KWK's Q2 Loss Wider than Expected - Analyst Blog

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Quicksilver Resources Inc. ( KWK ) posted an adjusted loss per share of 6 cents in the second quarter of 2013, wider than the Zacks Consensus Estimate of a loss of 3 cents and year-ago loss of 4 cents.

Including a gain of $1.43 per share, the company reported earnings of 1.37 per share compared with a loss of $4.72 per share a year ago.

Total Revenue

Quicksilver Resources' total revenue was $175.5 million, beating the Zacks Consensus Estimate by $44.5 million. On a year-over-year basis, quarterly total revenue decreased primarily due to a decline in production revenues.

Operational Update

Quicksilver Resources achieved overall average daily production of 287.3 million cubic feet of natural gas equivalent (MMcfe), down 20% year over year due to a drop in production volumes in the U.S., partially offset by a rise in output levels from the Canadian operations mainly at the Horn River.

Total realized prices decreased 12.1% year over year to $4.50 per thousand cubic feet (Mcfe), resulting from downswings in natural gas, NGL and oil prices.

Total expenses dropped 91.6% year over year to $113.8 million, primarily due to the absence of impairment, and a decrease in gathering, processing and transportation and depreciation expenses.

Quicksilver Resources' operating income was $395 million versus an operating loss of $1.2 billion a year ago.

Financials

Quicksilver Resources' cash balance as of Jun 30, 2013 was $96.8 million versus $5.0 million as of Dec 31, 2012. The improvement in cash position was primarily driven by strong results from the net cash provided by investing activities.

Long-term debt as of Jun 30, 2013 was $2 billion versus $2.1 billion as of Dec 31, 2012.

Net cash used in operating activities during the first six months of 2013 was $78.1 million versus net cash provided by operating activities of $99.5 million in the year-ago comparable period.

During second-quarter, Quicksilver Resources invested $27 million under its capital spending program. Of the total expenditure, $5 million was allocated for drilling and completion activities, $16 million used for acreage and surface purchases, $2 million for interest on capital and $4 million for overhead costs on capital.

Guidance

Quicksilver Resources expects production volumes in third-quarter to be 275 - 280 MMcfe per day. The company also provided full-year 2013 production volume guidance in the range of 290-300 MMcfe per day.

Other Company Releases

Anadarko Petroleum Corp. ( APC ) posted net earnings from continuing operations of $1.05 per share for the second quarter, beating the Zacks Consensus Estimate by 15 cents.

Noble Energy Inc. ( NBL ) reported adjusted earnings per share of 69 cents for the second quarter, lagging the Zacks Consensus Estimate by 4 cents.

Apache Corporation ( APA ) reported second quarter pro forma earnings per share of $2.01, missing the Zacks Consensus Estimate by a penny.

Fort Worth, Texas-based Quicksilver Resources is primarily engaged in the development of long-lived, unconventional reservoirs, which include fractured shales, coalbeds and tight sands in the North American continent. The company currently has a Zacks Rank #3 (Hold).



APACHE CORP (APA): Free Stock Analysis Report

ANADARKO PETROL (APC): Free Stock Analysis Report

QUICKSILVER RES (KWK): Free Stock Analysis Report

NOBLE ENERGY (NBL): Free Stock Analysis Report

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



This article appears in: Investing , Business , Stocks

Referenced Stocks: APA , APC , KWK , NBL

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