EXCO receives continued listing standard notice from NYSE

EXCO Resources Inc. (NYSE: XCO) was notified on July 30 by the New York Stock Exchange (NYSE) of its noncompliance with continued listing standards because the average closing price of its common shares over a period of 30 consecutive trading days had fallen below $1.00 per share, which is the minimum average closing price per share required to maintain listing on the NYSE.

Under NYSE rules, during the six-month period from the date of the NYSE notice, EXCO can regain compliance if the price per share of EXCO’s common shares on the last trading day of any calendar month within such period and the 30 trading day average price per common share for that month is at least $1.00. During this period, subject to EXCO’s compliance with other NYSE continued listing requirements, EXCO’s common shares will continue to be traded on the NYSE under the symbol “XCO” but will have an added designation of “.BC” to indicate the status of the common shares as below compliance.

EXCO intends to cure this noncompliance and is currently exploring its options for regaining compliance, including by way of effecting a reverse share split, subject to the approval of EXCO’s shareholders. The company anticipates that a reverse share split, when completed, will cure the deficiency and the company will regain compliance with the NYSE continued listing requirement. If EXCO is unable to regain compliance, the NYSE will initiate procedures to suspend and delist EXCO’s common shares.

The NYSE notification does not affect EXCO’s business operations or its Securities and Exchange Commission (SEC) reporting requirements and does not conflict with or cause an event of default under any of the company’s material debt agreements. Furthermore, the NYSE notice is not related to the NYSE continued listing requirement that a listed company have a market capitalization of at least $50 million. Based on the closing price of the company’s common stock on Aug. 3, the company’s market capitalization was $158 million. A reverse share split would not be expected to affect the company’s market capitalization.

Harold L. Hickey, EXCO’s CEO and president, said, “The negative commodity price outlook has weighed on the market sentiment for small-cap E&P companies and, as a group, we’ve been negatively impacted. Our shares have traded below $1.00 per share for a period of time long enough for the NYSE to issue a non-compliance notice. The notice begins a lengthy process of approximately six months, during which EXCO can regain compliance by trading above an average price of $1.00 for 30 trading days. Regaining compliance can be accomplished by improvements in market sentiment or a reverse share split of our equity that would be subject to shareholder approval. We will be closely monitoring the situation, and we expect to remain listed on the NYSE.”

EXCO Resources is an oil and natural gas exploration, exploitation, development, and production company headquartered in Dallas, Texas, with principal operations in Texas, north Louisiana, and the Appalachia region.


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