Why Shares of Quicksilver Resources Inc. Plunged Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Quicksilver Resources  (NASDAQOTH: KWKAQ  ) dropped 14% today after the oil and gas company reported earnings.

So what: First-quarter production dropped from 358 million cubic feet of natural gas equivalent per day, or MMcfed, to 246 million MMcfed and is expected to be 255-260 MMcfed next quarter. The result was a loss of $0.08 per share, which was a penny worse than expected.  

Now what: Management has lowered debt to keep the company solvent, but still can't make meaningful progress in making a profit. Quicksilver has been swimming in red ink for a long time now, and it's simply a company I wouldn't bet on. There are better ways to play the energy market right now, particularly as liquids production increases around the country.

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