There are a group of traders who are always trading XCO and when they see something "fishy", they hammer it. I read the article and didn't see any wrong with it. Anyway, good to see you posting here again.I hope you are doing alright on your trades.
Thanks for your response Duy. I hope you're doing well too. I'm not too worried and I have noticed that these traders like to manipulate the stock contrary to the general trend so they can buy shares cheap. They're not getting mine :-)....
DALLAS--(BUSINESS WIRE)-- EXCO Resources, Inc. (NYSE:XCO) (“EXCO”) today announced BG Group plc (“BG Group”) has elected not to acquire 50% of the recently acquired producing and undeveloped oil and gas assets in the Haynesville shale formation (“Haynesville”). EXCO closed the acquisition of the Haynesville assets on July 12, 2013 for a purchase price of $288 million, after customary preliminary purchase price adjustments. These assets were subject to BG Group's right to acquire a 50% interest, which was formally offered to BG Group on July 13, 2013.
As a result of BG Group’s election and continued strong operating performance, EXCO has raised its full year 2013 adjusted EBITDA guidance from approximately $435 million to approximately $450 million. EXCO’s full year 2013 guidance was initially $296 million, which was raised to $341 million with the March quarter earnings release, and subsequently increased to $435 million with the June quarter in connection with the recently announced Eagle Ford and Haynesville acquisitions.
Douglas H. Miller, EXCO’s Chairman and Chief Executive Officer, stated “With BG Group’s decision not to participate, EXCO will be able to fully benefit from the Haynesville assets’ strong base production and additional drilling inventory with upside development opportunities.”
In connection with the Eagle Ford and Haynesville acquisitions, EXCO amended its credit agreement which includes a $400 million asset sale requirement. The asset sale requirement was reduced to $269 million as a result of the participation agreement with affiliates of Kohlberg Kravis Roberts & Co. L.P. If BG Group had elected to participate, the proceeds, net of the applicable borrowing base assigned to the properties, of approximately $60 million, would have been used to reduce the asset sale tranche. EXCO will continue to execute on planned sales of certain assets and has until July 2014 to eliminate the asset sale tranche.
xco is on the hook for $60 ml they apparently were not expecting-
If BG Group had elected to participate, the proceeds, net of the applicable borrowing base assigned to the properties, of approximately $60 million, would have been used to reduce the asset sale tranche. EXCO will continue to execute on planned sales of certain assets and has until July 2014 to eliminate the asset sale tranche.