Quicksilver Resources Inc.
) continues to work on its strategy to sell assets at a favorable
price and utilize the proceeds for future development. The
company closed its previously announced Montana asset sale on Aug
30, 2013 to Synergy Offshore LLC.
QUICKSILVER RES (KWK): Free Stock Analysis
MATADOR RESOURC (MTDR): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
VOC ENERGY TRST (VOC): Free Stock Analysis
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The effective date of this transaction was Jan 1, 2013. Taking
into consideration $4 million of Synergy's ratable share of
production and operating expense from the effective date and the
actual closing date, the net proceeds of the sale come to $42
Quicksilver will utilize the proceeds to reduce amounts
outstanding under its Combined Credit Agreements. As of Jun 30,
2013, the company utilized $245 million from its Combined Credit
Agreements with $105 million of credit facility remaining as on
The primary objective of the company is to strengthen its balance
sheet. During the second quarter Quicksilver sold 25% of its
Barnett Shale assets to a Tokyo Gas subsidiary for $485 million
and secured a long-term development partner in the Barnett.
Apart from this move of monetizing non-core assets and roping in
new partners to develop existing acreage, Quicksilver is also
making capital investment to assure organic growth. In the first
half of 2013, the company invested $52 million in development
work and is expected to continue to do so in the second half of
Quicksilver Resources Inc. currently has a Zacks Rank #3 (Hold).
Meanwhile other operators in the sector having a favorable Zacks
Matador Resources Company
Range Resources Corporation
VOC Energy Trust
). All of them presently carry a Zacks Rank #1 (Strong Buy).