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http://www.businessweek.com/news/2014-10-10/exco-resources-may-buy-properties-from-its-next-ceo

 

Pickens says “Somebody suggested that Exco is a candidate for bankruptcy,” he said. “They have $750 million of liquidity. They’re not a prospect for bankruptcy. But when it gets down like $2.50 a share, that starts the talk that they’re a prospect.”

 

I don't see where they have $750 million in liquidity. I see 250 in current assets

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http://www.businessweek.com/news/2014-10-10/exco-resources-may-buy-properties-from-its-next-ceo

 

Pickens says “Somebody suggested that Exco is a candidate for bankruptcy,” he said. “They have $750 million of liquidity. They’re not a prospect for bankruptcy. But when it gets down like $2.50 a share, that starts the talk that they’re a prospect.”

 

I don't see where they have $750 million in liquidity. I see 250 in current assets

 

typically cash + revolver availability = liquidity

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http://www.businessweek.com/news/2014-10-10/exco-resources-may-buy-properties-from-its-next-ceo

 

Pickens says “Somebody suggested that Exco is a candidate for bankruptcy,” he said. “They have $750 million of liquidity. They’re not a prospect for bankruptcy. But when it gets down like $2.50 a share, that starts the talk that they’re a prospect.”

 

I don't see where they have $750 million in liquidity. I see 250 in current assets

 

typically cash + revolver availability = liquidity

 

Follow up question.

Right now on their most recent quarterly statement. it says that they have

in millions

Current Assets of $248,877

Current Liabilities of $372,585

and

Long term liabilities of $1,549,439

 

Also from their quarterly they say they have about $700,000 in the revolver.

so that 700mil isn't included in the LTL right? It's just the ability to borrow 700mil?

 

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This should have happened a long time ago. I went to the annual meeting last year, and I asked about cutting it as a capital allocation decision that seemed to make sense, and I got a fairly political non-answer. Of course a 70/something year old country guy spoke up and said that he "likes seeing that dividend each year." Wow, thanks for your wisdom buddy!

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  • 2 months later...

hitting all time lows today. This similar to PWE in that they are loaded with debt and got destroyed in oil crash. XCO does natural gas though so if you have a brighter outlook on natural gas this one it might be worth a look at. market cap of 400m and debt of 1.4B. 700m of it is due 2017 and and 500m is due 2022. Trailing Ebitda of 480M but who knows what it will be next year. 

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http://www.streetinsider.com/Management+Changes/T.+Boone+Pickens+Resigns+from+EXCO+Resources+(XCO)+Board/10349272.html

 

From Bloomberg news story:

 

"Pickens said in an October interview with Bloomberg News that Exco had been approached by potential buyers. That prompted the company to issue a press release a day later stating that it may buy properties from its next chief executive officer, whom it has yet to name. The company has been without a CEO since Douglas Miller resigned in 2013.

Pickens has been on the board since 2005."

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  • 3 weeks later...

http://www.streetinsider.com/Guidance/EXCO+Resources+(XCO)+Enters+Services,+Investment+Agreement%3B+Appoints+New+CEO/10421182.html

 

Unexpected but small investment by bluescape resources to hopefully turn exco around. No debt due until 2018 but it is still and equity stub until then. This one could be a turnaround with the help of bluescape.

 

Interesting. Do you know Bluescape Resources Company's track record?

With a nat gas price of $2.6, there is no way any gas companies are making money. However, the Oil and gas reports show that shale oil drillers are NOT cutting any productions in the April month. I wonder if the nat gas by product from shale oil along would keep the gas price low for a very long time? How long can XCO remain solvent with the current gas price?

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http://www.streetinsider.com/Guidance/EXCO+Resources+(XCO)+Enters+Services,+Investment+Agreement%3B+Appoints+New+CEO/10421182.html

 

Unexpected but small investment by bluescape resources to hopefully turn exco around. No debt due until 2018 but it is still and equity stub until then. This one could be a turnaround with the help of bluescape.

 

Interesting. Do you know Bluescape Resources Company's track record?

With a nat gas price of $2.6, there is no way any gas companies are making money. However, the Oil and gas reports show that shale oil drillers are NOT cutting any productions in the April month. I wonder if the nat gas by product from shale oil along would keep the gas price low for a very long time? How long can XCO remain solvent with the current gas price?

 

John Wilder was Chairman of the Board and Chief Executive Officer of TXU Corp from February 2004 through he sold it to a PE firm in 2007. Under his leadership, TXU delivered 70% annualized returns to shareholders and ranked 5th best in the S&P 500.

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Number of Warrants Granted  Exercise Price  Term

15,000,000  $2.75  49 months

20,000,000  $4.00  60 months

20,000,000  $7.00  72 months

25,000,000  $10.00  72 months

 

As a shareholder, not too upset.  I'd love to see the stock get up to $7.

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http://www.streetinsider.com/Guidance/EXCO+Resources+(XCO)+Enters+Services,+Investment+Agreement%3B+Appoints+New+CEO/10421182.html

 

Unexpected but small investment by bluescape resources to hopefully turn exco around. No debt due until 2018 but it is still and equity stub until then. This one could be a turnaround with the help of bluescape.

 

Interesting. Do you know Bluescape Resources Company's track record?

With a nat gas price of $2.6, there is no way any gas companies are making money. However, the Oil and gas reports show that shale oil drillers are NOT cutting any productions in the April month. I wonder if the nat gas by product from shale oil along would keep the gas price low for a very long time? How long can XCO remain solvent with the current gas price?

 

John Wilder was Chairman of the Board and Chief Executive Officer of TXU Corp from February 2004 through he sold it to a PE firm in 2007. Under his leadership, TXU delivered 70% annualized returns to shareholders and ranked 5th best in the S&P 500.

 

Past performance does not guarantee future returns.  :)

Nat gas price was solid between 2004 and 2007. John Wilder is not able to pump the nat gas price higher right now.

Let's say, the nat gas price remains at $2.6, how long can EXCO remain solvent?

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http://www.streetinsider.com/Guidance/EXCO+Resources+(XCO)+Enters+Services,+Investment+Agreement%3B+Appoints+New+CEO/10421182.html

 

Unexpected but small investment by bluescape resources to hopefully turn exco around. No debt due until 2018 but it is still and equity stub until then. This one could be a turnaround with the help of bluescape.

 

Interesting. Do you know Bluescape Resources Company's track record?

With a nat gas price of $2.6, there is no way any gas companies are making money. However, the Oil and gas reports show that shale oil drillers are NOT cutting any productions in the April month. I wonder if the nat gas by product from shale oil along would keep the gas price low for a very long time? How long can XCO remain solvent with the current gas price?

 

John Wilder was Chairman of the Board and Chief Executive Officer of TXU Corp from February 2004 through he sold it to a PE firm in 2007. Under his leadership, TXU delivered 70% annualized returns to shareholders and ranked 5th best in the S&P 500.

 

Past performance does not guarantee future returns.  :)

Nat gas price was solid between 2004 and 2007. John Wilder is not able to pump the nat gas price higher right now.

Let's say, the nat gas price remains at $2.6, how long can EXCO remain solvent?

 

Yeah that's why it's still an equity stub. If nat gas prices remains at 2.6 for 3 years, and 2018 comes and they can't issue new debt or sell some assets, it's likely exco shareholders won't make it out.

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  • 2 weeks later...

Interesting...

 

http://www.bizjournals.com/pittsburgh/blog/energy/2015/04/after-selling-marcellus-acreage-shell-might-wind.html

 

Regionally, BG has a 50-50 joint venture agreement with Exco Resources Inc. (NYSE:XCO) for conventional and unconventional assets in Pennsylvania. Some of its acreage is not far from a chunk of acreage Shell (NYSE: RDS.A) affiliate SWEPI sold to Rex Energy Corp. (NASDAQ:REXX) last summer.

 

Exco holds 290,000 net acres in the Appalachian basin, and more than half is prospective for Marcellus Shale, according to its most recent 10-K filing with the Securities and Exchange Commission.

 

-and-

 

Not only is BG a partner, but it is customer of Exco — and a significant one at that. According to the 10-K, BG Energy Merchants, which markets regasified LNG, accounted for 34 percent of total consolidated revenue in 2014.
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