Another Gas Producer Cuts 2009 Spending Plans (XCO)

EXCO Resources, Inc. (NYSE:XCO) is getting clipped after the company reported worse-than-expected results

Adjusted EPS for the quarter reached $0.13 and for the year EPS was $0.82. Analysts had been expecting EPS of $0.18 for the quarter and $1.02 for the year. Revenue for the quarter totaled $272 million, lower than estimates of $304.4 million, and annual revenue came in at $1.49 billion, above estimates of $1.34 billion.

EXCO plans to cut capital spending from $989 million in 2008 to $582 million in 2009. Rig counts are down and commodity prices remain low and falling.

EXCO’s share price is off about 75% from 52-week highs, and pre-open trading has it down another 3.5% from yesterday’s close of $9.99. The natural gas business is not much fun any more.

Paul Ausick
February 25, 2009