EXCO Resources, Inc. Files Voluntary Petitions for Chapter 11 Reorganization to Facilitate Financial Restructuring

Company to Explore Strategic Alternatives to Maximize Value

Operations to Continue as Usual During Restructuring Process

DALLAS–(BUSINESS WIRE)–EXCO Resources, Inc. (NYSE: XCO.BC) (OTC Pink: XCOO) ("EXCO" or the
"Company") today announced that in order to facilitate a restructuring
of its balance sheet, the Company and certain of its subsidiaries have
filed voluntary petitions for a court-supervised reorganization under
Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy
Court for the Southern District of Texas (“the Court”). EXCO intends to
operate in the ordinary course of business during the restructuring
process.

EXCO continues to engage in constructive discussions with its creditor
constituencies regarding the terms of a financial restructuring plan. In
conjunction with this process, EXCO will explore potential strategic
alternatives to maximize value for the benefit of its stakeholders,
including the marketing of the Company’s assets, which may result in a
sale of certain or substantially all of its assets under Section 363 of
the Bankruptcy Code or as part of the plan of reorganization.

EXCO has received a commitment of $250 million in debtor-in-possession
(“DIP”) financing from certain of its existing lenders including Fairfax
Financial Holdings Limited and its affiliates; Bluescape Resources
Company LLC and its affiliates, including Cove Key Management; and
JPMorgan Chase Bank, N.A., and certain of its affiliates. The DIP
financing, which is subject to court approval, is expected to refinance
the Company’s existing Reserve-Based Credit Agreement and support the
Company’s day-to-day operations during the restructuring process. The
Company intends to pay vendors in full for all goods and services
provided after the filing date.

Harold L. Hickey, EXCO’s Chief Executive Officer and President, said,
“Like many other companies in our industry, EXCO’s financial position
has been negatively impacted by the sustained downturn in commodity
prices and uncertainty in the energy market. Despite having taken
actions to mitigate the impact of these factors, including renegotiating
certain commercial contracts, reducing costs, restructuring our balance
sheet and divesting assets, we continue to face increasing liquidity
pressures as we navigate the competitive environment. We believe that
this financial restructuring process will enable us to strengthen our
balance sheet as we continue to operate in the ordinary course of
business. With our strong asset base and operational expertise, we
remain confident in our ability to deliver value for the benefit of our
stakeholders.”

Hickey continued, “I want to express my gratitude to the entire EXCO
team for their unwavering dedication and hard work. I am confident our
employees will continue to focus on safe and efficient execution of our
day-to-day operations. We at EXCO are also grateful for the ongoing
support of our service providers, business partners and other
stakeholders during the restructuring process.”

In conjunction with the Chapter 11 process, the Company has filed a
number of customary motions with the Court seeking court authorization
to support its operations, including the payment of employee wages,
salaries and benefits. EXCO is also seeking court authorization to
continue meeting its obligations to its royalty, working interest and
joint interest billing partners as well as certain vendors. The Company
expects to receive court approval for these requests shortly.

Additional information is available at www.excoresources.com/restructuring/
and by calling (800) 683-4332. Court filings and other information
related to the court-supervised proceedings are available at a website
administered by the Company’s claims agent, Epiq Systems, at http://dm.epiq11.com/EXCO.

As previously announced, the Company has retained PJT Partners LP as
financial advisor and Alvarez & Marsal North America, LLC as
restructuring advisor. The Company continues to retain Kirkland & Ellis
LLP as legal advisor.

About EXCO Resources, Inc.

EXCO Resources, Inc. is an oil and natural gas exploration,
exploitation, acquisition, development and production company
headquartered in Dallas, Texas with principal operations in Texas, North
Louisiana and the Appalachia region. EXCO’s headquarters are located at
12377 Merit Drive, Suite 1700, Dallas, TX 75251.

Forward-Looking Statements

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: discussions regarding EXCO’s restructuring, EXCO’s
liquidity, sources of capital resources and ability to maintain
compliance with debt covenants, 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.

Contacts

EXCO Resources, Inc.
Tyler Farquharson, 214-368-2084
Vice
President, Chief Financial Officer and Treasurer
www.excoresources.com
or
Media
Inquiries Only:
Joele Frank, Wilkinson Brimmer Katcher
Michael
Freitag / Aura Reinhard / Torrey Leroy
212-355-4449