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, 2005 |
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 ý NO o
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 $0.01 per share, outstanding at April 30, 2005 was 1,000.
EXCO RESOURCES, INC.
INDEX
Item 1. Financial Statements (Unaudited)
EXCO RESOURCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
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December 31, |
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March 31, |
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(Unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
26,408 |
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$ |
278,306 |
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Accounts receivable: |
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Oil and natural gas sales |
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32,752 |
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17,708 |
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Joint interest |
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4,539 |
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1,714 |
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Income taxes and other |
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1,630 |
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12,457 |
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Deferred tax asset |
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3,121 |
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— |
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Oil and natural gas derivatives |
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273 |
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— |
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Marketable securities |
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69 |
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65 |
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Other |
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7,056 |
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2,948 |
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Total current assets |
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75,848 |
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313,198 |
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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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22,199 |
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20,396 |
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Proved developed and undeveloped oil and natural gas properties |
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794,844 |
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481,378 |
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Accumulated depreciation, depletion and amortization |
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(60,449 |
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(38,884 |
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Oil and natural gas properties, net |
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756,594 |
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462,890 |
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Gas gathering, office and field equipment, net |
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27,281 |
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28,557 |
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Goodwill |
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51,416 |
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19,984 |
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Deferred tax asset |
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— |
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12,744 |
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Deferred financing costs, net and other assets |
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10,884 |
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9,956 |
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Total assets |
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$ |
922,023 |
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$ |
847,329 |
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See accompanying notes.
3
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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Liabilities and Shareholder’s Equity |
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Current liabilities: |
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Accounts payable and accrued liabilities |
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$ |
42,871 |
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$ |
23,954 |
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Accrued interest payable |
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14,959 |
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6,489 |
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Revenues and royalties payable |
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8,641 |
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7,264 |
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Income taxes payable |
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8,665 |
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20,478 |
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Deferred income taxes |
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710 |
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4,921 |
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Current portion of asset retirement obligations |
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2,418 |
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1,781 |
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Oil and natural gas derivatives |
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27,431 |
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16,961 |
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Total current liabilities |
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105,695 |
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81,848 |
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Long-term debt |
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47,396 |
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1 |
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7¼% senior notes due 2011 |
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452,953 |
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452,852 |
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Asset retirement obligations and other long-term liabilities |
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26,330 |
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11,772 |
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Deferred income taxes |
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59,102 |
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— |
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Oil and natural gas derivatives |
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26,796 |
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26,243 |
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Commitments and contingencies |
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— |
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— |
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Shareholder’s equity: |
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Common stock, $.01 par value: Authorized shares-100,000; Issued and outstanding shares-1,000 at December 31, 2004 and March 31, 2005 |
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1 |
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1 |
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Additional paid-in capital |
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— |
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— |
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Capital contributed by EXCO Holdings Inc. |
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172,045 |
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172,045 |
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Retained earnings |
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10,338 |
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102,583 |
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Accumulated other comprehensive income: |
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Foreign currency translation adjustments |
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21,384 |
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— |
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Unrealized loss on equity investments |
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(17 |
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(16 |
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Total shareholder’s equity |
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203,751 |
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274,613 |
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Total liabilities and shareholder’s equity |
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$ |
922,023 |
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$ |
847,329 |
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See accompanying notes.
4
EXCO RESOURCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands)
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Three Months Ended |
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2004 |
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2005 |
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Revenues and other income: |
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Oil and natural gas |
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$ |
28,667 |
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$ |
38,929 |
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