presentation Eagle Ford KKR Development Structure Key points – KKR drilling return is capped at 1.2x invested drilling capital st – Cashflow in 1 year gets credited at buyout (KKRgenerates vast st majority of their return from 1 year production) – PV-10 is calculated but EXCO is n
Slide 10: Single Well Net Production Example (Mboe/d)
September Investor Presentation Single Well Net Production Example (Mboe/d) Note: CNOOChas a 1/3 working interest that is not included in the table above Quoted items are defined legal terms found in the KKR Participation Agreement filed with the SEC 10 Amounts in table may not foot due to rounding
Slide 11: Total Program Illustrative Example – 300 wells over 4 years
September Investor Presentation Total Program Illustrative Example – 300 wells over 4 years Capital to Drill KKR Perspective – Drilling EXCO Perspective – Drilling Fund Returns Fund Returns 300 Eagle Ford Wells @ $7.2 million per well WI WI Total KKR Invested Capital $1,080 EXCO Invested Capital $36
Slide 12: Total Program Illustrative Example
September Investor Presentation Total Program Illustrative Example ($ in millions) Project Cash Flow Drilling & Completion Capital Fair Maket Value At Buyout KKR XCO KKR XCO KKR XCO Drilling & completion capital invested $ 1,080 $ 360 Undrilled locations 300 300 Undrilled locations 300 300 Drilling
Slide 13: Liquidity Review
September Investor Presentation Liquidity Review EXCO/ HGI EXCO Resources Partnership TGGT ($ in thousands) 6/30/2013 7/31/2013 6/30/2013 6/30/2013 Cash and restricted cash $ 118,600 $ 85,660 $ 17,223 $ 14,926 Amount drawn on bank credit facility $ 474,234 $ 735,000 $ 369,000 $ 450,000 Asset sale tr
Slide 14: Conclusions
September Investor Presentation Conclusions Scheduled quarterly acquisitions of producing properties Producing properties that can be readily financed through a secured borrowing base Acquisitions help offset declining reserve base Lowers overall risk of business and increases predictability of cash
Slide 15: Forward Looking Statements
September Investor Presentation Forward Looking Statements Thispresentationcontains forward-looking statements, asdefined in Section27A of the SecuritiesAct and Section21Eof the SecuritiesExchangeAct of 1934, or the ExchangeAct. Theseforward-looking statements relate to, amongother things,the follow
Slide 16: Forward Looking Statements (Continued)
September Investor Presentation Forward Looking Statements (Continued) Webelieve that it is important to communicateour expectationsof future performance to our investors. However, events mayoccur in the future that we are unable to accuratelypredict, or over which we haveno control. We caution user