QUOTE AND NEWS
Reuters  Apr 7  Comment 
Bankrupt energy producer Quicksilver Resources Inc has sold its U.S. assets to private equity firm BlueStone Natural Resources II, after the buyer struck a new...
OilVoice  Jan 25  Comment 
Quicksilver Resources Inc. OTC Pink KWKAQ and its U.S. subsidiaries announced today that they have successfully completed a Bankruptcy Courtapproved auction for their U.S. oil and gas assets locat
The Economic Times  Nov 12  Comment 
Given the quicksilver external environment today, key result areas, or KRAs as they are called under the performance management system, are undergoing significant changes.
OilVoice  Jul 2  Comment 
Quicksilver Resources Canada Inc. announced today that it received approval from the Canadian National Energy Board NEB to export up to 20 million tons per annum of liquefied natural gas from its
MarketWatch  Jun 11  Comment 
Quicksilver card offers 20% savings on rides.
TechCrunch  May 2  Comment 
 Ladies and gentlemen, the C programming language. It’s a classic. It is sleek, and spartan, and elegant. (Especially compared to its sequel, that bloated mess C++, which shares all the faults I’m about to describe.) It is blindingly,...
New York Times  Apr 30  Comment 
The new installment in the “Avengers” franchise adds characters, including the Scarlet Witch and Quicksilver, even as its familiar heroes fight battles terrestrial and galactic.




 

Quicksilver Resources engages in the exploration, development, and production of unconventional natural gas.[1] The company's segments are divided by region and include Texas Region, Rocky Mountain Region, and Canada.[2] The company's Texas region accounted for nearly 90% of its estimated proved reserves and about three-fourths of its daily production.[3] While Quicksilver's strategy of seeking unconventional natural gas resources has allowed the company to expand and develop in North Texas and Canada, its operations are susceptible to fluctuations in the North American gas market. Persistent low natural gas prices have the potential of significantly reducing its earnings and hindering the company's ability to meet its outstanding obligations.[4]


Business Growth

Quicksilver's growth strategy has been to acquire acreage in unconventional natural gas. Not only is the acreage relatively cheap to more conventional natural gas plays, but Quicksilver's resources have significant potential if large amounts of natural gas can be discovered and extracted.[5] To finance this growth, Quicksilver has twice issued long term debt and utilized short-term funding as well.[6]


Trends and Forces

Quicksilver's operations are dependent on North American Gas Market

Almost all of Quicksilver's operations come from the development and marketing of natural gas in North America. As a result, the Company's financial performance depends on the demand for and price of natural gas in North America.[7] Persistently low natural gas prices have the potential of reducing the Company's revenues and margins significantly. In addition, Quicksilver's natural gas operations face regulatory scrutiny as well.[8]

In addition, Quicksilver develops primarily unconventional reservoirs where hydrocarbons may be found in challenging geological regions. Developing unconventional reservoirs requires sophisticated equipment and expertise.[9] As a result, high production costs can reduce profit margins significantly. As a result of their higher development costs, unconventional reservoirs become more competitive when gas prices are relatively higher.[10]

Quicksilver needs operating cash flow to support it financing obligations

Quicksilver's growth has been funded primarily by short and long term financing as well as operating cash flows.[11] The Company has twice issued long-term debt (with maturities in 2016 and 2019) and has a large amount of shorter-term funding. Lack of operating cash flows have the potential forcing the Company to rely on external sources of capital. If Quicksilver is unable to meet drilling and production requirements embedded in its leases, it could have to forfeit portions of its resource-rich properties.[12]


Competition

Quicksilver competes with other natural gas developers in North America. Some of their most significant competition is as follows:



Footnotes

  1. Reuters: Company Overview for Quicksilver Resoruces, Inc.
  2. Reuters: Company Overview for Quicksilver Resoruces, Inc.
  3. Reuters: Company Overview for Quicksilver Resoruces, Inc.
  4. Reuters: Company Overview for Quicksilver Resoruces, Inc.
  5. Quicksilver Investor Relations, May 2011
  6. Quicksilver Investor Relations, May 2011
  7. Quicksilver 2010 Annual Report]
  8. Quicksilver 2010 Annual Report]
  9. Quicksilver 2010 Annual Report]
  10. Quicksilver 2010 Annual Report]
  11. Quicksilver 2010 Annual Report]
  12. http://quote.morningstar.com/stock/s.aspx?t=KWK&region=USA&culture=en-US [Morningstar.com: Quicksilver Company Overview]
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki