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NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc.

Quicksilver Resources Inc. · Nov 10, 2014 · 32 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. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 1
    Investor Presentation November 10, 2014 1
  2. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 2
    Company Overview Focused on unconventional formations in North America Quick Facts Acreage: 1.0MM gross Horn River Basin 2013 Proved Reserves: 1.3 Tcfe Unbooked Reserve Potential: 15.8 Tcf + 100 MMBO Producing Wells: 3,937 gross…
  3. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 3
    2014 YTD Highlights Reaffirmed global borrowing base and amended covenant at Fall 2014 redetermination Reaffirmed global borrowing base at 325 million Interest coverage ratio covenant replaced with minimum quarterly EBITDAX test…
  4. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 4
    2014 YTD Highlights (continued) 1.7 billion mixed shelf filing on S3 declared effective Closed amendment with midstream providers in the Barnett Shale to reduce rates for gas lift, gas gathering and processing Filed application…
  5. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 5
    2013 Proved Reserves By area and resource mix Oil Gas NGL Total Std. Measure (MBbl) (Bcf) (MBbl) (Bcfe) (MM) Region Barnett 129 824 39,743 1,064 - Other U.S. 70 - - .4 - Total Proved U.S. 199 824 39,743 1,064 655 Horn River - 70 -…
  6. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 6
    2013 Proved Reserves 20% growth compared to pro forma 2012 proved reserves 2012 Pro 2013 2012 Proved 2013 2013 Proved Region Asset Sales Forma Proved Production 2013 Revisions Reserves Extensions Reserves Reserves (Mmcfed) Barnett…
  7. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 7
    2014 Capital Focused on Development Drilling Drilling and completion spending in 2014 is 65% of capex spend; directed to Barnett Shale and Horseshoe Canyon programs 2014 CapEx Projection: 130MM - 135MM 2013 CapEx: 99MM Midstream…
  8. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 8
    Colorado Asset Sale Transaction Summary Quicksilver sold its Colorado joint holdings with Shell to Southwestern Energy Company Closed May 1, 2014 Cash proceeds to Quicksilver of 95.6MM Lease renewal avoidance Shells announced exit…
  9. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 9
    2014 Goals Much accomplished in 2014 YTD, still more to do Showcase value of Horn River Assets through a transaction Began broad marketing effort late in Q314 Build cash flow in core areas 17 completed wells in the Barnett YTD 2014…
  10. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 10
    Why Invest in Quicksilver Developed Asset Substantial Upside Improved Base Potential Financial Flexibility Barnett Shale and Horn River represents upside Reaffirmed 325MM Horseshoe Canyon provide of 14 Tcf resource potential…
  11. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 11
    Developed Asset Base Developed Asset Substantial Upside Improved Financial Base Potential Flexibility 12
  12. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 12
    Core Barnett Shale Asset High-Quality, Low-Risk Asset Quick Facts Acreage: 143,300 gross / 93,000 net 2013 Proved Reserves: 1.1 Tcfe Unbooked Reserve Potential: 1.5 Tcfe Phase: Development Target Formation: Barnett Shale…
  13. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 13
    Barnett Shale Asset By Operating Area Alliance 15,883 gross acres Alliance 48% NRI EUR of 5-8 Bcf on laterals of 3,500' - 5,500 Alliance JVs with ENI and Tokyo Gas No leases within Denton city limits Lake Arlington Southern…
  14. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 14
    Improved Program Economics in Alliance 2014 IRR Improvement from 2012 Current Type Curve 47% IRR Increase since 2012 10,000 2Q 2014 2012 Gas Rate (mcf/d) 25% 35% 1,000 10% 16% 100 1% 0 48 96 144 192 240 3/80 4/90…
  15. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 15
    Improved Program Economics in Southern Acreage 2014 IRR Improvement from 2012 Current Type Curve 10,000 IRR Increase since 2012 2Q 2014 2012 33% Gas Rate (mcf/d) 23% 1,000 14% 22% 12% 3% 100 3/80 4/90 5/100 0 48 96 144…
  16. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 16
    Partnership with Tokyo Gas Developing the Barnett Together Operates properties First investment in U.S. shale Retained all hedges Purchased 25% interest across asset Low-cost Barnett operations stay intact Able to leverage KWKs…
  17. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 17
    Horseshoe Canyon Recompletions Yield 85% IRR Quick Facts Acreage: 528,217 gross 2013 Proved Reserves: 196.4 Bcfe Unbooked Reserve 250 Bcfe Potential: Phase: Development Target Formations: Horseshoe Canyon Producing Wells:…
  18. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 18
    Substantial Upside Potential Developed Asset Substantial Upside Improved Financial Base Potential Flexibility 19
  19. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 19
    Horn River Basin Seeking partners to link vast resource potential to Asian markets Quick Facts Acreage: 140,420 gross 2013 Proved Reserves: 70 Bcf Unbooked Resource 14 Tcf Potential: Estimated GIP 37 Tcf Phase: Principally…
  20. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 20
    Horn River Type Curves D-50-A pad performing substantially better than pre-2012 vintage wells 21
  21. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 21
    West Texas Focusing in Pecos, Crockett & Upton Counties Quick Facts Acreage (1): 198,028 gross 2013 Proved Reserves: Immaterial Gross Expected Resource 100 MMBO Potential: Phase: Exploration Primarily Wolfcamp & Target…
  22. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 22
    Improved Financial Flexibility Developed Asset Substantial Upside Improved Financial Base Potential Flexibility 23
  23. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 23
    Strong Derivative Position Fair Value of 110MM at October 31, 2014 Sizeable natural gas and NGL hedge position 80% of 4Q 2014 estimated natural gas production hedged at 5.08 50% of remaining 2014 estimated sales at AECO expected to be…
  24. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 24
    Capitalization in millions; all data as of 10/31/2014 unless otherwise noted Instrument Coupon Rate Stated Maturity 10/31/14 1st Lien; Combined Credit Agreements (1) 4.09% 9/2016 276 Sr. Secured 2nd Lien Notes 7.000% 6/2019 200…
  25. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 25
    Debt Maturity Schedule in millions 625 350 200 276 (1) 298 325 2014 2015 2016 2017 2018 2019 2020 2021 First Lien Senior Notes Second Lien Notes Second Lien Term Loan Senior Subordinated Weighted average cost of…
  26. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 26
    Plan to De-Lever and Restore Shareholder Value Continue to Attack Costs Exploration & Issue Equity Development Upside Link to Physical Better Contracts Natural Gas Markets Joint Capital Ventures; Deployment Asset…
  27. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 27
    Appendix 28
  28. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 28
    Fourth-Quarter 2014 Guidance Expected Fourth-Quarter 2014 Costs/Volume Expense Lease Operating Expense: 0.76 - 0.80 Gathering, Processing and Transportation: 1.50 - 1.54 Production and Ad-Valorem Taxes: 0.17 - 0.19 General and…
  29. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 29
    Horseshoe Canyon Type Curve Representative of wells in 2014 drilling program and proposed inventory through 2016 30
  30. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 30
    Proved Reserves History Using SEC Pricing (in Bcfe) 3,500 3,000 2,500 2,000 1,500 2,902 2,791 2,416 357 1,000 1,330 500 1,110 0 2009 2010 2011 2012 2013 Reserves (Bcfe) Asset sales in 2013 (1) 2012 proved reserves presented…
  31. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 31
    Derivative Portfolio Natural Gas Swaps Natural Gas - Thousand MMBtu/d Q4 2014 2015 2016 2017 2018 2019 2020 2021 Commodity Swaps 5.68 5 5 6.00 30 30 6.20 5 5 6.23 5 5 6.42 10 10 6.45 10 10 3.89 10 3.91 10 4.04 10 10 4.13 5…
  32. NOVEMBER 2014 INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 32
    Quicksilver Resources 801 Cherry Street, Suite 3700, Unit 19 Fort Worth, TX 76102 Website: www.qrinc.com For more information about Quicksilvers proposed LNG project, visit www.discoverylng.com Inquires: David Erdman, Director of…

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