Confused? EXCO beat estimates on net income, earning 3c / shr adjusted, which losing out on revenue big time....the answer is simple - it is all about their hedges and accounting. The headline revenue number does not include the benefit of their hedges while the NI does...so the big decline in NG prices raised net income but reduced headline rev....with hedges accounted for, rev was $185mn -> in line....don't get too excited about the NI beat as there will be payback next few quarters as hedges ain't working no more. Best news is credit line was down to 1.1 and they got a bit more wiggle room on the covenant...so they can shop TGGT around w/o a fire sale....GL and listen in tomorrow AM!
Disclosure: I am long XCO.
Additional disclosure: i am long the common and their bonds