EXCO Resources Receives 3rd NYSE Notice of Delisting

EXCO Resources has just been threatened by the New York Stock Exchange (NYSE) with delisting their stock–for the third time. EXCO 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 the company, as we pointed out a year ago, has abandoned the Marcellus/Utica 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). As we pointed out just a week ago, EXCO recently expressed interest in restarting drilling in our region again–in the Utica (see EXCO Resources 2Q17: Still No M-U Drilling, but Considering It). But the company faces steep challenges–primarily financial. Two times in the past the New York Stock Exchange notified the company it had fallen below the NYSE’s standards for listing and trading the stock, the most recent notice in January (see EXCO Resources Stock Threatened Again with De-Listing by NYSE). Both times EXCO’s stock had slipped below the $1/share level. EXCO finally fixed it by doing a reverse stock split–by combining outstanding shares into fewer shares worth more. The stock price currently is (and has been) trading well above $1/share. So why the NYSE notice this third time? Because EXCO’s market capitalization has fallen below $50 million. As of today, on paper, the company is worth only $30.8 million…

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