Wilbur Ross Buys $45.7 Million EXCO Shares in June
Texas-based EXCO has onshore oil and natural gas properties in East Texas, North Louisiana, Appalachia and the Permian. The company is looking to grow primarily through acquisitions in shale resource holdings in East Texas/North Louisiana and Appalachia, joint venture opportunities and expanded midstream assets with BG Group that streamline its delivery to markets.
In the first quarter, the company had to reduce its rig count from 23 at year end to 14 at the end of the quarter due to low natural gas prices, which was not unusual for the industry. It expects to continue the trend and end the year with 8 to 10 rigs. Natural gas prices have fallen from over $4 January to $1.89 in April 2012. They have since risen to near $3, a 2012 high. Correspondingly, XCO’s shares rose more than 18% in the last three month period.
In a July 16 interview with NBC, Ross said that recent problems with coal would benefit natural gas, but if natural gas prices rise, it could make coal more competitive.
EXCO has bolstered its cash position to $366 million, a company high, in the first quarter. It has total long-term liabilities and debt of approximately $2.5 billion.
See Wilbur Ross’ portfolio here.