x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Texas
|
|
74-1492779
|
(State of incorporation)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
12377 Merit Drive
Suite 1700, LB 82
Dallas, Texas
|
|
75251
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large accelerated filer
|
|
o
|
|
Accelerated filer
|
|
x
|
|
|
|
|
|
|
|
Non-accelerated filer
|
|
o
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
|
|
o
|
|
||
|
|
|
|
||
|
||
|
||
|
||
|
||
|
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 1.
|
Financial Statements
|
(in thousands)
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
|
|
(Unaudited)
|
|
|
||||
Assets
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
3,534
|
|
|
$
|
12,247
|
|
Restricted cash
|
|
18,434
|
|
|
21,220
|
|
||
Accounts receivable, net:
|
|
|
|
|
||||
Oil and natural gas
|
|
53,439
|
|
|
37,236
|
|
||
Joint interest
|
|
17,949
|
|
|
22,095
|
|
||
Other
|
|
3,871
|
|
|
8,894
|
|
||
Derivative financial instruments
|
|
5,952
|
|
|
39,499
|
|
||
Inventory and other
|
|
7,630
|
|
|
8,610
|
|
||
Total current assets
|
|
110,809
|
|
|
149,801
|
|
||
Equity investments
|
|
31,973
|
|
|
40,797
|
|
||
Oil and natural gas properties (full cost accounting method):
|
|
|
|
|
||||
Unproved oil and natural gas properties and development costs not being amortized
|
|
93,511
|
|
|
115,377
|
|
||
Proved developed and undeveloped oil and natural gas properties
|
|
2,946,641
|
|
|
3,070,430
|
|
||
Accumulated depletion
|
|
(2,690,611
|
)
|
|
(2,627,763
|
)
|
||
Oil and natural gas properties, net
|
|
349,541
|
|
|
558,044
|
|
||
Other property and equipment, net
|
|
24,058
|
|
|
27,812
|
|
||
Deferred financing costs, net
|
|
5,000
|
|
|
8,408
|
|
||
Derivative financial instruments
|
|
1,455
|
|
|
6,109
|
|
||
Goodwill
|
|
163,155
|
|
|
163,155
|
|
||
Total assets
|
|
$
|
685,991
|
|
|
$
|
954,126
|
|
Liabilities and shareholders’ equity
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Accounts payable and accrued liabilities
|
|
$
|
56,056
|
|
|
$
|
88,049
|
|
Revenues and royalties payable
|
|
121,312
|
|
|
106,163
|
|
||
Accrued interest payable
|
|
3,774
|
|
|
7,846
|
|
||
Current portion of asset retirement obligations
|
|
428
|
|
|
845
|
|
||
Income taxes payable
|
|
—
|
|
|
—
|
|
||
Derivative financial instruments
|
|
10,353
|
|
|
16
|
|
||
Current maturities of long-term debt
|
|
50,000
|
|
|
50,000
|
|
||
Total current liabilities
|
|
241,923
|
|
|
252,919
|
|
||
Long-term debt
|
|
1,256,068
|
|
|
1,320,279
|
|
||
Deferred income taxes
|
|
1,775
|
|
|
—
|
|
||
Derivative financial instruments
|
|
1,189
|
|
|
—
|
|
||
Asset retirement obligations and other long-term liabilities
|
|
22,626
|
|
|
43,251
|
|
||
Shareholders’ equity:
|
|
|
|
|
||||
Common shares, $0.001 par value; 780,000,000 authorized shares; 283,040,484 shares issued and 282,445,821 shares outstanding at September 30, 2016; 283,633,996 shares issued and 283,039,333 shares outstanding at December 31, 2015
|
|
283
|
|
|
276
|
|
||
Additional paid-in capital
|
|
3,537,393
|
|
|
3,522,153
|
|
||
Accumulated deficit
|
|
(4,367,634
|
)
|
|
(4,177,120
|
)
|
||
Treasury shares, at cost; 594,663 shares at September 30, 2016 and December 31, 2015
|
|
(7,632
|
)
|
|
(7,632
|
)
|
||
Total shareholders’ equity
|
|
(837,590
|
)
|
|
(662,323
|
)
|
||
Total liabilities and shareholders’ equity
|
|
$
|
685,991
|
|
|
$
|
954,126
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in thousands, except per share data)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Oil
|
|
$
|
16,215
|
|
|
$
|
27,444
|
|
|
$
|
49,688
|
|
|
$
|
79,872
|
|
Natural gas
|
|
54,647
|
|
|
56,300
|
|
|
127,044
|
|
|
184,275
|
|
||||
Purchased natural gas and marketing
|
|
6,324
|
|
|
6,773
|
|
|
15,335
|
|
|
21,012
|
|
||||
Total revenues
|
|
77,186
|
|
|
90,517
|
|
|
192,067
|
|
|
285,159
|
|
||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
||||||||
Oil and natural gas operating costs
|
|
8,797
|
|
|
12,669
|
|
|
25,835
|
|
|
41,745
|
|
||||
Production and ad valorem taxes
|
|
3,811
|
|
|
5,944
|
|
|
13,308
|
|
|
16,408
|
|
||||
Gathering and transportation
|
|
27,979
|
|
|
23,743
|
|
|
79,828
|
|
|
74,243
|
|
||||
Purchased natural gas
|
|
6,586
|
|
|
6,991
|
|
|
17,273
|
|
|
21,571
|
|
||||
Depletion, depreciation and amortization
|
|
15,910
|
|
|
52,013
|
|
|
63,995
|
|
|
176,160
|
|
||||
Impairment of oil and natural gas properties
|
|
—
|
|
|
339,393
|
|
|
160,813
|
|
|
1,010,047
|
|
||||
Accretion of discount on asset retirement obligations
|
|
325
|
|
|
574
|
|
|
2,006
|
|
|
1,698
|
|
||||
General and administrative
|
|
10,746
|
|
|
13,393
|
|
|
38,626
|
|
|
41,227
|
|
||||
Other operating items
|
|
(1,110
|
)
|
|
(228
|
)
|
|
23,936
|
|
|
1,118
|
|
||||
Total costs and expenses
|
|
73,044
|
|
|
454,492
|
|
|
425,620
|
|
|
1,384,217
|
|
||||
Operating income (loss)
|
|
4,142
|
|
|
(363,975
|
)
|
|
(233,553
|
)
|
|
(1,099,058
|
)
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
|
(16,997
|
)
|
|
(27,761
|
)
|
|
(54,186
|
)
|
|
(80,822
|
)
|
||||
Gain (loss) on derivative financial instruments
|
|
8,209
|
|
|
37,348
|
|
|
(11,632
|
)
|
|
54,427
|
|
||||
Gain on extinguishment of debt
|
|
57,421
|
|
|
—
|
|
|
119,374
|
|
|
—
|
|
||||
Other income
|
|
12
|
|
|
21
|
|
|
37
|
|
|
119
|
|
||||
Equity loss
|
|
(823
|
)
|
|
(152
|
)
|
|
(8,824
|
)
|
|
(1,452
|
)
|
||||
Total other income (expense)
|
|
47,822
|
|
|
9,456
|
|
|
44,769
|
|
|
(27,728
|
)
|
||||
Income (loss) before income taxes
|
|
51,964
|
|
|
(354,519
|
)
|
|
(188,784
|
)
|
|
(1,126,786
|
)
|
||||
Income tax expense
|
|
1,028
|
|
|
—
|
|
|
1,775
|
|
|
—
|
|
||||
Net income (loss)
|
|
$
|
50,936
|
|
|
$
|
(354,519
|
)
|
|
$
|
(190,559
|
)
|
|
$
|
(1,126,786
|
)
|
Earnings (loss) per common share:
|
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
|
$
|
0.18
|
|
|
$
|
(1.30
|
)
|
|
$
|
(0.68
|
)
|
|
$
|
(4.14
|
)
|
Weighted average common shares outstanding
|
|
279,873
|
|
|
273,348
|
|
|
279,008
|
|
|
272,147
|
|
||||
Diluted:
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
|
$
|
0.18
|
|
|
$
|
(1.30
|
)
|
|
$
|
(0.68
|
)
|
|
$
|
(4.14
|
)
|
Weighted average common shares and common share equivalents outstanding
|
|
281,045
|
|
|
273,348
|
|
|
279,008
|
|
|
272,147
|
|
|
|
Nine Months Ended September 30,
|
||||||
(in thousands)
|
|
2016
|
|
2015
|
||||
Operating Activities:
|
|
|
|
|
||||
Net loss
|
|
$
|
(190,559
|
)
|
|
$
|
(1,126,786
|
)
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
|
|
|
|
||||
Deferred income tax expense
|
|
1,775
|
|
|
—
|
|
||
Depletion, depreciation and amortization
|
|
63,995
|
|
|
176,160
|
|
||
Equity-based compensation expense
|
|
14,558
|
|
|
4,045
|
|
||
Accretion of discount on asset retirement obligations
|
|
2,006
|
|
|
1,698
|
|
||
Impairment of oil and natural gas properties
|
|
160,813
|
|
|
1,010,047
|
|
||
Loss from equity investments
|
|
8,824
|
|
|
1,452
|
|
||
(Gain) loss on derivative financial instruments
|
|
11,632
|
|
|
(54,427
|
)
|
||
Cash receipts of derivative financial instruments
|
|
38,097
|
|
|
88,977
|
|
||
Amortization of deferred financing costs and discount on debt issuance
|
|
7,250
|
|
|
11,083
|
|
||
Other non-operating items
|
|
24,068
|
|
|
(13
|
)
|
||
Gain on extinguishment of debt
|
|
(119,374
|
)
|
|
—
|
|
||
Effect of changes in:
|
|
|
|
|
||||
Restricted cash with related party
|
|
2,100
|
|
|
(1,500
|
)
|
||
Accounts receivable
|
|
(12,752
|
)
|
|
59,238
|
|
||
Other current assets
|
|
(1,207
|
)
|
|
1,062
|
|
||
Accounts payable and other liabilities
|
|
(14,966
|
)
|
|
(44,180
|
)
|
||
Net cash provided by (used in) operating activities
|
|
(3,740
|
)
|
|
126,856
|
|
||
Investing Activities:
|
|
|
|
|
||||
Additions to oil and natural gas properties, gathering assets and equipment
|
|
(70,455
|
)
|
|
(269,708
|
)
|
||
Property acquisitions
|
|
—
|
|
|
(7,608
|
)
|
||
Proceeds from disposition of property and equipment
|
|
11,242
|
|
|
7,397
|
|
||
Restricted cash
|
|
686
|
|
|
4,016
|
|
||
Net changes in advances to joint ventures
|
|
2,377
|
|
|
8,594
|
|
||
Equity investments and other
|
|
—
|
|
|
1,455
|
|
||
Net cash used in investing activities
|
|
(56,150
|
)
|
|
(255,854
|
)
|
||
Financing Activities:
|
|
|
|
|
||||
Borrowings under EXCO Resources Credit Agreement
|
|
390,897
|
|
|
97,500
|
|
||
Repayments under EXCO Resources Credit Agreement
|
|
(243,797
|
)
|
|
—
|
|
||
Payments on Exchange Term Loan
|
|
(38,056
|
)
|
|
—
|
|
||
Repurchases of senior unsecured notes
|
|
(53,298
|
)
|
|
—
|
|
||
Proceeds from issuance of common shares, net
|
|
—
|
|
|
9,829
|
|
||
Deferred financing costs and other
|
|
(4,569
|
)
|
|
(4,125
|
)
|
||
Net cash provided by financing activities
|
|
51,177
|
|
|
103,204
|
|
||
Net decrease in cash
|
|
(8,713
|
)
|
|
(25,794
|
)
|
||
Cash at beginning of period
|
|
12,247
|
|
|
46,305
|
|
||
Cash at end of period
|
|
$
|
3,534
|
|
|
$
|
20,511
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
||||
Cash interest payments
|
|
$
|
51,975
|
|
|
$
|
81,913
|
|
Income tax payments
|
|
—
|
|
|
—
|
|
||
Supplemental non-cash investing and financing activities:
|
|
|
|
|
||||
Capitalized equity-based compensation
|
|
$
|
432
|
|
|
$
|
2,861
|
|
Capitalized interest
|
|
3,939
|
|
|
10,121
|
|
|
|
Common shares
|
|
Treasury shares
|
|
Additional paid-in capital
|
|
Accumulated deficit
|
|
Total shareholders’ equity
|
||||||||||||||||
(in thousands)
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|
|||||||||||||||
Balance at December 31, 2014
|
|
274,352
|
|
|
$
|
270
|
|
|
(578
|
)
|
|
$
|
(7,615
|
)
|
|
$
|
3,502,209
|
|
|
$
|
(2,984,860
|
)
|
|
$
|
510,004
|
|
Issuance of common shares
|
|
5,882
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
9,875
|
|
|
—
|
|
|
9,881
|
|
|||||
Equity-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,439
|
|
|
—
|
|
|
6,439
|
|
|||||
Restricted shares issued, net of cancellations
|
|
3,422
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Common share dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|||||
Treasury share repurchases
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,126,786
|
)
|
|
(1,126,786
|
)
|
|||||
Balance at September 30, 2015
|
|
283,656
|
|
|
$
|
276
|
|
|
(595
|
)
|
|
$
|
(7,632
|
)
|
|
$
|
3,518,523
|
|
|
$
|
(4,111,643
|
)
|
|
$
|
(600,476
|
)
|
Balance at December 31, 2015
|
|
283,634
|
|
|
$
|
276
|
|
|
(595
|
)
|
|
$
|
(7,632
|
)
|
|
$
|
3,522,153
|
|
|
$
|
(4,177,120
|
)
|
|
$
|
(662,323
|
)
|
Issuance of common shares
|
|
243
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Equity-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,240
|
|
|
—
|
|
|
15,240
|
|
|||||
Restricted shares issued, net of cancellations
|
|
(837
|
)
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||
Common share dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
45
|
|
|||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(190,559
|
)
|
|
(190,559
|
)
|
|||||
Balance at September 30, 2016
|
|
283,040
|
|
|
$
|
283
|
|
|
(595
|
)
|
|
$
|
(7,632
|
)
|
|
$
|
3,537,393
|
|
|
$
|
(4,367,634
|
)
|
|
$
|
(837,590
|
)
|
|
|
|
|
|
|
Three months ended
|
||||||||||
(in thousands)
|
|
|
|
|
|
June 30, 2016
|
|
March 31, 2016
|
||||||||
Gathering and transportation, previously reported
|
|
|
|
|
|
$
|
26,895
|
|
|
$
|
26,630
|
|
||||
Revision of third party natural gas purchases and sales
|
|
|
|
|
|
(151
|
)
|
|
(1,525
|
)
|
||||||
Gathering and transportation, as currently reported
|
|
|
|
|
|
$
|
26,744
|
|
|
$
|
25,105
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Purchased natural gas and marketing revenues
|
|
|
|
|
|
$
|
4,570
|
|
|
$
|
4,441
|
|
||||
Purchased natural gas expenses
|
|
|
|
|
|
$
|
4,721
|
|
|
$
|
5,966
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended
|
||||||||||||||
(in thousands)
|
|
December 31, 2015
|
|
September 31, 2015
|
|
June 30, 2015
|
|
March 31, 2015
|
||||||||
Natural gas revenues, previously reported
|
|
$
|
41,828
|
|
|
$
|
56,082
|
|
|
$
|
62,197
|
|
|
$
|
65,437
|
|
Revision of third party natural gas purchases and sales
|
|
368
|
|
|
218
|
|
|
184
|
|
|
157
|
|
||||
Natural gas revenues, as currently reported
|
|
$
|
42,196
|
|
|
$
|
56,300
|
|
|
$
|
62,381
|
|
|
$
|
65,594
|
|
|
|
|
|
|
|
|
|
|
||||||||
Purchased natural gas and marketing revenues
|
|
$
|
5,430
|
|
|
$
|
6,773
|
|
|
$
|
6,678
|
|
|
$
|
7,561
|
|
Purchased natural gas expenses
|
|
$
|
5,798
|
|
|
$
|
6,991
|
|
|
$
|
6,862
|
|
|
$
|
7,718
|
|
(1)
|
Adjustment to liability due to divestitures is primarily due to the sale of our conventional assets in Pennsylvania on July 1, 2016. See "Note 3. Divestitures" for additional information.
|
|
|
Average spot prices
|
||||||
|
|
Oil (per Bbl)
|
|
Natural gas (per Mmbtu)
|
||||
September 30, 2016
|
|
$
|
41.68
|
|
|
$
|
2.24
|
|
June 30, 2016
|
|
43.12
|
|
|
2.24
|
|
||
March 31, 2016
|
|
46.26
|
|
|
2.40
|
|
||
December 31, 2015
|
|
50.28
|
|
|
2.59
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in thousands, except per share data)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Basic net income (loss) per common share:
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
|
$
|
50,936
|
|
|
$
|
(354,519
|
)
|
|
$
|
(190,559
|
)
|
|
$
|
(1,126,786
|
)
|
Weighted average common shares outstanding
|
|
279,873
|
|
|
273,348
|
|
|
279,008
|
|
|
272,147
|
|
||||
Net income (loss) per basic common share
|
|
$
|
0.18
|
|
|
$
|
(1.30
|
)
|
|
$
|
(0.68
|
)
|
|
$
|
(4.14
|
)
|
Diluted net income (loss) per common share:
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
|
$
|
50,936
|
|
|
$
|
(354,519
|
)
|
|
$
|
(190,559
|
)
|
|
$
|
(1,126,786
|
)
|
Weighted average common shares outstanding
|
|
279,873
|
|
|
273,348
|
|
|
279,008
|
|
|
272,147
|
|
||||
Dilutive effect of:
|
|
|
|
|
|
|
|
|
||||||||
Stock options
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Restricted shares and restricted share units
|
|
1,172
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Warrants
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Weighted average common shares and common share equivalents outstanding
|
|
281,045
|
|
|
273,348
|
|
|
279,008
|
|
|
272,147
|
|
||||
Net income (loss) per diluted common share
|
|
$
|
0.18
|
|
|
$
|
(1.30
|
)
|
|
$
|
(0.68
|
)
|
|
$
|
(4.14
|
)
|
(in thousands)
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
Derivative financial instruments - Current assets
|
|
$
|
5,952
|
|
|
$
|
39,499
|
|
Derivative financial instruments - Long-term assets
|
|
1,455
|
|
|
6,109
|
|
||
Derivative financial instruments - Current liabilities
|
|
(10,353
|
)
|
|
(16
|
)
|
||
Derivative financial instruments - Long-term liabilities
|
|
(1,189
|
)
|
|
—
|
|
||
Net derivative financial instruments
|
|
$
|
(4,135
|
)
|
|
$
|
45,592
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Gain (loss) on derivative financial instruments
|
|
$
|
8,209
|
|
|
$
|
37,348
|
|
|
$
|
(11,632
|
)
|
|
$
|
54,427
|
|
(dollars in thousands, except prices)
|
|
Volume Bbtu/Mbbl
|
|
Weighted average strike price per Mmbtu/Bbl
|
|
Fair value at September 30, 2016
|
|||||
Natural gas:
|
|
|
|
|
|
|
|||||
Swaps:
|
|
|
|
|
|
|
|||||
Remainder of 2016
|
|
14,260
|
|
|
$
|
2.88
|
|
|
$
|
(1,610
|
)
|
2017
|
|
23,700
|
|
|
2.99
|
|
|
(2,440
|
)
|
||
2018
|
|
3,650
|
|
|
3.15
|
|
|
819
|
|
||
Swaptions:
|
|
|
|
|
|
|
|||||
2017
|
|
7,300
|
|
|
2.76
|
|
|
(2,743
|
)
|
||
Collars:
|
|
|
|
|
|
|
|||||
2017
|
|
10,950
|
|
|
|
|
(420
|
)
|
|||
Sold call
|
|
|
|
3.28
|
|
|
|
||||
Purchased put
|
|
|
|
2.87
|
|
|
|
||||
Total natural gas
|
|
|
|
|
|
$
|
(6,394
|
)
|
|||
Oil:
|
|
|
|
|
|
|
|||||
Swaps:
|
|
|
|
|
|
|
|||||
Remainder of 2016
|
|
276
|
|
|
$
|
58.61
|
|
|
$
|
2,542
|
|
2017
|
|
183
|
|
|
50.00
|
|
|
(283
|
)
|
||
Total oil
|
|
|
|
|
|
$
|
2,259
|
|
|||
Total oil and natural gas derivative financial instruments
|
|
|
|
|
|
$
|
(4,135
|
)
|
(in thousands)
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
EXCO Resources Credit Agreement
|
|
$
|
214,592
|
|
|
$
|
67,492
|
|
Exchange Term Loan
|
|
603,116
|
|
|
641,172
|
|
||
Fairfax Term Loan
|
|
300,000
|
|
|
300,000
|
|
||
2018 Notes
|
|
131,576
|
|
|
158,015
|
|
||
Unamortized discount on 2018 Notes
|
|
(589
|
)
|
|
(932
|
)
|
||
2022 Notes
|
|
70,169
|
|
|
222,826
|
|
||
Deferred financing costs, net
|
|
(12,796
|
)
|
|
(18,294
|
)
|
||
Total debt
|
|
1,306,068
|
|
|
1,370,279
|
|
||
Less amounts due within one year
|
|
50,000
|
|
|
50,000
|
|
||
Total debt due after one year
|
|
$
|
1,256,068
|
|
|
$
|
1,320,279
|
|
|
|
September 30, 2016
|
||||||||||||||
(in thousands)
|
|
Carrying value
|
|
Deferred reduction in carrying value
|
|
Unamortized discount/deferred financing costs
|
|
Principal balance
|
||||||||
EXCO Resources Credit Agreement
|
|
$
|
214,592
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
214,592
|
|
Exchange Term Loan
|
|
603,116
|
|
|
(203,116
|
)
|
|
—
|
|
|
400,000
|
|
||||
Fairfax Term Loan
|
|
300,000
|
|
|
—
|
|
|
—
|
|
|
300,000
|
|
||||
2018 Notes
|
|
130,987
|
|
|
—
|
|
|
589
|
|
|
131,576
|
|
||||
2022 Notes
|
|
70,169
|
|
|
—
|
|
|
—
|
|
|
70,169
|
|
||||
Deferred financing costs, net
|
|
(12,796
|
)
|
|
—
|
|
|
12,796
|
|
|
—
|
|
||||
Total debt
|
|
$
|
1,306,068
|
|
|
$
|
(203,116
|
)
|
|
$
|
13,385
|
|
|
$
|
1,116,337
|
|
•
|
maintain a Consolidated Current Ratio of at least
1.0
to
1.0
as of the end of any fiscal quarter. The consolidated current assets utilized in this ratio include unused commitments under the EXCO Resources Credit Agreement. As of September 30, 2016, the unused commitments were based on the Company's borrowing base of $325.0 million;
|
•
|
maintain a ratio of consolidated EBITDAX to consolidated interest expense (“Interest Coverage Ratio”) of at least
1.25
to 1.0 as of the end of any fiscal quarter. The consolidated interest expense utilized in the Interest Coverage Ratio is calculated in accordance with GAAP; therefore, this excludes cash payments under the terms of the Exchange Term Loan (as defined below), whether designated as interest or as principal amount, that reduce the carrying amount and are not recognized as interest expense; and
|
•
|
not permit a Senior Secured Indebtedness Ratio to be greater than
2.5
to 1.0 as of the end of any fiscal quarter. Senior secured indebtedness utilized in the Senior Secured Indebtedness Ratio excludes the Second Lien Term Loans and any other secured indebtedness subordinated to the EXCO Resources Credit Agreement.
|
•
|
pay dividends or make other distributions or redeem or repurchase our common shares;
|
•
|
prepay, redeem or repurchase certain debt;
|
•
|
enter into agreements restricting the subsidiary guarantors’ ability to pay dividends to us or another subsidiary guarantor, make loans or advances to us or transfer assets to us;
|
•
|
engage in asset sales or substantially alter the business that the we conduct, unless the proceeds are utilized to prepay the Second Lien Term Loans, reduce priority lien indebtedness, or reinvest in the acquisition or development of oil and gas properties;
|
•
|
enter into transactions with affiliates;
|
•
|
consolidate, merge or dispose of assets;
|
•
|
incur liens; and
|
•
|
enter into sale/leaseback transactions.
|
•
|
debt under credit facilities, as defined in the term loan credit agreement governing the Exchange Term Loan, in excess of the greatest of (i)
$375.0 million
plus an amount equal to six and two-thirds percent of the aggregate principal amount of our outstanding indebtedness under the EXCO Resources Credit Agreement for over-advances to protect collateral, (ii) the borrowing base under the EXCO Resources Credit Agreement and (iii)
30%
of modified adjusted consolidated net tangible assets (as defined in the agreement);
|
•
|
second lien debt in excess of
$700.0 million
; and
|
•
|
unsecured debt where on the date of such incurrence or after giving effect to such incurrence, our consolidated coverage ratio (as defined in the agreement) is or would be less than
2.25
to 1.0.
|
•
|
debt under credit facilities, as defined in the term loan credit agreement governing the Fairfax Term Loan, in excess of
$375.0 million
plus an amount equal to six and two-thirds percent of the aggregate principal amount of our outstanding indebtedness under the EXCO Resources Credit Agreement for over-advances to protect collateral, provided that such indebtedness may not exceed
$500.0 million
, unless we obtain consent from the administrative agent;
|
•
|
second lien debt, other than the Exchange Term Loan, in an amount to be agreed upon with the administrative agent;
|
•
|
junior lien debt, unless such debt is being used to refinance the 2018 Notes or the 2022 Notes or the terms and conditions of such junior lien debt are approved by the administrative agent; and
|
•
|
unsecured debt, unless we obtain consent from the administrative agent.
|
•
|
incur or guarantee additional debt and issue certain types of preferred stock;
|
•
|
pay dividends on our capital stock or redeem, repurchase or retire our capital stock or subordinated debt;
|
•
|
make certain investments;
|
•
|
create liens on our assets;
|
•
|
enter into sale/leaseback transactions;
|
•
|
create restrictions on the ability of our restricted subsidiaries to pay dividends or make other payments to us;
|
•
|
engage in transactions with our affiliates;
|
•
|
transfer or issue shares of stock of subsidiaries;
|
•
|
transfer or sell assets; and
|
•
|
consolidate, merge or transfer all or substantially all of our assets and the assets of our subsidiaries.
|
|
|
September 30, 2016
|
||||||||||||||
(in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Oil and natural gas derivative financial instruments
|
|
$
|
—
|
|
|
$
|
(4,135
|
)
|
|
$
|
—
|
|
|
$
|
(4,135
|
)
|
|
|
December 31, 2015
|
||||||||||||||
(in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Oil and natural gas derivative financial instruments
|
|
$
|
—
|
|
|
$
|
45,592
|
|
|
$
|
—
|
|
|
$
|
45,592
|
|
|
|
September 30, 2016
|
||||||||||||||
(in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
2018 Notes
|
|
$
|
60,438
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
60,438
|
|
2022 Notes
|
|
27,366
|
|
|
—
|
|
|
—
|
|
|
27,366
|
|
||||
Exchange Term Loan
|
|
—
|
|
|
263,500
|
|
|
—
|
|
|
263,500
|
|
||||
Fairfax Term Loan
|
|
—
|
|
|
197,625
|
|
|
—
|
|
|
197,625
|
|
||||
|
|
December 31, 2015
|
||||||||||||||
(in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
2018 Notes
|
|
$
|
43,170
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
43,170
|
|
2022 Notes
|
|
48,376
|
|
|
—
|
|
|
—
|
|
|
48,376
|
|
||||
Exchange Term Loan
|
|
—
|
|
|
278,000
|
|
|
—
|
|
|
278,000
|
|
||||
Fairfax Term Loan
|
|
—
|
|
|
208,500
|
|
|
—
|
|
|
208,500
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Amounts received from OPCO
|
|
$
|
3,824
|
|
|
$
|
7,281
|
|
|
$
|
12,586
|
|
|
$
|
23,847
|
|
(in thousands)
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
Amounts due to EXCO (1)
|
|
$
|
932
|
|
|
$
|
1,733
|
|
Amounts due from EXCO (1)
|
|
12,903
|
|
|
10,410
|
|
(1)
|
Advances to OPCO are recorded in "Other current assets" in our Condensed Consolidated Balance Sheets. Any amounts we owe to OPCO are netted against the advance until the advances are utilized. If the advances are fully utilized, we record amounts owed in "Accounts payable and accrued liabilities" in our Condensed Consolidated Balance Sheets.
|
•
|
Resources;
|
•
|
the Guarantor Subsidiaries;
|
•
|
the Non-Guarantor Subsidiaries;
|
•
|
elimination entries necessary to consolidate Resources, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries; and
|
•
|
EXCO on a consolidated basis.
|
(in thousands)
|
|
Resources
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
9,754
|
|
|
$
|
(6,220
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,534
|
|
Restricted cash
|
|
—
|
|
|
18,434
|
|
|
—
|
|
|
—
|
|
|
18,434
|
|
|||||
Other current assets
|
|
13,233
|
|
|
75,608
|
|
|
—
|
|
|
—
|
|
|
88,841
|
|
|||||
Total current assets
|
|
22,987
|
|
|
87,822
|
|
|
—
|
|
|
—
|
|
|
110,809
|
|
|||||
Equity investments
|
|
—
|
|
|
—
|
|
|
31,973
|
|
|
—
|
|
|
31,973
|
|
|||||
Oil and natural gas properties (full cost accounting method):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unproved oil and natural gas properties and development costs not being amortized
|
|
—
|
|
|
93,511
|
|
|
—
|
|
|
—
|
|
|
93,511
|
|
|||||
Proved developed and undeveloped oil and natural gas properties
|
|
331,326
|
|
|
2,615,315
|
|
|
—
|
|
|
—
|
|
|
2,946,641
|
|
|||||
Accumulated depletion
|
|
(330,776
|
)
|
|
(2,359,835
|
)
|
|
—
|
|
|
—
|
|
|
(2,690,611
|
)
|
|||||
Oil and natural gas properties, net
|
|
550
|
|
|
348,991
|
|
|
—
|
|
|
—
|
|
|
349,541
|
|
|||||
Other property and equipment, net
|
|
608
|
|
|
23,450
|
|
|
—
|
|
|
—
|
|
|
24,058
|
|
|||||
Investments in and advances to affiliates, net
|
|
452,896
|
|
|
—
|
|
|
—
|
|
|
(452,896
|
)
|
|
—
|
|
|||||
Deferred financing costs, net
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,000
|
|
|||||
Derivative financial instruments
|
|
1,455
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,455
|
|
|||||
Goodwill
|
|
13,293
|
|
|
149,862
|
|
|
—
|
|
|
—
|
|
|
163,155
|
|
|||||
Total assets
|
|
$
|
496,789
|
|
|
$
|
610,125
|
|
|
$
|
31,973
|
|
|
$
|
(452,896
|
)
|
|
$
|
685,991
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
|
$
|
74,818
|
|
|
$
|
167,105
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
241,923
|
|
Long-term debt
|
|
1,256,068
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,256,068
|
|
|||||
Other long-term liabilities
|
|
3,493
|
|
|
22,097
|
|
|
—
|
|
|
—
|
|
|
25,590
|
|
|||||
Payable to parent
|
|
—
|
|
|
2,360,227
|
|
|
—
|
|
|
(2,360,227
|
)
|
|
—
|
|
|||||
Total shareholders' equity
|
|
(837,590
|
)
|
|
(1,939,304
|
)
|
|
31,973
|
|
|
1,907,331
|
|
|
(837,590
|
)
|
|||||
Total liabilities and shareholders' equity
|
|
$
|
496,789
|
|
|
$
|
610,125
|
|
|
$
|
31,973
|
|
|
$
|
(452,896
|
)
|
|
$
|
685,991
|
|
(in thousands)
|
|
Resources
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
34,296
|
|
|
$
|
(22,049
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,247
|
|
Restricted cash
|
|
2,100
|
|
|
19,120
|
|
|
—
|
|
|
—
|
|
|
21,220
|
|
|||||
Other current assets
|
|
51,133
|
|
|
65,201
|
|
|
—
|
|
|
—
|
|
|
116,334
|
|
|||||
Total current assets
|
|
87,529
|
|
|
62,272
|
|
|
—
|
|
|
—
|
|
|
149,801
|
|
|||||
Equity investments
|
|
—
|
|
|
—
|
|
|
40,797
|
|
|
—
|
|
|
40,797
|
|
|||||
Oil and natural gas properties (full cost accounting method):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unproved oil and natural gas properties and development costs not being amortized
|
|
—
|
|
|
115,377
|
|
|
—
|
|
|
—
|
|
|
115,377
|
|
|||||
Proved developed and undeveloped oil and natural gas properties
|
|
330,775
|
|
|
2,739,655
|
|
|
—
|
|
|
—
|
|
|
3,070,430
|
|
|||||
Accumulated depletion
|
|
(330,775
|
)
|
|
(2,296,988
|
)
|
|
—
|
|
|
—
|
|
|
(2,627,763
|
)
|
|||||
Oil and natural gas properties, net
|
|
—
|
|
|
558,044
|
|
|
—
|
|
|
—
|
|
|
558,044
|
|
|||||
Other property and equipment, net
|
|
749
|
|
|
27,063
|
|
|
—
|
|
|
—
|
|
|
27,812
|
|
|||||
Investments in and advances to affiliates, net
|
|
616,940
|
|
|
—
|
|
|
—
|
|
|
(616,940
|
)
|
|
—
|
|
|||||
Deferred financing costs, net
|
|
8,408
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,408
|
|
|||||
Derivative financial instruments
|
|
6,109
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,109
|
|
|||||
Goodwill
|
|
13,293
|
|
|
149,862
|
|
|
—
|
|
|
—
|
|
|
163,155
|
|
|||||
Total assets
|
|
$
|
733,028
|
|
|
$
|
797,241
|
|
|
$
|
40,797
|
|
|
$
|
(616,940
|
)
|
|
$
|
954,126
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
|
$
|
74,472
|
|
|
$
|
178,447
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
252,919
|
|
Long-term debt
|
|
1,320,279
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,320,279
|
|
|||||
Other long-term liabilities
|
|
600
|
|
|
42,651
|
|
|
—
|
|
|
—
|
|
|
43,251
|
|
|||||
Payable to parent
|
|
—
|
|
|
2,276,594
|
|
|
—
|
|
|
(2,276,594
|
)
|
|
—
|
|
|||||
Total shareholders' equity
|
|
(662,323
|
)
|
|
(1,700,451
|
)
|
|
40,797
|
|
|
1,659,654
|
|
|
(662,323
|
)
|
|||||
Total liabilities and shareholders' equity
|
|
$
|
733,028
|
|
|
$
|
797,241
|
|
|
$
|
40,797
|
|
|
$
|
(616,940
|
)
|
|
$
|
954,126
|
|
(in thousands)
|
|
Resources
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and natural gas
|
|
$
|
—
|
|
|
$
|
70,862
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70,862
|
|
Purchased natural gas and marketing
|
|
—
|
|
|
6,324
|
|
|
—
|
|
|
—
|
|
|
6,324
|
|
|||||
Total revenues
|
|
—
|
|
|
77,186
|
|
|
—
|
|
|
—
|
|
|
77,186
|
|
|||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and natural gas production
|
|
—
|
|
|
12,608
|
|
|
—
|
|
|
—
|
|
|
12,608
|
|
|||||
Gathering and transportation
|
|
—
|
|
|
27,979
|
|
|
—
|
|
|
—
|
|
|
27,979
|
|
|||||
Purchased natural gas
|
|
—
|
|
|
6,586
|
|
|
—
|
|
|
—
|
|
|
6,586
|
|
|||||
Depletion, depreciation and amortization
|
|
89
|
|
|
15,821
|
|
|
—
|
|
|
—
|
|
|
15,910
|
|
|||||
Impairment of oil and natural gas properties
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Accretion of discount on asset retirement obligations
|
|
—
|
|
|
325
|
|
|
—
|
|
|
—
|
|
|
325
|
|
|||||
General and administrative
|
|
(4,395
|
)
|
|
15,141
|
|
|
—
|
|
|
—
|
|
|
10,746
|
|
|||||
Other operating items
|
|
—
|
|
|
(1,110
|
)
|
|
—
|
|
|
—
|
|
|
(1,110
|
)
|
|||||
Total costs and expenses
|
|
(4,306
|
)
|
|
77,350
|
|
|
—
|
|
|
—
|
|
|
73,044
|
|
|||||
Operating income (loss)
|
|
4,306
|
|
|
(164
|
)
|
|
—
|
|
|
—
|
|
|
4,142
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
|
(16,997
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|
(16,997
|
)
|
|||||
Gain on derivative financial instruments
|
|
8,209
|
|
|
—
|
|
|
—
|
|
|
|
|
|
8,209
|
|
|||||
Gain on extinguishment of debt
|
|
57,421
|
|
|
—
|
|
|
—
|
|
|
|
|
|
57,421
|
|
|||||
Other income
|
|
4
|
|
|
8
|
|
|
—
|
|
|
|
|
|
12
|
|
|||||
Equity loss
|
|
—
|
|
|
—
|
|
|
(823
|
)
|
|
|
|
|
(823
|
)
|
|||||
Net loss from consolidated subsidiaries
|
|
(979
|
)
|
|
—
|
|
|
—
|
|
|
979
|
|
|
—
|
|
|||||
Total other income (expense)
|
|
47,658
|
|
|
8
|
|
|
(823
|
)
|
|
979
|
|
|
47,822
|
|
|||||
Income (loss) before income taxes
|
|
51,964
|
|
|
(156
|
)
|
|
(823
|
)
|
|
979
|
|
|
51,964
|
|
|||||
Income tax expense
|
|
1,028
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,028
|
|
|||||
Net income (loss)
|
|
$
|
50,936
|
|
|
$
|
(156
|
)
|
|
$
|
(823
|
)
|
|
$
|
979
|
|
|
$
|
50,936
|
|
(in thousands)
|
|
Resources
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and natural gas
|
|
$
|
—
|
|
|
$
|
83,744
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
83,744
|
|
Purchased natural gas and marketing
|
|
—
|
|
|
6,773
|
|
|
—
|
|
|
—
|
|
|
6,773
|
|
|||||
Total revenues
|
|
—
|
|
|
90,517
|
|
|
—
|
|
|
—
|
|
|
90,517
|
|
|||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and natural gas production
|
|
7
|
|
|
18,606
|
|
|
—
|
|
|
—
|
|
|
18,613
|
|
|||||
Gathering and transportation
|
|
—
|
|
|
23,743
|
|
|
—
|
|
|
—
|
|
|
23,743
|
|
|||||
Purchased natural gas
|
|
—
|
|
|
6,991
|
|
|
—
|
|
|
—
|
|
|
6,991
|
|
|||||
Depletion, depreciation and amortization
|
|
229
|
|
|
51,784
|
|
|
—
|
|
|
—
|
|
|
52,013
|
|
|||||
Impairment of oil and natural gas properties
|
|
1,372
|
|
|
338,021
|
|
|
—
|
|
|
—
|
|
|
339,393
|
|
|||||
Accretion of discount on asset retirement obligations
|
|
—
|
|
|
574
|
|
|
—
|
|
|
—
|
|
|
574
|
|
|||||
General and administrative
|
|
(2,345
|
)
|
|
15,738
|
|
|
—
|
|
|
—
|
|
|
13,393
|
|
|||||
Other operating items
|
|
(3
|
)
|
|
(225
|
)
|
|
—
|
|
|
—
|
|
|
(228
|
)
|
|||||
Total costs and expenses
|
|
(740
|
)
|
|
455,232
|
|
|
—
|
|
|
—
|
|
|
454,492
|
|
|||||
Operating income (loss)
|
|
740
|
|
|
(364,715
|
)
|
|
—
|
|
|
—
|
|
|
(363,975
|
)
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
|
(27,761
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27,761
|
)
|
|||||
Gain on derivative financial instruments
|
|
37,348
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37,348
|
|
|||||
Other income
|
|
14
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|||||
Equity loss
|
|
—
|
|
|
—
|
|
|
(152
|
)
|
|
—
|
|
|
(152
|
)
|
|||||
Net loss from consolidated subsidiaries
|
|
(364,860
|
)
|
|
—
|
|
|
—
|
|
|
364,860
|
|
|
—
|
|
|||||
Total other income (expense)
|
|
(355,259
|
)
|
|
7
|
|
|
(152
|
)
|
|
364,860
|
|
|
9,456
|
|
|||||
Loss before income taxes
|
|
(354,519
|
)
|
|
(364,708
|
)
|
|
(152
|
)
|
|
364,860
|
|
|
(354,519
|
)
|
|||||
Income tax expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net loss
|
|
$
|
(354,519
|
)
|
|
$
|
(364,708
|
)
|
|
$
|
(152
|
)
|
|
$
|
364,860
|
|
|
$
|
(354,519
|
)
|
(in thousands)
|
|
Resources
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and natural gas
|
|
$
|
—
|
|
|
$
|
176,732
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
176,732
|
|
Purchased natural gas and marketing
|
|
—
|
|
|
15,335
|
|
|
—
|
|
|
—
|
|
|
15,335
|
|
|||||
Total revenues
|
|
—
|
|
|
192,067
|
|
|
—
|
|
|
—
|
|
|
192,067
|
|
|||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and natural gas production
|
|
4
|
|
|
39,139
|
|
|
—
|
|
|
—
|
|
|
39,143
|
|
|||||
Gathering and transportation
|
|
—
|
|
|
79,828
|
|
|
—
|
|
|
—
|
|
|
79,828
|
|
|||||
Purchased natural gas
|
|
—
|
|
|
17,273
|
|
|
—
|
|
|
—
|
|
|
17,273
|
|
|||||
Depletion, depreciation and amortization
|
|
298
|
|
|
63,697
|
|
|
—
|
|
|
—
|
|
|
63,995
|
|
|||||
Impairment of oil and natural gas properties
|
|
838
|
|
|
159,975
|
|
|
—
|
|
|
—
|
|
|
160,813
|
|
|||||
Accretion of discount on asset retirement obligations
|
|
—
|
|
|
2,006
|
|
|
—
|
|
|
—
|
|
|
2,006
|
|
|||||
General and administrative
|
|
(6,062
|
)
|
|
44,688
|
|
|
—
|
|
|
—
|
|
|
38,626
|
|
|||||
Other operating items
|
|
(406
|
)
|
|
24,342
|
|
|
—
|
|
|
—
|
|
|
23,936
|
|
|||||
Total costs and expenses
|
|
(5,328
|
)
|
|
430,948
|
|
|
—
|
|
|
—
|
|
|
425,620
|
|
|||||
Operating income (loss)
|
|
5,328
|
|
|
(238,881
|
)
|
|
—
|
|
|
—
|
|
|
(233,553
|
)
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
|
(54,186
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(54,186
|
)
|
|||||
Loss on derivative financial instruments
|
|
(11,632
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,632
|
)
|
|||||
Gain on extinguishment of debt
|
|
119,374
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
119,374
|
|
|||||
Other income
|
|
9
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|||||
Equity loss
|
|
—
|
|
|
—
|
|
|
(8,824
|
)
|
|
—
|
|
|
(8,824
|
)
|
|||||
Net loss from consolidated subsidiaries
|
|
(247,677
|
)
|
|
—
|
|
|
—
|
|
|
247,677
|
|
|
—
|
|
|||||
Total other income (expense)
|
|
(194,112
|
)
|
|
28
|
|
|
(8,824
|
)
|
|
247,677
|
|
|
44,769
|
|
|||||
Loss before income taxes
|
|
(188,784
|
)
|
|
(238,853
|
)
|
|
(8,824
|
)
|
|
247,677
|
|
|
(188,784
|
)
|
|||||
Income tax expense
|
|
1,775
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,775
|
|
|||||
Net loss
|
|
$
|
(190,559
|
)
|
|
$
|
(238,853
|
)
|
|
$
|
(8,824
|
)
|
|
$
|
247,677
|
|
|
$
|
(190,559
|
)
|
(in thousands)
|
|
Resources
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and natural gas
|
|
$
|
4
|
|
|
$
|
264,143
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
264,147
|
|
Purchased natural gas and marketing
|
|
—
|
|
|
21,012
|
|
|
—
|
|
|
—
|
|
|
21,012
|
|
|||||
Total revenues
|
|
4
|
|
|
285,155
|
|
|
—
|
|
|
—
|
|
|
285,159
|
|
|||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and natural gas production
|
|
30
|
|
|
58,123
|
|
|
—
|
|
|
—
|
|
|
58,153
|
|
|||||
Gathering and transportation
|
|
—
|
|
|
74,243
|
|
|
—
|
|
|
—
|
|
|
74,243
|
|
|||||
Purchased natural gas
|
|
—
|
|
|
21,571
|
|
|
—
|
|
|
—
|
|
|
21,571
|
|
|||||
Depletion, depreciation and amortization
|
|
753
|
|
|
175,407
|
|
|
—
|
|
|
—
|
|
|
176,160
|
|
|||||
Impairment of oil and natural gas properties
|
|
8,263
|
|
|
1,001,784
|
|
|
—
|
|
|
—
|
|
|
1,010,047
|
|
|||||
Accretion of discount on asset retirement obligations
|
|
4
|
|
|
1,694
|
|
|
—
|
|
|
—
|
|
|
1,698
|
|
|||||
General and administrative
|
|
(6,569
|
)
|
|
47,796
|
|
|
—
|
|
|
—
|
|
|
41,227
|
|
|||||
Other operating items
|
|
2,065
|
|
|
(947
|
)
|
|
—
|
|
|
—
|
|
|
1,118
|
|
|||||
Total costs and expenses
|
|
4,546
|
|
|
1,379,671
|
|
|
—
|
|
|
—
|
|
|
1,384,217
|
|
|||||
Operating loss
|
|
(4,542
|
)
|
|
(1,094,516
|
)
|
|
—
|
|
|
—
|
|
|
(1,099,058
|
)
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
|
(80,822
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(80,822
|
)
|
|||||
Gain on derivative financial instruments
|
|
54,427
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54,427
|
|
|||||
Other income
|
|
87
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
119
|
|
|||||
Equity loss
|
|
—
|
|
|
—
|
|
|
(1,452
|
)
|
|
—
|
|
|
(1,452
|
)
|
|||||
Net loss from consolidated subsidiaries
|
|
(1,095,936
|
)
|
|
—
|
|
|
—
|
|
|
1,095,936
|
|
|
—
|
|
|||||
Total other income (expense)
|
|
(1,122,244
|
)
|
|
32
|
|
|
(1,452
|
)
|
|
1,095,936
|
|
|
(27,728
|
)
|
|||||
Loss before income taxes
|
|
(1,126,786
|
)
|
|
(1,094,484
|
)
|
|
(1,452
|
)
|
|
1,095,936
|
|
|
(1,126,786
|
)
|
|||||
Income tax expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net loss
|
|
$
|
(1,126,786
|
)
|
|
$
|
(1,094,484
|
)
|
|
$
|
(1,452
|
)
|
|
$
|
1,095,936
|
|
|
$
|
(1,126,786
|
)
|
(in thousands)
|
|
Resources
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by (used in) operating activities
|
|
$
|
9,152
|
|
|
$
|
(12,892
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3,740
|
)
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Additions to oil and natural gas properties, gathering assets and equipment and property acquisitions
|
|
(1,250
|
)
|
|
(69,205
|
)
|
|
—
|
|
|
—
|
|
|
(70,455
|
)
|
|||||
Proceeds from disposition of property and equipment
|
|
10
|
|
|
11,232
|
|
|
—
|
|
|
—
|
|
|
11,242
|
|
|||||
Restricted cash
|
|
—
|
|
|
686
|
|
|
—
|
|
|
—
|
|
|
686
|
|
|||||
Net changes in advances to joint ventures
|
|
—
|
|
|
2,377
|
|
|
—
|
|
|
—
|
|
|
2,377
|
|
|||||
Equity investments and other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Advances/investments with affiliates
|
|
(83,631
|
)
|
|
83,631
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net cash provided by (used in) investing activities
|
|
(84,871
|
)
|
|
28,721
|
|
|
—
|
|
|
—
|
|
|
(56,150
|
)
|
|||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings under EXCO Resources Credit Agreement
|
|
390,897
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
390,897
|
|
|||||
Repayments under EXCO Resources Credit Agreement
|
|
(243,797
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(243,797
|
)
|
|||||
Payments on Exchange Term Loan
|
|
(38,056
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(38,056
|
)
|
|||||
Repurchases of senior unsecured notes
|
|
(53,298
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(53,298
|
)
|
|||||
Deferred financing costs and other
|
|
(4,569
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,569
|
)
|
|||||
Net cash provided by financing activities
|
|
51,177
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51,177
|
|
|||||
Net increase (decrease) in cash
|
|
(24,542
|
)
|
|
15,829
|
|
|
—
|
|
|
—
|
|
|
(8,713
|
)
|
|||||
Cash at beginning of period
|
|
34,296
|
|
|
(22,049
|
)
|
|
—
|
|
|
—
|
|
|
12,247
|
|
|||||
Cash at end of period
|
|
$
|
9,754
|
|
|
$
|
(6,220
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,534
|
|
(in thousands)
|
|
Resources
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities
|
|
$
|
27,860
|
|
|
$
|
98,996
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
126,856
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Additions to oil and natural gas properties, gathering assets and equipment and property acquisitions
|
|
(1,784
|
)
|
|
(275,532
|
)
|
|
—
|
|
|
—
|
|
|
(277,316
|
)
|
|||||
Proceeds from disposition of property and equipment
|
|
686
|
|
|
6,711
|
|
|
—
|
|
|
—
|
|
|
7,397
|
|
|||||
Restricted cash
|
|
—
|
|
|
4,016
|
|
|
—
|
|
|
—
|
|
|
4,016
|
|
|||||
Net changes in advances to joint ventures
|
|
—
|
|
|
8,594
|
|
|
—
|
|
|
—
|
|
|
8,594
|
|
|||||
Equity investments and other
|
|
—
|
|
|
1,455
|
|
|
—
|
|
|
—
|
|
|
1,455
|
|
|||||
Advances/investments with affiliates
|
|
(181,813
|
)
|
|
181,813
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net cash used in investing activities
|
|
(182,911
|
)
|
|
(72,943
|
)
|
|
—
|
|
|
—
|
|
|
(255,854
|
)
|
|||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings under EXCO Resources Credit Agreement
|
|
97,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
97,500
|
|
|||||
Proceeds from issuance of common shares, net
|
|
9,829
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,829
|
|
|||||
Deferred financing costs and other
|
|
(4,125
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,125
|
)
|
|||||
Net cash provided by financing activities
|
|
103,204
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
103,204
|
|
|||||
Net increase (decrease) in cash
|
|
(51,847
|
)
|
|
26,053
|
|
|
—
|
|
|
—
|
|
|
(25,794
|
)
|
|||||
Cash at beginning of period
|
|
86,837
|
|
|
(40,532
|
)
|
|
—
|
|
|
—
|
|
|
46,305
|
|
|||||
Cash at end of period
|
|
$
|
34,990
|
|
|
$
|
(14,479
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,511
|
|
•
|
our future financial and operating performance and results;
|
•
|
our business strategy;
|
•
|
market prices;
|
•
|
our future use of derivative financial instruments; and
|
•
|
our plans and forecasts.
|
•
|
fluctuations in the prices of oil and natural gas;
|
•
|
the availability of oil and natural gas;
|
•
|
future capital requirements and availability of financing, including reductions to our borrowing base and limitations on our ability to incur certain types of indebtedness under our debt agreements;
|
•
|
our ability to meet our current and future debt service obligations, including our ability to maintain compliance with our debt covenants;
|
•
|
disruption of credit and capital markets and the ability of financial institutions to honor their commitments;
|
•
|
estimates of reserves and economic assumptions, including estimates related to acquisitions and dispositions of oil and natural gas properties;
|
•
|
geological concentration of our reserves;
|
•
|
risks associated with drilling and operating wells;
|
•
|
exploratory risks, including those related to our activities in shale formations;
|
•
|
discovery, acquisition, development and replacement of oil and natural gas reserves;
|
•
|
cash flow and liquidity;
|
•
|
timing and amount of future production of oil and natural gas;
|
•
|
availability of drilling and production equipment;
|
•
|
availability of water and other materials for drilling and completion activities;
|
•
|
marketing of oil and natural gas;
|
•
|
political and economic conditions and events in oil-producing and natural gas-producing countries;
|
•
|
title to our properties;
|
•
|
litigation;
|
•
|
competition;
|
•
|
our ability to attract and retain key personnel;
|
•
|
general economic conditions, including costs associated with drilling and operations of our properties;
|
•
|
our ability to comply with the listing requirements of, and maintain the listing of our common shares on, the New York Stock Exchange ("NYSE");
|
•
|
environmental or other governmental regulations, including legislation to reduce emissions of greenhouse gases, legislation of derivative financial instruments, regulation of hydraulic fracture stimulation and elimination of income tax incentives available to our industry;
|
•
|
receipt and collectability of amounts owed to us by purchasers of our production and counterparties to our derivative financial instruments;
|
•
|
decisions whether or not to enter into derivative financial instruments;
|
•
|
potential acts of terrorism;
|
•
|
our ability to manage joint ventures with third parties, including the resolution of any material disagreements and our partners’ ability to satisfy obligations under these arrangements;
|
•
|
actions of third party co-owners of interests in properties in which we also own an interest;
|
•
|
fluctuations in interest rates;
|
•
|
our ability to effectively integrate companies and properties that we acquire;
|
•
|
our ability to execute our business strategies and other corporate actions, including restructuring our balance sheet and gathering and transportation contracts; and
|
•
|
our ability to continue as a going concern.
|
(1)
|
Mmcfe is calculated by converting one barrel of oil into six Mcf of natural gas.
|
(2)
|
Equity-based compensation expense included in general and administrative expense was
$1.4 million
and
$0.9 million
for the three months ended
September 30, 2016
and
2015
, respectively, and
$14.6 million
and
$4.0 million
for the nine months ended
September 30, 2016
and
2015
, respectively.
|
(3)
|
Net loss
for the three months ended
September 30,
2015
included
$339.4 million
of impairments of oil and natural gas properties. Net losses
for the nine months ended
September 30, 2016
and 2015 included
$160.8 million
and
$1.0 billion
of impairments of oil and natural gas properties, respectively. See "Note 5. Oil and natural gas properties" in the Notes to our Condensed Consolidated Financial Statements for further discussion. Net income and net loss for the three and nine months ended September 30, 2016 included a net gain on extinguishment of debt of
$57.4 million
and
$119.4 million
, respectively.
|
•
|
fluctuations in oil and natural gas prices, which impact our oil and natural gas reserves, revenues, cash flows and net income or loss;
|
•
|
impairments of our oil and natural gas properties during 2016 and 2015;
|
•
|
asset impairments and other non-recurring costs, including the settlement of the litigation with our Eagle Ford shale joint venture partner during 2016;
|
•
|
mark-to-market gains and losses from our derivative financial instruments;
|
•
|
changes in proved reserves and production volumes and their impact on depletion;
|
•
|
the impact of declining natural gas production volumes from our reduced drilling activities;
|
•
|
significant changes in our capital structure as a result of transactions in 2016 and 2015, including the issuance of the Second Lien Term Loans and repurchases and exchanges of our 2018 Notes and 2022 Notes;
|
•
|
changes in general and administrative expenses as a result of the services and investment agreement with Energy Strategic Advisory Services LLC ("ESAS") and legal and advisory fees incurred in connection with the restructuring of our balance sheet and gathering and firm transportation contracts; and
|
•
|
the reductions in our workforce that occurred during 2016 and 2015.
|
•
|
supply and demand for oil and natural gas and expectations regarding supply and demand;
|
•
|
the level of domestic and international production;
|
•
|
the availability of imported oil and natural gas;
|
•
|
federal regulations applicable to the export of, and construction of export facilities for natural gas;
|
•
|
political and economic conditions and events in foreign oil and natural gas producing nations, including embargoes, continued hostilities in the Middle East and other sustained military campaigns, and acts of terrorism or sabotage;
|
•
|
the ability of members of the Organization of Petroleum Exporting Countries to agree to and maintain oil price and production controls;
|
•
|
the cost and availability of transportation and pipeline systems with adequate capacity;
|
•
|
the cost and availability of other competitive fuels;
|
•
|
fluctuating and seasonal demand for oil, natural gas and refined products;
|
•
|
concerns about global warming or other conservation initiatives and the extent of governmental price controls and regulation of production;
|
•
|
regional price differentials and quality differentials of oil and natural gas;
|
•
|
the availability of refining capacity;
|
•
|
technological advances affecting oil and natural gas production and consumption;
|
•
|
weather conditions and natural disasters;
|
•
|
foreign and domestic government relations; and
|
•
|
overall domestic and global economic conditions.
|
|
|
Three Months Ended September 30,
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
|
2016
|
|
2015
|
|
Quarter to quarter change
|
|||||||||||||||||||||||||||
(dollars in thousands, except per unit rate)
|
|
Production (Mmcfe)
|
|
Revenue
|
|
$/Mcfe
|
|
Production (Mmcfe)
|
|
Revenue
|
|
$/Mcfe
|
|
Production (Mmcfe)
|
|
Revenue
|
|
$/Mcfe
|
|||||||||||||||
Producing region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
North Louisiana
|
|
14,633
|
|
|
$
|
34,856
|
|
|
$
|
2.38
|
|
|
18,161
|
|
|
$
|
39,349
|
|
|
$
|
2.17
|
|
|
(3,528
|
)
|
|
$
|
(4,493
|
)
|
|
$
|
0.21
|
|
East Texas
|
|
6,312
|
|
|
16,424
|
|
|
2.60
|
|
|
4,763
|
|
|
12,516
|
|
|
2.63
|
|
|
1,549
|
|
|
3,908
|
|
|
(0.03
|
)
|
||||||
South Texas
|
|
2,517
|
|
|
14,953
|
|
|
5.94
|
|
|
4,064
|
|
|
25,450
|
|
|
6.26
|
|
|
(1,547
|
)
|
|
(10,497
|
)
|
|
(0.32
|
)
|
||||||
Appalachia and other
|
|
2,991
|
|
|
4,629
|
|
|
1.55
|
|
|
4,315
|
|
|
6,429
|
|
|
1.49
|
|
|
(1,324
|
)
|
|
(1,800
|
)
|
|
0.06
|
|
||||||
Total
|
|
26,453
|
|
|
$
|
70,862
|
|
|
$
|
2.68
|
|
|
31,303
|
|
|
$
|
83,744
|
|
|
$
|
2.68
|
|
|
(4,850
|
)
|
|
$
|
(12,882
|
)
|
|
$
|
—
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
|
2016
|
|
2015
|
|
Period to period change
|
|||||||||||||||||||||||||||
(dollars in thousands, except per unit rate)
|
|
Production (Mmcfe)
|
|
Revenue
|
|
$/Mcfe
|
|
Production (Mmcfe)
|
|
Revenue
|
|
$/Mcfe
|
|
Production (Mmcfe)
|
|
Revenue
|
|
$/Mcfe
|
|||||||||||||||
Producing region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
North Louisiana
|
|
41,639
|
|
|
$
|
76,044
|
|
|
$
|
1.83
|
|
|
57,851
|
|
|
$
|
133,751
|
|
|
$
|
2.31
|
|
|
(16,212
|
)
|
|
$
|
(57,707
|
)
|
|
$
|
(0.48
|
)
|
East Texas
|
|
18,933
|
|
|
39,607
|
|
|
2.09
|
|
|
12,465
|
|
|
33,603
|
|
|
2.70
|
|
|
6,468
|
|
|
6,004
|
|
|
(0.61
|
)
|
||||||
South Texas
|
|
9,003
|
|
|
45,542
|
|
|
5.06
|
|
|
11,183
|
|
|
75,082
|
|
|
6.71
|
|
|
(2,180
|
)
|
|
(29,540
|
)
|
|
(1.65
|
)
|
||||||
Appalachia and other
|
|
10,679
|
|
|
15,539
|
|
|
1.46
|
|
|
13,156
|
|
|
21,711
|
|
|
1.65
|
|
|
(2,477
|
)
|
|
(6,172
|
)
|
|
(0.19
|
)
|
||||||
Total
|
|
80,254
|
|
|
$
|
176,732
|
|
|
$
|
2.20
|
|
|
94,655
|
|
|
$
|
264,147
|
|
|
$
|
2.79
|
|
|
(14,401
|
)
|
|
$
|
(87,415
|
)
|
|
$
|
(0.59
|
)
|
•
|
decrease
d production of
3.5
Bcfe and
16.2
Bcfe
for the three and nine months ended
September 30, 2016
, respectively, in the North Louisiana region, primarily due to production declines partially offset by additional volumes from the wells turned-to-sales in the second and third quarters of 2016.
|
•
|
increase
d production of
1.5
Bcfe and
6.5
Bcfe
for the three and nine months ended
September 30, 2016
, respectively, in the East Texas region, primarily due to additional volumes from wells turned-to-sales.
|
•
|
decrease
d production in the South Texas region of
1.5
Bcfe and
2.2
Bcfe
for the three and nine months ended
September 30, 2016
, respectively, primarily due to production declines and the transfer of a portion of our interests in certain producing wells to a joint venture partner. The transfer of our interests was the result of the litigation settlement with a joint venture partner that is described in more detail in "Note 9. Commitments and contingencies" in the Notes to our Condensed Consolidated Financial Statements.
|
•
|
decrease
d production of
1.3
Bcfe and
2.5
Bcfe
for the three and nine months ended
September 30, 2016
, respectively, in the Appalachia region primarily due to the sale of our interests in shallow conventional assets located in Pennsylvania in July 2016 and production declines. In addition, we shut-in approximately 0.8 Bcfe of production due to low regional natural gas prices during the nine months ended
September 30, 2016
. The regional natural gas price differential significantly widened late in the third quarter of 2016 and into the fourth quarter of 2016. As a result, we have shut-in production for certain Marcellus shale wells in the region until natural gas prices improve. As discussed in "Note 3. Divestitures" in the Notes to our Condensed Consolidated Financial Statements, on October 3, 2016, we closed a sale of our interests in shallow conventional assets located in West Virginia. As such, our production in the Appalachia region for the remainder of 2016 is expected to further decline.
|
|
|
Three Months Ended September 30,
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
|
2016
|
|
2015
|
|
Quarter to quarter change
|
||||||||||||||||||||||||||||||
(in thousands)
|
|
Lease operating expenses
|
|
Workovers and other
|
|
Total
|
|
Lease operating expenses
|
|
Workovers and other
|
|
Total
|
|
Lease operating expenses
|
|
Workovers and other
|
|
Total
|
||||||||||||||||||
Producing region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
North Louisiana
|
|
$
|
2,841
|
|
|
$
|
341
|
|
|
$
|
3,182
|
|
|
$
|
3,386
|
|
|
$
|
252
|
|
|
$
|
3,638
|
|
|
$
|
(545
|
)
|
|
$
|
89
|
|
|
$
|
(456
|
)
|
East Texas
|
|
1,482
|
|
|
23
|
|
|
1,505
|
|
|
967
|
|
|
238
|
|
|
1,205
|
|
|
515
|
|
|
(215
|
)
|
|
300
|
|
|||||||||
South Texas
|
|
2,937
|
|
|
—
|
|
|
2,937
|
|
|
3,814
|
|
|
944
|
|
|
4,758
|
|
|
(877
|
)
|
|
(944
|
)
|
|
(1,821
|
)
|
|||||||||
Appalachia and other
|
|
1,131
|
|
|
42
|
|
|
1,173
|
|
|
2,753
|
|
|
315
|
|
|
3,068
|
|
|
(1,622
|
)
|
|
(273
|
)
|
|
(1,895
|
)
|
|||||||||
Total
|
|
$
|
8,391
|
|
|
$
|
406
|
|
|
$
|
8,797
|
|
|
$
|
10,920
|
|
|
$
|
1,749
|
|
|
$
|
12,669
|
|
|
$
|
(2,529
|
)
|
|
$
|
(1,343
|
)
|
|
$
|
(3,872
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
Three Months Ended September 30,
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
|
2016
|
|
2015
|
|
Quarter to quarter change
|
||||||||||||||||||||||||||||||
(per Mcfe)
|
|
Lease operating expenses
|
|
Workovers and other
|
|
Total
|
|
Lease operating expenses
|
|
Workovers and other
|
|
Total
|
|
Lease operating expenses
|
|
Workovers and other
|
|
Total
|
||||||||||||||||||
Producing region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
North Louisiana
|
|
$
|
0.19
|
|
|
$
|
0.02
|
|
|
$
|
0.21
|
|
|
$
|
0.19
|
|
|
$
|
0.01
|
|
|
$
|
0.20
|
|
|
$
|
—
|
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
East Texas
|
|
0.23
|
|
|
—
|
|
|
0.23
|
|
|
0.20
|
|
|
0.05
|
|
|
0.25
|
|
|
0.03
|
|
|
(0.05
|
)
|
|
(0.02
|
)
|
|||||||||
South Texas
|
|
1.17
|
|
|
—
|
|
|
1.17
|
|
|
0.94
|
|
|
0.23
|
|
|
1.17
|
|
|
0.23
|
|
|
(0.23
|
)
|
|
—
|
|
|||||||||
Appalachia and other
|
|
0.38
|
|
|
0.01
|
|
|
0.39
|
|
|
0.64
|
|
|
0.07
|
|
|
0.71
|
|
|
(0.26
|
)
|
|
(0.06
|
)
|
|
(0.32
|
)
|
|||||||||
Total
|
|
$
|
0.32
|
|
|
$
|
0.01
|
|
|
$
|
0.33
|
|
|
$
|
0.35
|
|
|
$
|
0.05
|
|
|
$
|
0.40
|
|
|
$
|
(0.03
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(0.07
|
)
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
|
2016
|
|
2015
|
|
Period to period change
|
||||||||||||||||||||||||||||||
(in thousands)
|
|
Lease operating expenses
|
|
Workovers and other
|
|
Total
|
|
Lease operating expenses
|
|
Workovers and other
|
|
Total
|
|
Lease operating expenses
|
|
Workovers and other
|
|
Total
|
||||||||||||||||||
Producing region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
North Louisiana
|
|
$
|
8,421
|
|
|
$
|
493
|
|
|
$
|
8,914
|
|
|
$
|
9,814
|
|
|
$
|
2,637
|
|
|
$
|
12,451
|
|
|
$
|
(1,393
|
)
|
|
$
|
(2,144
|
)
|
|
$
|
(3,537
|
)
|
East Texas
|
|
3,746
|
|
|
229
|
|
|
3,975
|
|
|
2,983
|
|
|
1,027
|
|
|
4,010
|
|
|
763
|
|
|
(798
|
)
|
|
(35
|
)
|
|||||||||
South Texas
|
|
8,506
|
|
|
246
|
|
|
8,752
|
|
|
14,647
|
|
|
1,756
|
|
|
16,403
|
|
|
(6,141
|
)
|
|
(1,510
|
)
|
|
(7,651
|
)
|
|||||||||
Appalachia and other
|
|
4,152
|
|
|
42
|
|
|
4,194
|
|
|
8,441
|
|
|
440
|
|
|
8,881
|
|
|
(4,289
|
)
|
|
(398
|
)
|
|
(4,687
|
)
|
|||||||||
Total
|
|
$
|
24,825
|
|
|
$
|
1,010
|
|
|
$
|
25,835
|
|
|
$
|
35,885
|
|
|
$
|
5,860
|
|
|
$
|
41,745
|
|
|
$
|
(11,060
|
)
|
|
$
|
(4,850
|
)
|
|
$
|
(15,910
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
|
2016
|
|
2015
|
|
Period to period change
|
||||||||||||||||||||||||||||||
(per Mcfe)
|
|
Lease operating expenses
|
|
Workovers and other
|
|
Total
|
|
Lease operating expenses
|
|
Workovers and other
|
|
Total
|
|
Lease operating expenses
|
|
Workovers and other
|
|
Total
|
||||||||||||||||||
Producing region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
North Louisiana
|
|
$
|
0.20
|
|
|
$
|
0.01
|
|
|
$
|
0.21
|
|
|
$
|
0.17
|
|
|
$
|
0.05
|
|
|
$
|
0.22
|
|
|
$
|
0.03
|
|
|
$
|
(0.04
|
)
|
|
$
|
(0.01
|
)
|
East Texas
|
|
0.20
|
|
|
0.01
|
|
|
0.21
|
|
|
0.24
|
|
|
0.08
|
|
|
0.32
|
|
|
(0.04
|
)
|
|
(0.07
|
)
|
|
(0.11
|
)
|
|||||||||
South Texas
|
|
0.94
|
|
|
0.03
|
|
|
0.97
|
|
|
1.31
|
|
|
0.16
|
|
|
1.47
|
|
|
(0.37
|
)
|
|
(0.13
|
)
|
|
(0.50
|
)
|
|||||||||
Appalachia and other
|
|
0.39
|
|
|
—
|
|
|
0.39
|
|
|
0.64
|
|
|
0.03
|
|
|
0.67
|
|
|
(0.25
|
)
|
|
(0.03
|
)
|
|
(0.28
|
)
|
|||||||||
Total
|
|
$
|
0.31
|
|
|
$
|
0.01
|
|
|
$
|
0.32
|
|
|
$
|
0.38
|
|
|
$
|
0.06
|
|
|
$
|
0.44
|
|
|
$
|
(0.07
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.12
|
)
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||
|
|
2016
|
|
2015
|
||||||||||||||||||
(in thousands, except per unit rate)
|
|
Production and ad valorem taxes
|
|
% of revenue
|
|
Taxes $/Mcfe
|
|
Production and ad valorem taxes
|
|
% of revenue
|
|
Taxes $/Mcfe
|
||||||||||
Producing region:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North Louisiana
|
|
$
|
1,627
|
|
|
4.7
|
%
|
|
$
|
0.11
|
|
|
$
|
2,431
|
|
|
6.2
|
%
|
|
$
|
0.13
|
|
East Texas
|
|
277
|
|
|
1.7
|
%
|
|
0.04
|
|
|
522
|
|
|
4.2
|
%
|
|
0.11
|
|
||||
South Texas
|
|
1,626
|
|
|
10.9
|
%
|
|
0.65
|
|
|
2,592
|
|
|
10.2
|
%
|
|
0.64
|
|
||||
Appalachia and other
|
|
281
|
|
|
6.1
|
%
|
|
0.09
|
|
|
399
|
|
|
6.2
|
%
|
|
0.09
|
|
||||
Total
|
|
$
|
3,811
|
|
|
5.4
|
%
|
|
$
|
0.14
|
|
|
$
|
5,944
|
|
|
7.1
|
%
|
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
2016
|
|
2015
|
||||||||||||||||||
(in thousands, except per unit rate)
|
|
Production and ad valorem taxes
|
|
% of revenue
|
|
Taxes $/Mcfe
|
|
Production and ad valorem taxes
|
|
% of revenue
|
|
Taxes $/Mcfe
|
||||||||||
Producing region:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North Louisiana
|
|
$
|
5,909
|
|
|
7.8
|
%
|
|
$
|
0.14
|
|
|
$
|
7,393
|
|
|
5.5
|
%
|
|
$
|
0.13
|
|
East Texas
|
|
864
|
|
|
2.2
|
%
|
|
0.05
|
|
|
822
|
|
|
2.4
|
%
|
|
0.07
|
|
||||
South Texas
|
|
5,903
|
|
|
13.0
|
%
|
|
0.66
|
|
|
7,299
|
|
|
9.7
|
%
|
|
0.65
|
|
||||
Appalachia and other
|
|
632
|
|
|
4.1
|
%
|
|
0.06
|
|
|
894
|
|
|
4.1
|
%
|
|
0.07
|
|
||||
Total
|
|
$
|
13,308
|
|
|
7.5
|
%
|
|
$
|
0.17
|
|
|
$
|
16,408
|
|
|
6.2
|
%
|
|
$
|
0.17
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
||||||||||||||||
(in thousands)
|
|
2016
|
|
2015
|
|
Quarter to quarter change
|
|
2016
|
|
2015
|
|
Period to period change
|
||||||||||||
General and administrative expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross general and administrative expenses
|
|
$
|
14,863
|
|
|
$
|
21,083
|
|
|
$
|
(6,220
|
)
|
|
$
|
42,635
|
|
|
$
|
65,014
|
|
|
$
|
(22,379
|
)
|
Technical services and service agreement charges
|
|
(1,312
|
)
|
|
(3,541
|
)
|
|
2,229
|
|
|
(5,705
|
)
|
|
(12,314
|
)
|
|
6,609
|
|
||||||
Operator overhead reimbursements
|
|
(3,463
|
)
|
|
(3,328
|
)
|
|
(135
|
)
|
|
(10,339
|
)
|
|
(9,872
|
)
|
|
(467
|
)
|
||||||
Capitalized salaries
|
|
(759
|
)
|
|
(1,748
|
)
|
|
989
|
|
|
(2,523
|
)
|
|
(5,646
|
)
|
|
3,123
|
|
||||||
General and administrative expenses, excluding equity-based compensation
|
|
9,329
|
|
|
12,466
|
|
|
(3,137
|
)
|
|
24,068
|
|
|
37,182
|
|
|
(13,114
|
)
|
||||||
Gross equity-based compensation
|
|
1,642
|
|
|
1,852
|
|
|
(210
|
)
|
|
14,990
|
|
|
6,906
|
|
|
8,084
|
|
||||||
Capitalized equity-based compensation
|
|
(225
|
)
|
|
(925
|
)
|
|
700
|
|
|
(432
|
)
|
|
(2,861
|
)
|
|
2,429
|
|
||||||
General and administrative expenses
|
|
$
|
10,746
|
|
|
$
|
13,393
|
|
|
$
|
(2,647
|
)
|
|
$
|
38,626
|
|
|
$
|
41,227
|
|
|
$
|
(2,601
|
)
|
•
|
decreased personnel costs of
$7.0 million
and
$22.3 million
for the three and nine months ended
September 30, 2016
, respectively, primarily due to reductions in our workforce and employee benefits.
|
•
|
increased consulting and contract labor costs of
$0.5 million
and
$1.8 million
for the three and nine months ended
September 30, 2016
, respectively, primarily related to the service fees and annual incentive payment with ESAS that began on March 31, 2015.
|
•
|
increased professional and legal fees of
$2.6 million
and
$3.0 million
for the three and nine months ended September 30, 2016, respectively, primarily related to the legal and advisory fees incurred in connection with the strategic initiatives focused on restructuring our balance sheet and gathering and transportation contracts. These fees totaled
$2.6 million
for the three and nine months ended September 30, 2016 and we expect to continue to incur these costs until the completion of these initiatives.
|
•
|
decreased various other gross general and administrative expenses of
$2.3 million
and
$4.9 million
for the three and nine months ended
September 30, 2016
, respectively. These decreases reflect our efforts to reduce our general and administrative costs throughout the organization.
|
•
|
decreased technical services and service agreement recoveries of
$2.2 million
and
$6.6 million
for the three and nine months ended
September 30, 2016
, respectively. These decreases were primarily a result of reduced headcount and lower recoveries in connection with the transition service agreement with Compass Productions Partners, LP ("Compass") that terminated in April 2015.
|
•
|
decreased capitalized salaries of
$1.0 million
and
$3.1 million
for the three and nine months ended
September 30, 2016
, respectively, primarily as a result of reduced employee headcount.
|
•
|
increased equity-based compensation of
$0.5 million
and
$10.5 million
for the three and nine months ended
September 30, 2016
, respectively. These increases were primarily due to
$0.7 million
and
$11.6 million
of additional compensation expense related to the warrants issued to ESAS in 2015
for the three and nine months ended
September 30, 2016
, respectively, compared to the same periods in the prior year. The fair value of the warrants is dependent on factors such as our share price, historical volatility, risk-free rate and performance relative to our peer group. These factors, in aggregate, contributed to a significant increase in the fair value of the warrants and the related equity-based compensation expense at
September 30, 2016
. The expense related to warrants is re-measured and adjusted each interim reporting period; therefore, our general and administrative expenses in future periods could be volatile based on the aforementioned factors. The increase in our equity-based compensation expense was partially offset by lower equity-based compensation to employees as a result of reductions in our workforce.
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
||||||||||||||||
(in thousands)
|
|
2016
|
|
2015
|
|
Quarter to quarter change
|
|
2016
|
|
2015
|
|
Period to period change
|
||||||||||||
Interest expense, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EXCO Resources Credit Agreement
|
|
$
|
1,585
|
|
|
$
|
2,024
|
|
|
$
|
(439
|
)
|
|
$
|
3,890
|
|
|
$
|
5,672
|
|
|
$
|
(1,782
|
)
|
Fairfax Term Loan
|
|
9,375
|
|
|
—
|
|
|
9,375
|
|
|
28,125
|
|
|
—
|
|
|
28,125
|
|
||||||
2018 Notes
|
|
2,571
|
|
|
14,426
|
|
|
(11,855
|
)
|
|
8,076
|
|
|
43,259
|
|
|
(35,183
|
)
|
||||||
2022 Notes
|
|
2,512
|
|
|
10,625
|
|
|
(8,113
|
)
|
|
10,819
|
|
|
31,875
|
|
|
(21,056
|
)
|
||||||
Amortization of deferred financing costs
|
|
2,184
|
|
|
3,745
|
|
|
(1,561
|
)
|
|
7,052
|
|
|
10,012
|
|
|
(2,960
|
)
|
||||||
Capitalized interest
|
|
(1,297
|
)
|
|
(3,094
|
)
|
|
1,797
|
|
|
(3,939
|
)
|
|
(10,121
|
)
|
|
6,182
|
|
||||||
Other
|
|
67
|
|
|
35
|
|
|
32
|
|
|
163
|
|
|
125
|
|
|
38
|
|
||||||
Total interest expense, net
|
|
$
|
16,997
|
|
|
$
|
27,761
|
|
|
$
|
(10,764
|
)
|
|
$
|
54,186
|
|
|
$
|
80,822
|
|
|
$
|
(26,636
|
)
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
||||||||||||||||
Average realized pricing:
|
|
2016
|
|
2015
|
|
Quarter to quarter change
|
|
2016
|
|
2015
|
|
Period to period change
|
||||||||||||
Natural gas (per Mcf):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net price, excluding derivatives
|
|
$
|
2.27
|
|
|
$
|
2.05
|
|
|
$
|
0.22
|
|
|
$
|
1.77
|
|
|
$
|
2.19
|
|
|
$
|
(0.42
|
)
|
Cash receipts on derivatives
|
|
0.04
|
|
|
0.70
|
|
|
(0.66
|
)
|
|
0.34
|
|
|
0.67
|
|
|
(0.33
|
)
|
||||||
Net price, including derivatives
|
|
$
|
2.31
|
|
|
$
|
2.75
|
|
|
$
|
(0.44
|
)
|
|
$
|
2.11
|
|
|
$
|
2.86
|
|
|
$
|
(0.75
|
)
|
Oil (per Bbl):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net price, excluding derivatives
|
|
$
|
41.47
|
|
|
$
|
43.22
|
|
|
$
|
(1.75
|
)
|
|
$
|
35.80
|
|
|
$
|
46.09
|
|
|
$
|
(10.29
|
)
|
Cash receipts on derivatives
|
|
9.65
|
|
|
19.97
|
|
|
(10.32
|
)
|
|
9.93
|
|
|
18.95
|
|
|
(9.02
|
)
|
||||||
Net price, including derivatives
|
|
$
|
51.12
|
|
|
$
|
63.19
|
|
|
$
|
(12.07
|
)
|
|
$
|
45.73
|
|
|
$
|
65.04
|
|
|
$
|
(19.31
|
)
|
Natural gas equivalent (per Mcfe):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net price, excluding derivatives
|
|
$
|
2.68
|
|
|
$
|
2.68
|
|
|
$
|
—
|
|
|
$
|
2.20
|
|
|
$
|
2.79
|
|
|
$
|
(0.59
|
)
|
Cash receipts on derivatives
|
|
0.18
|
|
|
1.02
|
|
|
(0.84
|
)
|
|
0.47
|
|
|
0.94
|
|
|
(0.47
|
)
|
||||||
Net price, including derivatives
|
|
$
|
2.86
|
|
|
$
|
3.70
|
|
|
$
|
(0.84
|
)
|
|
$
|
2.67
|
|
|
$
|
3.73
|
|
|
$
|
(1.06
|
)
|
•
|
the level of planned drilling activities;
|
•
|
the results of our ongoing drilling programs;
|
•
|
our ability to fund, finance or repay financing incurred in connection with acquisitions of oil and natural gas properties;
|
•
|
the integration of acquisitions of oil and natural gas properties or other assets;
|
•
|
our ability to effectively manage operating, general and administrative expenses and capital expenditure programs;
|
•
|
reduced oil and natural gas revenues resulting from, among other things, depressed oil and natural gas prices and lower production from reductions to our drilling and development activities;
|
•
|
our ability to mitigate commodity price volatility with derivative financial instruments;
|
•
|
our ability to meet minimum volume commitments under firm transportation agreements and other fixed commitments, as well as our ability to restructure these contracts;
|
•
|
potential acquisitions and/or dispositions of oil and natural gas properties or other assets;
|
•
|
limitations on our ability to incur certain types of indebtedness in accordance with our debt agreements;
|
•
|
our ability to pay interest on our outstanding indebtedness, including the quarterly payments related to the Second Lien Term Loans;
|
•
|
reductions to our borrowing base;
|
•
|
requirements to provide certain vendors and other parties with letters of credit as a result of our credit quality, which reduce the amount of available borrowings under the EXCO Resources Credit Agreement;
|
•
|
additional debt restructuring activities including the repurchase of indebtedness, issuance of additional indebtedness or issuance of equity in exchange for indebtedness;
|
•
|
our ability to maintain compliance with debt covenants; and
|
•
|
the potential outcome of litigation related to certain natural gas sales and firm transportation contracts.
|
(in thousands)
|
|
September 30, 2016
|
||
EXCO Resources Credit Agreement
|
|
$
|
214,592
|
|
Exchange Term Loan (1)
|
|
400,000
|
|
|
Fairfax Term Loan
|
|
300,000
|
|
|
2018 Notes (2)
|
|
131,576
|
|
|
2022 Notes
|
|
70,169
|
|
|
Total debt (3)
|
|
$
|
1,116,337
|
|
Net debt
|
|
$
|
1,094,369
|
|
Borrowing base (4)
|
|
$
|
300,000
|
|
Unused borrowing base (5)
|
|
$
|
75,372
|
|
Cash (6)
|
|
$
|
21,968
|
|
Unused borrowing base plus cash
|
|
$
|
97,340
|
|
(1)
|
Amount presented is the outstanding principal balance and excludes
$203.1 million
of deferred reductions to carrying value. See "Note 8. Debt" in the Notes to our Condensed Consolidated Financial Statements for additional information.
|
(2)
|
Excludes unamortized discount of
$0.6 million
at
September 30, 2016
.
|
(3)
|
Excludes unamortized deferred financing costs of
$12.8 million
at
September 30, 2016
. Since September 30, 2016, we borrowed an additional
$14.0 million
under the EXCO Resources Credit Agreement.
|
(4)
|
The borrowing base under the EXCO Resources Credit Agreement was $325.0 million as of September 30, 2016. In connection with the postponed redetermination, we may not request borrowings from the lenders under the EXCO Resources Credit Agreement that would result in their aggregate exposure to exceed $300.0 million, including letters of credit, until the effective date of the postponed redetermination. Therefore, we have incorporated the limitation on the aggregate exposure of the lenders to the borrowing base in the table above as it is more representative of our available borrowing capacity under the EXCO Resources Credit Agreement.
|
(5)
|
Net of
$10.0 million
in letters of credit at
September 30, 2016
.
|
(6)
|
Includes restricted cash of
$18.4 million
at
September 30, 2016
.
|
•
|
our Consolidated Current Ratio of
1.1
to
1.0
exceeded the minimum of at least
1.0
to
1.0
as of the end of any fiscal quarter. The consolidated current assets utilized in this ratio include unused commitments under the EXCO Resources Credit Agreement. As of September 30, 2016, the unused commitments were based on the Company's borrowing base of $325.0 million;
|
•
|
our ratio of consolidated EBITDAX to consolidated interest expense ("Interest Coverage Ratio"), of
1.6
to
1.0
exceeded the minimum of at least
1.25
to
1.0
as of the end of any fiscal quarter. The consolidated interest expense utilized in the Interest Coverage Ratio is calculated in accordance with GAAP; therefore, this excludes cash payments under the terms of the Exchange Term Loan, whether designated as interest or as principal amount, that reduce the carrying amount and are not recognized as interest expense. See further details on the accounting for the Exchange Term Loan in "Note 8. Debt" in the Notes to our Condensed Consolidated Financial Statements; and
|
•
|
our ratio of senior secured indebtedness to consolidated EBITDAX ("Senior Secured Indebtedness Ratio") of
1.9
to
1.0
did not exceed the maximum of
2.5
to
1.0
as of the end of any fiscal quarter. Senior secured indebtedness
|
|
|
Nine Months Ended
|
|
October - December Forecast
|
|
Full Year Forecast
|
||||||
(in thousands)
|
|
June 30, 2016
|
|
2016
|
|
2016
|
||||||
Capital expenditures:
|
|
|
|
|
|
|
||||||
Development capital expenditures
|
|
$
|
60,285
|
|
|
$
|
2,215
|
|
|
$
|
62,500
|
|
Other (1)
|
|
9,406
|
|
|
13,094
|
|
|
22,500
|
|
|||
Total
|
|
$
|
69,691
|
|
|
$
|
15,309
|
|
|
$
|
85,000
|
|
|
|
Nine Months Ended September 30,
|
||||||
(in thousands)
|
|
2016
|
|
2015
|
||||
Net cash provided by (used in) operating activities
|
|
$
|
(3,740
|
)
|
|
$
|
126,856
|
|
Net cash used in investing activities
|
|
(56,150
|
)
|
|
(255,854
|
)
|
||
Net cash provided by financing activities
|
|
51,177
|
|
|
103,204
|
|
||
Net decrease in cash
|
|
$
|
(8,713
|
)
|
|
$
|
(25,794
|
)
|
|
|
NYMEX gas volume - Bbtu
|
|
Weighted average contract price per Mmbtu
|
|
NYMEX oil volume - Mbbl
|
|
Weighted average contract price per Bbl
|
||||||
Swaps:
|
|
|
|
|
|
|
|
|
||||||
Remainder of 2016
|
|
14,260
|
|
|
$
|
2.88
|
|
|
276
|
|
|
$
|
58.61
|
|
2017
|
|
23,700
|
|
|
2.99
|
|
|
183
|
|
|
50.00
|
|
||
2018
|
|
3,650
|
|
|
3.15
|
|
|
—
|
|
|
—
|
|
||
Swaptions:
|
|
|
|
|
|
|
|
|
||||||
2017
|
|
7,300
|
|
|
2.76
|
|
|
—
|
|
|
—
|
|
||
Collars:
|
|
|
|
|
|
|
|
|
||||||
2017
|
|
10,950
|
|
|
|
|
—
|
|
|
|
||||
Sold call
|
|
|
|
3.28
|
|
|
|
|
—
|
|
||||
Purchased put
|
|
|
|
2.87
|
|
|
|
|
—
|
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) (1)
|
||||||
July 1, 2016 - July 31, 2016
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
192.5
|
|
August 1, 2016 - August 31, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
192.5
|
|
||
September 1, 2016 - September 30, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
192.5
|
|
||
Total
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
|
(1)
|
On July 19, 2010, we announced a $200.0 million share repurchase program.
|
Item 6.
|
Exhibits
|
|
|
EXCO RESOURCES, INC.
|
|
|
|
(Registrant)
|
|
|
|
|
|
Date:
|
November 2, 2016
|
|
/s/ Harold L. Hickey
|
|
|
|
Harold L. Hickey
|
|
|
|
Chief Executive Officer and President
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ Brian N. Gaebe
|
|
|
|
Brian N. Gaebe
|
|
|
|
Chief Accounting Officer and Corporate Controller
|
|
|
|
(Principal Accounting Officer)
|
Number
|
Description of Exhibits
|
2.1
|
Haynesville Purchase and Sale Agreement, by and among Chesapeake Louisiana, L.P., Empress, L.L.C., Empress Louisiana Properties, L.P. and EXCO Operating Company, LP, dated July 2, 2013, filed as an Exhibit to EXCO’s Quarterly Report on Form 10-Q for the Quarter Ended September 30, 2013 filed on October 30, 2013 and incorporated by reference herein.
|
2.2
|
Eagle Ford Purchase and Sale Agreement, by and between Chesapeake Exploration, L.L.C. and EXCO Operating Company, LP, dated July 2, 2013, filed as an Exhibit to EXCO’s Quarterly Report on Form 10-Q for the Quarter Ended September 30, 2013 filed on October 30, 2013 and incorporated by reference herein.
|
2.3
|
Contribution Agreement, by and among BG US Gathering Company, LLC, EXCO Operating Company, LP and Azure Midstream Holdings LLC, dated as of October 16, 2013, filed as an Exhibit to EXCO's Current Report on Form 8-K, dated October 16, 2013 and filed on October 22, 2013 and incorporated by reference herein.
|
2.4
|
Purchase Agreement, dated October 6, 2014, by and among EXCO Resources, Inc., a Texas corporation, EXCO Operating Company, LP, a Delaware limited partnership, EXCO Holding MLP, Inc., a Texas corporation, HGI Energy Holdings, LLC, a Delaware limited liability company, Compass Production Services, LLC, a Delaware limited liability company, and Compass Energy Operating, LLC, a Delaware limited liability company, filed as an Exhibit to EXCO's Current Report on Form 8-K, dated October 6, 2014 and filed on October 10, 2014 and incorporated by reference herein.
|
3.1
|
Amended and Restated Certificate of Formation of EXCO Resources, Inc., as amended through November 16, 2015, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated November 16, 2015 and filed on November 17, 2015 and incorporated by reference herein.
|
3.2
|
Third Amended and Restated Bylaws of EXCO Resources, Inc., filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated September 8, 2015 and filed on September 9, 2015 and incorporated by reference herein.
|
4.1
|
Indenture, dated September 15, 2010, by and between EXCO Resources, Inc. and Wilmington Trust Company, as trustee, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated September 10, 2010 and filed on September 15, 2010 and incorporated by reference herein.
|
4.2
|
First Supplemental Indenture, dated September 15, 2010, by and among EXCO Resources, Inc., certain of its subsidiaries and Wilmington Trust Company, as trustee, including the form of 7.500% Senior Notes due 2018, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated September 10, 2010 and filed on September 15, 2010 and incorporated by reference herein.
|
4.3
|
Second Supplemental Indenture, dated as of February 12, 2013, by and among EXCO Resources, Inc., EXCO/HGI JV Assets, LLC, EXCO Holding MLP, Inc. and Wilmington Trust Company, as trustee, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated February 12, 2013 and filed on February 19, 2013 and incorporated by reference herein.
|
4.4
|
Third Supplemental Indenture, dated April 16, 2014, by and among EXCO Resources, Inc., certain of its subsidiaries and Wilmington Trust Company, as trustee, including the form of 8.500% Senior Notes due 2022, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated April 11, 2014 and filed on April 16, 2014 and incorporated by reference herein.
|
4.5
|
Fourth Supplemental Indenture, dated May 12, 2014, by and among EXCO Resources, Inc., EXCO Land Company, LLC and Wilmington Trust Company, as trustee, filed as an Exhibit to EXCO's Quarterly Report on Form 10-Q for the Quarter Ended June 30, 2014 and filed on July 30, 2014 and incorporated by reference herein.
|
4.6
|
Fifth Supplemental Indenture, dated November 24, 2015, by and among EXCO Resources, Inc., certain of its subsidiaries, and Wilmington Trust Company, as trustee, filed as an Exhibit to EXCO's Current Report on Form 8-K, dated November 24, 2015 and filed on November 25, 2015 and incorporated by reference herein.
|
4.7
|
Sixth Supplemental Indenture, dated August 9, 2016, by and among EXCO Resources, Inc., certain of its subsidiaries, and Wilmington Trust Company, as trustee, filed as an Exhibit to EXCO's Current Report on Form 8-K, dated August 9, 2016 and filed on August 10, 2016 and incorporated by reference herein.
|
4.8
|
Specimen Stock Certificate for EXCO’s common stock, filed as an Exhibit to EXCO’s Registration Statement on Form S-3, filed on December 17, 2013 and incorporated by reference herein.
|
4.9
|
First Amended and Restated Registration Rights Agreement dated as of December 30, 2005, by and among EXCO Holdings Inc. and the Initial Holders (as defined therein), filed as an Exhibit to EXCO’s Amendment No. 1 to its Registration Statement on Form S-1 (File No. 333-129935), filed on January 6, 2006 and incorporated by reference herein.
|
4.10
|
Registration Rights Agreement, dated March 28, 2007, by and among EXCO Resources, Inc. and the other parties thereto with respect to the 7.0% Cumulative Convertible Perpetual Preferred Stock and the Hybrid Preferred Stock, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated March 28, 2007 and filed on April 2, 2007 and incorporated by reference herein.
|
4.11
|
Registration Rights Agreement, dated March 28, 2007, by and among EXCO Resources, Inc. and the other parties thereto with respect to the Hybrid Preferred Stock, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated March 28, 2007 and filed on April 2, 2007 and incorporated by reference herein.
|
4.12
|
Joinder Agreement to Registration Rights Agreement, dated January 17, 2014, by and among EXCO Resources, Inc. and WLR IV Exco AIV One, L.P., WLR IV Exco AIV Two, L.P., WLR IV Exco AIV Three, L.P., WLR IV Exco AIV Four, L.P., WLR IV Exco AIV Five, L.P., WLR IV Exco AIV Six, L.P., WLR Select Co-Investment XCO AIV, L.P., WLR/GS Master Co-Investment XCO AIV, L.P. and WLR IV Parallel ESC, L.P, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated January 17, 2014 and filed on January 21, 2014 and incorporated by reference herein.
|
4.13
|
Joinder Agreement to Registration Rights Agreement, dated January 17, 2014, by and among EXCO Resources, Inc. and Advent Syndicate 780, Clearwater Insurance Company, Northbridge General Insurance Company, Odyssey Reinsurance Company, Clearwater Select Insurance Company, Riverstone Insurance Limited, Zenith Insurance Company and Fairfax Master Trust Fund, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated January 17, 2014 and filed on January 21, 2014 and incorporated by reference herein.
|
10.1
|
Amended and Restated 2005 Long-Term Incentive Plan, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated November 14, 2007 and filed on November 16, 2007 and incorporated by reference herein.*
|
10.2
|
Form of Incentive Stock Option Agreement for the EXCO Resources, Inc. Amended and Restated 2005 Long-Term Incentive Plan, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated November 14, 2007 and filed on November 16, 2007 and incorporated by reference herein.*
|
10.3
|
Form of Nonqualified Stock Option Agreement for the EXCO Resources, Inc. Amended and Restated 2005 Long-Term Incentive Plan, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated November 14, 2007 and filed on November 16, 2007 and incorporated by reference herein.*
|
10.4
|
Form of Restricted Stock Award Agreement for the EXCO Resources, Inc. Amended and Restated 2005 Long-Term Incentive Plan, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated August 4, 2011 and filed on August 10, 2011 and incorporated by reference herein.*
|
10.5
|
Form of Restricted Stock Award Agreement for Named Executive Officers for the EXCO Resources, Inc. Amended and Restated 2005 Long-Term Incentive Plan, filed as an Exhibit to EXCO's Quarterly Report on Form 10-Q for the Quarter Ended June 30, 2015 filed on July 27, 2015 and incorporated by reference herein.*
|
10.6
|
Form of Performance-Based Restricted Stock Unit Agreement for the EXCO Resources, Inc. Amended and Restated 2005 Long-Term Incentive Plan, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated June 30, 2014 and filed on July 3, 2014 and incorporated by reference herein.*
|
10.7
|
Form of Performance-Based Share Unit Agreement for the EXCO Resources, Inc. Amended and Restated 2005 Long-Term Incentive Plan, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated July 1, 2015 and filed on July 8, 2015 and incorporated by reference herein.*
|
10.8
|
Form of Performance-Based Share Unit Agreement for Named Executive Officers for the EXCO Resources, Inc. Amended and Restated 2005 Long-Term Incentive Plan, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated July 1, 2015 and filed on July 8, 2015 and incorporated by reference herein.*
|
10.9
|
Form of Performance-Based Share Unit Agreement for the EXCO Resources, Inc. Amended and Restated 2005 Long-Term Incentive Plan, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated July 1, 2016 and filed on July 6, 2016 and incorporated by reference herein.*
|
10.10
|
Form of Performance-Based Share Unit Agreement for Named Executive Officers for the EXCO Resources, Inc. Amended and Restated 2005 Long-Term Incentive Plan, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated July 1, 2016 and filed on July 6, 2016 and incorporated by reference herein.*
|
10.11
|
Fourth Amended and Restated EXCO Resources, Inc. Severance Plan, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated March 16, 2011 and filed on March 22, 2011 and incorporated by reference herein.*
|
10.12
|
Amended and Restated 2007 Director Plan of EXCO Resources, Inc., filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated November 14, 2007 and filed on November 16, 2007 and incorporated by reference herein.*
|
10.13
|
Amendment Number One to the Amended and Restated 2007 Director Plan of EXCO Resources, Inc., filed as an Exhibit to EXCO’s Annual Report on Form 10-K (File No. 001-32743) for 2009 filed on February 24, 2010 and incorporated by reference herein.*
|
10.14
|
Amendment Number Two to the Amended and Restated 2007 Director Plan of EXCO Resources, Inc., effective as of May 22, 2014, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated May 22, 2014 and filed on May 29, 2014 and incorporated by reference herein.*
|
10.15
|
Amendment Number Three to the Amended and Restated 2007 Director Plan of EXCO Resources, Inc., effective as of December 4, 2015, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated December 4, 2015 and filed on December 10, 2015 and incorporated by reference herein.*
|
10.16
|
Letter Agreement, dated March 28, 2007, with OCM Principal Opportunities Fund IV, L.P. and OCM EXCO Holdings, LLC, filed as an Exhibit to EXCO’s Form 8-K (File No. 001-32743), dated March 28, 2007 and filed on April 2, 2007 and incorporated by reference herein.
|
10.17
|
Amendment Number One to the EXCO Resources, Inc. Amended and Restated 2005 Long-Term Incentive Plan, filed as an exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated June 4, 2009 and filed on June 10, 2009 and incorporated by reference herein.*
|
10.18
|
Amendment Number Two to the EXCO Resources, Inc. Amended and Restated 2005 Long-Term Incentive Plan, dated as of October 6, 2011, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated October 6, 2011 and filed on October 7, 2011 and incorporated by reference herein.*
|
10.19
|
Amendment Number Three to the EXCO Resources, Inc. Amended and Restated 2005 Long-Term Incentive Plan, dated as of June 11, 2013, filed as an Exhibit to EXCO's Current Report on Form 8-K, dated June 11, 2013 and filed on June 12, 2013 and incorporated by reference herein.*
|
10.20
|
Form of Restricted Stock Award Agreement, filed as an Exhibit to EXCO's Quarterly Report on Form 10-Q for the Quarter Ended June 30, 2013 filed on August 7, 2013 and incorporated by reference herein.*
|
10.21
|
Joint Development Agreement, dated August 14, 2009, by and among BG US Production Company, LLC, EXCO Operating Company, LP and EXCO Production Company, LP, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated August 11, 2009 and filed on August 17, 2009 and incorporated by reference herein.
|
10.22
|
Amendment to Joint Development Agreement, dated February 1, 2011, by and among BG US Production Company, LLC and EXCO Operating Company, LP, filed as an Exhibit to EXCO’s Annual Report on Form 10-K (File No. 001-32743) for 2010 filed February 24, 2011 and incorporated by reference herein.
|
10.23
|
Amendment to Joint Development Agreement, dated October 14, 2014, by and among BG US Production Company, LLC and EXCO Operating Company, LP, filed as an Exhibit to EXCO’s Annual Report on Form 10-K for 2014 filed on February 25, 2015 and incorporated by reference herein.
|
10.24
|
Joint Development Agreement, dated as of June 1, 2010, by and among EXCO Production Company (PA), LLC, EXCO Production Company (WV), LLC, BG Production Company, (PA), LLC, BG Production Company, (WV), LLC and EXCO Resources (PA), LLC, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated June 1, 2010 and filed on June 7, 2010 and incorporated by reference herein.
|
10.25
|
Amendment to Joint Development Agreement, dated February 4, 2011, by and among EXCO Production Company (PA), LLC, EXCO Production Company (WV), LLC, BG Production Company, (PA), LLC, BG Production Company, (WV), LLC and EXCO Resources (PA), LLC, filed as an Exhibit to EXCO’s Annual Report on Form 10-K (File No. 001-32743) for 2010 filed February 24, 2011 and incorporated by reference herein.
|
10.26
|
Amendment to Joint Development Agreement, dated October 14, 2014, by and among EXCO Production Company (PA), LLC, EXCO Production Company (WV), LLC, BG Production Company, (PA), LLC, BG Production Company, (WV), LLC and EXCO Resources (PA), LLC, filed as an Exhibit to EXCO’s Annual Report on Form 10-K for 2014 filed on February 25, 2015 and incorporated by reference herein.
|
10.27
|
Second Amended and Restated Limited Liability Company Agreement of EXCO Resources (PA), LLC, dated June 1, 2010, by and among EXCO Holding (PA), Inc., BG US Production Company, LLC and EXCO Resources (PA), LLC, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated June 1, 2010 and filed on June 7, 2010 and incorporated by reference herein.
|
10.28
|
Amendment to Second Amended and Restated Limited Liability Company Agreement of EXCO Resources (PA), LLC, dated October 14, 2014, by and among EXCO Holding (PA), Inc., BG US Production Company, LLC and EXCO Resources (PA), LLC, filed as an Exhibit to EXCO’s Annual Report on Form 10-K for 2014 filed on February 25, 2015 and incorporated by reference herein.
|
10.29
|
Second Amended and Restated Limited Liability Company Agreement of Appalachia Midstream, LLC, dated June 1, 2010, by and among EXCO Holding (PA), Inc., BG US Production Company, LLC and Appalachia Midstream, LLC, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated June 1, 2010 and filed on June 7, 2010 and incorporated by reference herein.
|
10.30
|
Amendment to Second Amended and Restated Limited Liability Company Agreement of Appalachia Midstream, LLC (n/k/a EXCO Appalachia Midstream, LLC), dated October 14, 2014, by and among EXCO Holding (PA), Inc., BG US Production Company, LLC and EXCO Appalachia Midstream, LLC, filed as an Exhibit to EXCO’s Annual Report on Form 10-K for 2014 filed on February 25, 2015 and incorporated by reference herein.
|
10.31
|
Letter Agreement, dated June 1, 2010 and effective as of May 9, 2010, by and between EXCO Holding (PA), Inc. and BG US Production Company, LLC, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated June 1, 2010 and filed on June 7, 2010 and incorporated by reference herein.
|
10.32
|
Guaranty, dated May 9, 2010, by BG Energy Holdings Limited in favor of EXCO Holding (PA), Inc., EXCO Production Company (PA), LLC and EXCO Production Company (WV), LLC, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated June 1, 2010 and filed on June 7, 2010 and incorporated by reference herein.
|
10.33
|
Performance Guaranty, dated May 9, 2010, by EXCO Resources, Inc. in favor of BG US Production Company, LLC, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated June 1, 2010 and filed on June 7, 2010 and incorporated by reference herein.
|
10.34
|
Guaranty, dated June 1, 2010, by BG North America, LLC in favor of (i) EXCO Production Company (PA), LLC, EXCO Production Company (WV), LLC and EXCO Resources (PA), LLC; and (ii) EXCO Resources (PA), LLC
|
10.35
|
Guaranty, dated June 1, 2010, by EXCO Resources, Inc., in favor of: (i) BG Production Company (PA), LLC, BG Production Company (WV), LLC and EXCO Resources (PA), LLC; and (ii) EXCO Resources (PA), LLC and BG US Production Company, LLC, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated June 1, 2010 and filed on June 7, 2010 and incorporated by reference herein.
|
10.36
|
Transition Consulting Agreement, dated February 28, 2013, by and between EXCO Resources, Inc. and Stephen F. Smith, filed as an Exhibit to EXCO's Current Report on Form 8-K, dated February 28, 2013 and filed on March 6, 2013 and incorporated by reference herein.*
|
10.37
|
Amended and Restated Credit Agreement, dated as of July 31, 2013, among EXCO Resources, Inc., as Borrower, certain subsidiaries of Borrower, as Guarantors, the lender parties thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent, filed as an Exhibit to EXCO's Form 8-K, dated as of August 19, 2013 and filed on August 23, 2013 and incorporated by reference herein.
|
10.38
|
First Amendment to Amended and Restated Credit Agreement, dated as of August 28, 2013, among EXCO Resources, Inc., as Borrower, certain subsidiaries of Borrower, as Guarantors, the lender parties thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent, filed as an Exhibit to EXCO's Current Report on Form 8-K, dated as of August 28, 2013 and filed on September 4, 2013 and incorporated by reference herein.
|
10.39
|
Second Amendment to Amended and Restated Credit Agreement, dated as of July 14, 2014, by and among EXCO Resources, Inc., as Borrower, certain subsidiaries of Borrower, as Guarantors, the Lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent, filed as an Exhibit to EXCO's Current Report on Form 8-K, dated as of July 14, 2014 and filed on July 18, 2014 and incorporated by reference herein.
|
10.40
|
Third Amendment to Amended and Restated Credit Agreement, dated as of October 21, 2014, by and among EXCO Resources, Inc., as Borrower, certain subsidiaries of Borrower, as Guarantors, the Lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated October 21, 2014 and filed on October 27, 2014 and incorporated by reference herein.
|
10.41
|
Fourth Amendment to Amended and Restated Credit Agreement, dated as of February 6, 2015, among EXCO Resources, Inc., as Borrower, certain subsidiaries of Borrower, as Guarantors, the lender parties thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent, filed as an Exhibit to EXCO's Current Report on Form 8-K, dated as of February 6, 2015 and filed on February 12, 2015 and incorporated by reference herein.
|
10.42
|
Fifth Amendment to Amended and Restated Credit Agreement, dated July 27, 2015, among EXCO Resources, Inc., as Borrower, certain subsidiaries of Borrower, as Guarantors, the lender parties thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent, filed as an Exhibit to EXCO's Current Report on Form 8-K, dated as of July 27, 2015 and filed July 28, 2015 and incorporated by reference herein.
|
10.43
|
Sixth Amendment to Amended and Restated Credit Agreement, dated as of October 19, 2015, among EXCO Resources, Inc., as Borrower, certain subsidiaries of Borrower, as Guarantors, the lender parties thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent, filed as an Exhibit to EXCO's Current Report on Form 8-K, dated as of October 19, 2015 and filed on October 22, 2015 and incorporated by reference herein.
|
10.44
|
Limited Consent, dated as of September 1, 2016, among EXCO Resources, Inc., as Borrower, certain subsidiaries of Borrower, as Guarantors, the lender parties thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent, filed herewith.
|
10.45
|
Term Loan Credit Agreement, dated as of October 19, 2015, by and among EXCO Resources, Inc., as Borrower, certain subsidiaries of Borrower, as Guarantors, the lenders party thereto, Hamblin Watsa Investment Counsel Ltd., as Administrative Agent, and Wilmington Trust, National Association, as Collateral Trustee, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated as of October 19, 2015 and filed on October 22, 2015 and incorporated by reference herein.
|
10.46
|
Term Loan Credit Agreement, dated as of October 19, 2015, by and among EXCO Resources, Inc., as Borrower, certain subsidiaries of Borrower, as Guarantors, the lenders party thereto, and Wilmington Trust, National
|
10.47
|
Form of Joinder Agreement to Term Loan Credit Agreement, filed as an Exhibit to EXCO's Current Report on Form 8-K, dated as of November 4, 2015 and incorporated by reference herein.
|
10.48
|
Intercreditor Agreement, dated as of October 26, 2015, by and among EXCO Resources, Inc., JPMorgan Chase Bank, N.A., as Priority Lien Agent, and Wilmington Trust, National Association, as Second Lien Collateral Agent, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated as of October 26, 2015 and filed on October 27, 2015 and incorporated by reference herein.
|
10.49
|
Intercreditor Joinder, dated as of October 26, 2015, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated as of October 26, 2015 and filed on October 27, 2015 and incorporated by reference herein.
|
10.50
|
Collateral Trust Agreement, dated as of October 26, 2015, by and among EXCO Resources, Inc., the grantors and guarantors from time to time party thereto, Hamblin Watsa Investment Counsel Ltd., as Administrative Agent of the second lien credit agreement, the other parity lien debt representatives from time to time party thereto, and Wilmington Trust, National Association, as Collateral Trustee, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated as of October 26, 2015 and filed on October 27, 2015 and incorporated by reference herein.
|
10.51
|
Collateral Trust Joinder, dated as of October 26, 2015, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated as of October 26, 2015 and filed on October 27, 2015 and incorporated by reference herein.
|
10.52
|
Form of Purchase Agreement, filed as an Exhibit to EXCO’s Form 8-K, dated as of October 30, 2015 and filed on November 2, 2015 and incorporated by reference herein.
|
10.53
|
Form of Follow-on Purchase Agreement, filed as an Exhibit to EXCO’s Form 8-K, dated as of October 19, 2015 and filed on October 22, 2015 and incorporated by reference herein.
|
10.54
|
Amended and Restated Participation Agreement, dated July 25, 2016, by and among Admiral A Holding L.P., TE Admiral A Holding L.P., Colt Admiral A Holding L.P. and EXCO Operating Company, LP., filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated July 25, 2016 and filed on July 27, 2016 and incorporated by reference herein.
|
10.55
|
Form of Director Indemnification Agreement, filed as an Exhibit to EXCO’s Current Report on Form 8-K (File No. 001-32743), dated November 10, 2010 and filed on November 12, 2010 and incorporated by reference herein.
|
10.56
|
MVC Letter Agreement, dated November 15, 2013, among BG US Production Company, LLC, BG US Gathering Company, LLC, EXCO Operating Company, LP, Azure Midstream Energy LLC (formerly known as TGGT Holdings, LLC) and TGG Pipeline, Ltd, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated November 15, 2013 and filed on November 21, 2013 and incorporated by reference herein.
|
10.57
|
Letter Agreement, dated March 28, 2014, by and among EXCO Resources, Inc. and Ares Corporate Opportunities Fund, L.P., ACOF EXCO L.P, ACOF EXCO 892 Investors, L.P., Ares Corporate Opportunities Fund II, L.P., Ares EXCO, L.P. and Ares EXCO 892 Investors, L.P., filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated March 27, 2014 and filed on April 1, 2014 and incorporated by reference herein.
|
10.58
|
EXCO Resources, Inc. 2014 Management Incentive Plan, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated April 21, 2014 and filed on April 25, 2014 and incorporated by reference herein.*
|
10.59
|
Amendment Number One to the EXCO Resources, Inc. Management Incentive Plan, effective as of September 1, 2014, filed as an Exhibit to Amendment No. 1 to EXCO's Current Report on Form 8-K/A, dated August 6, 2014 and filed on September 5, 2014 and incorporated by reference herein.*
|
10.60
|
EXCO Resources, Inc. 2015 Management Incentive Plan, dated March 4, 2015, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated March 4, 2015 and filed on March 10, 2015 and incorporated by reference herein.*
|
10.61
|
EXCO Resources, Inc. 2016 Management Incentive Plan, dated April 20, 2016, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated April 20, 2016 and filed on April 26, 2016 and incorporated by reference herein.*
|
10.62
|
Retention Agreement, dated May 14, 2015, by and between Harold H. Jameson and EXCO Resources, Inc., filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated May 14, 2015 and filed on May 20, 2015 and incorporated by reference herein.*
|
10.63
|
Amended and Restated Retention Agreement, dated May 14, 2015, by and between Harold L. Hickey and EXCO Resources, Inc., filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated May 14, 2015 and filed on May 20, 2015 and incorporated by reference herein.*
|
10.64
|
Services and Investment Agreement, dated as of March 31, 2015, by and among EXCO Resources, Inc. and Energy Strategic Advisory Services LLC, filed as an Exhibit to Amendment No. 1 to EXCO’s Current Report on Form 8-K/A, dated March 31, 2015 and filed on May 26, 2015 and incorporated by reference herein.
|
10.65
|
Acknowledgement of Amendment to Services and Investment Agreement, dated as of May 26, 2015, by and between EXCO Resources, Inc. and Energy Strategic Advisory Services LLC, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated May 26, 2015 and filed on June 1, 2015 and incorporated by reference herein.
|
10.66
|
Amendment No. 2 to Services and Investment Agreement, dated as of September 8, 2015, by and between EXCO Resources, Inc. and Energy Strategic Advisory Services LLC, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated September 8, 2015 and filed on September 9, 2015 and incorporated by reference herein.
|
10.67
|
Nomination Letter Agreement, dates as of September 8, 2015, by and between EXCO Resources, Inc. and Energy Strategic Advisory Services LLC, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated September 8, 2015 and filed on September 9, 2015 and incorporated by reference herein.
|
10.68
|
Warrant, dated as of March 31, 2015, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated March 31, 2015 and filed on April 2, 2015 and incorporated by reference herein.
|
10.69
|
Warrant, dated as of March 31, 2015, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated March 31, 2015 and filed on April 2, 2015 and incorporated by reference herein.
|
10.70
|
Warrant, dated as of March 31, 2015, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated March 31, 2015 and filed on April 2, 2015 and incorporated by reference herein.
|
10.71
|
Warrant, dated as of March 31, 2015, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated March 31, 2015 and filed on April 2, 2015 and incorporated by reference herein.
|
10.72
|
Registration Rights Agreement, dated as of April 21, 2015, by and between EXCO Resources, Inc. and Energy Strategic Advisory Services LLC, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated April 21, 2015 and filed on April 27, 2015 and incorporated by reference herein.
|
10.73
|
Registration Rights Waiver, dated as of April 10, 2015, by and among EXCO Resources, Inc. and Jeffrey D. Benjamin, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated April 21, 2015 and filed on April 27, 2015 and incorporated by reference herein.
|
10.74
|
Registration Rights Waiver, dated as of April 10, 2015, by and among EXCO Resources, Inc. and Robert L. Stillwell, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated April 21, 2015 and filed on April 27, 2015 and incorporated by reference herein.
|
10.75
|
Registration Rights Waiver, dated as of April 10, 2015, by and among EXCO Resources, Inc. and Harold L. Hickey, filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated April 21, 2015 and filed on April 27, 2015 and incorporated by reference herein.
|
10.76
|
Registration Rights Waiver, dated as of April 13, 2015, by and among EXCO Resources, Inc. and Advent Capital (No. 3) Limited, Clearwater Insurance Company, Clearwater Select Insurance Company, Fairfax Financial Holdings Master Trust Fund, Northbridge General Insurance Company, Odyssey Reinsurance Company, RiverStone
|
10.77
|
Registration Rights Waiver, dated as of April 13, 2015, by and among EXCO Resources, Inc. and OCM EXCO Holdings, LLC, OCM Principal Opportunities Fund IV Delaware, L.P., OCM Principal Opportunities Fund III, L.P., OCM Principal Opportunities Fund IIIA, L.P. and Oaktree Value Opportunities Fund Holdings, L.P., filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated April 21, 2015 and filed on April 27, 2015 and incorporated by reference herein.
|
10.78
|
Registration Rights Waiver, dated as of April 21, 2015, by and among EXCO Resources, Inc. and WLR IV Exco AIV One, L.P., WLR IV Exco AIV Two, L.P., WLR IV Exco AIV Three, L.P., WLR IV Exco AIV Four, L.P., WLR IV Exco AIV Five, L.P., WLR IV Exco AIV Six, L.P., WLR Select Co-Investment XCO AIV, L.P., WLR/GS Master Co-Investment XCO AIV, L.P. and WLR IV Parallel ESC, L.P., filed as an Exhibit to EXCO’s Current Report on Form 8-K, dated April 21, 2015 and filed on April 27, 2015 and incorporated by reference herein.
|
31.1
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Principal Executive Officer of EXCO Resources, Inc., filed herewith.
|
31.2
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Principal Financial Officer of EXCO Resources, Inc., filed herewith.
|
32.1
|
Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Principal Executive Officer and Principal Financial Officer of EXCO Resources, Inc., filed herewith.
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL Taxonomy Calculation Linkbase Document.
|
101.DEF
|
XBRL Taxonomy Definition Linkbase Document.
|
101.LAB
|
XBRL Taxonomy Label Linkbase Document.
|
101.PRE
|
XBRL Taxonomy Presentation Linkbase Document.
|
*
|
These exhibits are management contracts.
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of EXCO Resources, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
November 2, 2016
|
/s/ Harold L. Hickey
|
|
|
Harold L. Hickey
|
|
|
Chief Executive Officer and President
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of EXCO Resources, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
November 2, 2016
|
/s/ Christopher C. Peracchi
|
|
|
Christopher C. Peracchi
|
|
|
Chief Financial Officer, Vice President and Treasurer
|
Date:
|
November 2, 2016
|
/s/ Harold L. Hickey
|
|
|
Harold L. Hickey
|
|
|
Chief Executive Officer and President
|
|
|
|
|
|
/s/ Christopher C. Peracchi
|
|
|
Christopher C. Peracchi
|
|
|
Chief Financial Officer, Vice President and Treasurer
|