EXCO Resources Inc. (NYSE: XCO) and a wholly owned subsidiary of Bluescape Resources Co. LLC have executed a services and investment agreement. Relating to this agreement, EXCO has also made several executive-level appointments.
Under the agreement terms, Bluescape will purchase $10 million in EXCO’s common stock from EXCO and an additional $40 million in common stock in the open market within one year from closing. Bluescape will also receive a cash retainer and a warrant package designed to reward outstanding relative value outperformance by EXCO’s common stock.
Upon closing of the agreement, C. John Wilder, executive chairman of Bluescape, will join EXCO’s board of directors and become EXCO’s executive chairman. Wilder and Bluescape will lead the development and execution of a performance improvement plan focused on maximizing value for EXCO’s shareholders. Wilder was chairman of the board and CEO of TXU Corp. from 2004 through his completion of the sale of TXU in 2007. Since TXU, Wilder has been active in investing and operating in the E&P industry through multiple endeavors, one of which includes serving as executive chairman of Bluescape Resources.
Additionally, Harold L. Hickey, EXCO’s president and COO, has been appointed CEO and president of EXCO. Hickey became EXCO’s president in 2013 and COO in 2005, and has worked at EXCO since 2001. He also worked at Mobil Oil for 20 years.