Global Hunter Securities Conference Philip Cook Sr. Vice President and CFO NYSE: KWK www.qrinc.com
Compelling Investment Opportunity High-quality resource base 68% proved developed 12 Tcfe of proven unbooked resource potential High full-cycle margins Cost-free option on four developing oil plays Significant current market…
Market Valuation Gap High-Quality Reserves 2010 Developed Reserves 2010 Full-cycle Margin/Mcfe Produced 100% 4 75% 68% 3 2.78 Percent /Mcfe 50% 2 25% 1 0% 0 Market Value/Mcfe of Reserves 6 April 30, 2011 5 4…
Quicksilver is focused on maximizing margins from unconventional reservoirs onshore in North America NYSE: KWK www.qrinc.com
Corporate Highlights As of Dec. 31, 2010 Proven record of consistent growth in production and reserves, at a very competitive cost structure 20% 5-year CAGR in production 21% 5-year CAGR in reserves 1.31/Mcfe average 5-year FD&A…
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…
2.9 Tcfe Reserves As of December 31, 2010 Oil 1% Other 1% Canada NGL 9% 23% 76% Natural 90% Texas Gas By Product By Location 32% Undeveloped 68% Developed By Category Significant unbooked potential of 12 Tcfe NYSE: KWK…
2011 Goals Close the market value gap by: Growing production 20% Maintaining low full-cycle unit cost structure to maximize margins Commercializing Horn River natural gas resource development Validating Niobrara and Exshaw…
FWB Barnett Consistent, Repeatable Growth Still a premier, low-cost basin Alliance Lake Arlington Denton 10,000 net acres 5,000 net acres 72.5% WI; 11% avg. royalty 100% WI; 26% avg. royalty EUR of 4.0-4.5 Bcf EUR of 4.5-5.5 Bcf…
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 4.00 /Mcf…
Fort Worth Basin 2011 Program Grow production 20% Denton Reduce unit operating costs Fort Worth Basin, TX Drill 40 operated wells 33 net wells Bring on line 115 wells Tarrant 100 net wells Hood Johnson Identify bolt-on…
Horseshoe Canyon Coalbed Methane Edmonton Reserves: 250 Bcfe (12/31/10) Dry coals 316,000 net acres 80% developed 1,200 potential drilling Red Deer locations 250 Bcfe of additional resources 2011 program Minimize production…
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…
Horn River Basin Quicksilvers Position 130,000 acres: Quicksilver 130k acres 20 licenses: 100% WI Expect to convert all Devon licenses to 10-year leases 153k acres in 2012 Resource potential: 10 Tcf of natural gas Assessing oil…
KWKs Horn River Drilling Activity Yukon NW Territories Horn River 4 Muskwa/Klua wells British b-91-G drilled drilled & completed Columbia Alberta c-81-G drilled Sales through third- Calgary Winter freeze-ins party line c-49-E…
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. Nelson Cabin Gas Plant transportation Gas Plant Aitken Creek…
KWK Midstream Options to TCPL KWK option to AECO Treatment 0.50 TCPL receipt charge 0.26 0.76 Spectra 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 NYSE:…
Colorado Niobrara Oil & Gas Play 313,000 gross acres - oil 65% WI Gas window 20% avg. royalty Prospective for oil from Moffat Co. the Niobrara formation Oil window 100 MM Bbls of oil resource potential Routt Co. Colorado 2011…
Montana Southern Alberta Basin Secure acreage position allows the play to come to Quicksilver 175,000 net acres in basin Cutbank oil production Glacier Toole holds 100% of 119,000 net acres 300,000- acre AMI Bakken formation…
W. Texas Delaware Basin Bone Springs Culberson 110,000 acres in Reeves Jeff Davis basin (54,000 net) 2011 plan Presidio Additional acreage acquisition Re-enter existing wells KWK Acreage Delaware Basin, TX NYSE: KWK…
2011 Capital Program Other 500 Million Leasehold Other 9% 18% 12% Drilling & Canada Midstream Completions Texas 23% 17% 56% 65% By Type By Location Other 27% 41% 9% Maintenance Growth Exploration 23% By Segment…
Financially Sound High full-cycle margins Strong hedge position in 2011 and expanding hedges for 2012 and beyond Reducing debt levels Debt per reserve of .65/Mcfe 12/31/10 1 billion of liquidity 80% of borrowing base available…
Consistently Hedged MMcfe/d 600 Strategy to hedge 50%-80% of forward 510-520 500 12-month production to underpin program 425-435 400 355 325 300 263 200 151 100 73% 59% 37% 65% 58% 62% Currently 0 (1) 2007 2008 2009…
Reducing Leverage /Mcfe Debt to Proved Reserves Debt to Proved Developed Reserves NYSE: KWK www.qrinc.com
Compelling Investment Opportunity High-quality resource base 68% proved developed 12 Tcfe of proven unbooked resource potential High full-cycle margins Cost-free option on four developing oil plays Significant current market…
Global Hunter Securities Conference Philip Cook Sr. Vice President and CFO NYSE: KWK www.qrinc.com
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