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EXCO Resources, Inc. Announces Declaration of Cash Dividend

DALLAS--(BUSINESS WIRE)--Oct. 1, 2009-- EXCO Resources, Inc. (NYSE: XCO) (“EXCO”) today announced that its Board of Directors approved the commencement of a dividend program at an initial quarterly cash dividend rate of $0.025 per share of EXCO’s common stock. The first quarterly dividend of $0.025 per share is payable on October 26, 2009 to holders of record on October 12, 2009. Any future declaration of dividends, as well as the establishment of record and payment dates, is subject to the approval of EXCO’s Board of Directors.

Douglas H. Miller, EXCO’s Chief Executive Officer, commented, “We are pleased to reward our shareholders with this dividend program. We have recently significantly reduced our debt and strengthened our financial position through the alliance with BG Group and the success of our asset divestiture program. As a result, our expected free cash flow is sufficient to enable us to begin paying a cash dividend to our shareholders. This dividend program reflects the Board’s confidence in our business strategy, the strength of our balance sheet and our commitment to creating value for our shareholders while broadening our investor base.”

EXCO Resources, Inc. is an oil and natural gas exploration, exploitation, development and production company headquartered in Dallas, Texas with principal operations in East Texas, North Louisiana, Appalachia, West Texas and the Mid-Continent.

Additional information about EXCO Resources, Inc. may be obtained by contacting EXCO’s Chairman, Douglas H. Miller, or its President, Stephen F. Smith, at EXCO’s headquarters, 12377 Merit Drive, Suite 1700, Dallas, TX 75251, telephone number (214) 368-2084, or by visiting EXCO’s website at www.excoresources.com. EXCO’s SEC filings and press releases can be found under the Investor Relations tab.

This release may contain forward-looking statements relating to future financial results, business expectations and business transactions. Business plans may change as circumstances warrant. Actual results may differ materially from those predicted as a result of factors over which EXCO has no control. Such factors include, but are not limited to: estimates of reserves, commodity price changes, regulatory changes and general economic conditions. These risk factors and additional information are included in EXCO’s reports on file with the Securities and Exchange Commission. EXCO undertakes no obligation to publicly update or revise any forward-looking statements.

Source: EXCO Resources, Inc.

EXCO Resources, Inc.
Douglas H. Miller, Chairman, 214-368-2084
or
Stephen F. Smith, President, 214-368-2084