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Investor Presentation – Quicksilver Resources Inc.

Quicksilver Resources Inc. · Dec 1, 2013 · 34 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
    December 2013
  2. Investor Presentation – Quicksilver Resources Inc. – slide 2
    Company Overview Focused on Unconventional Formations in North America Quick Facts Acreage: 1.3MM gross / 800K net 2012 PF Proved Reserves (SEC): 1.1 Tcfe Horn River Basin 2012 PF Proved Reserves (2/28 Strip): 1.6 Tcfe Unbooked…
  3. Investor Presentation – Quicksilver Resources Inc. – slide 3
    Why Invest in Quicksilver Substantial Upside Developed Asset Base Financial Flexibility Potential Fort Worth Basin and Horn River represents upside of Extended near term senior Horseshoe Canyon provide 14 Tcf potential debt…
  4. Investor Presentation – Quicksilver Resources Inc. – slide 4
    Developed Asset Base Substantial Upside Developed Asset Base Financial Flexibility Potential 5
  5. Investor Presentation – Quicksilver Resources Inc. – slide 5
    Fort Worth Basin High-Quality, Low-Risk Asset Quick Facts Acreage: 155,553 gross / 127,091 net 2012 PF Proved Reserves (SEC): 0.9 Tcfe 2012 PF Proved Reserves (2/28 Strip): 1.2 Tcfe Unbooked Reserve Potential: 1.5 Tcfe Phase:…
  6. Investor Presentation – Quicksilver Resources Inc. – slide 6
    Fort Worth Basin 50-60 MM of CapEx to Keep Barnett Prod. Flat Alliance 12,000 net 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 92,000 net acres 60% NRI EUR…
  7. Investor Presentation – Quicksilver Resources Inc. – slide 7
    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)…
  8. Investor Presentation – Quicksilver Resources Inc. – slide 8
    Fort Worth Basin Workover Program Short Payback, Attractive Returns On pace to workover 150 wells in 2013; 75 in 2H13 Average workover is 30K - 35K and immediately adds 500 Mcfd of production A single workover may improve flow on other…
  9. Investor Presentation – Quicksilver Resources Inc. – slide 9
    Partnership with Tokyo Gas Closed JV 4/30/13; Developing the Barnett Together Remains operator First investment in U.S. shale No hedges conveyed in Purchased 25% interest across transaction asset Low-cost Barnett operations stay…
  10. Investor Presentation – Quicksilver Resources Inc. – slide 10
    Horseshoe Canyon Recompletions Yield 85% IRR Quick Facts Acreage: 500,247 gross / 312,844 net 2012 Proved Reserves (SEC): 162 Bcf 2012 Proved Reserves (2/28 Strip): 248 Bcfe Unbooked Reserve Potential: 250 Bcfe Phase: Development…
  11. Investor Presentation – Quicksilver Resources Inc. – slide 11
    Strong Derivative Position Fair Value of 169MM at October 31, 2013 Sizeable natural gas and NGL hedge position 81% of remaining 2013 estimated natural gas production hedged at 5.10 77% of remaining 2013 estimated NGL production hedged…
  12. Investor Presentation – Quicksilver Resources Inc. – slide 12
    Substantial Upside Potential Substantial Upside Developed Asset Base Financial Flexibility Potential 13
  13. Investor Presentation – Quicksilver Resources Inc. – slide 13
    Horn River Basin Managing Commitments to Minimize Cash Burn Quick Facts Acreage: 140,420 gross / 129,109 net 2012 Proved Reserves (SEC): 105 Bcf Unbooked Reserve Potential: 14 Tcf Phase: Principally Exploration Target Formations:…
  14. Investor Presentation – Quicksilver Resources Inc. – slide 14
    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 (Pad) Qi=20,180 mcf/d, di = 65.0% df = 9.5%, b = 1.1 Qmin = 100…
  15. Investor Presentation – Quicksilver Resources Inc. – slide 15
    Sand Wash Basin Quick Facts Acreage: 334,050 gross / 167,018 net 2012 Proved Reserves (SEC): 85 MBbls Unbooked Reserve Potential: 100 MMBO Phase: Exploration Target Formations: Niobrara oil Producing Wells: 10 gross / 5 net…
  16. Investor Presentation – Quicksilver Resources Inc. – slide 16
    Sand Wash Basin Colorado 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…
  17. Investor Presentation – Quicksilver Resources Inc. – slide 17
    Midland/Delaware Basin Quick Facts Acreage: 142,139 gross / 80,905 net 2012 Proved Reserves (SEC): 83 MBbls Unbooked Reserve Potential: 100 MMBO Phase: Exploration Target Formations: Bone Springs Spraberry Wolfcamp Producing…
  18. Investor Presentation – Quicksilver Resources Inc. – slide 18
    Upside to Proved Reserves Price Movement Yields Significant Upside Large undeveloped acreage position Small percentage of PUDs booked (relative to proved reserves) Minimal increase in commodity prices results in 20% increase in proved…
  19. Investor Presentation – Quicksilver Resources Inc. – slide 19
    Financial Flexibility Substantial Upside Developed Asset Base Financial Flexibility Potential 20
  20. Investor Presentation – Quicksilver Resources Inc. – slide 20
    Capitalization in millions; as of 10/31/2013 unless otherwise noted Coupon Stated 3/31/2013 6/30/2013 9/30/2013 10/31/2013 Rate Maturity First Lien; Combined Credit Agreements (1) 3.880% 9/2016 433 190 150 213 Senior Secured Second…
  21. Investor Presentation – Quicksilver Resources Inc. – slide 21
    Debt Maturity Schedule Debt refinance provided additional 2 years of runway ( in millions) Pre-refinance Debt Maturity Schedule Asset sale provisions of our 350 debt will likely cause our 591 addressing Senior Sub maturity with…
  22. Investor Presentation – Quicksilver Resources Inc. – slide 22
    Plan to De-Lever & Restore Shareholder Value Increased Natural Gas Prices Development Issue Equity Upside Physical Link to Better Contracts Natural Gas Markets Joint Capital Ventures; Deployment Asset Efficiency…
  23. Investor Presentation – Quicksilver Resources Inc. – slide 23
    Appendix 24
  24. Investor Presentation – Quicksilver Resources Inc. – slide 24
    Midland / Delaware Basin Peer Positions & Activity 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…
  25. Investor Presentation – Quicksilver Resources Inc. – slide 25
    Fourth-Quarter 2013 Guidance Fourth-Quarter 2013 Guidance Average Daily Production: 263-268 MMcfed Lease Operating Expense: 0.72-0.76 Gathering, Processing and Transportation: 1.34-1.38 Production and Ad-Valorem Taxes: 0.18-0.20…
  26. Investor Presentation – Quicksilver Resources Inc. – slide 26
    Proved Reserves Summary SEC Pricing Net proved reserves as of 12/31/2012 (SEC) Oil Gas NGL Total PV-10 (MBbls) (Bcf) (MBbls) (Bcfe) (MM) Category Proved developed 2,416 992 47,294 1,290 625 Proved undeveloped 113 123 8,890 177 -16…
  27. Investor Presentation – Quicksilver Resources Inc. – slide 27
    Pro Forma Proved Reserves Summary SEC Pricing Net proved reserves at 12/31/2012 (SEC) Oil Gas NGL Total PV-10 (MBbls) (Bcf) (MBbls) (Bcfe) (MM) Region Barnett 57 635 42,005 888 Other U.S. 168 - - 1 Total Proved U.S. 225 635 42,005…
  28. Investor Presentation – Quicksilver Resources Inc. – slide 28
    Pro Forma Proved Reserves Summary Strip Pricing Net proved reserves at 12/31/2012 (2/28/2013 strip) Oil Gas NGL Total PV-10 (MBbls) (Bcf) (MBbls) (Bcfe) (MM) Region Barnett 120 975 43,712 1,238 957 Other U.S. 168 - - 1 - Total…
  29. Investor Presentation – Quicksilver Resources Inc. – slide 29
    Proved Reserves History SEC Pricing 2012 reserve decline reflective of lower natural gas price environment Reserves of 2,023 Bcfe when valued at 2/28/13 strip 2,902 2,791 2,208 2,416 1,467 2008 2009 2010 2011 2012 Reserves…
  30. Investor Presentation – Quicksilver Resources Inc. – slide 30
    Historical Financial Summary Adjusted EBITDA Reconciliation Fiscal Year End, LTM PF FYE PF LTM ( in millio ns) 2010 2011 2012 3/ 31/ 2013 12/ 31/ 2012 3/ 31/ 2013 Total production (Bcfe) 129.6 150.6 131.8 124.3 106.6 105.5 % gas 78%…
  31. Investor Presentation – Quicksilver Resources Inc. – slide 31
    Cash Margin Supports Barnett Maintenance Capital Low cost structure + strong hedge portfolio = solid profit margins Creates positive margins in the Barnett and allows CapEx to be directed towards its development in 2014 and 2015 10…
  32. Investor Presentation – Quicksilver Resources Inc. – slide 32
    2013 Capital Plan 2013 capital program has been more in line with cash flow from operations Total 2013 CapEx: 120MM By Area By Type West Texas 5% Site Barnett Midstream acquisition Shale 1% 8% 8% Completion Niobrara…
  33. Investor Presentation – Quicksilver Resources Inc. – slide 33
    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 150 150 100 100 50 50 0 0 May May May May…
  34. Investor Presentation – Quicksilver Resources Inc. – slide 34
    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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