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CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc.

Quicksilver Resources Inc. · Feb 6, 2012 · 26 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 1
    Credit Suisse Energy Summit February 6-8, 2012 Vail, Colorado NYSE: KWK www.qrinc.com
  2. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 2
    Competitive Strengths ID large resource targets, early entry, maximum resource capture Low-cost operator by design Integration from wellhead to point-of-sale Efficient, dedicated and talented team Evaluate, develop and capture the…
  3. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 3
    How we do it 1. Early entry acreage acquisition 2. Resource assessment 3. Validate size and commerciality 4. Build Infrastructure to facilitate low-cost, efficient development 5. Develop (large-scale) resource and convert to value…
  4. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 4
    Asset Portfolio Life Cycle Horseshoe Barnett Canyon Shale Maturity Horn River Basin Niobrara W. Texas 1 2 3 4 5 6 7 8 9 10 11 12 Years NYSE: KWK www.qrinc.com 5
  5. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 5
    Compelling Investment Opportunity High-quality resource base 68% proved developed 12 Tcfe of proven unbooked resource potential Solid hedge position Large-scale resource inventory, largest in company history High full-cycle…
  6. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 6
    2012 Goals Live within cash inflows Maintain low full-cycle unit cost structure to maximize margins Advance new projects to development stage Pursue upstream joint ventures Launch MLP Reduce total debt NYSE: KWK www.qrinc.com 7
  7. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 7
    BARNETT NYSE: KWK www.qrinc.com 8
  8. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 8
    2012 Barnett Plan Utilize two rigs in the first quarter; scale down to one rig in second quarter through remainder of the year Drilling concentrated to high-margin, high- BTU southern acreage Expected to drill 25 wells (20 net)…
  9. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 9
    High-BTU Production Enhances Margins Southern acreage averages 1250 BTU gas at wellhead; yields 130 barrels of NGLs per 1 MMcf 1.000 Mcf Wellhead production Nat. Gas NGLs Production by product .759 Mcf .130 Bbl Price 3.00 /Mcf…
  10. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 10
    CANADA NYSE: KWK www.qrinc.com 11
  11. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 11
    Horn River Basin NE British Columbia Quicksilvers shareholders have the greatest per share impact with continued success in the Horn River C-29-D flare, estimated at 11 MMcf/d while running casing in Muskwa lateral Winter…
  12. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 12
    2012 Horn River Plan Drill up to 11 wells, complete 7-8 Drilling plan meets commitments to third- party gatherers and partnership with KKR 2012 drilling program expected to convert all exploration licenses to 10-year leases…
  13. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 13
    KWK HRB Production Results NYSE: KWK www.qrinc.com 14
  14. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 14
    KWKs HRB Multiple Take-away Options Commitment w/ TCPL Horn River Basin Multiple Markets ECA TCPL Horn River Cabin & Spectra Extension 2014 Low-cost Ft. Cabin Gas Plant transportation Nelson Gas Plant Aitken Creek…
  15. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 15
    KKR Partnership 50/50 partnership Quicksilver contributes 20 pipeline and compression (basis 95 M) KKR paid Quicksilver 125 M Partnership to build initial 150 MMcfd treating facility ( 120 M) 2014 start Quicksilver has option to…
  16. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 16
    KWK Midstream Options to TCPL Current option for 3rd parties to AECO RGT to Ft. Nelson 0.31 Ft. Nelson treatment 0.67 T-North receipt charge + TCPL 0.58 1.56 KWK - KKR option to AECO Treatment 0.50 TCPL receipt charge 0.26 0.76…
  17. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 17
    COLORADO NYSE: KWK www.qrinc.com 18
  18. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 18
    Colorado Summary 210,000 net acres Average NRI 81% 500 MM Bbls of oil resource potential Sweet crude +/- 40 gravity First horizontal well production 5x vertical test Colorado NYSE: KWK www.qrinc.com 19
  19. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 19
    Composite Type Curve 80 Vintage Wells c.1960-80 100 Forecast EUR Zerotime Average Qi = 60 193,837 bbl Dei = 25 Curve Fit b = 1.2 Demin = 3 Lat Length = n/a Oil (bbl/d) 10 1 0 60 120 180 240 300 360 420 480 540 600…
  20. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 20
    2012 Niobrara Plan Install gathering infrastructure Drill and complete up to 7 horizontal wells across acreage to confirm encouraging results from initial wells Advance project to development stage NYSE: KWK www.qrinc.com 21
  21. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 21
    WEST TEXAS NYSE: KWK www.qrinc.com 22
  22. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 22
    West Texas Wolfpack 100,000 net acres; 78% NRI Additional 50,000 net acres in Presidio County Seeking joint venture partner NYSE: KWK www.qrinc.com 23
  23. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 23
    2012 West Texas Plan Begin drilling program in 2nd quarter initial focus will be on low-cost recompletions to the Bone Springs and Spraberry formations Drill Wolfcamp wells on east side Secure partner to leverage the early…
  24. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 24
    Financially Sound High full-cycle margins Strong hedge position in 2012 and beyond Debt per reserve of .65/Mcfe at 12/31/10 1.1 billion revolving credit facility 820 MM undrawn as of 9/30/11 NYSE: KWK www.qrinc.com 25
  25. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 25
    Compelling Investment Opportunity High-quality resource base 68% proved developed 12 Tcfe of proven unbooked resource potential Solid hedge position Large-scale resource inventory largest in company history High full-cycle…
  26. CREDIT SUISSE 2012 ENERGY SUMMIT – Quicksilver Resources Inc. – slide 26
    Credit Suisse Energy Summit February 6-8, 2012 Vail, Colorado NYSE: KWK www.qrinc.com

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