EXCO updates on Bluescape agreement and related executive appointment

EXCO Resources Inc. (NYSE: XCO) has provided an update on the closing under the services and investment agreement with Energy Strategic Advisory Services LLC (ESAS), a wholly owned subsidiary of Bluescape Resources Company LLC. Additionally, C. John Wilder, executive chairman of Bluescape, has joined EXCO’s board of directors and has been appointed EXCO’s executive chairman.

Wilder and ESAS will continue to lead EXCO’s transformational strategy that focuses on six core areas: liability management, operational performance, capital deployment, risk management, portfolio repositioning, and performance management.

ESAS has purchased from EXCO 5,882,353 shares of EXCO’s common stock for a purchase price of $10 million at $1.70 per share (the 10-day volume weighted average price of EXCO’s common stock as of March 30).

ESAS is required to own at least $23.5 million of EXCO’s common stock based on the purchase price thereof (reduced by amendment from $50 million) as of the first anniversary of the closing of the agreement by purchasing at least $13.5 million of additional shares of EXCO’s common stock through open market purchases pursuant to a Rule 10b5-1 plan that, subject to compliance with the limitations and restrictions under applicable laws, the agreement and EXCO’s insider trading policies, (1) includes a minimum weekly purchase requirement of 10% of EXCO’s average weekly trading volume, and (2) will have an effective date no later than two weeks after the first day of ESAS’s next open trading window period pursuant to EXCO’s insider trading policies.

All required shareholder approvals have been obtained, including approval of ESAS’ previously issued warrants to purchase up to 80,000,000 shares of EXCO’s common stock, which warrants remain outstanding subject to the previously disclosed return hurdle exercisability criteria and termination and forfeiture provisions.

Wilder commented, “We continue to believe EXCO has significant potential by uniting EXCO’s strong operating capabilities with Bluescape Resources Company LLC's proven commercial and turnaround track record. By executing a long-term and disciplined performance improvement plan, EXCO can be repositioned to deliver significant value to its shareholders.”

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...