Tickers in this Article: XCO, RRC, KWK, HK
EXCO Resources (NYSE:XCO) is remaining a public company and recently announced the end of the company's review of strategic alternatives. This review was initiated in January 2011 after EXCO Resources received a buyout offer at $20.50 per share from the CEO of the company. (To help understand why some companies go private, read Why Public Companies Go Private.)

TUTORIAL: Financial Statements

Now that it's certain that EXCO Resources will continue to be a public company for a while longer, it seems a good time to review the company's oil and gas assets, along with its recent progress on developing those properties.

Summary
EXCO Resources reported proved reserves of 1.5 Tcfe at the end of 2010, utilizing the commodity pricing levels mandated by the Securities and Exchange Commission (SEC). The company reported net production of 514 million cubic feet of natural gas equivalents per day as of the first week of July 2011.

EXCO Resources expects net production in 2011 to average between 501 and 534 million cubic feet of natural gas equivalents per day. The company is also forecasting significant growth through 2015 and expects production to reach between 1.01 and 1.14 billion cubic feet of natural gas equivalents per day by that year.

EXCO Resources will spend $976 million in capital in 2011 to develop oil and gas properties, with a focus on the Haynesville Shale, Marcellus Shale and various properties in the Permian Basin.

Haynesville Shale
EXCO Resources has 152,000 net acres under lease in Louisiana and Texas, with approximately 76,000 net acres prospective for the Haynesville Shale. The company is currently operating 22 rigs here and participated in 20.4 net wells during the second quarter of 2011.

Other operators active in the Haynesville Shale include Petrohawk Energy (NYSE:HK), which has 225,000 net acres under lease. (For more on how these companies profit, see Unearth Profits In Oil Exploration And Production.)

Marcellus Shale
EXCO Resources has 379,000 net acres under lease in the Appalachian Basin, with approximately 140,000 net acres of this leasehold prospective for the Marcellus Shale. The company is currently operating three rigs here and participated in 2.7 net wells during the second quarter of 2011. EXCO Resources will add rigs into the Marcellus Shale during the balance of the year and plans to end the year with as many as six rigs.

Other operators active in the Marcellus Shale include Range Resources (NYSE:RRC), which is putting 86% of its 2011 capital budget into developing this play.

Permian Basin
EXCO Resources has also shifted capital towards more oil development and is involved with the development of the Canyon Sands and other shallow oil formations in the Permian Basin. The company participated in 18 gross wells during the second quarter of 2011.

Buyouts
EXCO Resources was not the only exploration and production company to consider going private. Quicksilver Resources (NYSE:KWK) formed a transaction committee to review a buyout offer after receiving an inquiry from a large shareholder. The committee has since disbanded after the shareholder group did not make an offer.

The Bottom Line
EXCO Resources officially ended its review of strategic alternatives and will stay public after a buyout offer from the CEO of the company was not accepted. The company is active in developing oil and gas assets in the onshore portion of the United States. (To learn more about oil and gas, check out Oil And Gas Industry Primer.)

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