Boston, MA 10/18/2013 (wallstreetpr) – EXCO Resources Inc (NYSE:XCO) has announced that it will declare unaudited 3Q13 results on October 29, 2013 after market close.
The company is one of the several low cost producers of natural gas and is monetizing the high demand and prices of LNG. The company has announced that it is selling its equity interest in TGGT Holdings LLC to Azure Midstream Holdings LLC. EXCO, through its wholly owned subsidiary, EXCO Operating Company, LP, along with BG Group plc are joint owners of TGGT Holdings. Azure will be paying both the companies a total of $875 million in cash and the balance by way of 8% equity interest in Azure. This values TGGT holdings to $910 million. The company expects to complete the transaction in the fourth quarter itself. EXCO will receive approximately $230 million after TGGT pays off its credit agreements. The company plans to utilize the proceeds to reduce the asset sale tranche under EXCO’s credit agreement.
The announcement comes close to the heels of another takeover by EXCO. EXCO had announced in July, 2013 that it was taking over assets of Chesapeake Energy Corp (NYSE:CHK) in the Haynesville shales and Eagle Ford for $1 billion. The 55,000 acres in Eagle Ford, Texas produced 6,100 BOE (barrels of oil equivalent) per day in May. Haynesville shale spans Louisiana, Texas and Arkansas. The net daily output from this asset was 114 million cubic feet of natural gas equivalent in May, 2013. As on December, 2012, the company had reserves of around 1 trillion cubic-feet equivalents with 92.7% being natural gas and 96.3% were proved-developed reserves. The company has market capitalization of $1.56 billion and the earnings per share last year were ($1.74).
The stock of the company opened at $7.22 per share and moved in the range of $7.07 to $7.25 before closing at $7.18, a downside of 0.28%.