QUOTE AND NEWS
TheStreet.com  Mar 14  Comment 
NEW YORK (TheStreet) -- Quicksilver Resources was falling 6.1% to $2.60 Friday after missing analysts' expectations for revenue in the fourth quarter. For the fourth quarter Quicksilver posted a loss of 3 cents, which is in-line with analysts'...
SeekingAlpha  Mar 14  Comment 
Quicksilver Resources (KWK) Q4 2013 Earnings Call March 14, 2014 11:00 am ET Executives David Erdman Glenn M. Darden - Chief Executive Officer, President, Director and Member of Equity Awards Committee John C. Regan - Chief...
StreetInsider.com  Mar 14  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Quicksilver+Resources%2C+Inc.+%28KWK%29+Reports+In-Line+Q4+Loss+of+3cShare/9282108.html for the full story.
New York Times  Mar 10  Comment 
Dr. Belliveau was a Harvard scientist whose quest to capture the quicksilver flare of thought inside a living brain led to the first magnetic resonance image of human brain function.     
OilVoice  Mar 5  Comment 
Quicksilver Resources Inc. NYSEKWK announces its execution of a purchase and sale agreement along with SWEPI LP to sell to Southwestern Energy Production Company all of their jointly owned holding
StreetInsider.com  Mar 5  Comment 
* Park Sterling Corporation (Nasdaq: PSTB) ("Park Sterling"), the holding company for Park Sterling Bank, and Provident Community Bancshares, Inc. (OTCBB: PCBS) ("Provident Community"), the holding company for Provident Community Bank, N.A.,...
SeekingAlpha  Jan 31  Comment 
By Giovanni DiMauro: In seeking alpha, one always looks for opportunities to maximize profits while limiting downside risk. I believe this is a play that could yield significant gains for the coming year. Starbucks Corporation (SBUX) is currently...
Trading with the Average Jay  Jan 4  Comment 
Good Morning traders. Please see sidebar for results. The dates are one day behind in their App. Here is Friday in review. I had three winners and two losers. It has taken years for the "keep your losses small" trades to sink in. I am seeing...
SeekingAlpha  Jan 2  Comment 
By Giovanni DiMauro: In seeking alpha, one always looks for opportunities to maximize profits while limiting downside risk. I believe this is a play that could yield significant gains for the coming year. Starbucks Corporation (SBUX) is...
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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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