Skip to main content HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. Investor Presentation | Shale Experts
Loading...
Pm

HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc.

Quicksilver Resources Inc. · Mar 28, 2012 · 30 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. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 1
    Howard Weil Energy Conference March 26-27, 2012 New Orleans, Louisiana NYSE: KWK www.qrinc.com
  2. HOWARD WEIL ENERGY CONFERENCE – 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. HOWARD WEIL ENERGY CONFERENCE – 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. HOWARD WEIL ENERGY CONFERENCE – 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. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 5
    Compelling Investment Opportunity High-quality resource base 69% proved developed 11 Tcfe of proven unbooked resource potential Solid hedge position Large-scale resource inventory, largest in company history High full-cycle…
  6. HOWARD WEIL ENERGY CONFERENCE – 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. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 7
    Asset Overview A proven record of success in unconventional reservoirs that provide a balance of predictable growth and exploratory opportunities. Horn River Basin Horseshoe Canyon CBM 130,000 net acres 316,000 net acres 10 Tcf…
  8. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 8
    BARNETT NYSE: KWK www.qrinc.com 9
  9. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 9
    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)…
  10. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 10
    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…
  11. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 11
    CANADA NYSE: KWK www.qrinc.com 12
  12. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 12
    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…
  13. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 13
    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…
  14. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 14
    KWK HRB Production Results NYSE: KWK www.qrinc.com 15
  15. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 15
    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…
  16. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 16
    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…
  17. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 17
    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 0.50 1.48 KWK KKR option to AECO Treatment 0.55 TCPL receipt charge 0.27 0.82…
  18. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 18
    COLORADO NYSE: KWK www.qrinc.com 19
  19. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 19
    Colorado Summary 210,000 net acres (oil) Average NRI 81% 500 MM Bbls of oil equivalent resource potential Sweet crude +/- 40 gravity First horizontal well production 5x vertical test Colorado NYSE: KWK www.qrinc.com…
  20. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 20
    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…
  21. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 21
    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 22
  22. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 22
    WEST TEXAS NYSE: KWK www.qrinc.com 23
  23. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 23
    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 24
  24. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 24
    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…
  25. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 25
    MONTANA NYSE: KWK www.qrinc.com 26
  26. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 26
    Montana Southern Alberta Basin Secure acreage position allows the play to come to Quicksilver 175,000 net acres in basin Cut Bank oil production holds 100% of 119,000 Glacier net acres Toole 300,000- acre AMI Bakken formation…
  27. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 27
    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 28
  28. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 28
    Strong Hedge Position Underpins capital program through stabilization 400 and predictability of cash flow 400 350 65% of 350 40% of 300 gas hedged gas hedged 300 avg. floor avg. floor 250 5.75 5.05 MMcfe/d MMcfe/d 250…
  29. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 29
    Compelling Investment Opportunity High-quality resource base 69% proved developed 11 Tcfe of proven unbooked resource potential Solid hedge position Large-scale resource inventory largest in company history High full-cycle…
  30. HOWARD WEIL ENERGY CONFERENCE – Quicksilver Resources Inc. – slide 30
    Howard Weil Energy Conference March 26-27, 2012 New Orleans, Louisiana NYSE: KWK www.qrinc.com

From the store

Browse maps, data & reports in the Shale Experts store