On Oct. 28, Exco Resources Inc. (NYSE: XCO) detailed its financial results for this year’s third quarter.
There was $42 million in net income, higher than the second quarter’s $2 million. The increase was due to volatile commodity prices causing higher unrealized gains on derivatives, the company said.
There was $94 million in adjusted EBITDA for the quarter, lower than the second quarter’s $105 million. Regarding production, 33 billion cubic feet equivalent (Bcfe) of oil, natural gas and NGL was produced during the quarter. This equates to 358 MMcfe/d. Exco added that these amounts were lower than the second quarter’s 35 Bcfe, or 383 MMcfe/d.
The East Texas/North Louisiana region produced 242 MMcfe/d during the quarter, less than the second quarter’s 257 MMcfe/d. The production decline partly resulted from the timing of completions, the company said.
South Texas produced 540 Mboe, which equates to about 5.9 boe/d, during the third quarter. This was lower than the second quarter’s 596 Mboe, or roughly-6.5 boe/d. The decrease was mostly due to reduced completions.
Appalachia produced 56 MMcfe/d, less than the second quarter’s 62 MMcfe/d. The decline was attributed to normal decreased production and additional downtime, the company said.
Oil, natural gas and NGL brought in $151 million in revenues during the quarter, less than the $183 million brought during the second quarter.
The average sales price per MMcfe decreased to $4.58 from second-quarter’s $5.25/MMcfe. This was due to lower commodity prices.
Direct operating costs were $14 million, lower than the second quarter’s $16 million. General and administrative costs declined also, to $14 million from $20 million in the second quarter.
There was $72 million in cash flow from operations, lower than second-quarter’s $84 million. In the third quarter, cash flow primarily supported drilling and development, Exco added. Regarding liquidity, Exco had $83 million in debt related to the Compass credit agreement, which is scheduled to close in the fourth quarter. On Oct. 22, the borrowing base under the credit agreement was increased to $900 million from $875 million, the company noted. There was $711 million in liquidity on Sept. 30.
During the quarter, $91 million was spent drilling 26 gross (11.6 net) operated wells and completing 21 gross (6.8 net) operated wells. For the remainder of the year, drilling will focus on the Haynesville and Eagle Ford, Exco said.
Dallas-based Exco develops and produces domestic oil and natural gas.
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