A. Lee Graham
Quicksilver Resources Inc. of Fort Worth has reported less revenue and lower production in first quarter 2014 compared to the same period last year.
In its newly released first-quarter report, the company reported revenue for the quarter totaling $105 million compared to $142 million in the same period last year. But excluding the effect of derivatives, production revenue in the latest quarter actually rose by about $29 million compared to the 2013 quarter due to what the company called improved natural gas and natural gas liquids pricing.
Meanwhile, first-quarter production reached 22.1 billion cubic feet equivalent, or an average of 246 million cubic feet or natural gas equivalent per day compared to 32.2 billion cubic feet equivalent per day, or 358 million cubic feed equivalent per day, in the 2013 quarter.
“Quicksilver is making significant gains on reducing debt and creating new growth opportunities,” said CEO Glenn Darden in a news release.
Pursuing those ends has seen the company close the sale of its Niobrara asset in Colorado to Southwestern Energy Co. for $93.5 million in cash; reduce net debt over the last four quarters by $500 million, excluding the impact of expenses related to debt refinancing in 2013; and boost activity in the Barnett Shale, which the company expects to build net Barnett volumes in the second quarter of 2014 by more than 10 percent compared to first-quarter volumes.
Another highlight this year includes securing an amendment to Fortune Creek agreements lowering gathering rate and deferring the capital spending commitment in the Horn River Basin.
Meanwhile, the company reported net loss for first-quarter 2014 as $59 million, or 34 cents per diluted share, which includes a pre-tax unrealized non-cash derivative loss of $32 million, compared to a reported net loss of $60 million, or 35 cents per diluted share, in the 2013 quarter.
Meanwhile, the company incurred about $42 million of capital expenditures in first quarter 2014, of which $31 million was used for drilling and completion activities; $7 million for leasehold; and $4 million for capitalized costs.
Quicksilver Resources Inc. specializes in the exploration, development and acquisition of oil and gas from shale plays, coal beds and sands in North America. More information is available at www.qrinc.com.