EXCO Resources Inc, Company Intelligence Report

EXCO Resources Inc, Company Intelligence Report

Summary

EXCO Resources, Inc. (EXCO) is an independent crude oil and natural gas company, and was established in October 1955. The e company is headquartered in Dallas, Texas. The company is involved in both upstream and midstream operations. All the upstream assets are situated in the US, and the company’s upstream operations can be primarily divided into three divisions; namely the Appalachian, the Permian and the East Texas/North Louisiana divisions. The company’s midstream operations consist of 50% Working Interest (WI) in TGGT Holdings, LLC (TGGT), which is involved in the transportation of natural gas produced in the East Texas/North Louisiana region to the US markets. As of December 2010, the company’s total crude oil and natural gas reserve base was 249.9 million barrels of oil equivalent (MMboe), around 97% of which was contributed by natural gas, while the remaining 3% was contributed by crude oil.

Scope

- Key Highlights: This section provides detailed analysis on the company’s overall oil and gas value chain, new projects, growth opportunities, new ventures, assets performance, hedging strategies, Capex funding, geographical results of oil and gas operations.
- Goals and Strategies: This section provides the upcoming goals and strategies of the company. The section mainly goals and strategies followed by the company in order to meet its upcoming goals.
- SWOT: The report’s SWOT section provides the internal strength, weakness, opportunities and threats of company to reflect its strategic positions in the market.
- Production and Development Overview: This section highlights the company’s crude oil and natural gas production forecast from its legacy and upcoming assets by region and commodity mix for next five years. The report also covers the detailed information and analysis on the company’s producing and development assets.
- Exploration: This section includes detailed explanation and analysis on the company’s exploration assets resulted due to new discoveries, new drilling and other activities.
- M&A trends: This section mainly provides information and analysis on the company’s recent assets transactions, joint ventures, acquisition, and divestment activities during the last one year. This section highlights the company’s status as a buyer or seller during the analyzed period.
- Financial Forecast and Valuation: This section highlights the detailed financial statement forecast for next five years. With the financial statement forecast, this section also provides intrinsic value of the company by using Net Asset Valuation method.
- Peer Group Analysis: This section compares the company’s performance with its peer group on the basis of share prices, financial ratios, operational and financial parameters and other related parameters.
- Financial and Operational Metrics: This section covers the company’s historical performance on several financial and operational parameters such as Production and Reserves, Reserves Replacement, Costs Incurred, Acreage, Wells, F&D Costs, Oil and Gas Revenue and Expenses etc.

Reasons to buy

The report will enhance the decision-making capability in a more rapid and time sensitive manner. It will allow you to -
- Provide detailed analysis to those who are interested in knowing the companies’ existing and future business strategies.
- Provide in-depth analysis on the companies E&P profiles along with the exploration and M&A updates.
- Provide valuable insights to those who are tracking oil and gas markets and wants to know the intrinsic value of the companies.
- Use the analysis for strategy and planning, M&A identifications, and competitor analysis.

Keywords

Valuation Report, NAV, Oil and gas valuation, Strategic Evaluation, Strategic and Operational Analysis, Forecasted financial Statements, SWOT, Capital expenditure, Market Scenario, Revenue, Financial Ratios, Production, Reserves, Peer Group Comparison, DCF, Outlook, Investment Thesis, Investment Summary, EXCO SHOW LESS READ MORE >

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1.1 List of Tables
1.2 List of Figures
2 EXCO Resources Inc, Company Overview
3 EXCO Resources Inc, Key Highlights
3.1 Strong Focus on Development of the Haynesville and Marcellus Shale to Map Future Growth
3.1.1 Haynesville/Bossier Shale
3.1.2 Marcellus Shale
3.2 Management Buyout on Hold; EXCO Resources Expects Recovery of Natural Gas Prices to Improve Valuation
3.3 Declining Liquidity Position to Adversely Impact Future Growth Plans
3.4 Midstream Asset Growth To Complement Shale Development
4 EXCO Resources Inc, SWOT Analysis
4.1 Strengths
4.1.1 Efficient Handling of Unconventional Resources
4.2 Weaknesses
4.2.1 Continuous Decline in Production
4.2.2 High Dependence on Natural Gas
4.2.3 Limited Geographic Presence
4.3 Opportunities
4.3.1 Production Upside Primarily through Unconventional Resources
4.4 Threats
4.4.1 High Debt to Equity Ratio may Impact Future Growth Plans
5 EXCO Resources Inc, Goals and Strategies
5.1 Increased Production Primarily through Development of Shale Resources; Expanding Midstream Assets to Capture the Production Growth
5.2 Maintain Financial Flexibility
6 EXCO Resources Inc, Production Overview
6.1 Production Profile
6.2 Assets Portfolio
6.2.1 East Texas/North Louisiana
6.2.2 Appalachia
6.2.3 Permian and other
7 Capital Expenditure
7.1 Costs Incurred
8 Acreage
9 EXCO Resources Inc, Exploration and Development Overview
10 EXCO Resources Inc, M&A Highlights
11 EXCO Resources Inc, Forecasted Production and Financial Statements
11.1 Income Statement (2008–2015)
11.2 Balance Sheet (2008–2015)
11.3 Cash Flow Statement (2008–2015)
11.4 Financial Ratios
12 EXCO Resources Inc, Valuation
12.1 Net Asset Value
13 EXCO Resources Inc, Peer Comparison
13.1 Share Price Performance
13.2 Operational and Financial Performance
13.3 Key Financial and Operational Ratio
14 EXCO Resources Inc, Detailed Operational and Financial Metrics
14.1 EXCO Resources Inc, Total Oil and Gas, Reserves and Production
14.1.1 Total Crude Oil and Natural Gas Production and Reserves Trend, 2006-2010
14.1.2 Total Crude Oil & Natural Gas Production and Reserves By Country/Region, 2006-2010
14.1.3 Total Crude Oil and Natural Gas Reserve Changes, 2006-2010
14.2 EXCO Resources Inc, Crude Oil/Liquids Production and Reserve
14.2.1 Crude Oil/Liquids Production and Reserve Trend, 2006-2010
14.2.2 Crude Oil Production and Reserves By Country/Region, 2006-2010
14.2.3 Crude Oil/Liquids Reserve Changes, 2006-2010
14.3 EXCO Resources Inc, Natural Gas Production and Reserve
14.3.1 Natural Gas Production and Reserve Trend, 2006-2010
14.3.2 Natural Gas Production and Reserves, By Country/Region, 2006-2010
14.3.3 Natural Gas Reserve Changes, 2006-2010
14.4 EXCO Resources Inc, Total Crude Oil and Natural Gas Reserves Life Index
14.4.1 Total Crude Oil and Natural Gas Reserves Life Index, 2006-2010
14.4.2 Total Crude Oil and Natural Gas Reserves Life Index, By Country/Region, 2006-2010
14.5 EXCO Resources Inc, E&P Costs Trends
14.5.1 Upstream Capital Expenditure, 2006-2010
14.5.2 Acquisition Costs By Country/Region, 2006-2010
14.5.3 Exploration and Development Costs, By Country/Region, 2006-2010
14.6 EXCO Resources Inc, Oil and Gas Cost Per boe, $/boe
14.6.1 Oil and Gas Cost Per boe, $/boe, 2006-2010
14.6.2 Oil and Gas Cost Per boe, $/boe, By Country/Region, 2006-2010
14.7 EXCO Resources Inc, Reserve Replacement Ratio
14.7.1 Oil and Gas Production Replacement Ratio, 2006-2010
14.7.2 Oil and Gas Production Replacement Ratio, By Country/Region, 2006-2010
14.8 EXCO Resources Inc, Results of Oil & Gas Operations Trend
14.8.1 Oil and Gas Revenue and Expenses, 2006-2010
14.8.2 Oil and Gas Revenue and Expenses, By Country/Region, 2006-2010
14.9 EXCO Resources Inc, Oil and Gas Revenue and Expenses, Per boe
14.9.1 Oil and Gas Revenue and Expenses, By boe, 2006-2010
14.9.2 Oil and Gas Revenue and Expenses Per boe, By Country/Region, 2006-2010
14.10 EXCO Resources Inc, Oil and Gas Performance Metrics
14.11 EXCO Resources Inc, Land Holdings and Well Data
14.11.1 Gross and Net Developed and Undeveloped Acreage, 2006-2010
14.11.2 Gross and Net Developed and Undeveloped Acreage, By Country/Region, 2006-2010
14.12 EXCO Resources Inc, Well Statistics
14.12.1 Producible Oil and Gas Well, 2006-2010
14.12.2 Producible Oil and Gas Well, By Country/Region, 2006-2010
14.12.3 Exploration and Development Wells Drilled, 2006-2010
14.12.4 Exploration and Development Wells Drilled, By Country/Region, 2006-2010
15 Appendix
15.1 Abbreviations
15.2 Methodology
15.2.1 Coverage
15.2.2 Secondary Research
15.2.3 Primary Research
15.3 Contact Us
15.4 Disclaimer

1.1 List of Tables
Table 1: EXCO Resources Inc, Key Events, 2009–2011
Table 2: EXCO Resources Inc, Haynesville/Bossier Shale, Key Operational Parameters, 2010
Table 3: EXCO Resources Inc, Marcellus Shale, Key Operational Parameters, 2010
Table 4: EXCO Resources Inc, Total Production Forecast by Commodity, MMboe, 2011–2015
Table 5: EXCO Resources Inc, Recent Transactions as a Buyer, 2010–2011
Table 6: EXCO Resources Inc, Recent Transactions as a Seller, 2010–2011
Table 7: EXCO Resources Inc, Forecast Production, 2008–2015
Table 8: GlobalData, Price Forecasts, 2011–2015
Table 9: EXCO Resources Inc, Income Statement, $m, 2008–2015
Table 10: EXCO Resources Inc, Balance Sheet, $m, 2008–2015
Table 11: EXCO Resources Inc, Cash Flow Statement, $m, 2008–2015
Table 12: EXCO Resources Inc, Profitability Ratios, 2008–2015
Table 13: EXCO Resources Inc, Other Financial Ratios, 2008–2015
Table 14: EXCO Resources Inc, Net Asset Value, 2011
Table 15: EXCO Resources Inc, Prospective Acreage & Non Proven Reserves, 2011
Table 16: EXCO Resources Inc, NPV of Natural Gas Reserves, $/Mcf, 2011
Table 17: EXCO Resources Inc, NPV of Oil/NGL Reserves, $/bbl, 2011
Table 18: EXCO Resources Inc, NPV OF Total Oil and Natural Gas Reserves, $/boe, 2011
Table 19: EXCO Resources Inc, Sensitivity Analysis on Fair Value, $/share, 2011
Table 20: EXCO Resources Vs. Peer Group, Operational and Financial Performance, 2010
Table 21: EXCO Resources Inc and its Peer Group Comparison, Financial Ratios, 2010
Table 22: EXCO Resources, Inc., Total Crude Oil and Natural Gas, Production and Reserves, MMboe, 2006-2010
Table 23: EXCO Resources, Inc., Total Crude Oil & Natural Gas Production and Reserves, By Country/Region, MMboe, 2006-2010
Table 24: EXCO Resources, Inc., Total Crude Oil and Natural Gas Reserve Changes, MMboe, 2006-2010
Table 25: EXCO Resources, Inc., Crude Oil Production and Reserves Metrics, MMbbl, 2006-2010
Table 26: EXCO Resources, Inc., Crude Oil Production and Reserves, By Country/Region, MMbbl, 2006-2010
Table 27: EXCO Resources, Inc., Crude Oil Reserve Changes, MMbbl, 2006-2010
Table 28: EXCO Resources, Inc., Natural Gas Production and Reserves Metrics, Bcf, 2006-2010
Table 29: EXCO Resources, Inc., Natural Gas Production and Reserves, By Country/Region, Bcf, 2006-2010
Table 30: EXCO Resources, Inc., Natural Gas Reserve Changes, Bcf, 2006-2010
Table 31: EXCO Resources, Inc., Oil and Gas Reserves Life Index, Years, 2006-2010
Table 32: EXCO Resources, Inc., Oil and Gas Reserves Life Index, By Country/Region, Years, 2006-2010
Table 33: EXCO Resources, Inc., Upstream Capital Expenditure, $m, 2006-2010
Table 34: EXCO Resources, Inc., Proved and Unproved Acquisition Costs, By Country/Region, $m, 2006-2010
Table 35: EXCO Resources, Inc., Exploration and Development Costs, By Country/Region, $m, 2006-2010
Table 36: EXCO Resources, Inc., Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs Per boe, $/boe, 2006-2010
Table 37: EXCO Resources, Inc., Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs Per boe, $/boe, By Country/Region, 2006-2010
Table 38: EXCO Resources, Inc., Oil and Gas Production Replacement Ratio, %, 2006-2010
Table 39: EXCO Resources, Inc., 3-Year Wt.Avg. Oil and Gas Production Replacement Ratio, By Country/Region, %, 2006-2010
Table 40: EXCO Resources, Inc., Revenue and Expenses, $m, 2006-2010
Table 41: EXCO Resources, Inc., Revenue and Expenses, By Country/Region, $m, 2006-2010
Table 42: EXCO Resources, Inc., Oil and Gas Revenue and Expenses, $/boe, 2006-2010
Table 43: EXCO Resources, Inc., Oil and Gas Revenue and Expenses, $/boe, By Country/Region, 2006-2010
Table 44: EXCO Resources, Inc., Oil and Gas Performance Metrics, 2006-2010
Table 45: EXCO Resources, Inc., Land Holdings (Developed and Undeveloped Acreage), Acres, 2006-2010
Table 46: EXCO Resources, Inc., Land Holdings (Developed and Undeveloped Acreage), By Country/Region, Acres, 2006-2010
Table 47: EXCO Resources, Inc., Producible Oil and Gas Wells, 2006-2010
Table 48: EXCO Resources, Inc., Producible Oil and Gas Wells, By Country/Region, 2006-2010
Table 49: EXCO Resources, Inc., Exploratory and Developed Wells, 2006-2010
Table 50: EXCO Resources, Inc., Exploratory and Developed Wells, By Country/Region, 2006-2010

1.2 List of Figures
Figure 1: EXCO Resources Inc, Operational Map, 2011
Figure 2: EXCO Resources Inc, Financial and Operational Overview, 2007–2010
Figure 3: EXCO Resources Inc, Share Price Movement, December 2010–December 2011
Figure 4: Haynesville/Bossier Shale, Major Companies by Total Net Acreage (Acres), 2010
Figure 5: Marcellus Shale, Major Companies by Total Net Acreage (Acres), 2010
Figure 6: EXCO Resources Inc, Comparison of Capital Expenditure and Cash Flow from Operations, $m, 2007–2010
Figure 7: EXCO Resources Inc, Inflow, Outflow and Net Cash Position, $m, 2007–2010
Figure 8: EXCO Resources Inc, Total Production and Production Growth, 2008–2010
Figure 9: EXCO Resources Inc, Contribution of Natural Gas in Total Reserves and Production (%), 2007–2010
Figure 10: EXCO Resources Inc, Production Forecast, MMboe, 2007–2015
Figure 11: EXCO Resources Inc, Production Mix, %, 2007–2010
Figure 12: EXCO Resources Inc, Operational Map, East Texas/North Louisiana Division, 2010
Figure 13: EXCO Resources Inc, Operational Map, Appalachia Division, 2010
Figure 14: EXCO Resources Inc, Operational Map, Permian Division, 2010
Figure 15: EXCO Resources Inc, Capital Expenditure Classification, $m, 2007–2010
Figure 16: EXCO Resources Inc, Costs Incurred, $m, 2007–2010
Figure 17: EXCO Resources Inc Versus Peers Acreage Comparison (Acres), 2010
Figure 18: EXCO Resources Inc, Net Productive and Dry Exploratory and Development Wells, 2007–2010
Figure 19: EXCO Resources Inc, Net/Gross Oil and Gas Ratio for Wells, 2007–2010
Figure 20: EXCO Resources Inc, Total Oil and Gas Successful Exploratory Wells, 2007–2010
Figure 21: EXCO Resources Inc, Comparison of Exploration Cost and Organic Reserve Addition, 2008–2010
Figure 22: EXCO Resources Inc, Comparison of Acquisition Costs and Reserve Additions Through Acquisition, 2008–2010
Figure 23: EXCO Resources Inc and Peer Group, Relative Share Price Performance Index , December 2010–2011
Figure 24: EXCO Resources Inc and its Peers, Per Boe Parameters, 2010
Figure 25: EXCO Resources Inc and its Peers, Reserve Life Index, 2010
Figure 26: EXCO Resources Inc and its Peers, Total Reserves and Production, MMboe, 2010
Figure 27: EXCO Resources Inc and its Peers, Valuation Ratios, 2010
Figure 28: EXCO Resources, Inc., Total Crude Oil and Natural Gas, Production and Reserves, MMboe, 2006-2010
Figure 29: EXCO Resources, Inc., Total Oil & Gas Reserves, End of Period, By Country/Region, MMboe, 2006-2010
Figure 30: EXCO Resources, Inc., Total Oil & Gas Production, By Country/Region, MMboe, 2006-2010
Figure 31: EXCO Resources, Inc., Total Crude Oil and Natural Gas Reserve Changes, MMboe, 2010
Figure 32: EXCO Resources, Inc., Crude Oil Production and Reserves Metrics, MMbbl, 2006-2010
Figure 33: EXCO Resources, Inc., Oil Reserves, End of Period, By Country/Region, MMbbl, 2006-2010
Figure 34: EXCO Resources, Inc., Oil Production, By Country/Region, MMbbl, 2006-2010
Figure 35: EXCO Resources, Inc., Crude Oil Reserve Changes, MMbbl, 2010
Figure 36: EXCO Resources, Inc., Natural Gas Production and Reserves Metrics, Bcf, 2006-2010
Figure 37: EXCO Resources, Inc., Gas Reserves, End of Period, By Country/Region, Bcf, 2006-2010
Figure 38: EXCO Resources, Inc., Gas Production, By Country/Region, Bcf, 2006-2010
Figure 39: EXCO Resources, Inc., Natural Gas Reserve Changes, Bcf, 2010
Figure 40: EXCO Resources, Inc., Oil and Gas Reserves Life Index, Years, 2006-2010
Figure 41: EXCO Resources, Inc., Gas Reserve Life Index, By Country/Region, Years, 2006-2010
Figure 42: EXCO Resources, Inc., Oil & Gas Reserve Life Index, By Country/Region, Years, 2006-2010
Figure 43: EXCO Resources, Inc., Oil Reserve Life Index, By Country/Region, Years, 2006-2010
Figure 44: EXCO Resources, Inc., Upstream Capital Expenditure, $m, 2006-2010
Figure 45: EXCO Resources, Inc., Proved Acquisition Costs, By Country/Region, $m, 2006-2010
Figure 46: EXCO Resources, Inc., Unproved Acquisition Costs, By Country/Region, $m, 2006-2010
Figure 47: EXCO Resources, Inc., Development Costs, By Country/Region, $m, 2006-2010
Figure 48: EXCO Resources, Inc., Exploration Costs, By Country/Region, $m, 2006-2010
Figure 49: EXCO Resources, Inc., 3-Year Wt.Avg., Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs Per boe, $/boe, 2006-2010
Figure 50: EXCO Resources, Inc., Oil & Gas Finding & Development Cost/boe, 3-Year Average, By Country/Region, $/boe, 2006-2010
Figure 51: EXCO Resources, Inc., Oil & Gas Finding Cost per boe, 3-Year Average, By Country/Region, $/boe, 2006-2010
Figure 52: EXCO Resources, Inc., Reserve Replacement Cost per boe, 3-Year Average, By Country/Region, $/boe, 2006-2010
Figure 53: EXCO Resources, Inc., Proved Reserves Acquisition Cost per boe, 3-Year Average, By Country/Region, $/boe, 2006-2010
Figure 54: EXCO Resources, Inc., 3-Year Wt.Avg., Oil and Gas Production Replacement Ratio, %, 2006-2010
Figure 55: EXCO Resources, Inc., 3-Year Wt. Avg. Gas F&D Production Replacement, By Country/Region, %, 2006-2010
Figure 56: EXCO Resources, Inc., 3-Year Wt. Avg. Gas RRC Production Replacement, By Country/Region, %, 2006-2010
Figure 57: EXCO Resources, Inc., 3-Year Wt. Avg. Oil & Gas F&D Production Replacement, By Country/Region, %, 2006-2010
Figure 58: EXCO Resources, Inc., 3-Year Wt. Avg. Oil & Gas RRC Production Replacement, By Country/Region, %, 2006-2010
Figure 59: EXCO Resources, Inc., 3-Year Wt. Avg. Oil F&D Production Replacement, By Country/Region, %, 2006-2010
Figure 60: EXCO Resources, Inc., 3-Year Wt. Avg. Oil RRC Production Replacement, By Country/Region, %, 2006-2010
Figure 61: EXCO Resources, Inc., Revenue and Expenses, $m, 2006-2010
Figure 62: EXCO Resources, Inc., Depreciation, Depletion and Amortization From Upstream Oil & Gas Operations, By Country/Region, $m, 2006-2010
Figure 63: EXCO Resources, Inc., Net Income/ Loss From Upstream Oil & Gas Operations, By Country/Region, $m, 2006-2010
Figure 64: EXCO Resources, Inc., Oil & Gas Revenue, By Country/Region, $m, 2006-2010
Figure 65: EXCO Resources, Inc., Profit (loss) Before Taxation From Upstream Oil & Gas Operations, By Country/Region, $m, 2006-2010
Figure 66: EXCO Resources, Inc., Production Costs, By Country/Region, $m, 2006-2010
Figure 67: EXCO Resources, Inc., Total Expenses From Upstream Oil & Gas Operations, By Country/Region, $m, 2006-2010
Figure 68: EXCO Resources, Inc., Oil and Gas Revenue and Expenses, $/boe, 2006-2010
Figure 69: EXCO Resources, Inc., Lifting Cost per boe, By Country/Region, $/boe, 2006-2010
Figure 70: EXCO Resources, Inc., Annual Net Income per boe, By Country/Region, $/boe, 2006-2010
Figure 71: EXCO Resources, Inc., Oil & Gas Revenue per boe, By Country/Region, $/boe, 2006-2010
Figure 72: EXCO Resources, Inc., Total DD&A per boe, By Country/Region, $/boe, 2006-2010
Figure 73: EXCO Resources, Inc., Total Revenue per boe, By Country/Region, $/boe, 2006-2010
Figure 74: EXCO Resources, Inc., Oil and Gas Performance Metrics, 2006-2010
Figure 75: EXCO Resources, Inc., Land Holdings (Developed and Undeveloped Acreage), Acres, 2006-2010
Figure 76: EXCO Resources, Inc., Total Gross Undeveloped Acreage, By Country/Region, Acres, 2006-2010
Figure 77: EXCO Resources, Inc., Total Net Undeveloped Acreage, By Country/Region, Acres, 2006-2010
Figure 78: EXCO Resources, Inc., Total Gross Developed Acreage, By Country/Region, Acres, 2006-2010
Figure 79: EXCO Resources, Inc., Total Net Developed Acreage, By Country/Region, Acres, 2006-2010
Figure 80: EXCO Resources, Inc., Producible Oil and Gas Wells, 2006-2010
Figure 81: EXCO Resources, Inc., Gross Productive Gas Wells, By Country/Region, Number, 2006-2010
Figure 82: EXCO Resources, Inc., Gross Productive Oil & Gas Wells, By Country/Region, Number, 2006-2010
Figure 83: EXCO Resources, Inc., Gross Productive Oil Wells, By Country/Region, Number, 2006-2010
Figure 84: EXCO Resources, Inc., Net/Gross Oil & Gas Ratio, By Country/Region, %, 2006-2010
Figure 85: EXCO Resources, Inc., Net Productive Gas Wells, By Country/Region, Number, 2006-2010
Figure 86: EXCO Resources, Inc., Net Productive Oil & Gas Wells, By Country/Region, Number, 2006-2010
Figure 87: EXCO Resources, Inc., Net Productive Oil Wells, By Country/Region, Number, 2006-2010
Figure 88: EXCO Resources, Inc., Exploratory and Developed Wells, 2006-2010

Strong Focus on Development of the Haynesville and Marcellus Shale to Map Future Growth

EXCO Resources has shifted its focus from conventional resources to unconventional resources in the recent years. The major operating areas of the company include East Texas, North Louisiana, Appalachia and Permian basin, which are primarily rich in shale resources. The major shale plays of the company are the Haynesville/Bossier and the Marcellus shale plays. The development of these shale plays is one of the key strategies of the company. The company has planned a total capital budget of $710m for 2012, out of which the company plans to spend around $469m on the development of Haynesville/Bossier shale, and $128m on the development of its acreage in the Marcellus shale. The company is thus investing significantly in the shale resources in order to support its long term production growth.

Haynesville/Bossier Shale

The Haynesville/Bossier shale play encompasses a large geographic area in the East Texas and Northwest Louisiana, and is currently the second largest producing shale play in the US after the Barnett shale. The play is spread over a large area and is over-pressured, holding more gas in place per square mile than is present in the Barnett shale. Ultimate recoveries from the Haynesville shale could exceed 250 trillion cubic feet equivalent (tcfe), potentially making it one of the five largest natural gas fields in the world. The shale lies approximately 10,000-13,500 feet below the surface and produces from both Haynesville and Bossier formations.

EXCO Resources began operations in the Haynesville/Bossier shale in 2008. In 2009, the company entered into a JV with the BG Group in order to develop this shale play. The primary areas of operations of the company in the shale include DeSoto Parish, Louisiana, and the Shelby area. The Shelby area was jointly acquired by the company along with the BG Group in 2010. As of December 2010, the company owned a net acreage of 76,000 acres in the Haynesville/Bossier shale, and operated 21 horizontal drilling rigs in this acreage.