QUOTE AND NEWS
TheStreet.com  Aug 27  Comment 
NEW YORK (TheStreet) --aQuicksilver Resources was gaining 10.1% to $1.31 Wednesday after announcing initial results of its first horizontal well under its exploration agreement with Eni in Pecos County, Texas. The company announced that the...
OilVoice  Aug 27  Comment 
Quicksilver Resources Inc. NYSEKWK announce the initial results of its first horizontal well under its exploration agreement with Eni in Pecos County Texas. The Stallings 1H well began flow back
StreetInsider.com  Aug 27  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Quicksilver+Resources+%28KWK%29+Offers+Initial+Results+from+Pecos+County+Operations/9786523.html for the full story.
SeekingAlpha  Aug 5  Comment 
Quicksilver Resources, Inc. (NYSE:KWK) Q2 2014 Earnings Conference Call August 5, 2014 11:00 am ET Executives David Erdman - Director, IR Glenn Darden - President & CEO John Regan - CFO Analysts Steven Karpel - Crédit...
TheStreet.com  Aug 5  Comment 
NEW YORK (TheStreet) -- Quicksilver Resources was fall -20.78% to $1.41 Tuesday after missing analysts' estimates for earnings and revenue in the second quarter. For the second quarter Quicksilver Resources reported a loss of -7 cents a share,...
Motley Fool  Jul 19  Comment 
Why were Quicksilver Resources, Phillips 66 Partners, and Ultra Petroleum crushed this week?
Motley Fool  Jul 10  Comment 
V.F. Corp has made acquisitions a vital part of its growth strategy. Will Quicksilver be its next target?
Motley Fool  Jun 26  Comment 
Even after some of the financial moves that Quicksilver Resources has made recently, it still needs to find a well capitalized partner to help it get started on its most valuable asset...and fast.
TheStreet.com  Jun 19  Comment 
NEW YORK (TheStreet) -- Quicksilver Resources was gaining 8% to $2.97 Thursday on higher-than-average trading. More than 3.8 million shares of Quicksilver Resources were traded by 2:20 p.m., above the average daily trading volume of about 3.4...




 

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]
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