EXCO Resources Executes Agreement to Divest South Texas Oil and Natural Gas Properties
April 10 2017 - 8:00AM
Business Wire
EXCO Resources, Inc. (NYSE:XCO) (“EXCO” or the “Company”)
announces the execution of a definitive agreement with a subsidiary
of Venado Oil and Gas, LLC, an affiliate of KKR, to divest its oil
and natural gas properties in South Texas. The purchase price of
$300 million is subject to customary closing conditions and
adjustments based on an effective date of January 1, 2017. The
properties to be divested include the Company's interests in oil
and natural gas properties and surface acreage in Zavala, Frio and
Dimmit counties in Texas. These properties produced approximately
4,100 BOE per day (~90% oil) during December 2016. The Company
expects the transaction to close in June 2017.
EXCO's planned divestiture of the South Texas oil and natural
gas properties represents an important step in its portfolio
optimization initiative and will improve its financial flexibility.
The Company intends to use the proceeds to fund drilling and
development of its core Haynesville and Bossier shale assets in
North Louisiana and East Texas and for other general corporate
purposes. After the closing of the sale, the borrowing base under
the Company's revolving credit agreement (“Credit Agreement”) will
be $100 million. The next borrowing base redetermination under the
Credit Agreement is set to occur in November 2017.
BMO Capital Markets served as the Company's exclusive financial
advisor for the transaction.
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,
Louisiana and Appalachia.
Additional information about EXCO Resources, Inc. may be
obtained by contacting Tyler Farquharson, EXCO’s Vice President,
Chief Financial Officer 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. The conditions to closing the transaction
contemplated by the definitive agreement may not be met or the
anticipated proceeds from the proposed transaction may not be fully
realized. Actual results may differ materially from those predicted
as a result of factors over which EXCO has no control. A discussion
of the risks and uncertainties with respect to the Company is set
forth in its filings with the SEC. The Company disclaims any
intention or obligation to revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
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EXCO Resources, Inc.Tyler Farquharson, 214-368-2084Vice
President, Chief Financial Officer and
Treasurerwww.excoresources.com