Sector Update: Energy Stocks Still Expanding Losses: Quicksilver Resource Tumbles Following Q2 Results

By Staff,

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Energy stocks were extending their losses with the NYSE Energy Sector Index sinking 2.4% while shares of energy companies in the S&P 500 were down 2.1% as a group.

In company news, Quicksilver Resources ( KWK ) fell hard Tuesday, sliding to a near 14-year low after the oil and gas producer reported a wider Q2 net loss compared with the same period last year despite revenues beating Wall Street expectations.

KWK shares recently were down over 16% at $1.50 per share, just a penny off its session low and it lowest share price since November 2000.

The company today reported an adjusted net loss of $0.07 per share, expanding on a $0.06 per share loss during the same quarter last year and exceeding the projected net loss of analysts following the company by $0.01 per share.

Total revenue declined 32.7% year over year to $118.03 million but still surpassed the Capital IQ consensus by around $8.96 million.

Q2 production fell almost 11% from year-ago levels to 23.3 billion cubic feet of natural gas equivalent, averaging around 255 million cubic feet per day. The company blamed much of the decline to its sale of a 25% stake in Barnett shale formation assets to a subsidiary of Tokyo Gas and the natural decline of volumes from its Canadian holdings.

The company also said Q3 production is seen in a range of 245 million to 250 million cubic feet per day, consisting of around 85% natural gas and 15% natural gas liquids. Expected production levels, on average, are being reduced roughly 5 million cubic feet per day by a planned, two-week outage at a third-party treating facility in the Horn River Basin.

It continues to project FY14 production of around 245 million to 255 million cubic feet per day.

In other sector news,

(+) NTI, Q2 revenue rises 41.7% year over year to $1.6 bln, topping estimates by around $30 mln. EPS of $0.62 misses by $0.08 per share.

(-) AREX, Adjusted Q2 EPS of $0.22 per share misses by $0.01. Revenue rises 73.7% year over year to $73.41 mln, topping consensus by around $8.33 mln. Q2 production rises 58% year over year to 14,100 barrel of oil equivalent per day.

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

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: KWK

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