DALLAS--(EON: Enhanced Online News)--EXCO Resources, Inc. (NYSE:XCO) (“EXCO”) today announced BG Group plc (“BG Group”) has elected not to acquire 50% of the recently acquired producing and undeveloped oil and gas assets in the Haynesville shale formation (“Haynesville”). EXCO closed the acquisition of the Haynesville assets on July 12, 2013 for a purchase price of $288 million, after customary preliminary purchase price adjustments. These assets were subject to BG Group's right to acquire a 50% interest, which was formally offered to BG Group on July 13, 2013.
“With BG Group’s decision not to participate, EXCO will be able to fully benefit from the Haynesville assets’ strong base production and additional drilling inventory with upside development opportunities.”
As a result of BG Group’s election and continued strong operating performance, EXCO has raised its full year 2013 adjusted EBITDA guidance from approximately $435 million to approximately $450 million. EXCO’s full year 2013 guidance was initially $296 million, which was raised to $341 million with the March quarter earnings release, and subsequently increased to $435 million with the June quarter in connection with the recently announced Eagle Ford and Haynesville acquisitions.
Douglas H. Miller, EXCO’s Chairman and Chief Executive Officer, stated “With BG Group’s decision not to participate, EXCO will be able to fully benefit from the Haynesville assets’ strong base production and additional drilling inventory with upside development opportunities.”
In connection with the Eagle Ford and Haynesville acquisitions, EXCO amended its credit agreement which includes a $400 million asset sale requirement. The asset sale requirement was reduced to $269 million as a result of the participation agreement with affiliates of Kohlberg Kravis Roberts & Co. L.P. If BG Group had elected to participate, the proceeds, net of the applicable borrowing base assigned to the properties, of approximately $60 million, would have been used to reduce the asset sale tranche. EXCO will continue to execute on planned sales of certain assets and has until July 2014 to eliminate the asset sale tranche.
EXCO Resources, Inc. is an oil and natural gas exploration, exploitation, development and production company headquartered in Dallas, Texas with principal operations in Texas, North Louisiana and Appalachia.
Additional information about EXCO Resources, Inc. may be obtained by contacting EXCO’s Chairman and Chief Executive Officer, Douglas H. Miller, or its President and Chief Operating Officer, Harold L. Hickey, or its Executive Vice President and Chief Financial Officer, Mark F. Mulhern, at EXCO’s headquarters, 12377 Merit Drive, Suite 1700, Dallas, TX 75251, telephone number (214) 368-2084, or by visiting EXCO’s website at www.excoresources.com. EXCO’s SEC filings and press releases can be found under the Investor Relations tab.
This release may contain forward-looking statements relating to future financial results, business expectations and business transactions. Business plans may change as circumstances warrant. In addition, the anticipated benefits from the recent acquisitions may not be fully realized. Actual results may differ materially from those predicted as a result of factors over which EXCO has no control. Such factors include, but are not limited to: estimates of reserves, commodity price changes, regulatory changes and general economic conditions. These risk factors and additional information are included in EXCO’s reports on file with the Securities and Exchange Commission. EXCO undertakes no obligation to publicly update or revise any forward-looking statements.