UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended March 31, 2004 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to |
Commission File Number 0-9204
EXCO RESOURCES, INC.
(Exact name of registrant as specified in its charter)
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Texas |
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74-1492779 |
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(State of incorporation) |
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(I.R.S. Employer Identification No.) |
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12377 Merit Drive |
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75251 |
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(Address of principal executive offices) |
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(Zip Code) |
(214) 368-2084
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
YES o NO ý
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
YES o NO ý
The number of shares of common stock, par value $0.01 per share, outstanding at April 30, 2004 was 1,000.
EXCO RESOURCES, INC.
INDEX
(1) Financial information for the periods prior to July 29, 2003, the date of the going private transaction, represents predecessor basis financial statements. See Note 1 to the condensed consolidated financial statements.
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PART I—FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
EXCO RESOURCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
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December
31, |
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March 31, |
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(Unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
7,333 |
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$ |
28,647 |
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Accounts receivable: |
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Oil and natural gas sales |
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13,514 |
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21,296 |
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Joint interest |
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3,857 |
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2,587 |
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Interest and other |
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1,895 |
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2,026 |
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Oil and natural gas derivatives |
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705 |
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122 |
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Marketable securities |
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818 |
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54 |
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Other |
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3,447 |
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3,077 |
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Total current assets |
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31,569 |
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57,809 |
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Oil and natural gas properties (full cost accounting method): |
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Unproved oil and natural gas properties |
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9,195 |
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15,057 |
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Proved developed and undeveloped oil and natural gas properties |
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416,679 |
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629,919 |
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Accumulated depreciation, depletion and amortization |
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(11,931 |
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(22,239 |
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Oil and natural gas properties, net |
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413,943 |
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622,737 |
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Gas gathering assets, net |
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— |
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17,891 |
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Office and field equipment, net |
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1,101 |
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5,142 |
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Deferred financing costs, net |
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1,565 |
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10,671 |
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Oil and natural gas derivatives |
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204 |
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59 |
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Advances to affiliates |
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46 |
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59 |
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Goodwill |
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53,346 |
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52,685 |
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Other assets |
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3,256 |
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3,215 |
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Total assets |
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$ |
505,030 |
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$ |
770,268 |
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See accompanying notes
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December
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March 31, |
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(Unaudited) |
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Liabilities and Stockholder's Equity |
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Current liabilities: |
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Accounts payable and accrued liabilities |
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$ |
25,308 |
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$ |
33,870 |
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Revenues and royalties payable |
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3,350 |
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6,801 |
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Income taxes payable |
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3,726 |
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5,228 |
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Current portion of asset retirement obligations |
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— |
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1,325 |
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Oil, natural gas and interest rate derivatives |
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12,804 |
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27,711 |
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Total current liabilities |
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45,188 |
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74,935 |
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Long-term debt |
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207,951 |
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445,472 |
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Asset retirement obligations and other long-term liabilities |
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18,343 |
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25,089 |
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Deferred income taxes |
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45,899 |
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37,375 |
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Oil and natural gas derivatives |
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3,780 |
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13,589 |
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Commitments and contingencies |
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— |
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— |
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Stockholder’s equity: |
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Common stock, $.01 par value: |
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Authorized shares—100,000 |
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Issued and outstanding shares—1,000 at December 31, 2003 and March 31, 2004 |
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1 |
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1 |
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Capital contributed by EXCO Holdings Inc. |
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172,045 |
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172,045 |
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Retained earnings (deficit) |
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4,177 |
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(4,889 |
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Accumulated other comprehensive income (loss): |
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Foreign currency translation adjustments |
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7,680 |
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6,657 |
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Unrealized gain (loss) on equity investments |
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(34 |
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(6 |
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Total stockholder’s equity |
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183,869 |
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173,808 |
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Total liabilities and stockholder’s equity |
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$ |
505,030 |
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$ |
770,268 |
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See accompanying notes.
4
EXCO RESOURCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amounts)
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Three
Months Ended |
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2003 |
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2004 |
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(Predecessor) |
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(Successor) |
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Revenues: |
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Oil and natural gas |
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$ |
27,010 |
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$ |
47,734 |
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Commodity price risk management activities |
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— |
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(26,878 |
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Other income (loss) |
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(1,697 |
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645 |
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Total revenues |
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25,313 |
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21,501 |
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Costs and expenses: |
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Oil and natural gas production |
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8,520 |
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10,791 |
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Depreciation, depletion and amortization |
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5,079 |
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10,756 |
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Accretion of discount on asset retirement obligations |
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