Skip to main content INVESTOR PRESENTATION – Quicksilver Resources Inc. | Shale Experts
Loading...
Pm

INVESTOR PRESENTATION – Quicksilver Resources Inc.

Quicksilver Resources Inc. · Sep 1, 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 September 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 Horn River Basin 2013 Proved Reserves: 1.3 Tcfe Unbooked Reserve Potential: 15.8 Tcf + 100 MMBO Producing Wells: 3,939 gross…
  3. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 3
    2014 YTD Highlights Increased Barnett Shale volumes by 11% Q1 2014 to Q2 2014 Improved economics of newly drilled Barnett Shale wells due to operational efficiencies Closed amendment with midstream providers in the Barnett Shale to…
  4. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 4
    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 -…
  5. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 5
    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…
  6. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 6
    2014 Capital Focused on Development Drilling Drilling and completion spending in 2014 is 70% of capex budget; directed to Barnett Shale and Horseshoe Canyon programs 2014 CapEx Budget: 130MM - 135MM 2013 CapEx: 99MM Midstream…
  7. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 7
    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…
  8. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 8
    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…
  9. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 9
    Why Invest in Quicksilver Developed Asset Substantial Upside Improved Base Potential Financial Flexibility Barnett Shale and Horn River represents upside Extended near term senior Horseshoe Canyon provide of 14 Tcf resource…
  10. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 10
    Developed Asset Base Developed Asset Substantial Upside Improved Financial Base Potential Flexibility 11
  11. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 11
    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…
  12. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 12
    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 Lake Arlington Southern Liquids-Rich Acreage 95,402 gross acres 60%…
  13. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 13
    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…
  14. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 14
    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…
  15. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 15
    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…
  16. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 16
    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:…
  17. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 17
    Substantial Upside Potential Developed Asset Substantial Upside Improved Financial Base Potential Flexibility 18
  18. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 18
    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…
  19. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 19
    Horn River Type Curves D-50-A pad performing substantially better than pre-2012 vintage wells 20
  20. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 20
    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…
  21. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 21
    Improved Financial Flexibility Developed Asset Substantial Upside Improved Financial Base Potential Flexibility 22
  22. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 22
    Strong Derivative Position Fair Value of 107MM at July 31, 2014 Sizeable natural gas and NGL hedge position 78% of 3Q 2014 estimated natural gas production hedged at 5.08 68% of 4Q 2014 estimated natural gas production hedged at 5.08…
  23. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 23
    Capitalization in millions; all data as of 6/30/2014 unless otherwise noted Coupon Stated Instrument 9/30/13 12/31/13 3/31/14 6/30/14 Rate Maturity 1st Lien; Combined Credit Agreements (1) 3.990% 9/2016 150 211 208 35 Sr. Secured…
  24. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 24
    Debt Maturity Schedule in millions 625 200 350 298 325 34 (1) 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…
  25. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 25
    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…
  26. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 26
    Appendix 27
  27. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 27
    Third-Quarter 2014 Guidance Expected Third-Quarter 2014 Costs/Volume Per Mcfe Lease Operating Expense: 0.83 - 0.86 Gathering, Processing and Transportation: 1.52 - 1.54 Production and Ad-Valorem Taxes: 0.16 - 0.18 General and…
  28. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 28
    Horseshoe Canyon Type Curve Representative of wells in 2014 drilling program and proposed inventory through 2016 29
  29. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 29
    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…
  30. INVESTOR PRESENTATION – Quicksilver Resources Inc. – slide 30
    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…
  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 For more information about Quicksilvers proposed LNG project, visit www.discoverylng.com Inquires: David Erdman, Director of…

From the store

Browse maps, data & reports in the Shale Experts store