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.
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.
Apr. 2, 2014, 5:38 PM
Aug. 6, 2013, 3:59 PM
- Quicksilver Resources (KWK +7.2%) powers higher after swinging to a Q2 profit from the year-ago period that included a $1.2B write-down, as even production revenue declined.
- Q3 expected average production volume is 275M-280M cfe/day; FY 2013 average production volume continues to be expected at 290M-300M cfe/day.
- KWK also reported some progress on the monetization of its Horn River Basin assets, as it moved the JV process forward into the formal bidding stage.
May 17, 2013, 12:20 PM
Quicksilver Resources (KWK -4.4%) announces a multi-year profit improvement plan it says will focus on prioritizing its core brands, globalizing key functions and reducing its cost structure, Briefing.com reports. KWK expects the plan will improve EBITDA by $150M by 2016. Also, KWK will be replaced in the S&P 400 after the close of trading May 23.| May 17, 2013, 12:20 PM
Apr. 3, 2013, 2:58 PMRecent asset sales (I, II) by Magnum Hunter (MHR +3.9%) and Quicksilver Resources (KWK +2.9%) are just the beginning, as drillers reach a point where their cash flow isn't enough to pay down big debts racked up in the shale land grab. The combined long-term debt for 85 small and midsize U.S. drillers was more than $130B at the end of Q3 2012, according to one estimate. | Apr. 3, 2013, 2:58 PM | 2 Comments
Apr. 2, 2013, 11:39 AM
Quicksilver Resources (KWK -9%) gives back some of yesterday's gains after selling a 25% stake in its Barnett Shale assets to Tokyo Gas for $485M. Raymond James says KWK received a solid price in the sale, but maintains its Underperform rating, preferring to "wait for more progress on the recapitalization front before getting excited."| Apr. 2, 2013, 11:39 AM | 7 Comments
Apr. 1, 2013, 3:27 PM
Quicksilver Resources (KWK +14.2%) delivered on its promise to partially monetize its Barnett Shale interest, Jefferies analysts say, but it still needs a Horn River JV to support the firm's Hold rating and $2.50 price target. While KWK will want to use the sale proceeds to pay down more than $1B in 2015-16 notes, banks likely will request KWK pay down some of its $388M of bank debt.| Apr. 1, 2013, 3:27 PM
Apr. 1, 2013, 9:11 AM
Apr. 1, 2013, 8:26 AM
Quicksilver Resources (KWK) +22.3% premarket following its agreement to sell a 25% interest in its Barnett shale assets for $485M to TG Barnett Resources, a U.S. subsidiary of Tokyo Gas. KWK will remain as operator of the assets. The proceeds - 25% higher than KWK's market cap - will help in the company's quest to pay down a heavy debt load.| Apr. 1, 2013, 8:26 AM
Mar. 25, 2013, 5:56 PM