Upstream energy company
EXCO Resources Inc.
) is set to offer senior notes worth $400.0 million. However, the
offering is dependent on some market related conditions. The
company added that the notes will likely mature by 2022.
Part of the offering's net proceeds is expected to be used for
repaying term loan. The remaining will be spent for 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 total production volume during 2013 from
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 may look at better-ranked players in the oil and
gas exploration and production sector like
Range Resources Corp.
World Point Terminals LP
Abraxas Petroleum Corp.
). Range Resources and World Point Terminals sport a Zacks Rank
#1 (Strong Buy), while Abraxas Petroleum has a Zacks Rank #2
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
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