Exco Resources Inc · OTC:EXCE
Exco Resources — Merger or Acquisition (July 2013)
11 slides from Exco Resources's merger presentation, Jul 8, 2013
Slide 1: EXCO Resources, Inc. Acquisitions Overview
EXCO Resources, Inc. July 8, 2013 Acquisitions Overview
Slide 2: Executing on 2013 Goals
2 EXCO Resources, Inc. EXCO/HGI Production Partners TGGT Holdings, LLC Haynesville Shale: Operate ~400 horizontal wells Marcellus Shale: Operate ~110 horizontal wells Currently utilizing 3 rigs, 28 at peak activity in 2011 EXCO operates ~1.25 Bcfe/d gross production ~650 employees Conven
Slide 3: Strategic Rationale
3 Approximately 60% of purchase price allocated to proved developed wellbores Significant cash flow from producing assets; trailing 12 month EBITDA of approximately $165 million Substantial proved assets provide cash flow for future development Strategic Rationale Eagle Ford: Farmout acreage (ap
Slide 4: Transaction Overview
4 Transaction Overview $610 million allocated to proved developed properties $390 million allocated to undeveloped properties $680 Million: Eagle Ford $320 Million: Haynesville
Slide 5: Transaction Overview (continued)
5 Transaction Overview (continued) EXCO Resources, Inc. has agreed to purchase assets from Chesapeake Energy (“CHK”) for approximately $1 billion (subject to closing adjustments) Eagle Ford $680 million: CHK’s interests in approximately 120 producing wells, including 94 Eagle Ford oil window produci
Slide 6: Transaction Overview (continued)
6 Transaction Overview (continued) Transaction financing in place – Finance the Haynesville acquisition under EXCO’s existing credit agreement – BG Group has a preferential right to acquire 50% of the Haynesville properties – Following the close of the Haynesville acquisition, EXCO will close the
Slide 7: Asset Overview – Eagle Ford Area
7 Asset Overview – Eagle Ford Area Eagle Ford Black Oil Window – Zavala, Dimmit, Frio, and LaSalle Counties Acreage ~55K net acres; ~21K acres in core “Area 1” development area Farmout option on additional 147K net acres WI/NRI ~70% WI and 52% NRI in Area 1 Locations 300 identified location
Slide 8: Asset Overview – Haynesville Area
8 Asset Overview – Haynesville Area Haynesville Core – DeSoto Parish Acreage ~5,600 net acres in EXCO operated sections; ~4,000 in CHK operated sections WI Additional 22% in the 42 EXCO operated sections; 62% in the 11 CHK operated sections Locations 55 identified new Haynesville locations o
Slide 9: Closing
9 CLOSING − EXCO is executing its strategy − Deal increases earnings and cash flow in a meaningful way due to high percentage of production − Diversifies our exposure with Eagle Ford oil opportunity − Strong financing support from our bank group − Concluding asset sales (TGGT) and partnership deals
Slide 10: Forward Looking Statements
10 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: • our futur
Slide 11: Forward Looking Statements (continued)
11 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. We caution users of the financial stat