Quicksilver Resources Inc.
) posted an adjusted loss per share of 5 cents in the third
quarter of 2013 as opposed to earnings of 3 cents per share in
the year-ago quarter. Reported loss was in line with the Zacks
The downswing was attributable to lower production in the
company's major operational areas.
Including a gain of 19 cents per share and an 8 cent charge,
the company reported GAAP earnings of 6 cents per share compared
with a loss of $4.65 per share a year ago.
Quicksilver Resources' total revenue was $153.1 million,
beating the Zacks Consensus Estimate by $25.1 million. On a
year-over-year basis, quarterly total revenue increased
Quicksilver Resources achieved overall average daily
production of 274 million cubic feet of natural gas equivalent
per day (MMcfed), down 24.3% year over year. The downside in
production was mainly due to the sale of a 25% interest in the
Barnett Shale. This was further compounded by a fall in
production at the Horseshoe Canyon asset.
During the quarter, Quicksilver Resources divested its
interest in the Montana asset, which impacted the production
level for a month. However, production increased 8% year over
year to 105 MMcfed in the Horn River Basin in Canada.
Total realized prices decreased 11.7% year over year to $4.47
per thousand cubic feet (Mcfe), resulting from a downturn in
natural gas and liquids prices.
Total expenses dropped an impressive 85.5% year over year to
$101.0 million, primarily due to a 15.9% and 14% plunge in lease
operating and gathering, processing and transportation expenses,
Quicksilver Resources' operating income was $60.0 million
versus an operating loss of $576.6 million a year ago. The
company's successful cost control efforts led to the strong
rebound in operating profit.
Quicksilver Resources' cash balance as of Sep 30, 2013 was
$56.5 million versus $5.0 million as of Dec 31, 2012. The
proceeds gained from the divestment of non-core assets boosted
the cash balance.
Long-term debt as of Sep 30, 2013 was $1,926.2 million versus
$2,063.2 million as of Dec 31, 2012.
During the third quarter, Quicksilver Resources invested $21.0
million under its capital spending program. Of the total
expenditure, $14.0 million was allocated for drilling and
completion activities, $3.0 million used for leasehold and
midstream, and $4.0 million for capital costs and corporate
Quicksilver Resources expects production volumes in the fourth
quarter to be 263-268 MMcfe per day. The company also tightened
its full-year 2013 production volume guidance to the range of
295-297 MMcfe per day from the prior forecast of 290-300 MMcfe
Lease operating expenses in the fourth quarter are expected in
the range of 72-76 cents. Gathering, processing and
transportation in the fourth quarter are expected in the range of
$1.34-$1.38 per share.
Production ad valorem taxes in the fourth quarter are expected
in the range of 18-20 cents.
Other Company Releases
Anadarko Petroleum Corp.
) posted net earnings from continuing operations of $1.13 per
share for the third quarter of 2013, falling behind the Zacks
Consensus Estimate by 4.2%.
Noble Energy Inc.
) reported adjusted earnings per share of 97 cents for the third
quarter 2013, edging out the Zacks Consensus Estimate by
We believe the company's strategy to sell non-core assets and
successful cost abatement steps will lend constancy to margins in
the upcoming quarters.
Moreover, a strong hedging program will cushion the business
from commodity price volatilities. Quicksilver Resources'
strategic agreement with
) for the development of shale oil reservoirs in the U.S. will
bode well for its future growth objectives.
The company currently has a Zacks Rank #2 (Buy).
ANADARKO PETROL (APC): Free Stock Analysis
ENI SPA-ADR (E): Free Stock Analysis Report
QUICKSILVER RES (KWK): Free Stock Analysis
NOBLE ENERGY (NBL): Free Stock Analysis
To read this article on Zacks.com click here.