This Day On The Street
Continue to site
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

Quicksilver Resources Reports Preliminary 2012 Fourth-Quarter And Full-Year Results

Effective December 31, 2012, the company discontinued the use of hedge accounting on all existing hedge contracts. The net deferred hedge gains that are included in Accumulated Other Comprehensive Income as of December 31, 2012 will be recognized as production revenue during the periods in which the hedged transaction occurs.

Operational Update


The company's Horn River Basin Asset began ramping-up production in mid-December 2012 to 100 MMcfd of raw natural gas, which is being sourced from ten out of the twelve wells capable of production in the basin. Four wells have been producing for over 18 months, and six wells were brought online in stages since the d-50 pad was completed in the third quarter of 2012. Two wells on the d-50 pad are currently shut-in and will be brought online as additional volumes are needed to meet minimum commitments. Net sales volume after CO 2 treating is expected to be approximately 80 MMcfd based on gross production of 100 MMcfd.

On January 30, 2013, the Canadian National Energy Board (NEB) issued its report recommending against approval of NOVA Gas Transmission Ltd.'s (NGTL) Komie North pipeline extension project (Project), which proposed construction of a 75-mile pipeline to connect NGTL's Alberta system to a meter station planned to be constructed on the company's acreage in the Horn River Basin. The company believes the NEB's recommendation against the Project will be adopted by the federal authority.

The NEB concluded that the evidence presented at this time did not justify a 36-inch line as proposed; however, its recommendation notwithstanding, the NEB emphasized its belief in the long-term prospects for development of the Horn River Basin. The company believes NGTL will undertake efforts to secure additional shipper support for building of this 36" line.

In connection with the Project, the company had previously provided $30 million in letters of credit, which is expected to be reduced to $15 million or completely eliminated through a cash payment. Future financial assurances upon a revised application would be reduced proportionately to the extent of any additional shipper support and are expected to be delayed by up to two years. Consequently, Quicksilver is planning to defer drilling in the Horn River Basin until 2014 and will likely defer construction of a natural gas treating facility until at least 2016 to coincide with any new projected timelines for the Project.

6 of 12

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs