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Investor Presentation – Quicksilver Resources Inc.

Quicksilver Resources Inc. · May 6, 2014 · 31 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. Investor Presentation – Quicksilver Resources Inc. – slide 1
    Investor Presentation May 6, 2014 1
  2. Investor Presentation – Quicksilver Resources Inc. – slide 2
    Company Overview Focused on Unconventional Formations in North America Quick Facts Acreage: 1.0MM gross 2013 Proved Reserves: 1.3 Tcfe Unbooked Reserve Potential: 15.8 Tcf + 100 MMBO Horn River Basin Producing Wells: 3,929…
  3. Investor Presentation – Quicksilver Resources Inc. – slide 3
    2014 YTD Highlights Increased activity in the Barnett Shale, which is expected to build net Barnett volumes in the second quarter of 2014 by greater than 10% over first-quarter volumes Closed sale of Niobrara Asset to Southwestern…
  4. Investor Presentation – Quicksilver Resources Inc. – slide 4
    2013 Proved Reserves By area and resource mix Oil Gas NGL Total Std. Measure Region (MBbl) (Bcf) (MBbl) (Bcfe) (MM) Barnett .129 824 40 1,064 - Other U.S. .07 - - .4 - Total Proved U.S. .199 824 40 1,064 655 Horn River - 70 - 70 -…
  5. Investor Presentation – Quicksilver Resources Inc. – slide 5
    2013 Proved Reserves 20% growth compared to pro forma 2012 proved reserves 2012 Pro 2012 Proved Forma Proved 2013 Production 2013 2013 2013 Proved Region Reserves Asset Sales Reserves (Mmcfed) Extensions Revisions Reserves Barnett…
  6. Investor Presentation – Quicksilver Resources Inc. – slide 6
    2014 Capital Focused on Development Drilling Drilling and completion spending in 2014 greater than 70% of capex budget; directed to Barnett Shale and Horseshoe Canyon programs 2014 CapEx Budget: Barnett Production (1) Horseshoe…
  7. Investor Presentation – Quicksilver Resources Inc. – slide 7
    Improved Commodity Prices Support Drilling Derivatives have been sustaining, forward curve supportive Inside Ferc vs. Quicksilver Average Realized Prices 6 50 45 5 40 Natural Gas Price 35 NGL Price 4 30 25 3 20 15 2…
  8. Investor Presentation – Quicksilver Resources Inc. – slide 8
    Colorado Asset Sale Sale Summary Quicksilver closed the sale of its joint holdings with Shell in CO to Southwestern Energy Co. Closed May 1, 2014 Cash proceeds to Quicksilver of 93.5MM Lease renewal avoidance New partner…
  9. Investor Presentation – Quicksilver Resources Inc. – slide 9
    2014 Goals Much accomplished in 2013 & 2014 YTD, still more to do Showcase value of Horn River Assets through a transaction Build cash flow in core areas Sustain sufficient liquidity to continue pursuit of those cash flows Address…
  10. Investor Presentation – Quicksilver Resources Inc. – slide 10
    Why Invest in Quicksilver Developed Asset Substantial Upside Improved Base Potential Financial Flexibility Fort Worth Basin and Horn River represents upside Extended near term senior Horseshoe Canyon provide of 14 Tcf potential…
  11. Investor Presentation – Quicksilver Resources Inc. – slide 11
    Developed Asset Base Developed Asset Substantial Upside Improved Financial Base Potential Flexibility 12
  12. Investor Presentation – Quicksilver Resources Inc. – slide 12
    Core Barnett Shale Asset High-Quality, Low-Risk Asset Quick Facts Acreage: 135,000 gross / 85,000 net 2013 Proved Reserves: 1.1 Tcfe Unbooked Reserve Potential: 1.5 Tcfe Phase: Development Target Formation: Barnett Shale Producing…
  13. Investor Presentation – Quicksilver Resources Inc. – slide 13
    Barnett Shale Asset By Operating Area Alliance 15,883 gross acres 48% NRI EUR of 5-8 Bcf on laterals of 3,500' - 5,500 JVs with ENI and Tokyo Gas Alliance Southern Liquids-Rich Acreage 95,402 gross acres 60% NRI EUR of 1.5-2.5 Bcf on…
  14. Investor Presentation – Quicksilver Resources Inc. – slide 14
    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…
  15. Investor Presentation – Quicksilver Resources Inc. – slide 15
    Horseshoe Canyon Recompletions Yield 85% IRR Quick Facts Acreage: 528,217 gross 2013 Proved Reserves: 196.4 Bcfe Unbooked Reserve Potential: 250 Bcfe Phase: Development Target Formations: Horseshoe Canyon Producing Wells: 2,914…
  16. Investor Presentation – Quicksilver Resources Inc. – slide 16
    Substantial Upside Potential Developed Asset Substantial Upside Improved Financial Base Potential Flexibility 17
  17. Investor Presentation – Quicksilver Resources Inc. – slide 17
    Horn River Basin Managing Commitments to Minimize Spending Quick Facts Acreage: 140,420 gross 2013 Proved Reserves: 70 Bcf Unbooked Resource 14 Tcf Potential: Phase: Principally Exploration Target Formations: Klua & Muskwa 12…
  18. Investor Presentation – Quicksilver Resources Inc. – slide 18
    Horn River Type Curves 19
  19. Investor Presentation – Quicksilver Resources Inc. – slide 19
    West Texas Focusing on Pecos Acreage with Eni Quick Facts Acreage (1): 198,028 gross 2013 Proved Reserves: Immaterial Unbooked Reserve 100 MMBO Potential: Phase: Exploration Target Formations: Primarily Wolfcamp Bone Springs…
  20. Investor Presentation – Quicksilver Resources Inc. – slide 20
    Improved Financial Flexibility Developed Asset Substantial Upside Improved Financial Base Potential Flexibility 21
  21. Investor Presentation – Quicksilver Resources Inc. – slide 21
    Strong Derivative Position Fair Value of 85MM at March 31, 2014 Sizeable natural gas and NGL hedge position 80% of remaining 2014 estimated natural gas production hedged at 5.08 45% of remaining 2014 estimated NGL production hedged at…
  22. Investor Presentation – Quicksilver Resources Inc. – slide 22
    Capitalization in millions; all data as of 5/01/2014 unless otherwise noted Coupon Stated 6/30/13 12/31/13 3/31/14 5/1/14 Rate Maturity 1st Lien; Combined Credit 3.990% 9/2016 190 211 208 198 Agreements (1) Senior Secured 2nd…
  23. Investor Presentation – Quicksilver Resources Inc. – slide 23
    Debt Maturity Schedule June 13 refinance provided additional 2 years of runway in millions Pre-refinance Debt Maturity Schedule 350 591 438 433 298 2014 2015 2016 ( 2017 2018 2019 2019 First Lien Senior Notes Senior…
  24. Investor Presentation – Quicksilver Resources Inc. – slide 24
    Plan to De-Lever and Restore Shareholder Value Increasing Natural Gas Prices Development Issue Equity Upside Physical Link to Better Contracts Natural Gas Markets Capital Joint Deployment Ventures; Efficiency Asset…
  25. Investor Presentation – Quicksilver Resources Inc. – slide 25
    APPENDIX 26
  26. Investor Presentation – Quicksilver Resources Inc. – slide 26
    Second-Quarter 2014 Guidance Second-Quarter 2014 Guidance Per Mcfe Dollar Amount Lease Operating Expense: 0.83 - 0.87 19.2MM - 20.6MM Gathering, Processing and Transportation: 1.51 - 1.56 35.5MM - 36.7MM Production and Ad-Valorem…
  27. Investor Presentation – Quicksilver Resources Inc. – slide 27
    Barnett Type Curves 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)…
  28. Investor Presentation – Quicksilver Resources Inc. – slide 28
    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…
  29. Investor Presentation – Quicksilver Resources Inc. – slide 29
    Derivative Portfolio Natural Gas Swaps Natural Gas - Thousand MMBtu/d 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 5…
  30. Investor Presentation – Quicksilver Resources Inc. – slide 30
    Derivative Portfolio NGL Swaps Natural Gas Liquids - BBl/d 2Q 2014 3Q 2014 Commodity Swaps 30.43 1,000 1,000 30.55 3,000 3,000 Total 4,000 4,000 Weighted Avg 30.52 30.52 Price 31
  31. Investor Presentation – Quicksilver Resources Inc. – slide 31
    Quicksilver Resources 801 Cherry Street, Suite 3700, Unit 19 Fort Worth, TX 76102 Website: www.qrinc.com Inquires: David Erdman, Director of Investor Relations Phone: 817-665-4023 Email: derdmanqrinc.com 32

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