Another Gas Producer Cuts 2009 Spending Plans (XCO)

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By Douglas A. McIntyre Updated Published
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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

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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