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Quicksilver production, revenues down in 2QAugust 6, 2013
A. Lee Graham
Quicksilver Resources Inc. of Fort Worth has reported lower production and revenues from second-quarter 2013 compared to the same period last year as the company continues to sell off assets.
“Quicksilver’s primary goal is to improve our balance sheet by completing transactions that highlight the value of our asset base,” said CEO Glenn Darden in a news release.
"In the last sev
eral months, we have made significant progress on this goal. We've sold assets for excellent value, brought in strong, long-term partners and secured financial flexibility through amending the company's credit facility and refinancing bond debt,” Darden said.
In its newly released second-quarter 2013 results, the company reported production for the period at 26.1 billion cubic feet equivalent, or an average of 287 million cubic feet of natural gas equivalent per day compared to 32.7 billion cubic feet equivalent, or an average of 359 million cubic feet equivalent per day in the same period last year.
Meanwhile, production revenue totaled $118 million in second-quarter 2013 compared to $167 million in the same period last year, excluding about $4 million and $7 million, respectively, of cash proceeds from certain derivatives.
Reported net income for second-quarter 2013 totaled $243 million, or $1.37 per stock share, compared to a reported net loss of $802 million, or $4.72 per share in the same quarter last year.
The latest quarter saw the company sell 25 percent of its Barnett Shale assets to a Tokyo Gas subsidiary for $485 million, execute an agreement to sell all of its interest in about 143,000 acres and about 2.6 million barrels of reserves in Montana and refinance $1 billion of debt, extending the company’s weighted average debt maturity and reduced weighted average cost of debt.
ilver’s Texas operations saw modest activity in second-quarter 2013. It expects what it called a “minimal drilling program” in its Delaware and Midland basin assets in West Texas until partners are secured. Closer to home, the quarter saw Quicksilver drilled only a single well in the Barnett Shale. It plans to drill up to seven more wells this year in the Barnett beginning in the third quarter, though the wells are not expected to be completed until 2014.
Quicksilver Resources Inc. specializes in the exploration, development and acquisition of oil and gas from shale plays, coal beds and sands in North America. More information is available at www.qrinc.com.