Harbinger Group Inc. : Harbinger Group Inc.'s Energy Partnership with EXCO
Resources Closes Acquisition of Conventional Oil and Natural Gas Assets from
Affiliate of BG Group
Harbinger Group Inc.'s Energy Partnership with EXCO Resources Closes
Acquisition of Conventional Oil and Natural Gas Assets from Affiliate of BG
NEW YORK, March 5, 2013 -- Harbinger Group Inc. (NYSE: HRG) ("HGI" or the
"Company") announced today that its energy partnership (the "Partnership")
with EXCO Resources, Inc. ("EXCO"; NYSE: XCO) successfully closed on its
previously announced acquisition of conventional oil and natural gas assets
from an affiliate of BG Group plc.
Pursuant to the transaction, the Partnership acquired certain conventional oil
and natural gas assets in the Danville, Waskom and Holly fields in East Texas
and North Louisiana, including and above the Cotton Valley formation, from an
affiliate of BG Group plc for $130.9 million, after customary preliminary
closing adjustments. The economic effective date of the transaction was
January 1, 2013. These properties represent an incremental working interest in
certain properties already purchased by the Partnership from EXCO.
"This acquisition is consistent with HGI and EXCO's intention to
opportunistically add incremental cash flow to the Partnership through the
acquisition of mature, conventional assets over time," said Omar Asali, HGI's
President. "In this highly complementary transaction, we are adding assets
that EXCO has a history of operating and the Partnership knows well. We look
forward to continuing to build value for investors through our energy
A definitive agreement for the Partnership to enter into this transaction with
an affiliate of BG Group plc was announced on February 15, 2013. The
Partnership funded this acquisition using its revolving credit agreement. In
connection with the closing, the borrowing base under the Partnership's
revolving credit agreement was increased by $70 million to an aggregate of
The foregoing summary does not purport to be a complete description of the
transaction and related agreements. Interested parties should read HGI's
other announcements and public filings regarding this transaction and related
agreements by reviewing HGI's filings with the Securities and Exchange
About Harbinger Group Inc.
Harbinger Group Inc. ("HGI"; NYSE: HRG) is a diversified holding company.
HGI's principal operations are conducted through subsidiaries that offer life
insurance and annuity products; branded consumer products such as batteries,
personal care products, small household appliances, pet supplies, and home and
garden pest control products; and energy assets. HGI is principally focused on
acquiring controlling and other equity stakes in businesses across a
diversified range of industries and growing its existing businesses. In
addition to HGI's intention to acquire controlling equity interests, HGI may
also from time to time make investments in debt instruments and acquire
minority equity interests in companies. Harbinger Group Inc. is headquartered
in New York and traded on the New York Stock Exchange under the symbol HRG.
For more information on HGI, visit: www.harbingergroupinc.com.
About EXCO Resources, Inc.
EXCO Resources, Inc. is an oil and natural gas acquisition, exploitation,
development and production company headquartered in Dallas, Texas with
principal operations in East Texas, North Louisiana, Appalachia and West
Forward Looking Statements
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of
1995: Some of the statements contained in the Press Release and certain oral
statements made by our representatives from time to time regarding the matters
discussed herein are or may be forward-looking statements. Such
forward-looking statements are based upon management's current expectations
that are subject to risks and uncertainties that could cause actual results,
events and developments to differ materially from those set forth in or
implied by such forward-looking statements. These statements and other
forward-looking statements made from time-to-time by the Company and its
representatives, including the expected ability of the Partnership to make
distributions, are based upon certain assumptions and describe future plans,
strategies and expectations of the Company, are generally identifiable by use
of the words "believes," "expects," "intends," "anticipates," "plans,"
"seeks," "estimates," "projects," "may" or similar expressions. Factors that
could cause actual results, events and developments to differ include, without
limitation, the ability of the Company's subsidiaries (including, the
Partnership) to generate sufficient net income and cash flows to make upstream
cash distributions, capital market conditions, that the Company may not be
successful in identifying any suitable future acquisition opportunities, the
risks that may affect the performance of the operating subsidiaries of the
Company and those factors listed under the caption "Risk Factors" in the
Company's most recent Annual Report on Form 10-K and Quarterly Report on Form
10-Q, filed with the Securities and Exchange Commission. All forward-looking
statements described herein are qualified by these cautionary statements and
there can be no assurance that the actual results, events or developments
referenced herein will occur or be realized. The Company does not undertake
any obligation to update or revise forward-looking statements to reflect
changed assumptions, the occurrence of unanticipated events or changes to
future operation results
Tara Glenn, Investor Relations
Harbinger Group Inc.
450 Park Avenue, 30th Floor
New York, NY 10022
Jamie Tully/Michael Henson
Sard Verbinnen& Co
SOURCE: Harbinger Group Inc.
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Source: Harbinger Group Inc. via Thomson Reuters ONE
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