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 October 12, 2015 - 6:00 AM EDT
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EXCO Releases June 30, 2015 Interim Reserve Information

EXCO Resources, Inc. (NYSE:XCO) (the “Company” or “EXCO”) today released interim reserve information, which presents the Company’s estimated proved reserves and the present value of estimated future net revenues as of June 30, 2015 (the “Interim Reserve Update”). The proved reserves and PV-10 data in the Interim Reserve Update were based on June 30, 2015 NYMEX futures prices, in each case adjusted for geographical and historical differentials.

The Interim Reserve Update was furnished by the Company under a confidentiality agreement to certain holders (the “Noteholders”) of the Company’s outstanding 7.5% Senior Unsecured Notes due 2018 (the “2018 Notes”) and 8.5% Senior Unsecured Notes due 2022 (the “2022 Notes” and, together with the 2018 Notes, the “Notes”) in connection with negotiations concerning a potential debt restructuring transaction. The Interim Reserve Update disclosed that the Company’s total PV-10 as of June 30, 2015 was approximately $967.0 million and that the Company’s total proved reserves were approximately 1,217 Bcfe. The Company’s calculation of PV-10 in the Interim Reserve Update includes $137.0 million of transportation commitments allocated to proved reserves.

As previously disclosed in the Company’s Current Report on Form 8-K dated July 28, 2015, the Company entered into the Fifth Amendment (the “Fifth Amendment”) to its Amended and Restated Credit Agreement among the Company, certain of its subsidiaries, JPMorgan Chase Bank, N.A., as administrative agent, and certain lenders party thereto (as amended, the “Credit Agreement”). Among other terms, the Fifth Amendment permits the Company to incur additional indebtedness, including indebtedness secured by liens on the same collateral securing indebtedness under the Credit Agreement and other permitted second lien debt. Upon the initial incurrence of second or third lien debt with an aggregate principal amount of at least $700.0 million, the revolving commitments and borrowing base under the Credit Agreement will be reduced to $362.5 million. In addition, the Fifth Amendment provides that, following the date on which the Company receives at least $300.0 million in cash proceeds from the incurrence of any second lien debt, third lien debt or equity issuance, the interest and other fee rates under the Credit Agreement will increase and certain financial covenants will be terminated or amended. The Fifth Amendment also allows for the exchange or repurchase of a portion of the Company’s Notes in certain circumstances and subject to certain limitations. Currently, the Company is limited to approximately $1.2 billion of secured indebtedness capacity under the Indenture governing the Notes.

The terms of a confidentiality agreement entered into between the Company and a holder of only 2022 Notes expired on October 9, 2015. The Company is disclosing the information in this press release pursuant to its obligations under the confidentiality agreement. The Company is continuing discussions with certain Noteholders concerning a potential debt restructuring transaction but cautions investors that such transaction may not be completed. The information disclosed herein does not constitute an offer to buy, or a solicitation of an offer to buy, Notes or any other security.

About EXCO

EXCO Resources, Inc. is an oil and natural gas exploration, exploitation, development and production company headquartered in Dallas, Texas with principal operations in Texas, North Louisiana and Appalachia.

Additional information about EXCO Resources, Inc. may be obtained by contacting Chris Peracchi, EXCO’s Vice President of Finance and Investor Relations, and Treasurer, at EXCO’s headquarters, 12377 Merit Drive, Suite 1700, Dallas, TX 75251, telephone number (214) 368-2084, or by visiting EXCO’s website at EXCO’s SEC filings and press releases can be found under the Investor Relations tab.

Forward-Looking Statements

This release may contain forward-looking statements relating to future financial results, business expectations and business transactions. Actual results may differ materially from those predicted as a result of factors over which the Company has no control. Such factors include, but are not limited to: the completion of any potential debt restructuring transaction, continued volatility in the oil and gas markets, the estimates of reserves, commodity price changes, regulatory changes and general economic conditions. These risk factors are included in the Company’s reports on file with the Securities and Exchange Commission (the “SEC”). Except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statements.

Non-GAAP Financial Measures

Certain non-GAAP (as defined below) financial measures are set forth in the Interim Reserve Update. A non-GAAP financial measure is a numerical measure of a company’s performance that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“GAAP”). PV-10 as used in the Interim Reserve Update is considered a non-GAAP financial measure. We believe that PV-10, while not a financial measure in accordance with U.S. GAAP, is an important financial measure used by investors and independent oil and natural gas producers for evaluating the relative significance of oil and natural gas properties and acquisitions due to tax characteristics which can differ significantly among comparable companies.

The NYMEX proved reserves and PV-10 disclosed in the Interim Reserve Update differ from the proved reserves and PV-10 prepared based on SEC prices primarily due to the oil and natural gas prices utilized in the determination of future net cash flows. There is not a corresponding GAAP measure for PV-10 of proved reserves calculated using prices other than those prescribed by the SEC. Accordingly, it is not practicable for us to reconcile PV-10 utilizing NYMEX futures prices as of June 30, 2015 to the GAAP standardized measure of discounted future net cash flows. In addition, in calculating the PV-10 disclosed in the Interim Reserve Update, we did not include the effect of estimated future plugging and abandonment costs, which would be required in calculating the GAAP standardized measure of discounted future net cash flows.

EXCO Resources, Inc.
Chris Peracchi, 214-368-2084

Source: Business Wire (October 12, 2015 - 6:00 AM EDT)

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