EXCO Resources

EXCO Resources, once a sizable player in the Marcellus–with 145,000 net acres in the Marcellus and having drilled and operating 124 horizontal Marcellus wells–has pretty much abandoned the Marcellus at this point. The company filed its fourth quarter and full year 2015 financial and operational update yesterday. In picking through the report, we find that EXCO didn’t drill a single new well in the Marcellus in 2015, and has no plans to do so in 2016. Instead, the company is concentrating their meager $103 million 2016 budget on drilling new wells in North Louisiana and East Texas. According to EXCO they get their highest rate of return (35%) in that area. Buried (and we mean buried) in the report is the news that the New York Stock Exchange has threatened the company with delisting its stock (share price is averaging under $1). The company’s proposed “fix” for the low stock price is a reverse split, combining 10 shares of existing stock into one share of new stock. Zooming out to focus on the company’s financial health, EXCO shows a $1.2 billion loss for 2015–but as with other companies, most of it was a paper loss due to impairments or write-downs of the value for its assets, rather than out-of-pocket money loss. Here’s selected portions of yesterday’s update…
Read More “EXCO: No Marcellus Drilling in 2015/2016, NYSE Threatens Delisting”

As we have previously reported, EXCO Resources board of directors member John Wilder is contractually obligated to buy $40 million worth of EXCO stock within a year of closing a deal between Wilder’s company (Bluescape Resources) and EXCO. Bluescape essentially runs EXCO. Wilder has been a busy beaver (see EXCO Resources Director Continues Stock Buying Spree). He’s just done it again. Last week Wilder purchased another 629,581 shares of EXCO Resources stock worth $579,214.52. He (and his company Bluescape) now own 14,745,961 shares of EXCO stock…
Read More “EXCO Resources Director Buys Another 630K Shares of Stock”

Last month MDN told you about EXCO Resource board member John Wilder and his stock buying bender–snapping up large amounts of EXCO stock, which is very cheap right now at $1.08 per share (see EXCO Board Member Goes on Company Stock Buying Bender). A sharp MDN reader pointed out that Wilder, who is Executive Chairman of Bluescape Resources, which essentially runs EXCO, is contractually obligated to buy $40 million worth of EXCO stock within a year after the deal they closed with EXCO. So it’s no surprise that Wilder continues to buy EXCO stock at a brisk pace. The latest round came last week when he grabbed another 540,000 shares for $685,800…
Read More “EXCO Resources Director Continues Stock Buying Spree”

[Note: This story was updated on Nov. 19, see note below.]

EXCO Resources’ Board of Directors member John Wilder, Jr. has been on a one-man stock-buying bender over the past couple of weeks. You may recall Wilder purchased 297,100 shares of EXCO stock for ~$315,000 at the end of October (see EXCO Stock Short Selling Goes Up; Board Member Buys 297K Shares). Last Friday and again on Monday Wilder purchased another ~$830,000 worth of company stock (~793,000 shares), for a grand total of $1.14 million worth of stock (1,090,063 shares). Why the sudden purchases?…
Read More “EXCO Board Member Goes on Company Stock Buying Bender”

EXCO Resources is an exploration and production company operating in East Texas/North Louisiana (the Haynesville Shale), South Texas (the Eagle Ford Shale), and in the Marcellus Shale region–in Pennsylvania and West Virginia. EXCO has a sizable Marcellus presence with 145,000 net acres in the Marcellus, having drilled and now operating 124 horizontal Marcellus wells. They’re also a company facing stiff challenges. We’ve enumerated those challenges for more than a year (see our EXCO stories here). Recently there’s been an uptick in “short selling” of EXCO stock. What does that mean? In essence, it means an increasing number of investors believe the price of EXCO’s stock will head lower than it is right now (see our short selling tutorial, “Short Selling” – An Important Signal for Marcellus-Related Companies). Below is the news about an increase in EXCO stock short selling, with a preface to put it in context, so you know how to think about it. Also below is news that John Wilder, an EXCO board member, has just purchased 297,100 shares of EXCO stock for $314,926…
Read More “EXCO Stock Short Selling Goes Up; Board Member Buys 297K Shares”

Earlier this week MDN brought you EXCO Resources’ third quarter update, with the news that they have a “strategic plan” to turn things around at the troubled company (see EXCO Resources 3Q15: $42M Loss, Plan to Turn Things Around). EXCO has a sizable Marcellus presence with 145,000 net acres in the Marcellus and having drilled and operating 124 horizontal Marcellus wells. However, with natgas prices in the northeast the lowest in the country, EXCO is not drilling any new Marcellus wells save one appraisal well earlier this year. On Wednesday EXCO’s top management hosted a quarterly earnings call with analysts. We went fishing through the call transcript to find references to the Marcellus/Utica–to see if there was anything new in their thinking about the northeast. Here’s what we found…
Read More “EXCO’s Top Mgmt Talks About Shutting in Production in Marcellus”

EXCO Resources is an exploration and production company operating in East Texas/North Louisiana (the Haynesville Shale), South Texas (the Eagle Ford Shale), and in the Marcellus Shale region–in Pennsylvania and West Virginia. EXCO has a sizable Marcellus presence with 145,000 net acres in the Marcellus and having drilled and operating 124 horizontal Marcellus wells. EXCO is also a company in trouble. Their stock price has gone so low the New York Stock Exchange is threatening to de-list them (see More Trouble for EXCO Resources – NYSE Threatens to De-List Stock). In August we pointed out the company’s stock had dropped 96% during the last 5 years, 71% since the beginning of this year, and 86% during the last 12 months (see EXCO Resources #1 Stockholder and his “Distressing” Investment). Moody’s Investors Service isn’t all that impressed either (see Moody’s Downgrades EXCO Resources Credit Profile to the Basement). So it comes as no surprise that EXCO, in issuing their third quarter update, leads off with their “strategic plan” to turn things around (a “pretty please don’t drive us into bankruptcy just yet” plan). Of interest to MDN–EXCO’s Marcellus/Utica program has flatlined this year–no new drilling whatsoever in the northeast…
Read More “EXCO Resources 3Q15: $42M Loss, Plan to Turn Things Around”

We don’t mean to be piling on EXCO Resources–honest. We just report what we notice. We’ve been reporting for some time that EXCO appears to be in financial trouble (see our EXCO stories here). Just yesterday we brought you information about EXCO’s #1 stockholder, Wilbur L. Ross, Jr. (see EXCO Resources #1 Stockholder and his “Distressing” Investment). Today we noticed an investment bulletin issued by Moody’s Investors Services, one of the top two or three such credit ratings agencies that evaluate the credit worthiness of companies, governments, even countries. Moody’s issued a notice yesterday about EXCO–essentially downgrading the company’s credit risk to one of Moody’s lowest ratings categories–Caa1 and Caa3…
Read More “Moody’s Downgrades EXCO Resources Credit Profile to the Basement”

EXCO Resources, a sizable independent driller with operations in several shale plays including the Marcellus Shale, is a company in trouble. The price of EXCO’s stock has dropped 96% during the last 5 years, 71% since the beginning of this year, and 86% during the last 12 months. EXCO appeared on David Fessler’s “Death List” of oil and gas companies earlier this year (see 19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica). In April, EXCO experienced a major shake-up and saw the installation of new leadership managing the company and new members on the board of directors (see Bluescape Pulls Strings Installs New CEO, COO at EXCO Resources). The numbers for second quarter weren’t so hot (see EXCO 2Q15: Marcellus Production Down 23%; Net Income Down 1,991%), and the New York Stock Exchange has put the company on notice their stock is about to be de-listed (see More Trouble for EXCO Resources – NYSE Threatens to De-List Stock). We ran across an interesting reference to who owns the most stock in EXCO. Turns out the #1 stockholder is Wilbur L. Ross, Jr., founder of private equity firm WL Ross & Co.–someone known for investing in “distressed” companies. How much EXCO stock does Ross own and how much value has that stock lost for Ross?…
Read More “EXCO Resources #1 Stockholder and his “Distressing” Investment”

EXCO Resources is an exploration and production company (an E&P or what we refer to as a “driller”) operating in East Texas/North Louisiana (the Haynesville Shale), South Texas (the Eagle Ford Shale), and in the Marcellus Shale region–in Pennsylvania and West Virginia. EXCO has a sizable Marcellus presence with 145,000 net acres in the Marcellus and having drilled and operating 124 horizontal Marcellus wells. They’re also a company facing stiff challenges. Last December the company suspended paying dividends on their stock–never a good sign (see EXCO Resources Suspends Dividend Payments to Shareholders). EXCO’s major investor, Bluescape, installed a new CEO and COO along with new board members in April (see Bluescape Pulls Strings Installs New CEO, COO at EXCO Resources). EXCO suspended their Marcellus drilling program earlier this year, until further notice (see EXCO Resources Continues Marcellus Drilling Moratorium in 1Q15). And not to throw salt into the wound, but EXCO appears on both Debtwire’s “Distressed Watchlist” (see 4 Marcellus Companies Debut on Debtwire’s Distressed Watchlist) and on David Fessler’s “The Oil Company Death List” (see 19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica). The latest evidence that EXCO is a company in trouble: the New York Stock Exchange sent the company a notice that EXCO’s stock is in “noncompliance” with listing standards and they have six months to get the stock price up–or the company’s stock will be pulled from the venerable NYSE and relegated to penny stock status, trading on the Pink Sheets…
Read More “More Trouble for EXCO Resources – NYSE Threatens to De-List Stock”

EXCO Resources is a driller with operations in four different regions: North Louisiana, East Texas, South Texas, and the Marcellus/Utica region. Today EXCO posted their second quarter 2015 financial and operating results. During the first quarter EXCO sidelined any new Marcellus activity (see EXCO Resources Continues Marcellus Drilling Moratorium in 1Q15). That trend continued in 2Q15–EXCO drilled no new Marcellus wells during the quarter. In fact, MDN told you in May that EXCO is shopping its 150,000 Marcellus Shale acres (see EXCO Looks to “Restructure” (Sell?) 150K Marcellus Acres). Overall the company’s revenues dropped, like other drillers, in 2Q15. Year over year EXCO revenues dropped 49%. Factoring in expenses, EXCO’s net income was a massive loss, dropping 1,991% (they show a net loss for 2Q15 of minus $454.2 million). EXCO’s Marcellus production, because they haven’t drilled any new wells, decreased 23% from 2Q14. Below is the portion of the update dealing with the Marcellus…
Read More “EXCO 2Q15: Marcellus Production Down 23%; Net Income Down 1,991%”

Just yesterday we brought you the news that (no surprise) EXCO Resources has suspended any more drilling in their 150,000 acres of Marcellus acreage (see EXCO Resources Continues Marcellus Drilling Moratorium in 1Q15). EXCO’s newly appointed executive chairman, who also happens to be Bluescape’s executive chairman (along with other EXCO top management), held an analyst call to discuss first quarter results and the call was peppered with references to “restructuring.” We count at least 15 “restructuring” references in the call transcript. Among the things that will potentially get “restructured” is EXCO’s Marcellus joint venture with BG Group. BG is being bought out by Shell (see LNG Love Story: Shell Makes Play to Buy BG in $69.7B Megamerger). In light of that buyout, EXCO is looking to “restructure” their deal–by which we take to mean they’re shopping their Marcellus acreage. The term “Appalachia” came up a few times on Wednesday’s analyst phone call…
Read More “EXCO Looks to “Restructure” (Sell?) 150K Marcellus Acres”

EXCO Resources, a sizable independent driller with operations in a number of locations, has (for the time being) suspended drilling in the Marcellus Shale. EXCO has been a company in trouble. We reported earlier this month a major shakeup at the company (see Bluescape Pulls Strings Installs New CEO, COO at EXCO Resources). At the end of 2014, EXCO suspended dividend payments for shareholders (see EXCO Resources Suspends Dividend Payments to Shareholders). Also in December, the company appeared on Debtwire’s “Distressed Watchlist” (see 4 Marcellus Companies Debut on Debtwire’s Distressed Watchlist). In February, EXCO was listed on “The Oil Company Death List” (see 19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica). So it’s not all that surprising that EXCO did no new drilling, and only completed one outstanding well already drilled, in the Marcellus during the first three months of 2015. Here’s what EXCO said about Appalachia in their quarterly update from earlier this week…
Read More “EXCO Resources Continues Marcellus Drilling Moratorium in 1Q15”