Quicksilver Resources moves to 3Q profit

AP News
Posted: Nov 09, 2009 2:13 PM

Quicksilver Resources Inc. on Monday posted a third-quarter net profit and said adjusted earnings beat analyst expectations as the natural gas and oil producer ramped up production and cut costs.

Shares jumped 71 cents, or 5.5 percent, to $13.56 after the news.

Quicksilver said third-quarter production climbed 12 percent to 311 million cubic feet equivalent per day from the year-ago period, driven by increased activity in Canada and at its Fort Worth Basin, where the company drilled 32 horizontal wells.

The company cut its oil and gas production expenses 12 percent to $29.1 million from the third-quarter of 2008.

Quarterly earnings rose to $730,000, or less than 1 cent per share, compared with a loss of $3.8 million, or 2 cents per share, during the same period last year.

Results include one-time charges related to hedging losses, taxes and a settlement, along with other special charges and gains. Excluding nonrecurring items, adjusted earnings amounted to 25 cents per share.

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Analysts polled by Thomson Reuters estimated a profit of 22 cents per share, on average. Analysts typically exclude one-time items.

Revenue declined 13 percent to $206.7 million, down from $236.3 million in the prior-year period. Analysts forecast an average revenue of $206 million.

Looking ahead to the fourth quarter, Quicksilver expects production volumes in the range of 330 million cubic feet equivalent to 340 million cubic feet equivalent.