Quicksilver Resources Inc Valuation Report, July 2010 - Strategic and Operational Analysis


#29275

123pages

GlobalData

$ 3500

In Stock


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. Quicksilvers production and development assets are located in the Barnett Shale of the Fort Worth Basin and the Horseshoe Canyon in Alberta. Similarly, the company has exploration assets in the Horn River Basin, Canada, and the Greater Green River Basin in the Rocky Mountain region.

Scope

  • Investment Thesis: This section highlights the companies new ventures, liquidity issues, assets analysis, hedging, new projects details, capex funding, geographical results of oil and gas operations, and other related analysis. 
  • Goals and Strategies: Provide highlights on their existing and upcoming challenges with the possible strategies. 
  • SWOT: This section highlights the companies internal strength, weakness, opportunities and threats to better understand their position in the market
  • Production and Development profile: This section highlights the companies forecasted crude oil and natural gas production from their existing and upcoming assets. It also covers the detailed information and analysis on the producing and development assets. 
  • Exploration and M&A trends: This section includes exploration assets information resulted due to new discoveries, new drilling and other activities. Additionally, M&A section highlights the companies recent assets transactions, joint ventures, acquisition, and divestment activities during the specified period. 
  • Financial Forecast and Valuation: This section highlights the detailed financial forecast of the companies for coming five years. This section also provides intrinsic value of the companies by using different valuation techniques. 
  • Peer Group: This section compares peer group performance with the main companies on the basis of share prices, financial ratios, operational and financial parameters and other related activities. 

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.
Table Of Contents

1 Table of contents 3
1.1 List of Tables 5
1.2 List of Figures 7

2 Quicksilver Resources Inc, Company Overview 10

3 Quicksilver Resources Inc, Watchlist for 2010 14

4 Quicksilver Resources Inc, Investment Summary 15
4.1 Fort Worth Basin to Remain the Primary Contributor of Production in the Future 15
4.2 Horn River Basin; A New Avenue to Support Future Operations 17
4.3 High Leverage May Limit the Ability to Fund Future Growth 18
4.4 Hedged Production Assures Stable Future Cash Flows 19

5 Quicksilver Resources Inc, SWOT Analysis 20
5.1 Strengths 20
5.1.1 High Reserve Base with Long Life 20
5.1.2 Low Cost Operator; Setting an Example to Its Peers 20
5.2 Weaknesses 21
5.2.1 Profitability on a Continuous Decline 21
5.3 Opportunities 22
5.3.1 Undeveloped Acreages in the Horn River Basin and the Greater Green River Basin Provide Opportunities to Increase Production 22
5.3.2 Expand Midstream Operations 22
5.4 Threats 22
5.4.1 Inability to Obtain Capital on Satisfactory Terms Can Affect Future Capital Program 22
5.4.2 Operations in Few Geographic Areas 23

6 Quicksilver Resources Inc, Goals and Strategies 24
6.1 Focus on the Fort Worth Basin 24
6.2 Maintain Liquidity to Fund its Capital Program 24
6.3 Increase Production Through Organic Growth 26

7 Quicksilver Resources Inc, Production and Development Overview 27
7.1 Production and Development Profile 27
7.2 Barnett Shales Properties in the Fort Worth Basin to be the Largest Contributor to Production 29
7.3 Sweetgrass Arch Cut Bank Field - Expected Inventory for 5-6 Years 30
7.4 Horseshoe Canyon, Alberta, Canada - One of the Core Areas of Operations 30
7.5 Costs Incurred 31

8 Quicksilver Resources Inc, Exploration and M&A Overview 33
8.1 Exploration Profile 33
8.2 Greater Green River Basin 33
8.3 Horn River Basin Major Contributor to the Quicksilvers Production in the Future Years. 34
8.4 M&A Overview 36

9 Quicksilver Resources Inc, Outlook 38

10 Quicksilver Resources, Forecasted Production and Financial Statements 39
10.1 Income Statement (20072014) 41
10.2 Balance Sheet (20072014) 42
10.3 Cash Flow Statement (20072014) 43
10.4 Financial Ratios 44

11 Quicksilver Resources Inc, Valuation 46
11.1 Net Asset Value 46

12 Quicksilver Resources Inc, Peer Comparision 50
12.1 Share Price Performance 50
12.2 Operational and Financial Performance 50
12.3 Key Financial and Operational Ratios 53

13 Quicksilver Resources Inc, Key Risks 56
13.1 High Dependence on Natural Gas Prices 56
13.2 Production Concentrated in A Few Areas 56
13.3 Risks Associated with Investments in Quicksilver Gas Services (KGS) and BreitBurn Energy Partners(BBEP) 56
13.4 High Leverage May Reduce the Ability to Raise Incremental Capital 56

14 Quicksilver Resources Inc, Detailed Financial and Operational Metrics 57
14.1 Quicksilver Resources Inc., Quarterly Results of Oil & Gas Operations Per boe Produced 57
14.1.1 Results of Oil & Gas Operations Per boe Produced, Q2, 2009-Q2, 2010 57
14.1.2 Results of Oil & Gas Operations Per boe Growth Rates, Q2, 2009-Q2, 2010 58
14.2 Quicksilver Resources Inc., Quarterly E&P Costs Trends 58
14.2.1 Upstream Capital Expenditure, Q2, 2009-Q2, 2010 58
14.3 Quicksilver Resources Inc., Quarterly Production Trends 59
14.3.1 Total Crude Oil and Natural Gas Production Trend, Q2, 2009-Q2, 2010 59
14.3.2 Total Crude Oil Production Trend, Q2, 2009-Q2, 2010 60
14.3.3 Total Natural Gas Production Trend, Q2, 2009-Q2, 2010 61
14.4 Quicksilver Resources Inc., Production and Reserves Trends 62
14.4.1 Total Crude Oil and Natural Gas Production and Reserves Trend, 2004-2009 62
14.4.2 Total Crude Oil & Natural Gas Production and Reserves By Country/Region, 2004-2009 63
14.4.3 Total Crude Oil and Natural Gas Reserve Changes, 2004-2009 65
14.4.4 Crude Oil/Liquids Production and Reserve Trend, 2004-2009 66
14.4.5 Crude Oil Production and Reserves By Country/Region, 2004-2009 67
14.4.6 Crude Oil/Liquids Reserve Changes, 2004-2009 68
14.4.7 Natural Gas Production and Reserve Trend, 2004-2009 69
14.4.8 Natural Gas Production and Reserves, By Country/Region, 2004-2009 70
14.4.9 Natural Gas Reserve Changes, 2004-2009 72
14.4.10 Total Crude Oil and Natural Gas Reserves Life Index, 2004-2009 73
14.4.11 Total Crude Oil and Natural Gas Reserves Life Index, By Country/Region, 2004-2009 74
14.5 Quicksilver Resources Inc., E&P Costs Trends 76
14.5.1 Upstream Capital Expenditure, 2004-2009 76
14.5.2 Acquisition Costs By Country/Region, 2004-2009 77
14.5.3 Exploration and Development Costs, By Country/Region, 2004-2009 78
14.5.4 Oil and Gas Cost Per boe, $/boe, 2004-2009 80
14.5.5 Oil and Gas Cost Per boe, $/boe, By Country/Region, 2004-2009 81
14.6 Quicksilver Resources Inc., Reserve Replacement Ratio 84
14.6.1 Oil and Gas Production Replacement Ratio, 2004-2009 84
14.6.2 Oil and Gas Production Replacement Ratio, By Country/Region, 2004-2009 86
14.7 Quicksilver Resources Inc., Results of Oil & Gas Operations Trend 90
14.7.1 Oil and Gas Revenue and Expenses, 2004-2009 90
14.7.2 Oil and Gas Revenue and Expenses, By Country/Region, 2004-2009 91
14.7.3 Oil and Gas Revenue and Expenses, By boe, 2004-2009 96
14.7.4 Oil and Gas Revenue and Expenses Per boe, By Country/Region, 2004-2009 97
14.7.5 Oil and Gas Performance Metrics 101
14.8 Quicksilver Resources Inc., Land Holdings and Well Data 102
14.8.1 Gross and Net Developed and Undeveloped Acreage, 2004-2009 102
14.8.2 Gross and Net Developed and Undeveloped Acreage, By Country/Region, 2004-2009 103
14.8.3 Producible Oil and Gas Well, 2004-2009 106
14.8.4 Producible Oil and Gas Well, By Country/Region, 2004-2009 107
14.8.5 Exploration and Development Wells Drilled, 2004-2009 112
14.8.6 Exploration and Development Wells Drilled, By Country/Region, 2004-2009 114
14.8.7 Developed Reserves per Well, Oil (Mbbls per Well), Gas (MMcf per Well), Oil & Gas (Mboe per Well), 2004-2009 116
14.8.8 Developed Reserves per Well, By Country/Region, 2004-2009 117

15 Appendix 119
15.1 Methodology 119
15.1.1 Coverage 119
15.1.2 Secondary Research 120
15.1.3 Primary Research 120
15.2 Data Sources 120
15.2.1 Company Source 120
15.2.2 SEC/Other Regulatory Filings 120
15.2.3 Agency Reports 121
15.2.4 Other Sources 121
15.3 Expert Panel Validation 121
15.4 Definitions 122
15.5 Units of Measure 122
15.6 About GlobalData 123
15.7 Disclosure 123
15.8 Disclaimer 123

Table 1: Quicksilver Resources Inc, Key Events, July 2009July 2010 13
Table 2: Quicksilver Resources Inc, Recent Transactions As a Seller, 20082010 37
Table 3: Quicksilver Resources Inc, Recent Transactions As A Buyer, 20082010 37
Table 4: Quicksilver Resources Inc, Forecast Production, 20072014 39
Table 5: GlobalData, Price Forecasts, 20102014 39
Table 6: Quicksilver Resources Inc, Income Statement ($m), 20072014 41
Table 7: Quicksilver Resources Inc, Balance Sheet ($m), 20072014 42
Table 8: Quicksilver Resources Inc, Cash Flow Statement ($m), 20072014 43
Table 9: Quicksilver Resources Inc, Profitability Ratios, 20072014 44
Table 10: Quicksilver Resources Inc, Other Ratios, 20072014 44
Table 11: GlobalData, Price Forecast, 20102014 46
Table 12: Quicksilver Resources Inc, Net Asset Value, 2010 47
Table 13: Quicksilver Resources Inc, NPV Per Unit Natural Gas Production, 2010 47
Table 14: Quicksilver Resources Inc, Prospective Acreage & Non Proven Reserves, 2010 48
Table 15: Quicksilver Resources Inc, NPV Per Unit Crude Oil & NGL Production , 2010 48
Table 16: Quicksilver Resources Inc, Sensitivity Analysis on Fair Value ($/share), 2010 48
Table 17: Quicksilver Resources Inc, NPV Per Unit Total Production, 2010 49
Table 18: Quicksilver Resources Inc and Peers, Operational and Financial Performance, 2009 51
Table 19: Quicksilver Resources Inc and Peer Group Comparison, Financial Ratios, 2009 54
Table 20: Quicksilver Resources Inc., Results of Oil & Gas Operations Per boe Produced, $/boe, Q2, 2009-Q2, 2010 57
Table 21: Quicksilver Resources Inc., Results of Oil & Gas Operations Per boe Growth Rates, %, Q2, 2009-Q2, 2010 58
Table 22: Quicksilver Resources Inc., Upstream Capital Expenditure, Q2, 2009-Q2, 2010 59
Table 23: Quicksilver Resources Inc., Total Crude Oil and Natural Gas, Production, Q2, 2009-Q2, 2010 60
Table 24: Quicksilver Resources Inc., Total Crude Oil Production, MMbbl, Q2, 2009-Q2, 2010 60
Table 25: Quicksilver Resources Inc., Total Natural Gas Production, Bcf, Q2, 2009-Q2, 2010 61
Table 26: Quicksilver Resources Inc., Total Crude Oil and Natural Gas, Production and Reserves, MMboe, 2004-2009 62
Table 27: Quicksilver Resources Inc., Total Crude Oil & Natural Gas Production and Reserves, By Country/Region, MMboe, 2004-2009 64
Table 28: Quicksilver Resources Inc., Total Crude Oil and Natural Gas Reserve Changes, MMboe, 2004-2009 65
Table 29: Quicksilver Resources Inc., Crude Oil Production and Reserves Metrics, MMbbl, 2004-2009 66
Table 30: Quicksilver Resources Inc., Crude Oil Production and Reserves, By Country/Region, MMbbl, 2004-2009 68
Table 31: Quicksilver Resources Inc., Crude Oil Reserve Changes, MMbbl, 2004-2009 69
Table 32: Quicksilver Resources Inc., Natural Gas Production and Reserves Metrics, Bcf, 2004-2009 70
Table 33: Quicksilver Resources Inc., Natural Gas Production and Reserves, By Country/Region, Bcf, 2004-2009 71
Table 34: Quicksilver Resources Inc., Natural Gas Reserve Changes, Bcf, 2004-2009 72
Table 35: Quicksilver Resources Inc., Oil and Gas Reserves Life Index, 2004-2009 73
Table 36: Quicksilver Resources Inc., Oil and Gas Reserves Life Index, By Country/Region, 2004-2009 75
Table 37: Quicksilver Resources Inc., Upstream Capital Expenditure, $m, 2004-2009 76
Table 38: Quicksilver Resources Inc., Proved and Unproved Acquisition Costs, By Country/Region, $m, 2004-2009 78
Table 39: Quicksilver Resources Inc., Exploration and Development Costs, By Country/Region, $m, 2004-2009 79
Table 40: Quicksilver Resources Inc., Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs Per boe, $/boe, 2004-2009 80
Table 41: Quicksilver Resources Inc., Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs Per boe, $/boe, By Country/Region, 2004-2009 83
Table 42: Quicksilver Resources Inc., Oil and Gas Production Replacement Ratio, %, 2004-2009 84
Table 43: Quicksilver Resources Inc., 3-Year Wt.Avg. Oil and Gas Production Replacement Ratio, By Country/Region, %, 2004-2009 89
Table 44: Quicksilver Resources Inc., Revenue and Expenses, $m, 2004-2009 90
Table 45: Quicksilver Resources Inc., Revenue and Expenses, By Country/Region, $m, 2004-2009 94
Table 46: Quicksilver Resources Inc., Oil and Gas Revenue and Expenses, $/boe, 2004-2009 96
Table 47: Quicksilver Resources Inc., Oil and Gas Revenue and Expenses, $/boe, By Country/Region, 2004-2009 100
Table 48: Quicksilver Resources Inc., Oil and Gas Performance Metrics, 2004-2009 101
Table 49: Quicksilver Resources Inc., Land Holdings (Developed and Undeveloped Acreage), Acres, 2004-2009 102
Table 50: Quicksilver Resources Inc., Land Holdings (Developed and Undeveloped Acreage), By Country/Region, Acres, 2004-2009 105
Table 51: Quicksilver Resources Inc., Producible Oil and Gas Wells, 2004-2009 106
Table 52: Quicksilver Resources Inc., Producible Oil and Gas Wells, By Country/Region, 2004-2009 110
Table 53: Quicksilver Resources Inc., Exploratory and Developed Wells, 2004-2009 112
Table 54: Quicksilver Resources Inc., Exploratory and Developed Wells, By Country/Region, 2004-2009 114
Table 55: Quicksilver Resources Inc., Developed Reserves per Well, Oil (Mbbls per Well), Gas (MMcf per Well), Oil & Gas (Mboe per Well), 2004-2009 116
Table 56: Quicksilver Resources Inc., Developed Reserves per Well, By Country/Region, Mboe per Well, 2004-2009 118
Figure 1: Quicksilver Resources Inc, Operational Map, 2010 10
Figure 2: Quicksilver Resources Inc, Financial & Operational Overview, 20052009 12
Figure 3: Quicksilver Resources Inc, Share Price Movement, June 2009June2010 13
Figure 4: Quicksilver Resources Inc, Comparison of Production from the Fort Worth Basin and Rest of the Assets, MMboe, 20072014 16
Figure 5: Quicksilver Resources Inc, Comparison of Production from the Horn River Basin and the Rest of the Assets, MMboe, 20102014 17
Figure 6: Quicksilver Resources Inc and Peers, Leasehold Position in the Horn River Basin, Thousand Acres, 2010 18
Figure 7: Quicksilver Resources Inc and Peers, Oil and Gas Hedging, 2010 19
Figure 8: Quicksilver Resources Inc and Peers, Reserves and Reserve Life, 2009 20
Figure 9: Quicksilver Resources Inc, Net Profit Margin and Return on Equity, 20052009 21
Figure 10: Quicksilver Resources Inc, Capital Program, 2010 24
Figure 11: Quicksilver Resources Inc, Total Production , MMboe, 2007