How Much Longer Can Quicksilver Resources Hang On Without a Partner?

There are lots of financially stressed oil and gas producers out there today, but few are currently worse off than Quicksilver Resources (NYSE: KWK  ) . Sure, companies like Magnum Hunter Resources (NYSE: MHR  ) are making some odd moves considering it's lack of capital to develop its American assets, but at least the company has enough money coming in the door to cover its interest expenses. That is something that Quicksilver resources cannot proclaim right now. 

Qucksilver Resources does have an ace up its sleeve, though, and that is the massive potential of its Horn River gas assets. Problem is, though, it needs help to make it happen. Find out why this gas field is so important to the future of Quicksilver, what it needs to make it possible, and how long it has before its debt load could become too much by tuning into the video below. 

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  • Report this Comment On June 26, 2014, at 4:29 PM, noneother wrote:

    HRB "Only thing that that can turn KWK around?" No way dude seriously. Besides KWK can liquidate the Barnett property and Horseshoe property and wipe the debt 100% gone within a month as both these are proven to be valued at ~2 billion together.

    Then they have HRB = potentially billion short term and tens of billions long term

    And most importantly KWK is now an oil play sitting on 200k gross 170k net acres of prime wolfcamp oil Permian land with two partners, one being Eni who is drilling right now. KWK is carried on 5 oil wells this year at no expense, there Pecos property had IP of 1300BOE just 5 miles SE of KWK property and the ~100k net acres KWK owns in Crockett and Upton Counties is almost completely surrounded by Conoco Philips land who is drilling now and in which their IP is "greater than 1000BOE." Also other companies in the area very near KWK property get 1 billion market cap just for this acreage. It's conceivable that just KWK Permian property within a year gets valued at 1.5 to 2 billion that would equal 10-15pps alone.

    Not to mention that bond holders are not scared, they pushed back debt to 2016 and 2019 and lowered interest rate. KWK has proven over and over they can put together deals over 100 million and bring in major partners, Eni and Tokyo gas.

    KWK gets bad rap and IMO this is a huge opportunity to get in on some mega projects on the cheap. Plenty of other oil and gas, esp oil companies are in way worse shape than KWK and not a peep from anyone. This company with a little and I mean very little luck can be a 10 bagger at these levels just for the Permian, potentially even 20-30 bagger depending on the LNG project and terms. Either way 2.6 is cheap and KWK can liquidate all assets within a year and still pull out 5-10pps so risk as a spec O and G KWK is the best in market. You get mega natural gas project in US, you get mega NG/LNG project in Canada, and you get mega oil project in the Permian with the wolfcamp (now top three hottest oil play in market). KWK is the best Oil and gas play for upside currently in the market.

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