EXCO Resources Prices Senior Notes
Upstream energy company
EXCO Resources Inc.
) declared the pricing of senior notes worth $500.0 million, due
to mature in 2022. The company added that the notes are expected
to carry an interest of 8.500% and will likely be priced at 100%
of the principal value.
EXCO Resources stated that out of the estimated total of $490.0
million proceeds from the offering, part of it will be utilized
for repaying term loan. The remaining will be spent toward
lowering revolving commitment under the Amended and Restated
Credit Agreement of the company.
EXCO Resources is expected to release first-quarter 2014 results
on Apr 29, 2014, after the closing bell. The Zacks Consensus
Estimate for the company's first-quarter earnings is pegged at 4
cents per share.
Dallas, TX-based EXCO Resources is primarily involved in the
exploration, development and production of oil and gas resources
as well as the acquisition of those properties. As of Dec 31,
2013, the total estimated proved reserves came in at 1.1 trillion
cubic feet equivalent.
We commend the company's disciplined cost control measure which
is reflected in the significant year-over-year reduction in total
development and exploration expenses in 2013. However,
substantial reduction in production volumes in 2013 in comparison
to the previous year is a matter of concern.
EXCO Resources currently carries a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.
Meanwhile, one can look at better-ranked players in the oil and
gas exploration and production sector like
Range Resources Corporation
World Point Terminals LP
Abraxas Petroleum Corp
). Range Resources and World Point sport a Zacks Rank #1 (Strong
Buy), while Abraxas Petroleum carries a Zacks Rank #2 (Buy).
(We are reissuing this article to correct a mistake. The original
article, issued Monday, Apr 14, 2014, and it should no longer be
ABRAXAS PETE/NV (AXAS): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
WORLD POINT TER (WPT): Free Stock Analysis
EXCO RESOURCES (XCO): Free Stock Analysis
To read this article on Zacks.com click here.