SOURCE: Quicksilver Resources Inc.

Quicksilver Resources Inc.

April 16, 2012 07:00 ET

Quicksilver Announces Filing of 2011 Financial Report

FORT WORTH, TX--(Marketwire - Apr 16, 2012) - Quicksilver Resources Inc. (NYSE: KWK) announced today that the company has filed its 2011 Form 10-K.

Final net income for the fourth quarter 2011 was $24 million, or $0.14 per diluted share, and $90 million, or $0.52 per diluted share for the full-year 2011, which is $4 million less than the quarter and year ended December 31, 2011 as previously reported in the company's release on March 15, 2012. The difference is attributable to an additional non-cash impairment of U.S. midstream assets and a non-cash reduction in the fair value of certain commodity derivatives. These adjustments had no impact on adjusted net income per share for the quarter and year ended December 31, 2011. As such, fourth-quarter 2011 adjusted net income, a non-GAAP financial measure, continues to be essentially breakeven, and full-year 2011 adjusted net income continues to be $20 million, or $0.12 per diluted share. Details of adjusted net income are included in the tables following this press release.

Use of Non-GAAP Financial Measure

This news release and the accompanying schedules include the non-generally accepted accounting principles ("non-GAAP") financial measure of adjusted net income. The accompanying schedules provide reconciliations of this non-GAAP financial measure to its most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Our non-GAAP financial measure should not be considered as an alternative to GAAP measures such as net income or operating income or any other GAAP measure of liquidity or financial performance.

About Quicksilver Resources

Fort Worth, Texas-based Quicksilver Resources is a natural gas and crude oil exploration and production company engaged in the development and acquisition of long-lived, unconventional reservoirs, including coalbed methane and shale gas in North America. The company has U.S. offices in Fort Worth, Texas; Glen Rose, Texas; Steamboat Springs, Colorado and Cut Bank, Montana. Quicksilver's Canadian subsidiary, Quicksilver Resources Canada Inc., is headquartered in Calgary, Alberta. For more information about Quicksilver Resources, visit www.qrinc.com.

QUICKSILVER RESOURCES INC.
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME
In thousands, except per share data - Unaudited
For the Three Months Ended December 31, 2011
As Reported Adjustments Adjusted Net Income
Revenue:
Production $ 194,473 $ - $ 194,473
Sales of purchased natural gas 26,529 - 26,529
Other 2,095 3,000 5,095
Total revenue 223,097 3,000 226,097
Operating expense:
Lease operating 29,508 (1,708 ) 27,800
Gathering, processing and transportation 48,359 - 48,359
Production and ad valorem taxes 5,382 - 5,382
Costs of purchased natural gas 26,144 - 26,144
Other operating 229 - 229
Depletion, depreciation and accretion 60,902 - 60,902
Impairment 57,996 (57,996 ) -
General and administrative 17,837 (446 ) 17,391
Total expense 246,357 (60,150 ) 186,207
Operating income (23,260 ) 63,150 39,890
Income (loss) from earnings of BBEP 24,282 (23,571 ) 711
Other income (loss) - net 84,327 (84,646 ) (319 )
Interest expense (43,901 ) 1,030 (42,871 )
Income before income taxes 41,448 (44,037 ) (2,589 )
Income tax expense (17,917 ) 20,135 2,218
Net income attributable to Quicksilver $ 23,531 $ (23,902 ) $ (371 )
Earnings (loss) per common share - diluted $ 0.14 $ 0.00
Diluted weighted average shares outstanding 169,409 169,409

QUICKSILVER RESOURCES INC.
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME
In thousands, except per share data - Unaudited
For the Twelve Months Ended December 31, 2011
As Reported Adjustments Adjusted Net Income
Revenue:
Production $ 800,543 $ - $ 800,543
Sales of purchased natural gas 86,645 - 86,645
Other 56,435 (45,852 ) 10,583
Total revenue 943,623 (45,852 ) 897,771
Operating expense:
Lease operating 102,874 (1,708 ) 101,166
Gathering, processing and transportation 190,560 - 190,560
Production and ad valorem taxes 29,226 - 29,226
Costs of purchased natural gas 85,398 - 85,398
Other operating 557 - 557
Depletion, depreciation and accretion 225,763 - 225,763
Impairment 107,059 (107,059 ) -
General and administrative 79,582 (13,478 ) 66,104
Total expense 821,019 (122,245 ) 698,774
Operating income 122,604 76,393 198,997
Income (loss) from earnings of BBEP (8,439 ) 19,324 10,885
Other income - net 219,768 (217,893 ) 1,875
Interest expense (186,024 ) 4,990 (181,034 )
Income before income taxes 147,909 (117,186 ) 30,723
Income tax expense (57,863 ) 47,566 (10,297 )
Net income attributable to Quicksilver $ 90,046 $ (69,620 ) $ 20,426
Earnings per common share - diluted $ 0.52 $ 0.12
Diluted weighted average shares outstanding 169,735 169,735

KWK 12-08

Contact Information

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    (817) 665-4990