EXCO Resources, Inc. (NYSE:XCO) (“EXCO”) today announced second quarter results for 2012.
- Adjusted net income, a non-GAAP measure adjusting for non-cash gains and losses from derivative financial instruments (derivatives), non-cash ceiling test write-downs and items typically not included by securities analysts in published estimates, was $0.05 per diluted share for the second quarter 2012.
- GAAP results were a net loss of $2.32 per diluted share for the second quarter 2012. The second quarter 2012 includes a $429 million pre-tax non-cash ceiling test write-down of oil and natural gas properties.
- Oil, natural gas and natural gas liquids (NGLs) production was 50 Bcfe, or 550 Mmcfe per day, for the second quarter 2012 compared with 537 Mmcfe per day in the first quarter 2012 and 504 Mmcfe per day in the second quarter 2011. Effective with the second quarter 2012, we began reporting NGL volumes separately and have recast prior period volumes to conform to current period reporting. While our production increases from 2011 are primarily attributable to volumes from the Haynesville shale, we have reduced drilling activity in the Haynesville shale in 2012 and future quarterly production volumes are expected to decline as a result. Due to increased drilling in the Marcellus shale, year over year production increased 31% in our Appalachia region. Our Permian production was relatively flat with the prior quarter and prior year.
- Oil, natural gas and NGL revenues for the second quarter 2012 were $118 million compared with second quarter 2011 revenues of $207 million. Our average sales price per Mcfe decreased by 48% from the prior year resulting in lower revenues despite a 9% increase in production. When the impacts of cash settlements from our oil and natural gas derivatives are considered, oil and natural gas revenues were $180 million for the second quarter 2012.
- Adjusted earnings before interest, taxes, depreciation, depletion and amortization and other non-cash income and expense items (adjusted EBITDA, a non-GAAP measure) for the second quarter 2012 was $112 million.
- Our direct operating costs were $0.38 per Mcfe for the second quarter 2012 compared with $0.45 per Mcfe for the second quarter 2011. We continued taking significant steps in reducing our operating costs in all of our operating areas in response to the low natural gas price environment. Specific actions implemented during the first six months of 2012 included shutting in certain marginal producing wells, reducing compressor rentals, renegotiating water disposal arrangements and modifying chemical treatment programs.
- TGGT’s average throughput was approximately 1.5 Bcf per day during the second quarter 2012. We use the equity method to account for our investment in TGGT. During the second quarter 2012, our 50% interest in TGGT’s operations provided equity income of $16 million. This was an increase of $6.1 million over our net share of TGGT's second quarter 2011 net income, adjusted for certain non-recurring items (a non-GAAP measure).
Douglas H. Miller, EXCO’s Chief Executive Officer, commented, "During the second quarter of 2012, we increased our production levels from the 2011 second quarter by 9% and also increased production compared to the first quarter of 2012. The production level exceeded the top of our guidance target of 545 Mmcfe per day, in spite of a reduction in rigs from 14 at the end of the first quarter of 2012 to eight in July.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV