NEW YORK (TheStreet) -- Shares of EXCO Resources (XCO) are falling 36.57% to $1.10 in mid-morning trading on Friday, after the company announced it formed a special committee to look into its strategic alternatives.
EXCO Resources is a Dallas-based oil and natural gas company that explores for, acquires, develops and produces onshore U.S. oil and natural gas properties.
The committee will help the company to continue to execute its strategic plan focusing on improving capital structure and providing structural liquidity, while seeking to optimize the company's asset portfolio.
"The special committee will evaluate various strategic and restructuring alternatives, including exchanges of existing indebtedness for common stock (including privately negotiated exchanges), the renegotiation or repurchase of existing indebtedness, the issuance of equity, divestitures of assets, the issuance of additional indebtedness, in court and/or out of court restructurings, and the restructuring of its gathering, transportation and certain other contracts," the company announced.
EXCO Resources warned that there can be no assurances given in regards to the outcome or timing of the process.
Additionally, the decline in oil prices is also weighing on EXCO Resources stock today.
The price of the commodity is trading in the red as the dollar strengthens and as investors cash in on recent gains, Reuters reports.
Separately, TheStreet Ratings has set a "sell" rating and a score of E+ on Exco Resources stock. This is based on the combination of unfavorable investment measures, which should drive this stock to significantly underperform the majority of stocks that TheStreet Ratings covers. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: XCO