This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Quicksilver Resources' CEO Discusses Q2 2012 Results - Earnings Transcript

Stocks in this article: KWK

The Barnett MLP has received the green light from the SEC, but we are currently on hold awaiting better marketing conditions. We remain committed to monetizing a portion of the Barnett this year in order to reduce company debt and whether that comes in the form of the MLP or perhaps an asset sale will depend on value.

Moving to Canada, the Horn River Basin is looking very, very good. It appears that we are in an excellent area of the Basin geologically with well-developed sections of both the Muskwa and Klua formations in the Devonian section which exceed 520 feet of combined thickness. Our first multi-well drilling pad alternated Muskwa and Klua wells so that no completed section was closer than 1,200 feet to the next comparable well. From previous results, we have recognized the tremendous potential of the Muskwa, and with this new pad coming on line, we see the capability of the lower Klua section to be as strong or stronger.

Shortly after the end of the second quarter, Quicksilver finalized completion operations on this eight well pad. Production has been curtailed due to flow limitations of the test equipment, but individual wells have tested at rates between 20 million and 30 million cubic feet of gas a day. These wells were drilled with 6,000 to 8,500 foot laterals, depending on the lease boundaries. At this point, these eight wells have an estimated production capacity in excess of 150 million cubic feet of gas per day. To put that in perspective, this one pad which comprises less than 1% of our acreage position in the Horn River Basin can bring on gas volumes equal to 40% of our current total company production.

We will continue to flow the wells into completion clean up and then curtail this production to levels required to meet pipeline and processing commitments over the next year. We project the prolific nature of this production will allow us to drill fewer wells to meet these obligations going forward. We have pushed out some of these commitments and John will give you more details in his remarks.

3 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs