Quicksilver Resources posts another loss, cancels IPO
May 7 (Reuters) - Quicksilver Resources Inc reported a loss for the fifth straight quarter due to weak prices for natural gas liquids, and said it would withdraw a $250 million initial public offering of a master limited partnership (MLP).
The MLP holds proved reserves of 430.4 billion cubic feet of natural gas equivalent in the Barnett Shale in Texas.
Quicksilver cited weak prices and the sale of a 25 percent stake in its Barnett Shale holdings as reasons for the IPO withdrawal.
The company said last month it would sell the stake to Tokyo Gas Co was still actively pursuing other joint venture options in the area as well as in the Horn River basin in British Columbia.
Average realized prices for natural gas liquids, including hedging, fell 36 percent in the first quarter.
Weak prices for natural gas have weighed on producers for well over a year, prompting them to search for more lucrative liquids such as propane and crude oil.
Producers, however, have received a setback as prices of oil and natural gas liquids have also dipped in the recent past.
Quicksilver unveiled its plans to take the MLP public last year, but weak market conditions kept the company from going through with the offering.
Net loss was $59.7 million, or 35 cents per share, in the first quarter. Net loss in the year-ago period was $212 million, or $1.24 per share. The company restated its results for the year-ago quarter due to the accounting treatment of derivatives.
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