EXCO Resources Inc. (NYSE: XCO) amended its credit agreement, the company said Feb. 9. It will provide financial flexibility while the company defers drilling until commodity prices improve, EXCO added.
The facility’s borrowing base was set at $725 million, and leverage ratios were amended.
At year-end 2014, EXCO’s total debt was $1.5 billion, down from about $2.1 billion on July 31, 2013, the company said. At year-end 2014, there was $586 million of liquidity on a borrowing base of $725 million.
Regarding capex, the board of directors approved a 2015 capital budget of up to $275 million. This includes about $215 million for development and completions, EXCO said. High-value acreage projects that produce good returns in the current price environment are the focus, the company added.
Cash flow from operations and credit borrowings will fund the 2015 budget, the company said.
South Texas drilling activity was reduced, and Haynesville/Bossier natural gas development will take 69% of the drilling and completions capital.
Regarding production, at year-end 2014, there was about 1.3 trillion cubic feet equivalent (Tcfe) of proved reserves, 91% natural gas and 47% proved developed. About 96% of the proved reserves were from EXCO’s shale properties. About 69% was located in the Haynesville and Bossier shales, 18% in the Marcellus and 9% in the Eagle Ford, the company said.
The PV-10 value at year-end 2014 was about $1.5 billion. Reserves were priced at $4.35 per million British thermal units of natural gas, $94.99 per barrel (bbl) of oil and $33.03/bbl of NGL.
About 52 Bcfe came from drilling in the Shelby area of East Texas, and 26 Bcfe came from the Eagle Ford, the company said.
Regarding operated rig count, four rigs will be the average, with three in the Haynesville/Bossier and one in the Eagle Ford and Buda Formation, the company said. In Appalachia, one rig will drill two appraisal wells.
In North Louisiana and East Texas, the company plans to spud 25 gross (11.9 net) horizontal wells. It will turn to sales 32 gross (17.6 net) horizontal wells.
Dallas-based EXCO Resources Inc. acquires and develops domestic oil and natural gas.
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