Quicksilver Resources Earnings: A Deeper Dive Into the Numbers

Quicksilver Resources Inc. (NYSE:KWK) reported its results for the first quarter. Quicksilver Resources is an independent energy company engaged mainly in exploration, development, and production of unconventional natural gas onshore in North America.

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Quicksilver Resources Earnings Cheat Sheet for the First Quarter

Results: Loss narrowed to $59.9 million (loss of 35 cents per diluted share) from $70.8 million (loss of 42 cents per share) in the same quarter a year earlier.

Revenue: Fell 31.4% to $145.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Quicksilver Resources Inc. reported an adjusted net loss of 9 cents per share. By that measure, the company fell short of the mean analyst estimate of a loss of 4 cents per share. It fell short of the average revenue estimate of $188.3 million.

Quoting Management: “Quicksilver has reduced activity devoted to dry gas production. With respect to dry gas we are only spending capital on certain lease and pipeline commitment areas. Our focus is spending within cash inflows and reducing debt through joint ventures and the new MLP,” said President and CEO Glenn Darden. “The joint venture discussions are on track and we anticipate launching the MLP this summer. The company’s production is well hedged in 2012 and 2013 and we are advancing our grass roots oil projects. Despite current gas prices we believe we will significantly improve the strength of this company as the year progresses.”

Key Stats:

The company has now come in under analyst forecasts for three quarters in a row. It missed the mark by 2 cents in the fourth quarter of the last fiscal year and by 2 cents in the third quarter of the last fiscal year.

After three consecutive quarters of profits, the company declared a loss in the latest quarter. The company reported a profit of $23.5 million in the fourth quarter of the last fiscal year, a profit of $28.7 million in the third quarter of the last fiscal year and $108.6 million in the second of the last fiscal year.

Revenue has declined for two quarters in a row. In the fourth quarter of the last fiscal year, revenue declined 7% to $223.1 million from the year-earlier quarter.

Looking Forward: The average estimate for the second quarter is steady at 4 cents a share. The average estimate for the fiscal year is now 10 cents per share, a rise from the 13 cents predicted ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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