EXCO Resources Announces Spring 2016 Borrowing Base And Reduced 2016 Capital Budget

EXCO Resources Inc. (NYSE: XCO) (“EXCO” or the “Company”) today announced the spring borrowing base redetermination and full year 2016 capital program.

Borrowing Base Redetermination And Liquidity

Lenders under EXCO’s Amended and Restated Credit Agreement completed their regular semi-annual redetermination resulting in a borrowing base of $325 million, a 13% decline from the previous $375 million borrowing base. Over the same period, forward 12 month natural gas strip prices declined by approximately 23%. EXCO has approximately $133 million currently outstanding on the Credit Agreement and liquidity of approximately $240 million.

Harold L. Hickey, EXCO’s Chief Executive Officer and President, commented, “EXCO appreciates our bank group’s continued support of the Company as we execute on our Strategic Plan under the current commodity price macro environment. We remain focused on improving our capital structure and providing structural liquidity. We have significantly reduced the principal amounts outstanding under our 2018 and 2022 senior unsecured notes to $144 million and $183 million, respectively. As we work through this cycle, we have focused on preserving liquidity and minimizing capital expenditures, as evidenced by our 2016 capital program.”

2016 Capital Budget Overview

The Company continues to execute its disciplined capital allocation program to ensure the highest and best uses of capital. EXCO is focused on preserving its capital resources for future growth and, based on current natural gas prices, the Company has decided to significantly reduce its drilling activity in 2016. EXCO has reduced its total 2016 capital budget to $85 million, a reduction of $192 million, or 69%, as compared to 2015 capital expenditures of $277 million, and is deferring a significant amount of the Company’s drilling inventory until commodity prices improve.

EXCO currently plans on drilling 7 gross wells and completing 15 gross wells in 2016, with development activities focused on natural gas drilling and completion activities in the Haynesville and Bossier shales in North Louisiana and East Texas.

The 2016 capital budget is currently allocated among the different budget categories as follows:

(1) Includes $6MM of capitalized interest and $4MM of capitalized general and administrative expenses

Details of the development plans follow:

About EXCO

EXCO Resources Inc. is an oil and natural gas exploration, exploitation, acquisition, 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 www.excoresources.com. 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 EXCO has no control. Such factors include, but are not limited to: 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 EXCO’s reports on file with the SEC. Except as required by applicable law, EXCO undertakes no obligation to publicly update or revise any forward-looking statements.

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EXCO Resources Inc.
Chris Peracchi, 214-368-2084
Vice President of Finance and Investor Relations, and Treasurer