The company said it will suspend the dividend due to "the recent decline in oil prices and oil and natural gas companies' securities." The company's board of directors said is believes "that EXCO's shareholders will be better served by reinvesting in our business rather than paying a dividend at this time."
EXCO will use the money that would have gone towards paying the dividend to "help unlock additional value" from its current assets in 2015, including the development of the Shelby natural gas asset in East Texas.
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TheStreet Ratings team rates EXCO RESOURCES INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXCO RESOURCES INC (XCO) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and generally disappointing historical performance in the stock itself."