On the Donut Radar: EXCO Resources, Inc.

EXCO Resources, Inc. (XCO) (“EXCO” or the “Company”) today reiterated its commitment to improving its financial flexibility and enhancing long-term value for shareholders through the continued execution of a comprehensive consensual restructuring program (the “Restructuring Program”). EXCO currently has approximately $250 million of liquidity and, after giving effect to the reduction of its 2016 capital budget to $85 million, the Company expects liquidity utilization to average $10 million per month during 2016. EXCO has no debt maturities prior to July 2018.

EXCO’s Restructuring Program will target an aggressive restructuring of gathering and transportation contracts, decreasing corporate overhead and operating costs, modifying unprofitable contracts, and reducing debt. The Restructuring Program will be directed by a streamlined Board of Directors (the “Board”) that represent institutions that own or direct 140 million common shares that equal approximately 50% of the total shares outstanding. These institutions historically supported EXCO through providing debt and equity. EXCO intends to continue to leverage the flexible capital, restructuring expertise and support of these investors to implement the Restructuring Program to drive value for its stakeholders through the dislocation in the market.

The 2018 note last traded for about 40 cents with a YTM of over 50%. They have about a billion of debt that's senior to about $350 million of unsecured debt. Market cap is now over $300 million. Best part: the PV-10 was only about $400 million at $50 oil!