QUOTE AND NEWS
OilVoice  9 hrs ago  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.
Clusterstock  Mar 19  Comment 
Quicksilver Resources filed for Chapter 11 bankruptcy protection on Tuesday. In regulatory filings, the energy company said it had $2.35 billion in debt and $1.2 billion in assets. Management said it would face a "potential liquidity...
Wall Street Journal  Mar 17  Comment 
Texas oil-and-gas company Quicksilver Resources Inc. filed for bankruptcy protection Tuesday after failing to find a buyer amid falling oil prices.
TheStreet.com  Mar 17  Comment 
NEW YORK (TheStreet) -- Shares of Quiksilver were gaining 8.8% to $1.85 after-hours Tuesday after the apparel company beat analysts' estimates for earnings and revenue in the fiscal first quarter. Quiksilver reported a loss of 11 cents a share...
guardian.co.uk  Mar 5  Comment 
Writer/director claims superhero-juggling blockbuster Avengers: Age of Ultron is ‘as tough as anything I’ve ever done’ Director Joss Whedon has admitted shoehorning a slew of superheroes into the new Avengers movie was a “nightmare”, as...




 

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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