EXCO 3Q16: Turns a Profit! Marcellus Production Continues to Fall

EXCO.jpgEXCO 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 in March, has pretty much abandoned the Marcellus at this point (see EXCO: No Marcellus Drilling in 2015/2016, NYSE Threatens Delisting). The company was able to slow the bleeding in 2Q16 (see EXCO Still Hammering Midstreamers re Contracts, Bleeding Slowed). What about 3Q16? EXCO finally turned a profit, going from losing $355 million in 3Q15 to making $51 million in 3Q16. Really, an astonishing turnaround for a company razor close to bankruptcy. However, EXCO’s Marcellus/Utica operations are essentially nil. They still produce from their wells, but because they haven’t drilled any new wells, production is steadily declining in the northeast–just 33 million cubic feet per day (MMcf/d), down 23% from 2Q16 and down 30% from 3Q15…

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