EXCO Resources, Inc. Announces $1 Billion Acquisition of Eagle Ford and Haynesville Assets

  EXCO Resources, Inc. Announces $1 Billion Acquisition of Eagle Ford and
  Haynesville Assets

Business Wire

DALLAS -- July 3, 2013

EXCO Resources, Inc. (NYSE:XCO) (“EXCO”) today announced that it has entered
into definitive agreements to acquire producing and undeveloped oil and gas
assets in the Eagle Ford and Haynesville shale formations (“Eagle Ford” and
“Haynesville”, respectively) for an aggregate purchase price of approximately
$1 billion, subject to closing adjustments and customary terms and conditions,
from subsidiaries of Chesapeake Energy Corporation.

Acquisition Highlights:

  *Eagle Ford

       *Approximately $680 million purchase price
       *Approximately 55,000 net acres
       *Approximately 120 total producing wells including 94 Eagle Ford
         producing wells
       *Average net production of approximately 6,100 barrels of oil
         equivalent per day in May
       *Adds approximately 300 identified drilling locations
       *Farm-Out option on an additional approximately 147,000 net acres

  *Haynesville

       *Approximately $320 million purchase price
       *Average net production of approximately 114 million cubic feet of
         natural gas equivalent per day in May
       *Non-operating interests in 170 EXCO operated wells in EXCO core area

            *Approximately 5,600 net acres

       *Operating interests in 11 operated wells directly offset to EXCO core
         area

            *Approximately 4,000 net acres
            *Adds approximately 55 identified drilling locations

Douglas H. Miller, EXCO’s Chairman and Chief Executive Officer, stated “These
acquisitions are consistent with our strategy of targeting opportunities in
both existing core areas and new plays. The Eagle Ford acquisition establishes
our position in the high value oil core area of the Eagle Ford shale, and
delivers immediate production and reserve additions, significant resource
potential, and solid economic returns. The Haynesville acquisition adds to our
leading core position and provides an expanded platform to apply our technical
expertise, best-in-class drilling and completion focus, and project execution
skills.”

The effective dates of the Eagle Ford and Haynesville acquisitions are April
1, 2013 and January 1, 2013, respectively. EXCO anticipates completing the
transactions in July 2013 with the Haynesville acquisition closing first.

EXCO expects to finance the Haynesville acquisition under the Company’s
existing credit agreement. The Haynesville acquisition is subject to an
affiliate of BG Group plc.’s preferential right to acquire 50% of the
Haynesville properties.

EXCO has secured a financing commitment from J.P. Morgan pursuant to which the
existing credit agreement will be replaced with a new credit agreement that
has an initial $1.6 billion borrowing base, which includes a $400 million
bridge loan tranche, and will be utilized to finance the Eagle Ford
acquisition. The undeveloped locations in the Eagle Ford are expected to be
drilled and developed under a partnership with entities advised by or
affiliated with Kohlberg Kravis Roberts & Co. L.P. (collectively, “KKR”),
including KKR Financial Holdings LLC (NYSE:KFN). EXCO and KKR have entered
into a non-binding Memorandum of Understanding whereby KKR will fund
approximately $133 million, which represents 50% of certain undeveloped
acreage included in the Eagle Ford acquisition, and become the drilling
capital partner in the Eagle Ford acreage.

EXCO will host a conference call on Monday, July 8, 2013 at 9:00 a.m. (central
time) to discuss the contents of this release and respond to questions. Please
call (800) 309-5788 if you wish to participate, and ask for the EXCO
conference call ID#15101136. The conference call will also be webcast on
EXCO’s website at www.excoresources.com under the Investor Relations tab.
Presentation materials related to this release will be posted on EXCO’s
website on Monday, July 8, 2013.

A digital recording will be available starting two hours after the completion
of the conference call until July 22, 2013. Please call (800) 585-8367 and
enter conference ID#15101136 to hear the recording. A digital recording of the
conference call will also be available on EXCO’s website.

EXCO Resources, Inc. is an oil and natural gas exploration, exploitation,
development and production company headquartered in Dallas, Texas with
principal operations in East Texas, North Louisiana, Appalachia, and West
Texas.

Additional information about EXCO Resources, Inc. may be obtained by
contacting EXCO’s Chairman and Chief Executive Officer, Douglas H. Miller, or
its President and Chief Operating Officer, Harold L. Hickey, or its Executive
Vice President and Chief Financial Officer, Mark F. Mulhern, at EXCO’s
headquarters, 12377 Merit Drive, Suite 1700, Dallas, TX 75251, telephone
number (214) 368-2084, or by visiting EXCO’s website at www.excoresources.com.
EXCO’s SEC filings and press releases can be found under the Investor
Relations tab.

This release may contain forward-looking statements relating to future
financial results, business expectations and business transactions. Business
plans may change as circumstances warrant. In addition, the conditions to
closing the transactions contemplated by the definitive purchase agreements
may not be met or the anticipated benefits from the proposed transactions may
not be fully realized. Actual results may differ materially from those
predicted as a result of factors over which EXCO has no control. Such factors
include, but are not limited to: estimates of reserves, commodity price
changes, regulatory changes and general economic conditions. These risk
factors and additional information are included in EXCO’s reports on file with
the Securities and Exchange Commission. EXCO undertakes no obligation to
publicly update or revise any forward-looking statements.

Contact:

EXCO Resources, Inc.
Douglas H. Miller, 214-368-2084
ChairmanandChief Executive Officer
or
Harold L. Hickey, 214-368-2084
President and Chief Operating Officer
or
Mark F. Mulhern, 214-368-2084
Executive Vice President and Chief Financial Officer
www.excoresources.com
 
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