DALLAS -- (Business Wire)
EXCO Resources, Inc. (NYSE: XCO) today announced that it will be
releasing third quarter 2014 results on Tuesday, October 28, 2014, after
market close.
EXCO will host a conference call on Wednesday, October 29, 2014 at 9:00
a.m. (Central Time) to discuss the contents of this release and respond
to questions. Please call (800) 309-5788 and ask for the EXCO conference
call ID# 24918635. The conference call will also be webcast on EXCO’s
website at www.excoresources.com
under the Investor Relations tab. Presentation materials related to this
release will be posted on EXCO’s website prior to the conference call.
A digital recording will be available starting two hours after the
completion of the conference call until November 12, 2014. Please call
(800) 585-8367 and enter conference call ID# 24918635 to hear the
recording. A digital recording of the conference call will also be
available on EXCO’s website.
EXCO has recently entered into additional swap contracts and has added
collars with short puts (“Costless Three-way Collars”) to its commodity
derivatives portfolio. EXCO has historically relied on swap contracts to
protect its returns on capital investment and manage its capital
structure. Moving forward, EXCO’s commodity derivatives strategy
anticipates utilizing swaps, Costless Three-Way Collars and unhedged
volumes to provide some exposure to commodity price increases while
protecting a component of future cash flows. By adding Costless
Three-way Collars, EXCO maintains the opportunity to participate in the
commodity price upside to the call price while gaining partial down-side
protection. For example, in 2015 for 45,000 Mmbtus per day of natural
gas, EXCO would receive:
-
market prices from $3.81 per Mmbtu up to the ceiling price of $4.45
per Mmbtu;
-
$3.81 per Mmbtu on market prices between $3.31 and $3.81 per Mmbtu; and
-
market prices plus $0.50 on market prices below $3.31.
As of October 1, 2014, EXCO had the following commodity derivative
financial instruments in place for the volumes and prices shown below:
|
|
| |
|
| |
| | | Q4 | | | Year Ended |
Natural Gas |
|
| 2014 |
|
| 2015 |
|
| 2016 |
Swap contracts: | | | | | | |
|
| |
Volume (Mmbtus/d)
| | |
215,000
| | |
107,500
| | |
-
|
Price per Mmbtu
| | |
$4.23
| | |
$4.22
| | |
$-
|
| | | | | | | | |
|
Collar contracts with short puts: | | | | | | | | | |
Volume (Mmbtus/d)
| | |
-
| | |
45,000
| | |
30,000
|
Price per Mmbtu:
| | | | | | | | | |
Call
| | |
$-
| | |
$4.45
| | |
$4.80
|
Put
| | |
$-
| | |
$3.81
| | |
$3.90
|
Short put
| | |
$-
| | |
$3.31
| | |
$3.40
|
| | | | | | | | |
|
Short call contracts: | | | | | | | | | |
Volume (Mmbtus/d)
| | |
55,000
| | |
55,000
| | |
-
|
Price per Mmbtu
| | |
$4.29
| | |
$4.29
| | |
$-
|
| | | | | | | | |
|
| | | Q4 | | | Year Ended |
Crude Oil |
|
| 2014 |
|
| 2015 |
|
| 2016 |
Swap contracts: | | | | | | | | | |
Volume (Bbls/d)
| | |
4,250
| | |
2,500
| | |
-
|
Price per Bbl
| | |
$95.22
| | |
$93.07
| | |
$-
|
| | | | | | | | |
|
Short call contracts: | | | | | | | | | |
Volume (Bbls/d)
| | |
1,000
| | |
1,000
| | |
-
|
Price per Bbl
| | |
$100.00
| | |
$100.00
| | |
$-
|
| | | | | | | | |
|
Basis swap contracts: | | | | | | | | | |
Volume (Bbls/d)
| | |
500
| | |
250
| | |
-
|
Price per Bbl
| | |
$6.03
| | |
$6.10
| | |
$-
|
| | | | | | | | |
|
During a historically low natural gas price environment in 2012, EXCO
entered into the short call contracts. In exchange for selling these
options, EXCO received upfront proceeds which were used to obtain higher
fixed prices on natural gas swap contracts that were entered into
contemporaneously, resulting in net cashless transactions. The previous
table excludes EXCO’s 25.5% proportionate interest in Compass Production
Partners’ commodity derivative financial instruments.
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 the Appalachia region.
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.
This release may contain forward-looking statements relating to future
financial results, business expectations and business transactions based
on estimates and assumptions that are inherently subject to significant
economic, industry and competitive uncertainties and contingencies, all
of which are difficult to predict and many of which are beyond EXCO’s
control. 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: estimates of reserves, commodity price changes,
regulatory changes and general economic conditions. These risk factors
and additional information are included in EXCO’s reports on file with
the Securities and Exchange Commission. Except as required by applicable
law, EXCO undertakes no obligation to publicly update or revise any
forward-looking statements.
Contacts:
EXCO Resources, Inc.
Chris Peracchi, 214-368-2084
Vice
President of Finance and Investor Relations and Treasurer
www.excoresources.com
Source: EXCO Resources, Inc.
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