Quicksilver Resources Earnings: Production Volumes Set Records, Shares Rise 3%

Quicksilver Resources Inc. (NASDAQ: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 (NYSE:UNG) onshore in North America.

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Quicksilver Resources Earnings Cheat Sheet for the First Quarter

Results: Swung to a loss of $70.8 million (42 cents/diluted share) in the quarter. Quicksilver Resources Inc. had a net income of $8.2 million or 5 cents per share in the year earlier quarter.

Revenue: Fell 4.5% to $212.2 million YoY.

Actual vs. Wall St. Expectations: KWK reported adjusted net income of of 2 cents/share. By that measure, the company fell short of mean estimate of 3 cents/share. Estimates ranged from a loss of 3 cents per share to a profit of 8 cents per share.

Quoting Management: “Our base operations continued to improve as production volumes once again set new records while we remained focused on our all-in unit cost structure, which declined 2% versus the prior year,” said Glenn Darden, Quicksilver president and chief executive officer. “Concurrently, we built the largest inventory of new projects in our company’s history. Quicksilver has assembled meaningful acreage positions in four developing oil plays and three natural gas plays, where Quicksilver can use its expertise in unconventional resource development to cost-effectively grow our reserve base and production. We are actively pursuing these new projects, with initial results expected later this year.”

Key Stats: A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the first quarter of the last fiscal year, which saw revenue rise 19.5%.

KWK’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $318.3 million in the fourth quarter of the last fiscal year, a profit of $21.8 million in the third quarter of the last fiscal year and $86.8 million in the second of the last fiscal year.

Competitors to Watch: Chesapeake Energy Corp. (NYSE:CHK), ConocoPhillips (NYSE:COP), Marathon Oil Corporation (NYSE:MRO), Cimarex Energy Co. (NYSE:XEC), Petrohawk Energy Corp. (NYSE:HK), Southwestern Energy Co. (NYSE:SWN), Tengasco, Inc. (AMEX:TGC), CREDO Petroleum Corp. (NASDAQ:CRED), Linn Energy, LLC (NASDAQ:LINE), and SM Energy Co. (NYSE:SM)

Stock Performance: Shares closed up 3.03% at $14.29 per share from a previous close of $13.87.


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