EXCO Resources 2Q17: Still No M-U Drilling, but Considering It

EXCO Resources was once a sizable player in the Marcellus. They still have 184,000 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. In the end, they effectively turned over control of the company to its creditors (see EXCO Issues 2.7M Shares of New Stock in Lieu of Paying $23M). Earlier this week EXCO released its second quarter 2017 update. In souring the report and a transcript of the conference call, we found that EXCO continues to ignore the Marcellus/Utica. Production in our region for EXCO decreased year over year, because they haven’t drilled any new wells. Because prices have gone up somewhat, the company says they’re keeping a close eye on our region and they may decide to begin drilling again. Maybe. They also said the company is “evaluating plans to participate in appraisal wells with another operator to further evaluate the potential of the [Utica] formation.” So they may decide to fool around with the Utica. Maybe. Here’s the EXCO update…

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