Posted on Thu, May. 08, 2008

Energy firm's 1st-quarter profit rises 85%

By JIM FUQUAY

Star-Telegram Staff Writer

FORT WORTH -- Quicksilver Resources said Tuesday its first-quarter earnings jumped 85 percent to $42.2 million as production rose 13 percent and selling prices for the company's crude oil and natural gas were nearly 23 percent higher compared with a year ago.

The Fort Worth-based independent producer's daily production in the Barnett Shale nearly tripled, to 145 million cubic feet of natural gas and natural gas liquids. That number is swelled by output from Quicksilver's five wells at its Lake Arlington lease, each of which is producing an unusually strong 4 million to 5 million cubic feet a day, the company told financial analysts during a conference call.

Quicksilver spokesman Rick Buterbaugh said the company expects to bring several more Lake Arlington wells online by the end of the second quarter.

In the Barnett Shale, where the company also has sizable operations in Hood County, Quicksilver drilled 55 new wells and connected 56 wells to sales lines. President Glenn Darden said the company should boost production nearly 70 percent during 2008 to an average of 255 million cubic feet per day.

In the first quarter, Quicksilver reported $157.5 million in revenue, up 35 percent from a year earlier. Earnings amounted to 25 cents per share, in line with analysts' expectations.

Still, the company's shares (ticker: KWK) slid $2.48, or 5.7 percent, to close at $41.25 on a day when the overall market was down sharply and many other energy stocks also lost ground. Quicksilver's shares have doubled in the past year and are up nearly 40 percent so far this year.