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.
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).
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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