KWK Sells Assets to Repay Debts - Analyst Blog

By Zacks Equity Research,

Shutterstock photo

Quicksilver Resources Inc. ( KWK ) 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 million.

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 that date.

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 the year.

Quicksilver Resources Inc. currently has a Zacks Rank #3 (Hold). Meanwhile other operators in the sector having a favorable Zacks Rank are Matador Resources Company ( MTDR ), Range Resources Corporation ( RRC ) and VOC Energy Trust ( VOC ). All of them presently carry a Zacks Rank #1 (Strong Buy).

QUICKSILVER RES (KWK): Free Stock Analysis Report

MATADOR RESOURC (MTDR): Free Stock Analysis Report

RANGE RESOURCES (RRC): Free Stock Analysis Report

VOC ENERGY TRST (VOC): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: KWK , MTDR , RRC , VOC

More from


Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by