Richard Zeits
Oil & gas, commodities, long/short equity, research analyst

EXCO Resources: Fundamentals Remain Weak, Despite Leadership Change

Last Thursday, EXCO Resources (NYSE:XCO) issued a press release announcing the resignation of the company's CEO Douglas H. Miller. The market reacted with an 8% stock price run-up during the following trading session. However, the news does not provide much reason for optimism. The unexpected announcement likely reflects strategy challenges at the company and highlights controversy around EXCO's aggressive use of leverage and numerous complex JV structures.

The CEO's departure will inevitably lead to extended organizational uncertainty at the company, at the time when focus on execution and operational efficiencies is particularly important. Key problems EXCO is currently facing - the weak drilling returns in the company's core natural gas business and excessive leverage - will remain and...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details