Full-year results include, but are not limited to, non-cash property impairments of $2.8 billion and $609 million of non-cash valuation allowances of U.S. deferred tax assets.
These charges are non-cash and do not reflect the current market value of Quicksilver's assets, nor do they impact its ability to realize its strategic and operational objectives.
Further details of non-operational items and adjusted net income are included in the tables accompanying this earnings release.
Fourth-quarter 2012 production was 31.5 Bcfe, or an average of 342 million cubic feet of natural gas equivalent per day (MMcfed). Production from the company's Barnett Shale was 22.7 Bcfe, or 247 MMcfed, which is down 6% from the previous quarter due to a reduction in capital activity. Production from Canada was 8.5 Bcfe, or 92 MMcfed, which was substantially less than the productive capabilities of the asset, as Horn River volumes were restricted by approximately 50% during most of the fourth quarter due to the continued delays in commissioning of a third-party treating facility. In mid-December, the company began ramping up Horn River production to 100 MMcfd of raw gas after it secured alternative treating and transportation arrangements on an interim and interruptible basis.
Full-year 2012 production was 132 Bcfe, or an average of 360 MMcfed. Production for the first 45 days of 2013 was 16.8 Bcfe, or an average of 366 MMcfed.
Revenue and Expenses
Production revenue for the fourth quarter of 2012 was $156 million and $636 million for full-year 2012. The company restructured certain long-term commodity hedges in 2012, and as a result, the revenue from these restructured hedges is recognized in production revenue based on the settlement dates of the original contracts. However, the company received approximately $16 million of cash proceeds from these restructured hedges in the fourth quarter 2012, and approximately $64 million for full-year 2012, which will not be recognized in revenue until future periods.