DALLAS--(BUSINESS WIRE)--EXCO Resources, Inc. (NYSE:XCO) (“EXCO”) today announced that it received approximately $230 million from BG Group, plc (LSE: BG.L) (“BG Group”) in exchange for a 50% interest in oil and natural gas assets prospective for Marcellus shale development that EXCO recently purchased from Chief Oil & Gas LLC and related parties. The development of these assets will be governed by EXCO’s Appalachia joint venture with BG Group.
On January 31, 2011, TGGT Holdings, LLC (“TGGT”), a 50%-indirectly owned joint venture subsidiary of EXCO, entered into a credit agreement with commercial banks and BG Group as a co-lender and declared and paid a $250 million cash dividend ($125 million to EXCO). TGGT’s credit agreement has a borrowing base of $500 million and matures on January 31, 2016.
All of the proceeds received from BG Group and TGGT were used to pay down a portion of EXCO’s credit agreement. As of February 8, 2011, the amount of outstanding indebtedness under the EXCO credit agreement is $549 million, resulting in $451 million of available borrowing capacity not considering $15 million of letters of credit outstanding.
EXCO Resources, Inc. is an oil and natural gas exploration, exploitation, development and production company headquartered in Dallas, Texas with principal operations in East Texas, North Louisiana, Appalachia, and West Texas.
Additional information about EXCO Resources, Inc. may be obtained by contacting EXCO’s Chairman, Douglas H. Miller, or its President, Stephen F. Smith, at EXCO’s headquarters, 12377 Merit Drive, Suite 1700, Dallas, TX 75251, telephone number (214) 368-2084, or by visiting EXCO’s website at www.excoresources.com. EXCO’s SEC filings and press releases can be found under the Investor Relations tab.
This release may contain forward-looking statements relating to future financial results, business expectations and business transactions. Business plans may change as circumstances warrant. Actual results may differ materially from those predicted as a result of factors over which EXCO has no control. Such factors include, but are not limited to: estimates of reserves, commodity price changes, regulatory changes and general economic conditions. These risk factors and additional information are included in EXCO’s reports on file with the Securities and Exchange Commission. EXCO undertakes no obligation to publicly update or revise any forward-looking statements.