US firm Exco Resources emerges from Chapter 11 bankruptcy

US oil and natural gas exploration company Exco Resources has completed its financial restructuring process and emerged from Chapter 11 filed in January 2018.

The company has now reduced its leverage by more than $1.1bn and is set to proceed with $325m in committed exit financing from a new credit facility.

This will provide significant financial flexibility to Exco Resources to support its ongoing operations, as well as investment in the business.

The company noted that it will now continue to engage in the exploration, acquisition, development and production of onshore US oil and natural gas properties.

It will also focus on shale resource plays in key basins in Texas, Louisiana and the Appalachia region.

Exco Resources CEO and president Hal Hickey said: “Through the restructuring process, we have significantly improved our capital structure and reduced our debt, and our operations have progressed uninterrupted.

“Exco is now better positioned to capitalise on our strong asset base and operational expertise as we continue enhancing our business and serving our customers, partners and other stakeholders.”

The company filed voluntary petitions last January for a court-supervised reorganisation under Chapter 11 of the US Bankruptcy Code to facilitate a restructuring of its balance sheet.

Hickey added: “Our successful emergence from this process is a testament to our former board and talented employees, whose continued focus on our operational initiatives enabled us to execute on our drilling and completion activities while maintaining an exemplary safety record throughout this process.”

In April 2017, Exco Resources signed a definitive agreement with a subsidiary of Venado Oil and Gas to sell its oil and natural gas properties in South Texas.