Quicksilver Resources Inc.NYSE
Tue, Mar. 8, 5:17 PM
- A U.S. bankruptcy judge says Sabine Oil & Gas (OTCPK:SOGCQ) can reject contracts with midstream companies it made before oil and gas prices plunged.
- But the judge says her ruling is not binding, potentially setting the stage for another legal battle over the pipeline operators' argument that the agreements cannot be broken because they are inextricably tied to the land on which Sabine operates.
- The ruling covers agreements with two companies, including an affiliate of Cheniere Energy (NYSEMKT:LNG), that gather natural gas for Sabine in specific geographic locations; Sabine has said that rejecting the contracts could save as much as $115M for the bankruptcy estate.
- Restructuring and energy experts have warned that a loss for Sabine's pipeline operators could inspire other bankrupt oil and gas producers to seek similar relief, spreading the distress that has plagued them to the midstream companies that process and transport oil and natural gas.
- Similar requests are pending in the chapter 11 cases of companies including Quicksilver Resources (OTCPK:KWKAQ) and Magnum Hunter Resources (OTCPK:MHRCQ); a Delaware judge is expected to rule on KWK's request by the end of the month.
- Pipeline stocks include: KMI, ENB, EEP, SE, SEP, WMB, ETE, ETP, OKS, PAA, PBA, MMP, CQP, BWP, BPL, WES, SXL, NS, NSH, TCP, NGL, DPM, GEL, HEP, APL, SEMG, TLLP, MMLP, TLP, SGU, BKEP
Tue, Jan. 26, 12:46 PM
- Quicksilver Resources (KWK, OTCPK:KWKAQ) is preparing to sell its Texas oil and gas drilling operations to BlueStone Natural Resources, which emerged the winner of a bankruptcy auction for KWK's operations with a $245M bid, WSJ reports.
- The offer still needs approval from the bankruptcy judge, who agreed to look it over at a court hearing on Wednesday.
Oct. 6, 2015, 12:19 PM
- Quicksilver Resources (KWK, OTCPK:KWKAQ) will go on the auction block in December, hoping to line up a sale that eluded it before it filed for bankruptcy protection in March.
- Creditors are worried the auction might fail to produce a valuable offer, so they are pressing for continued discussions about a chapter 11 reorganization plan.
- At a hearing today in the U.S. Bankruptcy Court in Wilmington, Del., a company lawyer said KWK is willing to pursue a reorganization plan but believes the renewed sale effort may succeed.
Mar. 17, 2015, 5:45 PM
- Quicksilver Resources (NYSE:KWK) and its U.S. subsidiaries file for Chapter 11 bankruptcy protection, and say they will continue normal business operations; KWK's Canadian subsidiaries are not part of the filing.
- KWK says its strategic marketing process did not produce viable options for asset sales or other alternatives to fully address the company’s liquidity and capital structure issues.
- Crestwood Midstream Partners (NYSE:CMLP), whose gathering and processing systems are integral to KWK's Barnett Shale operations, says KWK is current on all outstanding invoices received from CMLP.
Feb. 25, 2015, 11:35 AM
- Crestwood Midstream Partners (CMLP +0.2%) is downgraded to Hold from Buy at Stifel, after CMLP reported solid Q4 results with the second consecutive quarter of distribution coverage in excess of 1x but provided lower than expected 2015 guidance and eliminated distribution growth expectations for 2015.
- Stifel also noted that Quicksilver Resources (NYSE:KWK), one of CMLP's customers in the Barnett Shale, is experiencing liquidity issues and could negatively affect cash flow.
- On a positive note, CMLP management discussed a potential restructuring of the general partner to create a growth story and drive value.
Jan. 7, 2015, 7:05 PM
- U.S. oil producers will keep pumping, even at sub-$50 crude oil, because they have to pay off debt, but they are having trouble keeping up with debt payments in the wake of raising their borrowing 55% since 2010 to nearly $200B, WSJ reports.
- Energy analysts warn defaults could be coming: “The group is not positioned for this downturn... There are too many ugly balance sheets,” says Baird's Daniel Katzenberg.
- Lenders are already doling out tough love to companies, MLV amalyst Chad Mabry says, with some lenders wanting to see producer plans for handling further price drops while others are urging asset sales.
- The 10 highest ratios of net debt/EBITDA from the last 12 months, according to S&P Capital IQ, belong to KWK, AR, WRES, GDP, REN, HK, XCO, REXX, MPO, EPE.
Jan. 4, 2015, 3:49 PM
- The following stocks were the Russell 2000's worst performers in 2014:
- KWK -93.5%. WLT -91.7%. AMZG -89.5%. PHMD -88.2%. EXXI -88%. RGDO -86.8%. REN -85.4%. HERO -84.7%. EOX -84.3%. MCP -94.3%. CVEO -84.2%. BPZ -84.1%. FWM -82.6%. MILL -82.2%. NADL -81.6%. VRNG -81.4%. CYTX -81%. SALT -80.5%. PRKR -80%. MBII -79.7%. NTLS -79.2%. COVS -78.9%. KEG -78.9%. MM 78 MPO -77%. ANR -76.6%. EXEL -76.5%. SZYM -76.3%. CONN -76.2%. ANV -75.5%. GALT -75.5%. ZQK -74.8%. ARO -74.5%. REXX -74.1%. GDP -74%. FUEL -73.8%. QRHC -73.7%. VTG -73.4%. RLOC -73%. XONE -72.2%.
Dec. 1, 2014, 3:32 PM
- Prices of bonds issued by low-rated energy companies are falling sharply despite today's rebound in oil prices, amid worries that this year’s slump in oil markets will lead to a cash crunch.
- The most actively traded junk bonds at midday were Linn Energy’s (LINE -5.8%) two B-rated notes due 2019, which fell 9% to $0.82 on the dollar, pushing yields up to ~11.5%; Halcon Resources' (HK -1.3%) 2021 bond, which started weakening Friday, has dropped 10% today to $0.69 on the dollar, pushing up the yield to 17%.
- Energy XXI’s (EXXI -15.8%) debt which matures in 2017 fell 5.5% to $0.85 on the dollar and yielding 15.5%; Quicksilver Resources' (KWK +38.3%) bonds due 2016 have rebounded slightly but still trade ~$0.22 on the dollar.
- Should oil prices fall below $65/bbl and stay there for the next three years, J.P. Morgan high-yield energy analyst Tarek Hamid estimates that up to 40% of all energy junk bonds could default over the next several years.
Nov. 10, 2014, 7:08 AM
- Quicksilver Resources (NYSE:KWK): Q3 EPS of -$0.07 beats by $0.01.
- Revenue of $102.62M (-1.8% Y/Y) misses by $7.03M.
Nov. 9, 2014, 5:30 PM
Oct. 9, 2014, 4:57 PM
- Quicksilver Resources (NYSE:KWK) says it received notice from the NYSE that it has not met continued listing standards requiring a minimum average closing price of $1/share over 30 consecutive trading days.
- KWK says it is taking steps to enhance its financial position, including efforts to market company assets, identify joint venture partners or engage in strategic transactions.
- KWK +12.7% AH.
Sep. 26, 2014, 12:19 PM
- Quicksilver Resources (KWK -22.6%) plunges after appointing John Little from Deloitte as its Strategic Alternatives Officer to explore strategic and tactical options including marketing assets and identifying JV partners.
- In lowering its stock price target to $1 from $4, Howard Weil says if a Horn River Basin deal was close, the arrangement would not be necessary; with no HRB deal, capital raise or significant move in natural gas prices, the firm believes it is hard to see upside in the stock (Briefing.com).
Aug. 27, 2014, 10:59 AM
- Quicksilver Resources (KWK +10.1%) surges after announcing the initial results of its first horizontal well under its exploration agreement with Eni (E +0.2%) in Pecos County, Texas.
- KWK says the Stallings #1H well began flow back two weeks ago and now is producing at a rate of 750 boe/day (90% oil), and is drilling the Mitchell #1H, the second of its JV wells with Eni.
- KWK is operator of Stallings #1H and owns an equal working interest with Eni.
Aug. 25, 2014, 12:46 PM
Aug. 13, 2014, 12:46 PM
Aug. 5, 2014, 3:59 PM
- Quicksilver Resources (KWK -15.7%) tumbles near 14-year lows after reporting Q2 earnings and revenues below Wall Street expectations on declining production.
- Q2 production fell almost 11% Y/Y to 23.3B cfe, averaging ~255M cf/day, with much of the decline blamed on KWK's sale of a 25% stake in Barnett shale formation assets to a subsidiary of Tokyo Gas and the natural decline of volumes from its Canadian holdings.
- Sees Q3 production of 245M-250M cf/day, consisting of ~85% natural gas and 15% natural gas liquids; expected production levels, on average, are being reduced ~5M cf/day due to a planned, two-week outage at a third-party treating facility in the Horn River Basin.
- Continues to project FY 2014 production of 245M-255M cf/day.