EXCO Resources boasts “significant liquidity” of $711 million in Q3

By Lisa Kerner

Charlotte, N.C., Oct. 29 – EXCO Resources, Inc., facing oil pricing headwinds, is “much better positioned” for the current commodity cycle, said chief executive officer Hal Hickey.

The company has worked aggressively to reduce debt, successfully completed a rights offering and termed out a portion of its capital structure and has “significant liquidity, according to Hickey’s remarks made and the company’s presentation slides presented during its third-quarter earnings conference call on Wednesday.

EXCO reported liquidity of $711 million at quarter end on Sept. 30.

During the quarter, EXCO increased its borrowing base to $900 million from $875 million.

Also, the company realized $119 million from its Compass Production Partners sale, said chief financial officer Ricky Burnett on the call. EXCO agreed to sell its 25.5% interest in Compass to an affiliate of Harbinger Group, Inc. in a cash transaction, the release stated.

Pro forma liquidity at Sept. 20 was $855 million, cash was $65 million, and $790 million remained available under EXCO’s credit agreement.

EXCO ended the quarter on Sept. 30 with cash and cash equivalents of about $48 million and long-term debt of $1.6 billion. This compares to about $51 million and $1.9 billion, respectively, at year-end, according to the earnings news release.

The Dallas-based oil and natural gas company’s outstanding senior notes due 2018 and 2022 total $1.25 billion.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.