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EXCO Resources Provides Capital Budget Update for 1H16

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Upstream energy firm EXCO Resources, Inc.XCO provided an update on its capital budget and drilling activity for the first six months of 2016. The company added that it would invest in certain select assets but will defer other projects until there is an improvement in commodity prices.

EXCO Resources plans drilling and completion capital spending of about $70 million for the first half of the next year, a 59% plunge from this year's investment of $171 million for the comparable period.

The company plans to develop nine wells by the end of June and 18 wells by the end of Aug 2016. The upstream energy firm expects to fund the capital spending through cash generated from operations and funds under its credit agreement.

EXCO Resources added that it would focus on the development of natural gas assets in North Louisiana and East Texas as it expects returns between 20% and 35% from these regions.

Capital budget for the latter half of the year will be determined on the basis of commodity prices along with well costs and performances as it intends to preserve liquidity for future growth projects.

Dallas, TX-based EXCO Resources is engaged in the exploration, development and production of oil and natural gas. The company's operations are primarily based in Texas, North Louisiana and Appalachia.

Currently, EXCO Resources carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the oil and gas exploration and production space are Antero Resources Corporation AR , Contango Oil & Gas Company MCF and Apache Corp. APA . While Antero Resources and Contango sport a Zacks Rank #1 (Strong Buy), Apache holds a Zacks Rank #2 (Buy).

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APACHE CORP (APA): Free Stock Analysis Report

EXCO RESOURCES (XCO): Free Stock Analysis Report

CONTANGO OIL&GS (MCF): Free Stock Analysis Report

ANTERO RESOURCE (AR): Free Stock Analysis Report

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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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