Quicksilver Resources’ future took another hit as the company’s stock was delisted from the New York Stock Exchange.
The Fort Worth-based oil and gas company has struggled with mounting debt and hired a “strategic alternatives officer” in the fall to help sell assets to raise cash.
Under NYSE rules, a company can be delisted when the average closing price of its common stock falls below $1 for more than 30 days. Quicksilver’s last day on the exchange was Thursday, when it closed at 15 cents. It had a 52-week high of $3.67.
The company will not fight the decision, and its common stock will be traded within days on the over-the-counter market, using the KWKA stock symbol, the company said in a statement. Also known as an “unlisted stock,” these securities are traded by brokers who deal directly with each other over the phone or a computer network.
Quicksilver officials did not return phone calls seeking comment Friday.
Quicksilver took on a large debt load before natural gas prices slid and the financial markets collapsed in 2008. The company, which operates in the U.S. and Canada, has to refinance or retire $250 million in bonds by January 2016, Bloomberg News has reported.
It sold 25 percent of its Barnett Shale holdings to Tokyo Gas in April 2013 for $485 million; about a quarter of its leasehold in the Alliance area to the Italian oil giant Eni; and properties in Montana.
Quicksilver recorded losses in the first two quarters of 2014, and Glenn Darden, president and chief executive officer, told analysts this summer that the “company has more wood to chop.”
In September, Quicksilver hired a “strategic alternatives officer” to work with senior management to evaluate financial issues confronting the company. John Little, who works for Deloitte Transactions and Business Analytics, reports to Darden and the board of directors.
This report includes material from the Star-Telegram archives.
Max B. Baker, 817-390-7714