NEW YORK (TheStreet) -- Shares of Quicksilver Resources Inc. (KWK) are higher by 7.16% to $3.52 on heavy trading volume after the independent oil and gas company said that it completed its semi-annual redetermination and closed an amendment to its Combined Credit Agreements on April 25.
The redetermined global borrowing base was reduced to $325 million from $350 million.
Also, certain definitions which impact the calculation of EBITDAX were amended in order to exclude certain non-recurring cash items, provide for pro forma application of the March 2014 amendment to the Fortune Creek gathering agreement, and reduce the threshold for pro forma application of a material transaction to $10 million.
As of the date of the amendment, the company had approximately $240 million utilized under its Combined Credit Agreements, which includes $43 million of outstanding letters of credit. The company has also reduced the size of the Combined Credit Agreements to $650 million.
TheStreet Ratings team rates QUICKSILVER RESOURCES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate QUICKSILVER RESOURCES INC (KWK) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been weak operating cash flow."