EXCO Resources, Inc. Announces Execution of Definitive Agreement to Sell
TGGT Holdings, LLC
DALLAS -- October 17, 2013
EXCO Resources, Inc. (NYSE:XCO) (“EXCO”) today announced that its wholly-owned
subsidiary, EXCO Operating Company, LP (“EOC”), and an affiliate of BG Group
plc (“BG Group”) have entered into a definitive agreement to convey 100% of
the equity interest in TGGT Holdings, LLC (“TGGT”) to Azure Midstream Holdings
LLC (“Azure”) for an aggregate sales price of approximately $910 million, of
which approximately $875 million will be in cash and the remaining portion
will be in the form of an approximate 8% equity interest in Azure (“Equity
Interest”) split equally between EXCO and BG Group, subject to closing
adjustments and customary terms and conditions.
EXCO expects to receive net cash proceeds of approximately $230 million after
TGGT pays off its credit agreement and net of transaction costs and closing
adjustments. The cash proceeds will be used to reduce the asset sale tranche
under EXCO’s credit agreement. EXCO anticipates completing the transaction in
the fourth quarter of 2013.
Douglas H. Miller, EXCO’s Chairman and Chief Executive Officer, stated, “We
are pleased to have reached this agreement with Azure and look forward to a
long-term relationship in the East Texas and North Louisiana area.”
Goldman, Sachs & Co. served as financial advisor to EXCO, and Morgan Stanley
served as financial advisor to BG Group.
EXCO Resources, Inc. is an oil and natural gas exploration, exploitation,
development and production company headquartered in Dallas, Texas with
principal operations in Texas, North Louisiana and Appalachia.
Additional information about EXCO Resources, Inc. may be obtained by
contacting Chris Peracchi, Director of Finance and Investor Relations and
Treasurer, 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. The conditions to closing the
transaction contemplated by the definitive agreement may not be met or the
anticipated proceeds from the proposed transaction 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
EXCO Resources, Inc.
Chris Peracchi, 214-368-2084
Director of Finance and Investor Relations and Treasurer
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