Markets

EXCO Gets Notice for Non-Compliance of NYSE Listing Rules

US-based oil and natural gas explorer, EXCO Resources Inc.XCO recently received a notice from New York Stock Exchange ("NYSE") for failing to comply with a continued listing rule under section 802.01C of the NYSE Listed Company Manual. As per the standard, the minimum average closing price required to sustain its listing on the NYSE is $1.00 per share. However, the average closing price of the shares of EXCO Resources dropped below $1 per share over a period of 30 consecutive trading days.

Per the rules, the company can retrieve its compliance with the NYSE standard listing guidelines within a period of six months from the date of the NYSE notice. For this, the common shares of EXCO Resources must attain a closing price of at least $1 per share as well as an average closing price of $1 per share for 30 consecutive trading days on the last trading day of any calendar month within the six-month period.

For the time being, the company will continue to trade on the NYSE, subject to the compliance of other listing stipulations, under the symbol XCO with an additional label of "BC" denoting below compliance status. However, if EXCO Resources fails to cure its deficiency, shares of the company will get delisted from the NYSE.

This could adversely impact the company by reducing its market price and liquidity as well as impeding its ability to raise equity financing. Therefore EXCO Resources is examining several alternatives to reclaim its compliance, including a reverse share split. It is also assessing various transactions like divestment of its South Texas properties and issuance of additional indebtedness to enhance its liquidity.

EXCO Resources is an oil and gas production and development company headquartered in Dallas with its chief operations in Texas, North Louisiana and the Appalachia region. The company has significantly underperformed the Zacks categorized US Oil and Gas Exploration & Production industry over the prior three months. During the aforesaid period, EXCO shares registered a decline of around 29% while the broader industry gained around 5%.

Investors may consider some well-ranked stocks in the industry like Abraxas Petroleum Corp. AXAS , Now Inc. DNOW and Northern Oil and Gas Inc. NOG . All these companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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