EXCO Still Hammering Midstreamers re Contracts, Bleeding Slowed

EXCO.jpgEXCO Resources, a Dallas, TX-based driller with drilling operations in Texas, North Louisiana and the Marcellus/Utica, has been inching toward bankruptcy. So far the company has stayed out of bankrutpcy and hopes they can continue to do so. Their strategy, as we reported in May, is to hire new board members and try to wiggle out of long-term pipeline contracts (see EXCO Restructuring Plan: New Board Members, Hammer Midstreamers). How’s that working out? Last week the company released its second quarter 2016 update and CEO Harold Hickey said the company is “diligently working…[on] the consensual restructuring of our gathering and transportation contracts, noting the significant negative impact these contracts have on our cash flow, borrowing base and liquidity.” What if they can’t get midstream companies to buckle to their demands? They’ll sue: “If the efforts are not successful, the Company may seek alternatives to reject the contracts consistent with recent court decisions.” On the positive side, at least the bleeding is slowing down. In 2Q15 EXCO lost $454 million. In 2Q16 they lost $111 million. Here’s the EXCO update, including details on their Marcellus/Utica program…

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