Earnings Coverage - Quicksilver Resources

LONDON, December 2, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings coverage on Quicksilver Resources Inc. (NYSE: KWK). On November 10, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Quicksilver Resources Inc. (Quicksilver). For Q3 FY14, Quicksilver's revenue increased $10.38 million from Q3 FY13, and its diluted EPS grew $0.07 on a Y-o-Y basis. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

During Q3 FY14, Quicksilver's revenues increased to $163.50 million from $153.12 million in Q3 FY13. The company's Q3 FY14 revenues outperformed Bloomberg analysts' forecasts of $110.0 million. During Q3 FY14, Quicksilver's production declined to 22.6 Bcfe, or an average of 246 million cubic feet of natural gas equivalent per day (MMcfed), from 25.2 Bcfe, or an average of 274 MMcfed, in Q3 FY13. The decline is mainly a result of the natural decline in Canadian volumes caused by minimal capital activity, a scheduled plant outage at a third-party facility in the Horn River Asset and lower sales volume in the Barnett Shale due to the rejection of ethane volumes in September 2014. The decline in production was partially offset by new natural gas volumes from the Barnett Shale related to the company's ongoing completion and workover programs. Further, the company's production from the Barnett Shale stood at 15.2 Bcfe in Q3 FY14, or an average of 165 MMcfed, compared to 15.4 Bcfe, or an average of 167 MMcfed, in Q3 FY13. The free research on KWK can be downloaded as in PDF format at:

www.Investor-Edge.com/KWKFreeReport

During Q3 FY14, Quicksilver's total expenses decreased to $98.71 million from $101.04 million in Q3 FY13. Quicksilver's GAAP net income for Q3 FY14 increased to $23.76 million, or $0.13 per diluted share, from $10.58 million, or $0.06 per diluted share, in Q3 FY13. Excluding the impact of special items and other miscellaneous non-operational items, the company reported non-GAAP net loss of $12.33 million, or $0.07 per diluted share, compared to non-GAAP net loss of $8.48 million, or $0.05 per diluted share, in Q3 FY13. Analysts from Bloomberg had expected the company to report net loss of $10.87 million in Q3 FY14.

Glenn Darden, CEO of Quicksilver, stated that the company has made significant progress on its stated goals since its last earnings call. He informed that oil discoveries in West Texas, improved well results and cost structure in the Barnett and affirmation of the company's borrowing base and the covenant changes with the company's banks are all positive developments. Mr. Darden further added that these achievements have not only strengthened the company's asset base, but should also be very helpful in its marketing process and other negotiations. Sign up and read the free analyst's notes on KWK at:

www.Investor-Edge.com/KWK-02122014

For Q4 FY14, the company's average daily production volume is expected to be 238 - 242 MMcfe per day. At current ethane prices, Quicksilver expects to continue to reject ethane volumes during Q4 FY14, which is included in the production guidance as a negative impact of 6 MMcfe per day. The company's outlook for Q4 FY14 projects lease operating expense in the range of $0.76-$0.80, and gathering, processing & transportation costs in the range of $1.50-$1.54. Further, the company's depletion, depreciation & accretion, and general and administrative costs are expected in the range of $0.63-$0.66 and $11MM-$12MM, respectively. In addition, Quicksilver's Q4 FY14 capital spending is expected to be in the range of $22 million to $27 million, bringing full-year capital spending to $130 million to $135 million.

Stock Performance  

On the day of the earnings release, November 10, 2014, Quicksilver's stock plummeted 31.25%, ending the session at $0.55. However, on the last close, Monday, December 1, 2014, the stock finished at $0.45, 49.50% above its previous day's closing price of $0.30, after vacillating between $0.37 and $0.50. A total of 10.43 million shares were traded, which was much above its three months average volume of 3.72 million shares. Over the previous three trading sessions and the last one month, the company's shares have declined 23.86% and 17.68%, respectively. Further, the stock has plummeted 85.34% on YTD basis. Shares in Quicksilver closed below their 50-day and 200-day moving averages of $0.59 and $1.91, respectively. Furthermore, the stock has a Relative Strength Index (RSI) of 34.58. Visit Investor-Edge and access the latest research on KWK at:

www.Investor-Edge.com/KWKEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month, Quicksilver has reported one insider selling transaction to the U.S. Securities and Exchange Commission (SEC). On November 03, 2014, Thomas F. Darden, Chairman Emeritus at Quicksilver, sold 10,000 shares worth $5,272 at a price of $0.53 per share. Complimentary in-depth research on KWK is available at:

www.Investor-Edge.com/KWKInsiderTrading

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

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