EXCO Resources, Inc. Receives Continued Listing Standard Notice from NYSE
04 August 2015 - 7:10AM
Business Wire
EXCO Resources, Inc. (NYSE:XCO) (“EXCO” or the “Company”) today
announced that on July 30, 2015, EXCO was notified by the New York
Stock Exchange (“NYSE”) of its noncompliance with continued listing
standards because the average closing price of its common shares
over a period of 30 consecutive trading days had fallen below $1.00
per share, which is the minimum average closing price per share
required to maintain listing on the NYSE.
Under the NYSE rules, during the six-month period from the date
of the NYSE notice, EXCO can regain compliance if the price per
share of EXCO’s common shares on the last trading day of any
calendar month within such period and the 30 trading day average
price per common share for that month is at least $1.00. During
this period, subject to EXCO’s compliance with other NYSE continued
listing requirements, EXCO’s common shares will continue to be
traded on the NYSE under the symbol “XCO” but will have an added
designation of “.BC” to indicate the status of the common shares as
below compliance.
EXCO intends to notify the NYSE of its intent to cure this
noncompliance and is currently exploring its options for regaining
compliance, including by way of effecting a reverse share split,
subject to the approval of EXCO’s shareholders. The Company
anticipates that a reverse share split, when completed, will cure
the deficiency and the Company will regain compliance with the NYSE
continued listing requirement. If EXCO is unable to regain
compliance, the NYSE will initiate procedures to suspend and delist
EXCO’s common shares.
The NYSE notification does not affect EXCO’s business operations
or its Securities and Exchange Commission (“SEC”) reporting
requirements and does not conflict with or cause an event of
default under any of the Company’s material debt agreements.
Furthermore, the NYSE notice is not related to the NYSE continued
listing requirement that a listed company have a market
capitalization of at least $50 million. Based on the closing price
of the Company’s common stock on August 3, 2015, the Company’s
market capitalization was approximately $158 million. A reverse
share split would not be expected to affect the Company’s market
capitalization.
Harold L. Hickey, EXCO’s Chief Executive Officer and President,
said, “The negative commodity price outlook has weighed on the
market sentiment for small-cap E&P companies and, as a group,
we’ve been negatively impacted. Our shares have traded below $1.00
per share for a period of time long enough for the NYSE to issue a
non-compliance notice. The notice begins a lengthy process of
approximately six months, during which EXCO can regain compliance
by trading above an average price of $1.00 for 30 trading days.
Regaining compliance can be accomplished by improvements in market
sentiment or a reverse share split of our equity that would be
subject to shareholder approval. We will be closely monitoring the
situation, and we expect to remain listed on the NYSE.”
EXCO Resources, Inc. is an oil and natural gas exploration,
exploitation, development and production company headquartered in
Dallas, Texas with principal operations in Texas, North Louisiana
and the Appalachia region.
Additional information about EXCO Resources, Inc. may be
obtained by contacting Chris Peracchi, EXCO’s Vice President of
Finance and Investor Relations, and Treasurer, 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. 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: the continued listing
of EXCO’s common shares on the NYSE, the trading price of EXCO’s
common shares on the NYSE, continued volatility in the oil and gas
markets, the estimates of reserves, commodity price changes,
regulatory changes and general economic conditions. These risk
factors are included in EXCO’s reports on file with the SEC. Except
as required by applicable law, EXCO undertakes no obligation to
publicly update or revise any forward-looking statements.
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EXCO Resources, Inc.Chris Peracchi, 214-368-2084Vice President
of Finance and Investor Relations, and Treasurer