EXCO Resources, Inc. Third Quarter 2013 Review October 30, 2013 Q3 2013 Review
Q3 2013 Review Management Participants Doug Miller Chairman and CEO Hal Hickey President and COO Mark Mulhern EVP and CFO 2
Q3 2013 Review Introduction Positive adjusted EBITDA growth in the quarter establishes foundation for future growth going into 2014 Q3 transitions Newly acquired assets and operations in the Eagle Ford and Haynesville are being…
Q3 2013 Review Executing our 2013 Goals Executed acquisitions in both existing core area and new play EXCO closed 1 billion in transactions during July from Chesapeake Focus Resources Established a more balanced exposure to oil,…
Q3 2013 Review Eagle Ford KKR Development Structure Key points Short-term benefit: Accelerates development and reduces capital Long-term benefit: Increases EBITDA through accretive acquisitions with quarterly buybacks beginning…
EXCO Resources, Inc. Operations Overview Hal Hickey President & COO Q3 2013 Review
Q3 2013 Review Q3 Operations Overview Drilled 18 Wells, Completed 23 Operating Areas EXCO & EXCO/HGI Marcellus 6 Operated Rigs 0 1 Rigs Haynesville/Bossier at 9/30/13 Acquired 11 new DeSoto Parish sections, each with a drilled…
Q3 2013 Review Eagle Ford Overview Division Highlights Large contiguous acreage position in the black oil window Transferring learnings from other shale operations to Eagle Ford Transitioning operations to EXCO Potential to…
Q3 2013 Review Haynesville Overview Division Highlights 3 rigs currently running in DeSoto Core Continuing to achieve record low well costs in Q3 averaging 7.5 million 40 units fully manufactured Focused on minimizing downtime…
EXCO Resources, Inc. Corporate & Financial Overview Mark Mulhern EVP & CFO Q3 2013 Review
Q3 2013 Review Corporate Highlights ( in thousands) Q3 2013(3 ) Q2 2013(3 ) Q3 2012 Average production (Mmcfe/d) 455 420 512 Average realized price (/Mcfe) 3.95 3.93 3.01 Revenues including cash settlements 176,218 151,126…
Q3 2013 Review Highlight Takeaways Adjusted EBITDA lower than expected: Appalachia revenue: Challenging Marcellus gas market resulted in lower than expected realized prices as well as associated volume curtailments (in total 7…
Q3 2013 Review TGGT Agreement Summary Analysis TGGT sale will result in net cash proceeds to EXCO of 230 million Purchase price of 910 million for 100% of TGGT 875 million in cash proceeds equally divided between EXCO and BG EXCO…
Q3 2013 Review Liquidity ( in thousands) 6/30/2013 9/30/2013 Cash and restricted cash 118,600 63,326 Bank credit facility 474,234 735,000 Asset sale 269,096 1,303,346 Term loan 299,250 2018 Senior Notes 750,000 750,000 Total…
Q3 2013 Review EXCO Q3 Actuals and Q4 2013 Guidance Reflects EXCO/HGI Partnership interest effective February 14, 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2013E 2013E (dollars in thousands, except per unit amounts) Actual Actual Actual…
Q3 2013 Review Conclusion Executing on our strategy & delivering on our commitments Closed 1 billion of acquisitions Entered into drilling partnership with KKR Announced sale of TGGT Established clear future growth pipeline…
EXCO Resources, Inc. Appendix Q3 2013 Review
Q3 2013 Review Current Hedge Position as of 9/30/2013 EXCO Resources, Inc. Layered in significant oil hedges Gas Q4 2013 2014 2015 in Q3 related to Eagle Ford Swaps HH (Mmbtu/d) 225,000 155,000 77,500 acquisition NYMEX HH…
Q3 2013 Review Single Well Net Production Example 10 Partnership Economics ( in millions) Gross KKR XCO 9 3.1 MM D&C CAPEX (66.7% WI) 4.8 3.6 1.2 Monthly Production (Mboe) 8 Operating CF Hurdle (1.2x MOIC) 1.2x 1.2x 1.2x…
Q3 2013 Review 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…
Q3 2013 Review 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…
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