Fourth Quarter and Full Year 2010 Review

February 24, 2011

PPT – 193 – 2010 Full Year Review

 PPT – 193 – 2010 Full Year Review

Management Participants

Doug Miller Chairman and CEO

Steve Smith President and CFO

Hal Hickey Vice President and COO

Paul Rudnicki Vice President

EXCO Resources, Inc. 2

 PPT – 193 – 2010 Full Year Review

2010 In Review

• Pro forma Q4 2009 to Q4 2010 production growth of 70%

– During 2010 grew production from 212 Mmcfe/d to 385 Mmcfe/d

• Replaced 576% of production

– Increased Proved Reserves by 56% to 1.5 Tcfe (SEC case) at an attractive all-in F&D cost of $0.54
per Mcfe

• Continued success in our Haynesville shale program

– Commenced multi-well pad, 80 acre development in the Holly area
– Acquired second core position in Shelby area; strong initial results
– Added 24,000 net acres to our Shelby position

• Entered into joint venture with BG Group in Appalachia

– Concentrated in 2 areas for immediate development; adding acreage in each
– Accelerating appraisal across remaining acreage

EXCO Resources, Inc. 3

 Results and Corporate Highlights
Steve Smith

PPT – 193 – 2010 Full Year Review

 PPT – 193 – 2010 Full Year Review

Corporate Highlights

   Q4 2010 Actuals Full Year 2010 Actuals
(in thousands, except per share and production) Amount Per Share(5) Amount Per Share(5)
Oil and natural gas revenues $           134,898 $           515,226
Cash settlements of derivatives $             50,795 $           217,455
Oil and natural gas revenues including derivatives $           185,693 $           732,681
Adjusted net income(1) $             24,279 $                0.11 $           137,359 $ 0.64

Adjusted EBITDA(1) $          114,410 $           478,022

Cash flow from operations (1)(2) $          106,304 $                0.49 $           433,877 $                2.01
Average daily production – Mmcfe/d                     350                     307

Direct F&D Cost(3) $                 0.54

F&D Cost(4) $                 0.49
All‐in F&D Cost $                 0.54

• Fourth quarter 2010 production of 350 Mmcfe/d represents a 70% increase over pro forma Q4 2009
• Direct all-in F&D of $0.54 per Mcfe includes the benefit of $351 million of BG carry; direct all-in
F&D cost of $1.03 per Mcfe excluding the carry

(1) Non-GAAP measure, please see the Investor Relations section of our website (www.excoresources.com) under the tab Non-GAAP reconciliations
(2) Cash flow from operations before changes in working capital and including settlements of derivative financial instruments with a financing element
(3) Direct F&D cost excludes revisions

EXCO Resources, Inc. 5

(4) F&D Cost includes revisions other than price
(5) Calculated using diluted shares of 216,125,000 for Q4 2010 and 215,735,000 for full year 2010
 PPT – 193 – 2010 Full Year Review

Liquidity and Financial Position

Rating Agency Standing
Pro Forma  Corporate Rating S&P Moody's
$ in thousands 12/31/2010 12/31/2010(4) November 2010 BB- B1
(1) Bond Rating S&P Moody's
Cash $          205,946 $              205,946
November 2010 B B3

Bank debt (LIBOR + 2% to 3%)             849,000                  560,450

Senior notes due 2018 (7 1/2%)(2)            750,000                 750,000
Total debt          1,599,000              1,310,450

Net debt $      1,393,054 $           1,104,504

Borrowing base $      1,000,000 $           1,000,000

Unused borrowing base(3) $          135,498 $              424,050
Unused borrowing base plus cash(1)(3) $          341,444 $              629,996
• Completed offering of $750 million 7 ½% Senior Notes due 2018; portion of proceeds used to
repay existing $445 million 7 ¼% Senior Notes due 2011
• Current pro forma liquidity of ~$630 million
• Closed $500 million TGGT credit facility in January; received $125 million distribution from
TGGT in January
(1) Includes $161.7 million of JV restricted cash at 12/31/10
(2) Excludes bond discount

EXCO Resources, Inc. 6

(3) Net of $15.5 million in letters of credit
(4) 12/31/10 pro forma debt adjustments include reduction of $229.7 million for BG’s reimbursement of 50% of the Chief acquisition, reduction of $125.0 million for distribution from TGGT, reduction of $21.6 million for BG
acreage reimbursements, increase of $42.8 million related to pending Appalachia acquisition, and an increase of $45.0 million due to post close Appalachia JV adjustment
 PPT – 193 – 2010 Full Year Review

Production and Debt Profile(1)

Increasing production while managing balance sheet

700 $3,500

600 $3,000

Net Debt Outstanding - $MM

500 $2,500
Net Production - Mmcfe/d

400 $2,000

300 $1,500

200 $1,000

100 $500

- $-

Net production Projected net production Net debt outstanding Projected net debt

• Replaced production monetized from 2009 – 2010 divestitures and JV transactions

– During 2010 increased daily production from 212 Mmcfe/d to 385 Mmcfe/d
(1)
(2)
YE 2010 and full year 2011 are pro forma for 50% of Chief acquisition and 50% of other pending Appalachia acquisition
YE exit rates EXCO Resources, Inc. 7
 Financial Review
Paul Rudnicki

PPT – 193 – 2010 Full Year Review

 PPT – 193 – 2010 Full Year Review

Fourth Quarter 2010 Guidance vs. Actuals

Fourth Quarter 2010

Guidance: Guidance:
(dollars in thousands, except per unit amounts) Low High Actual Description

Production:
Oil - Mbbls 180 188 183
Gas - Mmcf 32,498 34,292 31,094
Mmcfe 33,580 35,420 32,192
Mmcfe/d 365 385 350 Impacted by 21 Mmcfe/d of shut ins primarily due to offset completions

Differentials to NYMEX:
Oil per Bbl $ (4.00) $ (3.40) $ (3.34)
Gas per Mcf 95.0% 97.0% 101.5% BTU impact from the Permian area

Lease operating expense $ 19,800 $ 22,800 $ 20,123

Non-cash stock based compensation - LOE $ 200 $ 400 $ 201
Gathering expense - per Mcfe $ 0.40 $ 0.50 $ 0.60 Unused firm transportation commitments due to early project completion
Production tax rate 4.0% 5.0% 3.4% Severance tax abatement for Haynesville area

Other income(1) $ 250 $ 500 $ (4,169) Inventory valuation

DD&A rate per Mcfe $ 1.85 $ 1.95 $ 1.83

Asset retirement obligation $ 800 $ 1,100 $ 838

Cash G&A $ 22,500 $ 24,500 $ 23,023

Non-cash stock based compensation - G&A $ 4,000 $ 5,000 $ 5,772

Interest expense - cash $ 11,000 $ 13,000 $ 10,046 Increased capitalized interest

Interest expense - non-cash $ 1,800 $ 2,100 $ 1,937

Equity income in TGGT Holdings, LLC $ 8,000 $ 10,000 $ 3,968 Impacted primarily by right of way and other maintenance

Income tax rate 40.0% 40.0% 40.0%

Income tax deferred 93% 91% 112.0% Tax credit received in Q4

CAPEX $ 115,200 $ 135,200 $ 131,937

Fully diluted shares outstanding 215,000 217,000 216,125

Adjusted EBITDA at Midpoint (3) $127,200 $ 114,410

EXCO's share of TGGT EBITDA $ 10,000 $ 12,000 $ 7,141 Impacted primarily by right of way and other maintenance

(1)
(2)
Excludes $4.3 million of certain non-cash, non-recurring legal expense and $4.8 million of expenses associated with the potential going private transaction
Non-GAAP measure, please see the Investor Relations section of our website (www.excoresources.com) under the tab Non-GAAP reconciliations EXCO Resources, Inc. 9
 PPT – 193 – 2010 Full Year Review

Quarterly 2011 Guidance

Q1 2011E Q2 2011E Q3 2011E Q4 2011E 2011E

(dollars in thousands, except per unit amounts) Low High Low High Low High Low High Low High

Production:
Oil - Mbbls 203 211 203 211 206 214 206 214 818 850
Gas - Mmcf 34,332 35,184 46,102 49,694 50,284 58,516 53,964 63,116 184,682 206,510
Mmcfe 35,550 36,450 47,320 50,960 51,520 59,800 55,200 64,400 189,590 211,610
Mmcfe/d 395 405 520 560 560 650 600 700 519 580

Differentials to NYMEX:
Oil per Bbl $ (4.00) $ (3.40) $ (4.00) $ (3.40) $ (4.00) $ (3.40) $ (4.00) $ (3.40) $ (4.00) $ (3.40)
Gas per Mcf 96.0% 98.0% 96.0% 98.0% 96.0% 98.0% 96.0% 98.0% 96.0% 98.0%

Lease operating expense $ 19,000 $ 22,000 $ 19,500 $ 22,500 $ 20,000 $ 23,000 $ 20,500 $ 23,500 $ 79,000 $ 91,000
Non-cash stock based compensation - LOE $ 150 $ 350 $ 150 $ 350 $ 150 $ 350 $ 150 $ 350 $ 600 $ 1,400
Gathering expense - per Mcfe $ 0.45 $ 0.55 $ 0.45 $ 0.55 $ 0.45 $ 0.55 $ 0.45 $ 0.55 $ 0.45 $ 0.55
Production tax rate 3.5% 4.5% 3.5% 4.5% 3.5% 4.5% 3.5% 4.5% 3.5% 4.5%

Other income $ 250 $ 500 $ 250 $ 500 $ 250 $ 500 $ 250 $ 500 $ 1,000 $ 2,000

DD&A rate per Mcfe $ 1.85 $ 1.95 $ 1.85 $ 1.95 $ 1.85 $ 1.95 $ 1.85 $ 1.95 $ 1.85 $ 1.95

Asset retirement obligation $ 800 $ 1,100 $ 800 $ 1,100 $ 800 $ 1,100 $ 800 $ 1,100 $ 3,200 $ 4,400

Cash G&A $ 21,500 $ 23,500 $ 22,000 $ 24,000 $ 23,000 $ 25,000 $ 23,000 $ 25,000 $ 89,500 $ 97,500
Non-cash stock based compensation - G&A $ 3,500 $ 4,500 $ 3,500 $ 4,500 $ 3,000 $ 4,000 $ 5,500 $ 6,500 $ 15,500 $ 19,500

Interest expense - cash $ 11,500 $ 13,500 $ 11,500 $ 13,500 $ 12,000 $ 15,000 $ 12,000 $ 16,000 $ 47,000 $ 58,000
Interest expense - non-cash $ 1,800 $ 2,100 $ 1,800 $ 2,100 $ 1,800 $ 2,100 $ 1,800 $ 2,100 $ 7,200 $ 8,400

Equity income in TGGT Holdings, LLC $ 6,500 $ 8,500 $ 12,000 $ 15,000 $ 13,000 $ 18,000 $ 16,000 $ 23,000 $ 47,500 $ 64,500

Income tax rate 40% 40% 40% 40% 40% 40% 40% 40% 40% 40%
Income tax deferred 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

CAPEX $ 233,500 $ 253,500 $ 246,500 $ 266,500 $ 231,500 $ 251,500 $ 223,000 $ 243,000 $ 934,500 $ 1,014,500

Fully diluted shares outstanding 215,500 217,500 215,500 217,500 215,500 217,500 215,500 217,500 215,500 217,500

Adjusted EBITDA at Midpoint(1) $118,300 $164,300 $192,800 $207,600 $683,000

EXCO's share of TGGT EBITDA $ 10,000 $ 12,000 $ 17,000 $ 21,000 $ 18,000 $ 24,000 $ 22,000 $ 30,000 $ 67,000 $ 87,000

(1) 2011 estimates based on natural gas and oil NYMEX prices of $4.25 for Q1 and Q2, $4.50 for Q3 and Q4, and $90.00 for Q1 – Q4, respectively
EXCO Resources, Inc. 10
 PPT – 193 – 2010 Full Year Review

Year End SEC Total Proved Reserves(1)

Development costs

Reserves With Without

Total Proved Reserves F&D Costs Added BG Carry BG Carry
(dollars in thousands, except per Mcfe) Incurred Mmcfe Per Mcfe(2) Per Mcfe

Haynesville $ 166,980 565,099 $ 0.30 $ 0.92

Conventional 65,998 38,218 1.73 1.73
Exploratory 113,617 42,310 2.69 2.69
Total development and exploration $ 346,595 645,627 $ 0.54 $ 1.08
Revisions - other than price - 66,383 - -
Subtotal $ 346,595 712,010 $ 0.49 $ 0.98
Leasehold additions 37,518 - - -
Total $ 384,113 712,010 $ 0.54 $ 1.03

Reserves With Without

Total Proved Developed Reserves F&D Costs Added BG Carry BG Carry
(dollars in thousands, except per Mcfe) Incurred Mmcfe Per Mcfe(5) Per Mcfe

Haynesville $ 124,431 190,451 $ 0.65 $ 1.98

Conventional 65,998 19,246 3.43 3.43
Development (3) $ 190,429 209,697 $ 0.91 $ 2.11
Exploratory (4) 103,699 28,077 3.69 3.69
Total development and exploration $ 294,128 237,774 $ 1.24 $ 2.30

(1) Year end 2010 SEC reserve estimate pricing of $4.38 per Mcf for natural gas and $79.43 per Bbl for crude oil
(2) Haynesville adjusted for the benefit of $351 million of BG carry associated with our Haynesville shale total proved reserve additions
(3) Excludes $42.5 million of costs primarily associated with future proved developed reserve additions
(4)
(5)
Excludes $9.9 million of costs associated with future proved developed reserve additions
Haynesville adjusted for the benefit of $253 million of BG carry associated with our Haynesville shale proved developed reserve additions EXCO Resources, Inc. 11
 PPT – 193 – 2010 Full Year Review

Hedge Position and Strategy(1)

Annual NYMEX Contract Contract Contract % of Expected 

natural gas price per NYMEX oil price per Equivalent price per % Hedged
Production 
Mmcf Mcf Mbls Bbl Mmcfe Equivalent Hedged(1)(1)
Guidance
2011 86,635 5.30 547 111.32 89,917 5.78 45%
2012 53,070 5.37 275 95.70 54,717 5.69 23%
2013 5,475 5.99 - - 5,475 5.99 2%
Total 145,180 $ 5.35 822 $ 106.10 150,109 $ 5.75

Per Day NYMEX Contract Contract Contract % of Expected 

natural gas price per NYMEX oil price per Equivalent price per Production 
% Hedged
Hedged (1)(1)
Mmcf/d Mcf Mbls/d Bbl Mmcfe/d Equivalent Guidance
2011 237 5.30 1.5 111.32 246 5.78 45%
2012 145 5.37 0.8 95.70 150 5.69 23%
2013 15 5.99 - - 15 5.99 2%
Total 398 $ 5.35 2.3 $ 106.10 411 $ 5.75

• Tables include the following natural gas trades added since YE 2010

Mmcf Strike
2011     30,060 $    4.69
2012     25,620 $    5.06

(1) As of 12/31/2010 pro forma for trades entered into during January 2011; Q4 2011 guidance midpoint held flat beyond 2011 EXCO Resources, Inc. 12
 Operational Review
Hal Hickey

PPT – 193 – 2010 Full Year Review

 PPT – 193 – 2010 Full Year Review

Premier Asset Base Focused on Shale Resources

9,000+ drilling locations in the Haynesville/Bossier and Marcellus shale plays

Proved Reserves = 1.6 Tcfe • 1.6 Tcfe of Proved Reserves(1)

3P Reserves = 2.8 Tcfe
3P+ Reserves = 13.3 Tcfe Appalachia – 0.8 Tcf of shale assets booked as
Net Production(2) = 389 Mmcfe/d Pennsylvania proved with potential for significant
Net acreage(3): 614,000 Proved Total: 0.2 Tcfe future reserve adds
Total Employees: 927 3P Reserves = 0.4 Tcfe
3P+ Reserves = 6.1 Tcfe
Net Production: 34 Mmcfe/d
• Current net production of 389
West
Permian Net acreage: 379,000 Virginia Mmcfe/d(2)
Division Employees: 287
Proved Total: 0.1 Tcfe – Proved reserve life of 11.3 years
3P Reserves = 0.1 Tcfe and 57% Proved Developed
3P+ Reserves = 0.2 Tcfe
Net Production: 22 Mmcfe/d • Significant Unproved Upside
Net acreage: 83,000
Division Employees: 34 – ~300,000 gross acres in ETX/NLA
(~152,000 net), with ~76,000 net
acres with Haynesville/Bossier
Texas Louisiana shale potential
– ~815,000 gross acres in
East Texas / North Louisiana Appalachia (~379,000 net), with
~140,000 net acres with Marcellus
Proved Total: 1.3 Tcfe shale potential
3P Reserves = 2.3 Tcfe
3P+ Reserves = 7.0 Tcfe
Net Production: 333 Mmcfe/d
• Total resource base of 13.3 Tcfe
Net acreage: 152,000
Division Employees: 232
EXCO Operations Area

(1) The reserve and acreage estimates are pro forma for 50% of the Chief acquisition and other pending Appalachian acquisition, both effective as of 12/31/10 using the management price deck,
adjusted for differentials and excluding hedge effects NYMEX 2011 2012 2013 2014 After
NG $       4.50 $       5.00 $       5.25 $       5.50 $       6.00
Oil $    90.00 $    90.00 $    90.00 $    90.00 $    90.00

(2)
(3)
Average production for the week ended 1/5/11, pro forma for 50% of the Chief acquisition and other pending Appalachian acquisition
Haynesville and Marcellus acreage is net to EXCO’s interest in the JVs; assumes BG Group exercises their option to purchase 50% of recently acquired acreage EXCO Resources, Inc. 14
 PPT – 193 – 2010 Full Year Review

2010 Results and Accomplishments

Replaced 576% of production with a direct F&D cost of $0.54 per Mcfe

• Strong results driven by the Haynesville EXCO EXCO

YE 2009 YE 2010
YE2009 SEC Proved
YE2010 ProvedReserve
ReserveAdjustments
Adjustments

– Increased production 33% during 2010 2,000

53
20 (133)
1,800 66
67 (112)
– Replaced production monetized in 2009 and 1,600
646
1499
2010 divestitures and JV transactions 1,400

• Ramped up Haynesville development and

Reserves (Bcfe)
1,200

bolstered position 1,000

959

800
– Increased operated rigs to 22 from 11 at YE 2009
600 643 822
and moved to manufacturing mode
400
Total Proved Developed
– Established second core position in 200

Haynesville/Bossier through two acquisitions 0

12.31.09 Ext & Disc Revisions Acq&Div Pricing BG JV Production 12.31.10
totaling ~$400 million in Shelby area 12/31/09
Reserves 12/31/10
Reserves
Reserves Reserves
• Completed $940(1) million Appalachia JV with BG • Year end 2010 estimated SEC proved reserves
Group ($790 million cash plus $150 million carry) increased by 56% to 1.5 Tcfe

2010 • Development drilling success has given us the

Operated spuds ‐ #
Production ‐ Bcfe
F&D ‐ $/Mcfe
PD F&D ‐ $/Mcfe
Development CAPEX ‐ $MM
Total CAPEX ‐ $MM
ability to book proved reserves on 80-acre
                194 spacing in core DeSoto Parish area
                112
– Increased our proved reserves per section from
$            0.54 26.4 Bcfe to 48.8 Bcfe per section at YE 2010
$            1.24
• Adjusting for the $351 million of BG carry, our all-
$              347
in F&D cost would have been $1.03 per Mcfe
$              503
Note: YE 2009 SEC reserve estimate pricing of $3.87 per Mcf for natural gas and $61.18 per
Bbl for crude oil

EXCO Resources, Inc. 15

Note: YE 2010 SEC reserve estimate pricing of $4.38 per Mcf for natural gas and $79.43 per
(1) Subject to final adjustments in 2011 Bbl for crude oil
 PPT – 193 – 2010 Full Year Review

2011 Capital Budget

E&P budget totals $976 million(1)

• Haynesville development is our main activity as

a result of 2011 Capital Budget by Category
– Performance as we are exceeding economic
hurdles in core areas, even in low commodity
price environment
– Existing infrastructure and access to multiple
markets
– Readily available field services
– The opportunity to secure additional “bolt-on”
acreage
– Recognized leading industry position in the
play

• Marcellus development is progressing

– Technical understanding of the Marcellus shale >85% spending on
play is rapidly improving shales in 2011
– Size and breadth of the play demands
additional analysis to identify core areas 2011 Total
($ in millions) ETX/NLA JV Vernon Appalachia Permian Corporate
– Large amount of HBP acreage allows time for Drilling and completion $              683.0 $                   ‐ $                 28.4 $                 48.0 $                   ‐ $              759.4
deliberate pace of development Exploration                      ‐                      ‐                      9.5                      ‐                      ‐                      9.5
Recompletion                      4.1                      6.8                      ‐                      1.4                      ‐                    12.3
– Improving regulatory environment Field operations                    22.1                    10.8                    13.5                      3.1                      ‐                    49.5
– Implementing appraisal/development plan Land                    29.8                      2.8                    25.0                      0.9                      ‐                    58.5
Seismic                      2.4                      2.6                      6.4                      ‐                      ‐                    11.4
– Infrastructure development required Water pipelines & gas gathering                    15.6                      1.8                      ‐                      ‐                      ‐                    17.4
Corporate                      ‐                      ‐                      ‐                      ‐                    58.2                    58.2
Total E&P capital $              757.0 $                 24.8 $                 82.8 $                 53.4 $                 58.2 $              976.2
• Permian development ongoing
– Superior returns driven by oil and liquids
content
– Good infrastructure and market access
– Minimal overhead

1) EXCO Resources, Inc. 16

$976 million E&P CAPEX request does not include midstream CAPEX of $212 million net to EXCO ($119 million related to TGGT and $93 million related to Appalachia midstream).
TGGT midstream projects to be internally funded by credit facility at TGGT. In addition, expect to receive $73 million of reimbursements from BG Group.
 PPT – 193 – 2010 Full Year Review

Control of Midstream Allows Timely Well Hook-Ups and Market Access

Current TGGT midstream throughput of approximately 1.2 Bcf/d

TGGT System Appalachia Map

Holly
• Mid Cycle
• Focus on well
hookups
• Minor expansions

Legacy TGGT
• Optimize System
• Emphasis on 3rd party

Shelby
• Early Cycle
• Building header
• Building facilities
• Formulate takeaway plans
• Appalachia has a limited amount of
infrastructure in place relative to the size of
the play but we are initiating construction to
match development

EXCO Resources, Inc. 17

 PPT – 193 – 2010 Full Year Review

Forward Looking Statements

This presentation contains forward-looking statements, as defined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, or the Exchange Act. These forward-looking statements relate to, among
other things, the following:

• our future financial and operating performance and results;

• our business strategy;
• market prices;
• our future use of derivative financial instruments; and
• our plans and forecasts.

We have based these forward-looking statements on our current assumptions, expectations and projections about future events.

We use the words "may," "expect," "anticipate," "estimate," "believe," "continue," "intend," "plan," "budget" and other similar words to identify forward-looking statements. You should read statements that contain these words carefully
because they discuss future expectations, contain projections of results of operations or of our financial condition and/or state other "forward-looking" information. We do not undertake any obligation to update or revise publicly any
forward-looking statements, except as required by law. These statements also involve risks and uncertainties that could cause our actual results or financial condition to materially differ from our expectations in this presentation, including,
but not limited to:

• fluctuations in prices of oil and natural gas;

• imports of foreign oil and natural gas, including liquefied natural gas;
• future capital requirements and availability of financing;
• continued disruption of credit and capital markets;
• estimates of reserves and economic assumptions;
• geological concentration of our reserves;
• risks associated with drilling and operating wells;
• exploratory risks, including our Marcellus shale play in Appalachia and our Haynesville and Bossier shale plays in East Texas/North Louisiana;
• risks associated with operation of natural gas pipelines and gathering systems;
• discovery, acquisition, development and replacement of oil and natural gas reserves;
• cash flow and liquidity;
• timing and amount of future production of oil and natural gas;
• availability of drilling and production equipment;
• marketing of oil and natural gas;
• developments in oil-producing and natural gas-producing countries;
• title to our properties;
• competition;
• litigation;
• general economic conditions, including costs associated with drilling and operation of our properties;
• environmental or other governmental regulations, including legislation to reduce emissions of greenhouse gases, legislation of derivative financial instruments, regulation of hydraulic fracture
stimulation and elimination of income tax incentives available to our industry;
• receipt and collectibility of amounts owed to us by purchasers of our production and counterparties to our derivative financial instruments;
• decisions whether or not to enter into derivative financial instruments;
• potential acts of terrorism;
• actions of third party co-owners of interests in properties in which we also own an interest;
• risks associated with the proposal by Mr. Miller to acquire our common stock;
• fluctuations in interest rates; and
• our ability to effectively integrate companies and properties that we acquire..

EXCO Resources, Inc. 18

 PPT – 193 – 2010 Full Year Review

Forward Looking Statements (continued)

We believe that it is important to communicate our expectations of future performance to our investors. However, events may occur in the future that we are unable to accurately predict, or over which we have no
control. You are cautioned not to place undue reliance on a forward-looking statement. When considering our forward-looking statements, keep in mind the risk factors and other cautionary statements in this
presentation, and the risk factors included in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q.

Our revenues, operating results, financial condition and ability to borrow funds or obtain additional capital depend substantially on prevailing prices for oil and natural gas, the availability of capital from our revolving
credit facilities and liquidity from capital markets. Declines in oil or natural gas prices may materially adversely affect our financial condition, liquidity, ability to obtain financing and operating results. Lower oil or
natural gas prices also may reduce the amount of oil or natural gas that we can produce economically. A decline in oil and/or natural gas prices could have a material adverse effect on the estimated value and
estimated quantities of our oil and natural gas reserves, our ability to fund our operations and our financial condition, cash flow, results of operations and access to capital. Historically, oil and natural gas prices
and markets have been volatile, with prices fluctuating widely, and they are likely to continue to be volatile.

Effective January 1, 2010, the United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose not only "proved" reserves (i.e., quantities of oil
and gas that are estimated to be recoverable with a high degree of confidence), but also "probable" reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as "possible" reserves
(i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves). As noted above, statements of reserves are only estimates and may not correspond to the
ultimate quantities of oil and gas recovered. Any reserve estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include estimated reserves not
necessarily calculated in accordance with, or contemplated by, the SEC's latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in our Annual Report on Form 10-K for the fiscal
year ended December 31, 2009, as amended, and after February 24, 2011, our Annual Report on Form 10-K for the year ended December 31, 2010, which are, or will be, available on our website at
www.excoresources.com under the Investor Relations tab or by calling us at 214-368-2084.

EXCO Resources, Inc. 19