Quicksilver Resources Inc, Company Intelligence Report

Quicksilver Resources Inc, Company Intelligence Report Summary Quicksilver Resources Inc is an independent energy company engaged mainly in the exploration, development, and production of unconventional natural gas resources in the US and Canada. The company owns oil and natural gas assets mainly in Texas, Colorado, Wyoming and Montana in the US, and Alberta and British Columbia in Canada. Quicksilver’s production and development assets in Alberta are located in the Barnett Shale of the Fort Worth Basin and the Horseshoe Canyon. Similarly, the company has exploration assets in the Horn River Basin in Canada, and the Greater Green River Basin in the Rocky Mountain region. The figure below represents the company’s producing regions during 2011. Scope Key Highlights: This section provides detailed analysis on the company’s overall oil and gas value chain, new projects, growth opportunities, new ventures, assets performance, hedging strategies, Capex funding, geographical results of oil and gas operations. Goals and Strategies: This section provides the upcoming goals and strategies of the company. The section mainly goals and strategies followed by the company in order to meet its upcoming goals. SWOT: The report’s SWOT section provides the internal strength, weakness, opportunities and threats of company to reflect its strategic positions in the market. Production and Development Overview: This section highlights the company’s crude oil and natural gas production forecast from its legacy and upcoming assets by region and commodity mix for next five years. The report also covers the detailed information and analysis on the company’s producing and development assets. Exploration: This section includes detailed explanation and analysis on the company’s exploration assets resulted due to new discoveries, new drilling and other activities. M&A trends: This section mainly provides information and analysis on the company’s recent assets transactions, joint ventures, acquisition, and divestment activities during the last one year. This section highlights the company’s status as a buyer or seller during the analyzed period. Financial Forecast and Valuation: This section highlights the detailed financial statement forecast for next five years. With the financial statement forecast, this section also provides intrinsic value of the company by using Net Asset Valuation method. Peer Group Analysis: This section compares the company’s performance with its peer group on the basis of share prices, financial ratios, operational and financial parameters and other related parameters. Financial and Operational Metrics: This section covers the company’s historical performance on several financial and operational parameters such as Production and Reserves, Reserves Replacement, Costs Incurred, Acreage, Wells, F&D Costs, Oil and Gas Revenue and Expenses etc. Reasons to buy The report will enhance the decision-making capability in a more rapid and time sensitive manner. It will allow you to - Provide detailed analysis to those who are interested in knowing the companies’ existing and future business strategies. Provide in-depth analysis on the companies E&P profiles along with the exploration and M&A updates. Provide valuable insights to those who are tracking oil and gas markets and wants to know the intrinsic value of the companies. Use the analysis for strategy and planning, M&A identifications, and competitor analysis.

Additional Information

Barnett Shale to Remain the Primary Contributor in the Quciksilver’s Production Profile in the Future

Quicksilver is predominantly acquiring its major production from the Barnett shale in Forth Worth Basin. It holds more than 155,000 net acres in its Barnett Shale Asset. Production from the company’s Barnett Shale during 2010 was about 17.2 million barrels of oil equivalent (MMboe), contributing almost 71.7% of total production during the year. Barnett shale contributed an average of around 68.2% of the company’s total production from the last four years. However, production from the shale increased at a Compound Annual Growth Rate (CAGR) of 21.6% during 2007-2010. Quicksilver expects a major proportion of the company’s future production to come from the shale. The shale also represented almost 439.4 MMboe, or 84.7% of the company’s total proved reserves of 518.7 MMboe during 2010. The company’s large reserve base confirms Quicksilver’s use of shale as a major source of production, which will be used to provide stable production growth for the company in the future.

Quicksilver allocated $557.4m towards all US assets in 2010, primarily towards the Barnett shale, accounting for almost 85.8% of its total capex of $649.5m. The company is looking to increase its acreage position in the Barnett shale as the company’s core area of operations. In line with this objective, Quicksilver acquired an additional 25% working interest and related assets in its Lake Arlington project in the Barnett Shale in May 2010, increasing its stake to 100%. Through this purchase, the company added 20 billion cubic feet (Bcf) of potential resources, 102.5 billion cubic feet equivalent (Bcfe) of proved developed reserves, and an average production of 10MMcfe/d. Thus, the company’s accelerated development plans for the Fort Worth Basin, coupled with its huge reserve base, is expected to support the company’s projected growth trajectory. GlobalData expects total production from the area to increase to around 42.7 MMboe to represent 74% of the company’s total production in 2015.