PJT Partners Investment Banking Pitch Book
Asset Overview
EXCO has a strong collection of assets, with significant near-term drilling opportunities as well as the
potential to develop contingent acreage for which financial resources were unable to be allocated given
the strained market environment.
1 Gas-levered portfolio with significant, high quality drilling inventory
> 250+ gross locations with IRRs of >25% at spot prices as of 9/29/17
> 92% HBP as of December 31, 2016
> 3-rig program expected in 4Q 2017
> Large position in the most active development region in East Texas ("ETX") / North Louisiana ("NLA")
> South Texas Tier 1 oil wells have highest PV/I with IRRs of 65% at $3.00/MMBtu and $50/bbl
2 Enhanced drilling and completion techniques have successfully increased EXCO's (and
competitors') well productivity
> Longer laterals delivering nearly 150% more volume in -275 days online in NLA
> Larger completions and higher fracture intensity delivering 45% more volume in ~600 days online in ETX
> Competitors have recently been successful in pursuing recompletion programs in existing horizontal wells by installing
a liner system and refracture stimulating (QEP, CHK)
> EXCO drilled 2nd fastest well in Haynesville to-date at 22 days
3 Upside in both NLA and Appalachia
> Unlock Bossier shale value in NLA with enhanced completion designs
> Utica potential in Central PA is emerging and EXCO is positioned to begin appraisal testing
Source: Company filings and presentations.
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