EXCO Resources Adds Dealmaker to Board – What Does it Mean?

EXCO Resources was once a sizable player in the Marcellus. They still have 145,000 net acres in the Marcellus, with 124 horizontal Marcellus wells drilled and in production. However, EXCO, as we pointed out a year ago, has abandoned the Marcellus at this point (see EXCO: No Marcellus Drilling in 2015/2016, NYSE Threatens Delisting). The company flirted with bankruptcy for some time. They were able to slow the bleeding in 2Q16 (see EXCO Still Hammering Midstreamers re Contracts, Bleeding Slowed). In 3Q16 EXCO finally turned a profit, going from losing $355 million in 3Q15 to making $51 million in 3Q16 (see EXCO 3Q16: Turns a Profit! Marcellus Production Continues to Fall). That was an astonishing turnaround for a company razor close to bankruptcy. However, the turnaround was short-lived. In 4Q16 the company lost $35 million (see EXCO Lost $225M in ’16; Screwing Shareholders to Avoid Bankruptcy). At the same time they released 4Q16 and full year numbers, EXCO also released a game plan to avoid bankruptcy. That plan? Effectively turning over control of the company to its creditors. We’re not sure if it’s the creditors, or EXCO top management, but someone wanted a new face on the board of directors, and EXCO now has it: Last week EXCO announced the appointment of Randall E. King to the board. Who is King and what does his appointment really mean?…

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