EXCO 2Q Estimates In-Line, Growth Expected

EXCO Resources, Inc. (NYSE: XCO) is planning to target 30% annual production growth for the next five years, and if the company continues to hit its targets, Dahlman Rose expects EXCO's shares to outperform.

2Q results were EPS of $0.11 were dead on with Dahlman's $0.11 expectation, and EXCO gained $575M on asset sales. However, EXCO spent $452M acquiring Haynesville Shelby Trough acreage from Common Resources and Southwestern Energy Co. (NYSE: SWN), which is where EXCO's growth is expected to be derived from in the coming quarters.

Dahlman maintains its "buy" rating and price target of $22.

EXCO Resources, Inc. closed yesterday at $15.07.