Wednesday, January 17, 2018

Exco Resources Restructuring Could End With Company Selling It All

Exco Resources Inc. followed its entry into bankruptcy this week with a push on Jan. 17 to market its holdings in Appalachia and the Haynesville and Eagle Ford shales or seek a deal for the entire company. In a Jan. 17 regulatory filing, Exco said it had distributed asset information to potential buyers of its leasehold, which spans 329,000 net acres and is between 87% and 95% HBP. Prior to bankruptcy, Exco was in the process of selling the bulk of its production in the Eagle Ford Shale and focusing on operations in the Haynesville and Bossier shales. In addition to its 85,000 largely contiguous acres in the plays, the company has preferential rights to buy Royal Dutch Shell Plc’s (NYSE: RDS.A) Haynesville/Bossier rights in the event of a divestiture. Exco’s leverage is about 16.5x based on estimated 2017 EBITDA of $80 million, according to regulatory filings. The company owes about $1.3 billion in debt and on Oct. 17 had a market value of $29 million.
Source: Daily Dose of News

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