Quicksilver taking steps to improve financing strength, balance sheet

By Jennifer Lanning Drey

Portland, Ore., Aug. 9 - Quicksilver Resources Inc.'s previously announced decision to sell Quicksilver Gas Services and use the proceeds to repay its credit facility was the company's latest installment in a series of moves taken to improve its financial strength, its chief executive officer said Monday.

"This company has worked hard to improve our balance sheet in a difficult environment," CEO Glenn Darden said during the company's second-quarter earnings conference call.

Later in the call, chief financial officer Phillip Cook reiterated the company's previously stated intention to use the initial $701 million of cash proceeds from the Quicksilver Gas sale to repay the company's revolving credit facility.

The revolver was $493 million drawn and had about $500 million of availability at June 30, he said.

Upon repayment of the revolver, Quicksilver expects to have the entire $1 billion credit facility undrawn and available, Cook said.

Quicksilver had $2.4 billion of debt at June 30, excluding $226.8 million of non-recourse debt, he said.

"We will always be on the hunt for new opportunities, but we have no intention of levering up our balance sheet," Darden said during the call.

Quicksilver reported second-quarter net income of $86.8 million, compared with a net loss of $21.8 million in the same period of 2009.

Quicksilver Resources is a Fort Worth-based natural gas and crude oil exploration and production company.

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