Quicksilver shows profit, expects record production

Quicksilver Resources Inc. reported third quarter 2009 net income of $0.7 million compared to the 2008 third quarter’s net loss of $3.8 million.

Excluding certain items, the Fort Worth-based natural gas and oil exploration and production company posted earnings of $0.25 per share, beating analysts’ expectations, while increasing production by 12 percent to 311 million cubic feet of natural gas per day, according to the Nov. 9 results. Of the total 28.6 billion cubic feet of production, natural gas made up about 71 percent, while natural gas liquids and crude oil comprised the remaining 27 percent and 2 percent, respectively.

Despite the production increase, commodity prices remain weaker than the highs of 2008.

Natural gas, natural gas liquids and crude oil sales were $198.3 million in third quarter 2009, down about $20 million from the prior-year quarter. The company reported a 19 percent decrease in the average realized price per thousand cubic feet of natural gas equivalent after hedges.

Quicksilver Resources drilled 32 wells in the Fort Worth Basin, with five rigs running and three rigs dedicated to its Lake Arlington and Alliance projects in Tarrant County. Elsewhere, the company drilled four wells in the Horseshoe Canyon project in Canada, another three remaining to be drilled in 2009, with participation in a total of 145 wells during the year, according to the results.

“For the nine months ended September 30, Quicksilver generated record cash flow through operating activities, reduced unit production costs nearly 30 percent, and is on pace for a record production year," said Glenn Darden, president and CEO, in a statement. "All of this has been accomplished while limiting capital expenditures below cash inflows."

 jtronche@bizpress.net