May 7 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
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
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.