EXCO Resources Inc (NYSE:XCO) shares rose 62.61% on Tuesday following reports that the company will streamline its board of directors with concentrated equity ownership.
EXCO Resources Inc (NYSE:XCO) shares closed at $0.918 and chalked up an additional 2.35% gain in after-hours trading to $0.940. The company approximately $250 million of liquidity and expects liquidity utilization to average $10 million per month during the year.
Their planned restructuring program will target aggressive restructuring of gathering, transportation contracts, decreasing overhead, operating costs. It will also modify unprofitable contracts and reduce debt. The company has no debt maturities prior to July 2018.
This program will be directed by the streamlined board comprised of institutions that own or direct 140 million common shares that equal approximately 50% of the total shares outstanding. These represent the entities that have historically supported EXCO by providing debt and equity, allowing the company to leverage the flexible capital, restructuring expertise and support of these investors.
With that, EXCO Resources Inc (NYSE:XCO) was able to reiterate its commitment to better financial flexibility and increasing its long-term value to shareholders. More than a year ago, EXCO was able to start Phase One of this restructuring and announced its progress on its goals, which include reduced debt and fixed charges, materially reduced costs to enhance financial performance, and a repositioned asset portfolio to highest capital return projects.
“We have made solid progress transforming EXCO into a leaner, more efficient company,” noted EXCO CEO John Wilder in a press release. “We are asking our employees and key contractors and suppliers to do more with less. Our Board needs to set the tone at the top to do more with less and guide EXCO with a hands-on approach emphasizing total alignment with our concentrated equity ownership.”
With that, EXCO Resources Inc (NYSE:XCO) is a natural gas and oil company engaged in the exploration, exploitation, acquisition, development and production of onshore United States oil and natural gas properties with a focus on shale resource plays.
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