EnerCom Oil & Gas Conference August 12, 2013 Denver, CO
Overview NYSE: KWK 3
Quicksilver Resources Overview Quicksilver is a Fort Worth, Texas-based oil and gas E&P company focused on long-lived onshore properties located in the U.S. and Canada Total proved reserves of 2,023 Bcfe and PV-10 of 1.7 billion…
Asset Overview High-quality, large-scale resource base provides multi-year drilling inventory and is ideal for joint ventures Horseshoe Canyon CBM Horn River Basin 313,000 net acres 129,000 net acres 162 Bcf of SEC reserves YE12…
Pro Forma Reserves Overview Breakdown of Quicksilver's reserves by region pro forma for Barnett JV Reserves by Region Reserves by Resource Mix Horseshoe 15% Oil 1% Barnett Gas 83% 77% NGL 16% Horn River 7% Other U.S.…
Upside to Proved Reserves Small percentage of PUDs booked (relative to proved reserves) and large undeveloped acreage position 325 Bcfe of undeveloped reserves (16% of total proved reserves) based on 2/28/13 strip pricing 617,309 net…
2013 Goals Closing the market value gap with these initiatives Monetize a portion of Barnett assets Completed 25% sale to Tokyo Gas closed on 4/30 Reduce debt and interest expense Restructure bank facility to provide covenant…
Debt Maturity Schedule Debt refinance provided additional 2 years of runway ( in millions) Pre-refinance Debt Maturity Towers Weighted average 350 cost of debt = 7.8% 591 438 433 298 2014 2015 2016 ( 2017 2018 2019 2019 First…
Operations Update NYSE: KWK
Barnett Shale Lake Arlington Alliance 6,000 net acres 12,000 net acres Denton 100% WI; 26% avg. royalty 72.5% WI; 11% avg. royalty EUR of 4 - 7 Bcf on laterals of 3,000 5,000 EUR of 5 - 8 Bcf on laterals of 3,500 5,500 Tarrant…
Barnett Opportunities In 2012 and 2013, Quicksilver focused capital expenditures on Horn River Basin infrastructure to address contractual obligations Beginning in 2014, expenditures will focus on Barnett development approximately…
High-BTU Production Enhances Margins Southern acreage averages 1,250 BTU gas at wellhead; yields 122 barrels of NGLs per 1 MMcf 1.000 Mcf Wellhead production Nat. Gas NGLs Production by product .702 Mcf .122 Bbl Price 3.50 /Mcf…
Barnett Joint Venture On 4/30/13, Quicksilver sold 25% of its Barnett Assets to Tokyo Gas (TG) for 485MM Quicksilver remains operator TG purchased an interest across the asset No hedges conveyed in the transaction No push to…
Partnership with Tokyo Gas TG is an excellent partner in the Barnett TG recognizes the natural gas value chain TGs Challenge 2020 Vision of natural gas aligns well with Quicksilver TG and Quicksilver have an interest in developing…
Barnett Shale 2013 YTD Activity - Drilled 1 well in the second quarter 2H13 Planned Activity - Complete/tie-in well drilled in 2Q13 along with 2 nearby wells which were drilled in 2012 Expecting to drill and complete up to…
Horn River Basin British Columbia Alberta 129,000 acreage position substantially de-risked 14 Tcf resource potential Highest-quality shale reservoir in Quicksilvers inventory Most recent wells produced at 23-34 MMcfd IP IP…
Horn River Joint Venture Update Quicksilver is running a competitive bid process to secure premium, long-term end markets Strong interest from several international players Quicksilver is partnering with the market rather than…
Sand Wash Basin - Colorado 330,000 gross acres; Shell and Quicksilver share 50/50 1,200 of productive Niobrara found across a distance of 35 miles in an east-to-west band and 15 miles in a north-to-south band across the Sand Wash…
Midland / Delaware Basin T E X A S Offset Activity Energen 3rd Bone Spring IP rates of 1,231 boed; Avg 30- day rates of 625 Boed Rosetta acquired 53k net acres from Comstock for total consideration of 811MM (Q2 13)…
Key Credit Highlights Attractive asset base High quality, low risk asset base with long reserve life and predictable well production profiles with substantial Asset size and quality ideal for joint ventures upside potential Market cap…
Appendix NYSE: KWK
Barnett Type Wells Supporting drilling inventory 10,000 Alliance 10,000 Cowtown Length Gas Price NGL Price Well Cost NPV-10 ROR Q-30d EUR Net Total Length Gas Price NGL Price Well Cost NPV-10 ROR Q-30d EUR Net Total (ft) (/mmbtu)…
Horn River Type Curves 20,000 Type Curve (QRI) Avg D-050-A New Pad Wells Avg 4 Pre-2012 Wells Type Curve (2011) 15,000 Gas Rate (mcf/d) Quicksilver Type Curve Qi=20,180 mcf/d, di = 65.0% df = 9.5%, b = 1.1 Qmin = 100 mcf/d…
Third-quarter 2013 Guidance Average Daily Production: 275 280 MMcfed Lease Operating Expense: 0.79 - 0.83 per unit GPT: 1.35 - 1.40 per unit Severance and Ad-Valorem Taxes: 0.19 - 0.21 per unit General & Administrative: 0.60 - 0.64…
Cash Margin Supports Barnett Maintenance Capital Low cost structure combined with a strong hedge portfolio translates to solid profit margins Program designed to keep production relatively flat (excluding Barnett JV) in the range of…
Proposed 2013 Capital Plan 2013 capital program will be more in line with cash flow from operations As of 12/31/2012, 65% of Quicksilvers acreage was classified as held by production in its three core operating areas Provides…
Strong and Protected Asset Coverage Second lien Term Loan & Notes are secured by a majority of the Companys US oil and gas assets on a second lien basis behind the revolving credit facility Asset value beyond Schlumberger and LaRoche…
Strong Derivative Position Fair value of 152MM at June 30, 2013 Underpins capital program through stabilization and 250 predictability of cash flow 6.00 5.10 5.23 Hedge Volume (MMcfd) 5.08 200 5.00 4.00 (/Mcfe) 150…
Horn River Treating Commitments Prior Commitments Existing Commitments 250 250 Commitment from 5/1/12 to 4/1/13 was 200 200 30 MMcfd before treating plant was commissioned 150 150 MMcfd MMcfd 100 100 50 50 0 0…
Proved Reserves Summary SEC Pricing Net proved reserves as of December 31, 2012 Oil Gas NGL Total PV-10 (MM) Category (MBbls) (Bcf) (MBbls) (Bcfe) SEC price Proved developed 2,416 992 47,294 1,290 625 Proved undeveloped 113 123 8,890…
Proved Reserves History SEC pricing A4 Paper Guide Line 2012 reserve decline reflective of lower natural gas price environment Reserves of 2,023 Bcfe when valued at 2/28/13 strip Reserves (Bcfe) 2,902 2,791 2,416 2,208…
Quicksilver Resources 801 Cherry Street, Suite 3700, Unit 19 Fort Worth, TX 76102 Website: www.qrinc.com Inquiries: David Erdman, Director of Investor Relations Phone: 817-665-4023 Email: derdmanqrinc.com
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