KeyBanc Downgrades EXCO Resources (XCO) to Hold

January 23, 2013 8:41 AM EST
Get Alerts XCO Hot Sheet
Price: $0.88 -1.12%

Rating Summary:
    0 Buy, 10 Hold, 5 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 3 | Down: 5 | New: 17
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KeyBanc downgraded EXCO Resources (NYSE: XCO) from Buy to Hold citing lowered expectations regarding the catalytic effects of transactional activity.

The firm comments, "With the Company's MLP of its Conventional assets expected to close in January, XCO's last remaining monetization of size we expect in the near term is the Company's TGGT midstream asset, which it owns in a 50/50 JV with BG Group. While the asset is now being marketed for sale, the delay likely cost TGGT the ability to sell at the premium valuations midstream assets were commanding earlier in 2012. Further, we think TGGT's location in the Haynesville will impact valuation, as production volumes are expected to continue to decline with uncompetitive drilling economics relative to oil plays at current natural gas prices."

For an analyst ratings summary and ratings history on EXCO Resources click here. For more ratings news on EXCO Resources click here.

Shares of EXCO Resources closed at $7.00 yesterday.

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