Exco Resources Inc. (NYSE: XCO) detailed its second-quarter 2014 financial results on July 29.
There was $2 million in net income, a higher amount than in the first quarter, the company said, noting that the increase was due to volatile commodity prices.
There was $105 million in adjusted EBITDA, compared with first-quarter 2014’s $112 million, Exco said, noting that the EBITDA surpassed capex in both time frames.
Regarding production, the company produced 35 billion cubic feet equivalent (Bcfe) of oil, natural gas and NGL in the second quarter. Exco noted that this amount equates to 383 MMcfe/d, and added that the second-quarter amounts were lower than the first-quarter amounts (37 Bcfe or 407 MMcfe/d).
“Natural production declines” caused the decreased production, and additional production from 12 gross operated wells turned to sales also contributed, the company said.
The revenues from oil, natural gas and NGL were also lower quarter-over-quarter, the company said. Second-quarter revenues totaled $183 million, down from first-quarter revenues of $198 million, Exco added.
Operating costs totaled $16 million, or 45 cents/Mcfe, lower than first-quarter 2014’s $19 million, or 51 cents/Mcfe. These lower costs were due to “cost reduction initiatives” in the Eagle Ford and reduced operating costs in Appalachia, the company said.
General and administrative costs were higher in the second quarter--$20 million compared with first-quarter 2014’s $17 million. The increase was due to $2 million in severance costs, the company said.
Cash flows from operations were lower in the second quarter--$84 million compared with $94 million in the first quarter. Second-quarter cash flows supported drilling and development, the company said. A total of $78 million was spent on development in the second quarter. A total of 32 gross (9.9 net) operated wells were drilled, while 25 gross (7.9 net) were completed, the company said, noting that for the remainder of the year, development is focused on the Haynesville and Eagle Ford Shales.
The capex budget was increased to $80 million by the board of directors for the remainder of the year, the company said.
Dallas-based Exco Resources Inc. explores, acquires and develops domestic onshore natural gas and oil.
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