SOURCE: Quicksilver Resources Inc.

February 25, 2009 07:00 ET

Quicksilver Resources Reports 2008 Fourth-Quarter and Full-Year Results

FORT WORTH, TX--(Marketwire - February 25, 2009) - Quicksilver Resources Inc. (NYSE: KWK) today reported operating and financial results for the 2008 fourth quarter and full year.

2008 Highlights

--  Produced record volumes of nearly 263 MMcfe per day; up 23% year-over-
    year
--  Replaced 474% of production with drill bit; finding and development
    cost of $2.14 per Mcfe
--  Grew reserves 42% from year-end 2007
--  Reduced unit production costs 20% year-over-year
--  Increased adjusted net income to $221 million; up 90% year-over-year
--  Generated a record $457 million of net cash provided by operating
    activities
    

Financial Results

Fourth-quarter 2008 adjusted net income, a non-GAAP measure, was $40.4 million ($.23 per diluted share), up 38% from adjusted net income of $29.3 million ($.18 per diluted share) in the 2007 period. Adjusted net income excludes the following items:

--  Income of $175.0 million ($113.8 million after tax) in the 2008
    quarter related to the unrealized noncash mark-to-market of derivative
    positions held by BreitBurn Energy Partners, associated with the company's
    ownership in BreitBurn Energy Partners;
--  an impairment charge of $320.4 million ($208.3 million after tax) in
    the 2008 quarter related to the company's equity investment in BreitBurn
    Energy Partners;
--  an impairment charge of $633.5 million ($411.8 million after tax) in
    the 2008 quarter related to the company's oil and gas properties;
--  a gain of $628.7 million ($408.7 million after tax) in the 2007 period
    related to the divestment of the company's Northeast Operations;
--  a charge of $63.5 million ($41.3 million after tax) in the 2007 period
    related to the loss on a natural gas sales contract; and
--  a charge of $.9 million ($.6 million after tax) in the 2007 period for
    termination-related expenses related to the divestment of the Northeast
    Operations.
    

Including the items noted above, Quicksilver reported a net loss of $465.9 million (a loss of $2.79 per diluted share) in the 2008 fourth quarter as compared to net income of $396.1 million ($2.35 per diluted share) in the prior-year period.

For the full year of 2008, the company reported adjusted net income of $220.7 million ($1.28 per diluted share) as compared to $116.1 million ($.70 per diluted share) for 2007. Net loss for 2008 was $374.0 million (a loss of $2.31 per diluted share) as compared to net income of $479.4 million ($2.86 per diluted share) for the prior year. All per-share data reflects the two-for-one stock split effected in the form of a stock dividend on January 31, 2008.

Net cash provided by operating activities before changes in working capital, a non-GAAP measure, was $206.7 million for the fourth quarter of 2008, more than a four-fold increase from $47.4 million in the comparable 2007 period. For the full year of 2008, net cash provided by operating activities before changes in working capital was $580.1 million, more than double the $263.4 million in the comparable 2007 period.

Reconciliations of net cash provided by operating activities before working capital changes to net cash provided by operating activities and net income to adjusted net income are provided on page 10 of this news release.

"Quicksilver achieved numerous successes in 2008 including record production volumes, reduced unit production costs and a 42% increase in reserves at one of the lowest finding and development costs reported by industry," said Glenn Darden, Quicksilver president and chief executive officer. "Quicksilver's strength is being a low-cost producer. We expect to become an even lower cost company in the current environment. Capitalizing on this platform, we have locked in attractive margins by hedging more than 75% and 65% of our expected natural gas production for 2009 and 2010, respectively, which underpins our anticipated cash flows. We are committed to operate within these cash flows during the current period of low oil and natural gas prices."

Production

For the fourth quarter of 2008, average production was 327 million cubic feet of natural gas equivalent (MMcfe) per day compared to 220 MMcfe per day for the same period in 2007, an increase of approximately 48%. The 2007 quarter included production of approximately 25 MMcfe per day associated with the company's previously owned Northeast Operations, which were divested as of November 1, 2007. Excluding the divested volumes from the Northeast Operations, production grew nearly 67% year-over-year. This increase was driven by higher volumes from the Fort Worth Basin where successful development drilling activities coupled with the August 2008 Alliance acquisition, which included approximately 40 MMcfe per day of production, increased volumes from the basin 96% versus the 2007 level. The 2008 production volumes were comprised of approximately 74% natural gas, approximately 24% natural gas liquids (NGL) and approximately 2% crude oil and condensate.

Total production for the full year of 2008 averaged 263 MMcfe per day, up 23% from the 2007 average.

Revenue and Costs

Total revenue for the fourth quarter of 2008 was $208.9 million compared to $149.1 million in the prior-year quarter. Sales of natural gas, NGLs and crude oil totaled $206.1 million in the fourth quarter of 2008, up approximately 40% from the 2007 quarter. The increase reflects a 48% increase in equivalent daily production volumes that more than offset a 5% decrease in the average realized price per thousand cubic feet of natural gas equivalent (Mcfe). Total revenue for 2008 was $800.6 million, an increase of 43% from 2007.

Production costs of $36.1 million for the 2008 fourth quarter represent a $4.1 million increase from the prior-year quarter. This increase was primarily due to increased production volumes from Texas. The company continued to reduce its unit production costs, which declined to $1.20 per Mcfe in the fourth quarter of 2008, down approximately 22% as compared to $1.53 per Mcfe, excluding divestment-related expenses, in the prior-year quarter.

Capital Structure

At December 31, 2008, the company's total debt outstanding was $2.6 billion, including $175 million of debt of the company's subsidiary, Quicksilver Gas Services, which is non-recourse to the company. At year-end 2008, Quicksilver Resources had approximately $369 million of available capacity under its $1.2 billion senior secured revolving credit facility.

Operational Update

In the Fort Worth Basin, the company drilled 67 (63.2 net) operated wells and connected 58 (53.8 net) operated wells to sales during the fourth quarter. For the full year of 2008, the company drilled 257 (240.6 net) operated wells and connected 237 (224.3 net) operated wells to sales. In the Horseshoe Canyon area of Alberta, Canada, the company drilled 69 (50.3 net) operated wells during the fourth quarter of 2008, resulting in 203 (141.6 net) operated wells in this area for the full year of 2008.

During 2009, the company has budgeted to drill approximately 180 operated wells and connect approximately 100 operated wells to sales in the Fort Worth Basin. In the Horseshoe Canyon area approximately 175 (92 net) operated wells are budgeted in 2009. With these budgeted amounts for drilling and completion activity, the company expects to maintain total production roughly flat with the fourth quarter of 2008, resulting in annual production growth of approximately 23% in 2009.

Total company capital expenditures for the fourth quarter of 2008 were approximately $333 million, of which approximately 70% was associated with drilling and completion activities, approximately 20% was for midstream activities, approximately 7% was for acreage purchases and approximately 3% was for corporate. For the year, capital expenditures, excluding acquisitions, totaled approximately $1.3 billion.

Finding and Development Costs

The company's estimated all-in finding and development cost (F&D) for 2008 has been finalized based upon the total 2008 capital expenditures. All-in F&D cost for 2008 was $2.14 per Mcfe. Finding, development and acquisitions cost (FD&A) for 2008 was $2.50 per Mcfe. Reconciliations of the "2008 Finding & Development Cost" and "2008 Finding, Development & Acquisition Cost" are available on the company's website -- www.qrinc.com. For a description of the calculation of, and certain other information regarding, F&D and FD&A costs, please see the discussion below under the heading "F&D and FD&A Costs."

First-Quarter 2009 Outlook

First-quarter 2009 production volumes are expected to average in the range of 325 MMcfe to 330 MMcfe per day. Average unit expenses, on an Mcfe basis, are expected to be in the following ranges:

--  Production costs                      $1.30 - $1.40
--  Production taxes                        .13 -   .16
--  General and administrative              .55 -   .60
--  Depletion, depreciation & accretion    2.00 -  2.10

Conference Call and Investor Meeting

The company will host a conference call to discuss fourth-quarter 2008 operating and financial results and its outlook for the future at 11:00 a.m. eastern time today.

Quicksilver invites interested parties to participate in the call via the company's website at http://www.qrinc.com or by calling 1-877-313-7932, using the conference ID number 80367072, prior to 10:55 a.m. eastern time. A digital replay of the conference call will be available at 3:00 p.m. eastern time today, and will remain available for 30 days. The replay can be accessed at 1-800-642-1687 using the conference ID number 80367072. The replay will also be archived for 30 days on the company's website.

Use of Non-GAAP Financial Measures

This press release and the accompanying schedule include the non-generally accepted accounting principles ("non-GAAP") financial measures of adjusted net income and cash provided by operating activities before working capital changes. The accompanying schedule provides reconciliations of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Our non-GAAP financial measures 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 natural gas reserves, including coalbed methane, shale gas, and tight sands gas in North America. The company has U.S. offices in Fort Worth, Texas; Glen Rose, Texas 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.

Forward-Looking Statements

The statements in this press release regarding future events, occurrences, circumstances, activities, performance, outcomes and results are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although these statements reflect the current views, assumptions and expectations of Quicksilver Resources' management, the matters addressed herein are subject to numerous risks and uncertainties, which could cause actual activities, performance, outcomes and results to differ materially from those indicated. Factors that could result in such differences or otherwise materially affect Quicksilver Resources' financial condition, results of operations and cash flows include: changes in general economic conditions; fluctuations in natural gas, natural gas liquids and crude oil prices; failure or delays in achieving expected production exploration and development projects; uncertainties inherent in estimates of natural gas, natural gas liquids and crude oil reserves and predicting natural gas, natural gas liquids and crude oil reservoir performance; effects of hedging natural gas, natural gas liquids and crude oil; fluctuations in the value of certain of our assets and liabilities; competitive conditions in our industry; actions taken on non-performance by third parties, including suppliers, contractors, operators, processors, customers and counterparties; changes in the availability and cost of capital; delays in obtaining oilfield equipment and increases in drilling and other service costs; operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control; the effects of existing and future laws and governmental regulations; and the effects of existing or future litigation; as well as, other factors disclosed in Quicksilver Resources' filings with the Securities and Exchange Commission. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

F&D and FD&A Costs

Finding and development cost, or F&D cost, is calculated by dividing (x) development, exploitation, and exploration capital expenditures for the period, plus unevaluated capital expenditures as of the beginning of the period, less unevaluated capital expenditures as of the end of the period, by (y) reserve additions for the period, excluding acquired reserves. Finding, development and acquisition cost, or FD&A cost, is calculated by dividing (x) development, exploitation, exploration and acquisition capital expenditures for the period, plus unevaluated capital expenditures as of the beginning of the period, less unevaluated capital expenditures as of the end of the period, by (y) reserve additions for the period from all sources. Our calculation of "all-in" FD&A cost includes costs and reserve additions related to the purchase of proved reserves. The methods we use to calculate our F&D and FD&A costs may differ significantly from methods used by other companies to compute similar measures. As a result, our F&D and FD&A costs may not be comparable to similar measures provided by other companies. We believe that providing a measure of F&D and FD&A costs is useful in evaluating the costs, on a per thousand cubic feet of natural gas equivalent basis, to add proved reserves.

However, these measures are provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with generally accepted accounting principles. Due to various factors, including timing differences in the addition of proved reserves and the related costs to develop those reserves, F&D and FD&A costs do not necessarily reflect precisely the costs associated with particular reserves. As a result of various factors that could materially affect the timing and amounts of future increases in reserves and the timing and amounts of future costs, we cannot assure you that our future F&D and FD&A costs will not differ materially from those presented.

A reconciliation of F&D and FD&A costs is available on the company's website at www.qrinc.com.

KWK 09-02

                        QUICKSILVER RESOURCES INC.
                 CONSOLIDATED STATEMENTS OF INCOME (LOSS)
              In thousands, except per share data - Unaudited


                             For the Three Months
                                    Ended             For the Year Ended
                                 December 31,            December 31,
                            ----------------------  ----------------------
                               2008      2007 (1)      2008      2007 (1)
                            ----------  ----------  ----------  ----------
Revenue
  Natural gas, NGL and
   crude oil                $  206,071  $  146,792  $  780,788  $  545,089
  Other                          2,790       2,289      19,853      16,169
                            ----------  ----------  ----------  ----------
    Total revenue              208,861     149,081     800,641     561,258
                            ----------  ----------  ----------  ----------

Operating expenses
  Oil and gas production
   expense                      36,104      32,027     135,661     136,831
  Production and ad valorem
   taxes                         7,479       3,074      16,794      16,142
  Other operating costs            984         852       3,918       2,792
  Depletion, depreciation
   and accretion                62,440      36,083     188,196     120,697
  General and
   administrative               15,852      12,736      72,254      47,060
                            ----------  ----------  ----------  ----------
    Total expenses             122,859      84,772     416,823     323,522
Impairment related to oil
 and gas properties           (633,515)          -    (633,515)          -
Income (loss) from equity
 affiliates                          -         (21)          -         661
Gain on sale of oil and gas
 properties                          -     628,709           -     628,709
Loss on natural gas sales
 contract                            -     (63,525)          -     (63,525)
                            ----------  ----------  ----------  ----------
Operating income (loss)       (547,513)    629,472    (249,697)    803,581
Income from earnings of
 BBEP                          187,162           -      93,298           -
Impairment of investment in
 BBEP                         (320,387)          -    (320,387)          -
Other income - net               1,862       2,031         807       3,887
Interest expense               (41,885)    (16,669)   (102,510)    (70,527)
                            ----------  ----------  ----------  ----------
Income (loss) before income
 taxes and minority
 interest                     (720,761)    614,834    (578,489)    736,941
Income tax (expense)
 benefit                       256,903    (218,350)    209,149    (256,508)
Minority interest expense,
 net of income tax              (2,033)       (407)     (4,654)     (1,055)
                            ----------  ----------  ----------  ----------
Net income (loss)           $ (465,891) $  396,077  $ (373,994) $  479,378
                            ==========  ==========  ==========  ==========

Earnings (loss) per common
 share - basic              $    (2.79) $     2.53  $    (2.31) $     3.08

Earnings (loss) per common
 share - diluted            $    (2.79) $     2.35  $    (2.31) $     2.86

Basic weighted average
 shares outstanding            166,709     156,547     161,622     155,475

Diluted weighted average
 shares outstanding            166,709     168,818     161,622     168,029


(1)  Share amounts have been adjusted to reflect a two-for-one stock
     split effected in the form of a stock dividend in January 2008.
     The split did not affect treasury shares.






                        QUICKSILVER RESOURCES INC.
                        CONSOLIDATED BALANCE SHEETS
                In thousands, except share data - Unaudited


                                             December 31,    December 31,
                                                 2008            2007
                                            --------------  --------------
                      ASSETS
Current assets
  Cash and cash equivalents                 $        2,848  $       28,226
  Accounts receivable - net of allowance for
   doubtful accounts                               143,315          90,244
  Derivative assets at fair value                  171,740          10,797
  Current deferred income tax asset                      -          18,946
  Other current assets                              75,433          42,188
                                            --------------  --------------
    Total current assets                           393,336         190,401
Investment in Breitburn Energy Partners            150,503         420,171
Property, plant and equipment
  Oil and gas properties, full cost method
   (including unevaluated costs of
   $543,533 and $215,228, respectively)          3,142,608       1,764,400
  Other property and equipment                     655,107         377,946
                                            --------------  --------------
Property, plant and equipment - net              3,797,715       2,142,346
Derivative assets at fair value                    116,006             354
Other assets                                        43,011          22,574
                                            --------------  --------------
                                            $    4,500,571  $    2,775,846
                                            ==============  ==============

            LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
  Current portion of long-term debt         $        6,579  $           34
  Accounts payable                                 282,636         192,855
  Income taxes payable                                  40          46,601
  Accrued liabilities                               66,923          54,981
  Derivative liabilities at fair value               9,928          64,104
  Current deferred tax liability                    52,393               -
                                            --------------  --------------
    Total current liabilities                      418,499         358,575
Long-term debt                                   2,605,025         813,817
Asset retirement obligations                        34,753          23,864
Derivative liabilities at fair value                     -          16,327
Other liabilities                                   12,962          10,609
Deferred income taxes                              225,440         374,645
Deferred gain on sale of partnership
 interests                                          79,316          79,316
Minority interests in consolidated
 subsidiaries                                       29,867          30,338
Stockholders' equity
  Preferred stock, par value $0.01,
   10,000,000 shares authorized, none
   outstanding                                           -               -
  Common stock, $0.01 par value, 400,000,000
   and 200,000,000 shares authorized
   respectively;  171,742,699 and 160,633,270
   shares issued, respectively                       1,717           1,606
  Paid in capital in excess of par value           550,851         272,515
  Treasury stock of  4,572,795 and 2,616,726
   shares, respectively                            (35,441)        (12,304)
  Accumulated other comprehensive income           185,104          40,066
  Retained earnings                                392,478         766,472
                                            --------------  --------------
    Total stockholders' equity                   1,094,709       1,068,355
                                            --------------  --------------
                                            $    4,500,571  $    2,775,846
                                            ==============  ==============






                        QUICKSILVER RESOURCES INC.
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                         In thousands - Unaudited

                                                          Year Ended
                                                         December 31,
                                                    ----------------------
                                                       2008        2007
                                                    ----------  ----------
Operating activities:
   Net income (loss)                                $ (373,994) $  479,378
   Adjustments to reconcile net income (loss) to
    net cash provided by operating activities:
      Depletion, depreciation and accretion            188,196     120,697
      Impairment related to oil and gas properties     633,515           -
      Deferred income tax expense (benefit)           (164,134)    209,943
      (Gain) loss from sale of properties                  605    (627,348)
      Non-cash (gain) loss from hedging and
       derivative activities                            (1,139)     62,515
      Stock-based compensation                          16,128      11,243
      Amortization of deferred charges                   2,527       2,189
      Amortization of deferred loan costs                4,100       2,050
      Minority interest expense                          4,654       1,055
      Income from equity affiliates in excess of
       cash distributions                              (50,762)          -
      Impairment of investment in BBEP                 320,387
      Provision for doubtful accounts                        -        (349)
      Divestiture expenses                                   -       2,015
   Changes in assets and liabilities:
      Accounts receivable                              (53,071)    (14,423)
      Prepaid expenses and other assets                 (5,448)     (4,805)
      Accounts payable                                   7,602      18,939
      Income taxes payable                             (46,561)     46,012
      Accrued and other liabilities                    (26,039)      9,993
                                                    ----------  ----------
Net cash provided by operating activities              456,566     319,104
                                                    ----------  ----------

Investing activities:
   Purchases of property, plant and equipment       (1,286,715) (1,020,684)
   Alliance Acquisition                               (993,212)          -
   Return of investment from equity affiliates               -       9,635
   Proceeds from sales of properties and equipment       1,339     741,297
                                                    ----------  ----------
Net cash used in investing activities               (2,278,588)   (269,752)
                                                    ----------  ----------

Financing activities:
   Issuance debt                                     2,948,672     817,821
   Repayments of debt                               (1,096,163)   (968,557)
   Debt issuance costs                                 (25,219)     (5,130)
   Minority interest contributions                           -     109,809
   Minority interest distributions                      (8,644)     (8,794)
   Proceeds from exercise of stock options               1,244      21,387
   Excess tax benefits on exercise of stock options          -       2,755
   Purchase of treasury stock                          (23,137)     (1,567)
                                                    ----------  ----------
Net cash provided by (used in) financing activities  1,796,753     (32,276)
                                                    ----------  ----------

Effect of exchange rate changes in cash                   (109)      5,869
                                                    ----------  ----------

Net increase (decrease) in cash                        (25,378)     22,945
Cash and cash equivalents at beginning of period        28,226       5,281
                                                    ----------  ----------
Cash and cash equivalents at end of period          $    2,848  $   28,226
                                                    ==========  ==========




                        QUICKSILVER RESOURCES INC.
Production, on a thousand cubic feet of natural gas equivalent (Mcfe) per
                       day basis, by operating area



                        Three Months Ended              Year Ended
                            December 31,                December 31,
                    --------------------------- ---------------------------
                      2008      2007    Change    2008      2007    Change
                    --------- --------- ------  --------- --------- ------

Texas                 259,014   131,857     96%   196,563    90,577    117%
Other U.S.              2,855     3,064     -7%     3,230     3,194      1%
                    --------- ---------         --------- ---------
                      261,869   134,921     94%   199,793    93,771    113%

Canada                 64,668    60,492      7%    63,051    56,880     11%
                    --------- ---------         --------- ---------
                      326,537   195,413     67%   262,844   150,651     74%
Northeast
 Operations*                -    25,074                 -    62,901
                    --------- ---------         --------- ---------
  Total               326,537   220,487     48%   262,844   213,552     23%
                    ========= =========         ========= =========


*The Company's Northeast Operations were divested as of November 1, 2007.









                        QUICKSILVER RESOURCES INC.
                   Unaudited Selected Operating Results



                                    Three Months Ended      Year Ended
                                       December 31,        December 31,
                                    ------------------- -------------------
                                      2008      2007      2008      2007
                                    --------- --------- --------- ---------
Average Daily Production:
Natural Gas (Mcfd)                    241,979   156,089   186,142   163,340
NGL (Bbld)                             12,792     9,403    11,464     6,768
Oil (Bbld)                              1,301     1,330     1,320     1,600
  Total (Mcfed)                       326,537   220,487   262,844   213,552

Average Realized Prices:
Natural Gas (per Mcf)               $    7.49 $    6.58 $    8.10 $    6.73
NGL (per Bbl)                       $   26.86 $   49.44 $   45.44 $   43.23
Oil (per Bbl)                       $   64.03 $   78.26 $   78.83 $   63.87
  Total (Mcfe)                      $    6.86 $    7.24 $    8.12 $    6.99

Expense per Mcfe:
Oil and gas production cost         $    1.20 $    1.58 $    1.41 $    1.76
Production and ad valorem taxes     $    0.25 $    0.15 $    0.17 $    0.21
Depletion, depreciation and
 accretion                          $    2.08 $    1.78 $    1.96 $    1.55
General and administrative expense:
  Cash expense                      $    0.43 $    0.53 $    0.52 $    0.49
  Litigation resolution                     -         -      0.10         -
  Equity compensation                    0.10      0.10      0.13      0.11
                                    --------- --------- --------- ---------
Total general and administrative
 expense                            $    0.53 $    0.63 $    0.75 $    0.60








                        QUICKSILVER RESOURCES INC.
        RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME
              In thousands, except per share data - Unaudited


                             For the Three Months
                                    Ended             For the Year Ended
                                 December 31,            December 31,
                            ----------------------  ----------------------
                               2008      2007 (1)      2008      2007 (1)
                            ----------  ----------  ----------  ----------

Net income (loss)           $ (465,891) $  396,077  $ (373,994) $  479,378
                            ----------  ----------  ----------  ----------

Adjustments
  Related hedges -
   Northeast Operations              -           -           -      (2,000)
  Termination-related
   expenses                          -         910           -       6,306
  Divestiture-related
   profession fees                   -           -           -       2,000
  Gain on sale of oil and
   gas properties                    -    (628,709)          -    (628,709)
  Loss on natural gas sales
   contract                          -      63,525           -      63,525
  Legal settlement                   -           -       9,633           -
  Impairment of E&P
   properties                  633,515           -     633,515           -
  Impairment of investment
   in BBEP                     320,387           -     320,387           -
  Equity portion of
   derivative loss (income)
   from BBEP                  (175,034)          -     (48,674)          -
                            ----------  ----------  ----------  ----------
  Total adjustments before
   income tax expense          778,868    (564,274)    914,861    (558,878)
  Income tax expense          (272,604)    197,496    (320,201)    195,607
                            ----------  ----------  ----------  ----------
Adjustments for items after
 taxes                         506,264    (366,778)    594,660    (363,271)
                            ----------  ----------  ----------  ----------

Adjusted net income         $   40,373  $   29,299  $  220,666  $  116,107
                            ==========  ==========  ==========  ==========

Adjusted net income per
 common share - Diluted     $     0.23  $     0.18  $     1.28  $     0.70

Diluted weighed average
 common shares outstanding     177,981     168,818     173,377     168,029

(1)  Share amounts have been adjusted to reflect a two-for-one stock
     split effected in the form of a stock dividend in January 2008.
     The split did not affect treasury shares.







                        QUICKSILVER RESOURCES INC.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES BEFORE WORKING
       CAPITAL CHANGES TO NET CASH PROVIDED BY OPERATING ACTIVITIES
                         In thousands - Unaudited


                                For the Three Months      For the Year
                                 Ended December 31,    Ended December 31,
                                --------------------  --------------------
                                  2008       2007       2008       2007
                                ---------  ---------  ---------  ---------
Net cash provided by operating
 activities before working
 capital changes                $ 206,688  $  47,406  $ 580,083  $ 263,388

Working capital changes:
   Accounts receivable            (36,539)   (21,177)   (53,071)   (14,423)
   Prepaid expenses and other
    assets                           (629)    (6,350)    (5,448)    (4,805)
   Accounts payable                17,221     18,428      7,602     18,939
   Income taxes payable              (147)    45,855    (46,561)    46,012
   Accrued and other
    liabilities                    (4,148)   (26,757)   (26,039)     9,993
                                ---------  ---------  ---------  ---------
Total working capital changes     (24,242)     9,999   (123,517)    55,716
                                ---------  ---------  ---------  ---------
Net cash provided by operating
 activities                     $ 182,446  $  57,405  $ 456,566  $ 319,104
                                =========  =========  =========  =========

Contact Information

  • Investor & Media Contact:
    Rick Buterbaugh
    (817) 665-4835