Exhibit 99.1

EXCO Resources, Inc.

12377 Merit Drive, Suite 1700, LB 82, Dallas, Texas 75251

(214) 368-2084    FAX (972) 367-3559

EXCO RESOURCES, INC. REPORTS FIRST QUARTER 2011 RESULTS

DALLAS, TEXAS, May 3, 2011…EXCO Resources, Inc. (NYSE: XCO) (“EXCO”) today announced first quarter results for 2011.

Our first quarter 2011 operating and financial results reflect our increased refinement and innovation in our Haynesville/Bossier shale area and expansion of our Marcellus shale operations. During the quarter, we completed two strategic acreage-intensive acquisitions in Pennsylvania and have expanded our development activities and midstream infrastructure in our Haynesville/Bossier focus areas. Our production and cash flows are increasing and our capital expenditure program is supported by significant available borrowing capacity from our credit agreement, which will result in our achieving significant asset growth. Our financial results follow.

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Douglas H. Miller, EXCO’s Chief Executive Officer commented “We are very pleased with our first quarter results, both financially and operationally. We continue to increase our daily production, averaging 408 Mmcfe per day in the first quarter of 2011, a 17% increase over the fourth quarter of 2010. We have added nearly 200 Mmcfe per day of net production through the drill bit since the beginning of 2010, effectively replacing the production sold in our 2009/2010 divestiture program. Our Haynesville results continue to be very strong and we are beginning to gain real traction in the Marcellus. We completed a significant acquisition of acreage and some production in the prolific northeastern Pennsylvania area in the first quarter and initial drilling and completion results have been very encouraging. We also made an acquisition in our central Pennsylvania development area. In April, we completed an acquisition of approximately 3,500 acres of surface, mineral interests and royalties in the heart of our DeSoto Parish core area of the Haynesville, all within or adjacent to existing producing units which we operate.

“Effective April 1, 2011, we finalized the redetermination of the borrowing base under our Credit Agreement. The borrowing base was increased from $1.0 billion to $1.5 billion, the interest rate was reduced and the Credit Agreement was extended by two years.

“We continue to be very optimistic about our growth potential in our focus areas. We have an outstanding group of managers and employees in all areas and are at the leading edge of technology and operational expertise. We have a significant inventory of high quality drilling locations and a strong balance sheet which enable us to exploit our resources in an aggressive way. We expect 2011 to be a record-setting year in terms of production and reserves.”

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Net income

Our reported net income shown below, a GAAP measure, includes certain items not typically included by securities analysts in their published estimates of financial results. The following table provides a reconciliation of our net income to non-GAAP measures of adjusted net income:

Cash flow and financing transactions

Our cash flow from operations before working capital changes was $113 million for the first quarter 2011. We use our cash flow, credit agreement and proceeds from selected divestitures to fund drilling and development programs.

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Redetermination of borrowing base

On April 1, 2011, the lenders under our revolving credit agreement completed their regular semi-annual redetermination of the borrowing base, resulting in an increase of the borrowing base from $1.0 billion to $1.5 billion. In addition, the interest rate under the credit agreement was reduced by 50 basis points (bps) and the maturity date was extended from April 30, 2014 to April 1, 2016. The next redetermination of the borrowing base is scheduled to occur on October 1, 2011.

As of April 28, 2011, $929 million was drawn under our credit agreement and we had $275 million of cash, which includes $170 million of restricted cash. We anticipate receiving $113 million from BG Group during the second quarter 2011 for their participation in our April 2011 DeSoto Parish acquisition.

Operations activity and outlook

We spent $198 million on development and exploitation activities, drilling and completing 65 gross (36.1 net) operated wells in the first quarter 2011, compared with 51 gross (31.0 net) operated wells during the fourth quarter 2010. In addition, we participated in 17 gross (0.7 net) wells operated by others (OBO) during the first quarter 2011. We had an overall drilling success rate of 99% for the first quarter 2011. Our total capital expenditures, including leasing and net of acreage reimbursements from BG Group, were approximately $246 million in the first quarter 2011. We are continuing efforts to opportunistically acquire additional leasehold in our core shale areas.

Our projected capital spending for 2011 is presented in the following table:

In addition to our capital program, we closed on $276 million, net to EXCO, of acquisitions during the first quarter 2011.

Haynesville/Bossier Shale

Our horizontal Haynesville shale development program continues to yield outstanding results. As of May 1, 2011, our Haynesville/Bossier operated production was 1,041 Mmcf per day gross (333 Mmcf per day net) and with the addition of our OBO wells, we had 356 Mmcf per day of net production. Our development program in DeSoto Parish, Louisiana is focused on manufacturing on 80-acre spacing. Our program in San Augustine and Nacogdoches, Counties, Texas (the Shelby

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Trough) is focused on delineation and testing of our acreage. During 2011, we plan to drill 233 gross (65.2 net) wells in the Haynesville/Bossier shale play in East Texas/North Louisiana. Of these 233 wells, 163 gross wells are operated by us.

We drilled and completed 42 gross (17.2 net) operated horizontal Haynesville and Bossier wells and participated in 17 gross (0.7 net) OBO Haynesville horizontal wells during the first quarter of 2011. We utilized 22 operated rigs and spud 45 operated horizontal wells. In addition to our operated rig count, we have four OBO rigs drilling in the play and spud 10 OBO wells during the quarter. We currently have 182 operated horizontal wells and 107 OBO horizontal wells flowing to sales.

The average initial production rate during the quarter from all of our operated Haynesville horizontal wells in DeSoto Parish was 18.1 Mmcf per day on a managed drawdown/restricted choke program. This high level of performance in our 80-acre development program underscores the quality and consistency of our shale assets. We are continuing to focus on the capital efficiencies of our drilling and completion program. Methods to improve our gas recoveries and to reduce our well costs include more efficient drilling pad design, less directional drilling in the intermediate hole section, more efficient fracture stimulation design, cluster spacing changes and different combinations of proppant, among others.

We are also encouraged by the results from our testing and delineation program in the Shelby Trough. We drilled and completed our first horizontal Middle Bossier test in San Augustine County during the first quarter 2011 with an initial production rate of 25.5 Mmcf per day from a 16 stage fracture stimulation treatment. We have recently tested two Haynesville horizontal wells in Nacogdoches County with initial production rates of 31.5 and 31.7 Mmcf per day and flowing pressures of 9,280 and 10,000 psi, respectively.

Marcellus Shale

During the first quarter 2011 in the Marcellus shale, we spud 8 new operated wells and drilled and completed 5 gross (2.0 net) operated wells. The initial production rates of these wells ranged from 2.1 Mmcf per day to 10.6 Mmcf per day from lateral lengths between 2,250 feet and 4,500 feet. The average initial production rates from these wells were above our expected production type curve, which forecasts that we will have initial production rates of 1.0 Mmcf per day for every 1,000 feet of completed lateral. We are implementing a development program within our recently acquired acreage in northeast Pennsylvania and certain of our acreage in west central Pennsylvania. We are also implementing an appraisal program across much of our other acreage, primarily in central Pennsylvania.

We plan to drill 64 gross (23.6 net) operated wells in the Marcellus shale play in our Appalachia region during 2011. Of the 64 wells, 57 gross (20.5 net) will be development wells and 7 gross (3.1 net) will be appraisal wells. This drilling will be within the EXCO/BG Group Appalachian JV area, so our net drilling dollars are reduced by the effect of the carry we receive from BG Group. Approximately $111 million of the carry remains available to us from BG Group as of March 31, 2011. We expect that the remaining carry amount will be used by the end of 2011. We are currently drilling with two operated rigs and we plan to exit 2011 with five operated drilling rigs in Appalachia.

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Permian

We drilled and completed 18 gross (16.9 net) wells in our Permian area Canyon Sand field during the first quarter 2011 with 95% drilling success as one of our wells was a dry hole. We continue to run two operated rigs in the Canyon Sand field and plan to spend $48 million to drill 72 gross (69.8 net) wells in 2011. Oil production at Sugg Ranch has increased by 40% in the first quarter of 2011 as compared to the first quarter of 2010, and economics for this drilling activity typically have rates-of-return in excess of 60%.

Midstream

Through our jointly held midstream company, TGGT, we continue our major infrastructure expansion efforts in our Shelby Trough area of East Texas in order to meet the expected throughput volume increase. We are also continuing to develop our gathering and treating capacity in the DeSoto Parish area of northwest Louisiana. Total throughput for TGGT averaged approximately 1.2 Bcf per day for the first quarter of 2011 compared with total average throughput of 1.0 Bcf per day in the fourth quarter 2010. Our throughput as of May 1, 2011 was approximately 1.4 Bcf per day.

TGGT closed a $500 million credit agreement during the first quarter 2011, which combined with internally generated cash flow, will fund its capital program. At the closing of the credit agreement, TGGT funded a distribution to its owners, of which $125 million was distributed to us.

Financial Data

Our consolidated balance sheets as of March 31, 2011 and December 31, 2010 and consolidated statements of operations for the three months ended March 31, 2011 and 2010, and consolidated statements of cash flows for the three months ended March 31, 2011 and 2010, are included on the following pages. We have also included reconciliations of non-GAAP financial measures referred to in this press release which have not been previously reconciled.

EXCO will host a conference call on Wednesday, May 4, 2011 at 9:00 a.m. (Dallas time) to discuss the contents of this release and respond to questions. Please call (800) 309-5788 if you wish to participate, and ask for the EXCO conference call ID# 60662663. The conference call will also be webcast on EXCO’s website at www.excoresources.com under the Investor Relations tab. Presentation materials related to this release will be posted, after market close, on EXCO’s website on Tuesday, May 3, 2011.

A digital recording will be available starting two hours after the completion of the conference call until 11:59 p.m., May 18, 2011. Please call (800) 642-1687 and enter conference ID# 60662663 to hear the recording. A digital recording of the conference call will also be available on EXCO’s website.

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Additional information about EXCO Resources, Inc. may be obtained by contacting EXCO’s Chairman, Douglas H. Miller, or its President, Stephen F. Smith, at EXCO’s headquarters, 12377 Merit Drive, Suite 1700, Dallas, TX 75251, telephone number (214) 368-2084, or by visiting EXCO’s website at www.excoresources.com. EXCO’s SEC filings and press releases can be found under the Investor Relations tab.

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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 the Annual Report on Form 10-K, as amended, for the year ended December 31, 2010, and our other periodic filings with the SEC.

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. 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.

The SEC permits oil and natural gas companies in filings made with the SEC to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Beginning with reserves reported for the year ended December 31, 2009, the SEC permits optional disclosure of “probable” and “possible” reserves in its filings with the SEC. EXCO may use broader terms to describe additional reserve opportunities such as “potential,” “unproved,” or “unbooked potential,” to describe volumes of reserves potentially recoverable through additional drilling or recovery techniques that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved, probable or possible reserves and accordingly are subject to substantially greater risk of being actually realized by the company. While we believe our calculations of unproved drillsites and estimation of unproved reserves have been appropriately risked and are reasonable, such calculations and estimates have not been reviewed by third party engineers or appraisers. Investors are urged to consider closely the disclosure in our Annual Report on Form 10-K, as amended, for the year ended December 31, 2010, which is available on our website at www.excoresources.com under the Investor Relations tab.

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EXCO Resources, Inc.

Consolidated balance sheet

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EXCO Resources, Inc.

Consolidated balance sheet

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EXCO Resources, Inc.

Consolidated statement of operations

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EXCO Resources, Inc.

Consolidated statement of cash flows

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EXCO Resources, Inc.

Consolidated EBITDA

And adjusted EBITDA reconciliations and statement of cash flow data

(Unaudited)

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EXCO Resources, Inc.

Summary of operating data

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