2013-03-05 23:02:10 -
Harbinger Group Inc.'s Energy Partnership with EXCO Resources Closes Acquisition
of Conventional Oil and Natural Gas Assets from Affiliate of BG Group
NEW YORK, March 5, 2013 -- Harbinger Group Inc. (NYSE: HRG) ("HGI" or the
"Company") announced today that its energy partnership (the
"Partnership") with
EXCO Resources, Inc. ("EXCO"; NYSE: XCO) successfully closed on its previously
announced acquisition of conventional oil and natural gas assets from an
affiliate of BG Group plc.
Pursuant to the transaction, the Partnership acquired certain conventional oil
and natural gas assets in the Danville, Waskom and Holly fields in East Texas
and North Louisiana, including and above the Cotton Valley formation, from an
affiliate of BG Group plc for $130.9 million, after customary preliminary
closing adjustments. The economic effective date of the transaction was January
1, 2013. These properties represent an incremental working interest in certain
properties already purchased by the Partnership from EXCO.
"This acquisition is consistent with HGI and EXCO's intention to
opportunistically add incremental cash flow to the Partnership through the
acquisition of mature, conventional assets over time," said Omar Asali, HGI's
President. "In this highly complementary transaction, we are adding assets that
EXCO has a history of operating and the Partnership knows well. We look forward
to continuing to build value for investors through our energy operating
business."
A definitive agreement for the Partnership to enter into this transaction with
an affiliate of BG Group plc was announced on February 15, 2013. The Partnership
funded this acquisition using its revolving credit agreement. In connection
with the closing, the borrowing base under the Partnership's revolving credit
agreement was increased by $70 million to an aggregate of $470 million.
The foregoing summary does not purport to be a complete description of the
transaction and related agreements. Interested parties should read HGI's other
announcements and public filings regarding this transaction and related
agreements by reviewing HGI's filings with the Securities and Exchange
Commission (www.sec.gov).
About Harbinger Group Inc.
Harbinger Group Inc. ("HGI"; NYSE: HRG) is a diversified holding company.
HGI's
principal operations are conducted through subsidiaries that offer life
insurance and annuity products; branded consumer products such as batteries,
personal care products, small household appliances, pet supplies, and home and
garden pest control products; and energy assets. HGI is principally focused on
acquiring controlling and other equity stakes in businesses across a diversified
range of industries and growing its existing businesses. In addition to HGI's
intention to acquire controlling equity interests, HGI may also from time to
time make investments in debt instruments and acquire minority equity interests
in companies. Harbinger Group Inc. is headquartered in New York and traded on
the New York Stock Exchange under the symbol HRG. For more information on HGI,
visit: www.harbingergroupinc.com.
About EXCO Resources, Inc.
EXCO Resources, Inc. is an oil and natural gas acquisition, exploitation,
development and production company headquartered in Dallas, Texas with principal
operations in East Texas, North Louisiana, Appalachia and West Texas.
Forward Looking Statements
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of
1995: Some of the statements contained in the Press Release and certain oral
statements made by our representatives from time to time regarding the matters
discussed herein are or may be forward-looking statements. Such forward-looking
statements are based upon management's current expectations that are subject to
risks and uncertainties that could cause actual results, events and developments
to differ materially from those set forth in or implied by such forward-looking
statements. These statements and other forward-looking statements made from
time-to-time by the Company and its representatives, including the expected
ability of the Partnership to make distributions, are based upon certain
assumptions and describe future plans, strategies and expectations of the
Company, are generally identifiable by use of the words "believes,"
"expects,"
"intends," "anticipates," "plans," "seeks,"
"estimates," "projects," "may" or
similar expressions. Factors that could cause actual results, events and
developments to differ include, without limitation, the ability of the Company's
subsidiaries (including, the Partnership) to generate sufficient net income and
cash flows to make upstream cash distributions, capital market conditions, that
the Company may not be successful in identifying any suitable future acquisition
opportunities, the risks that may affect the performance of the operating
subsidiaries of the Company and those factors listed under the caption "Risk
Factors" in the Company's most recent Annual Report on Form 10-K and Quarterly
Report on Form 10-Q, filed with the Securities and Exchange Commission. All
forward-looking statements described herein are qualified by these cautionary
statements and there can be no assurance that the actual results, events or
developments referenced herein will occur or be realized. The Company does not
undertake any obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events or changes
to future operation results
Contacts
Investors:
Tara Glenn, Investor Relations
Harbinger Group Inc.
450 Park Avenue, 30th Floor
New York, NY 10022
212-906-8560
investorrelations@harbingergroupinc.com
Media:
Jamie Tully/Michael Henson
Sard Verbinnen & Co
212-687-8080
SOURCE: Harbinger Group Inc.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Harbinger Group Inc. via Thomson Reuters ONE
[HUG#1683244]
