Quicksilver 1Q profit jumps on higher output, prices

FORT WORTH, Texas—Natural gas and oil producer Quicksilver Resources Inc. said Wednesday its first-quarter profit jumped 85 percent on increased production and higher selling prices.

Net income for the three months ended March 31 rose to $42.2 million, or 25 cents per share, compared with $22.9 million, or 14 cents per share, during the same period a year earlier. The per-share figures are adjusted to account for a two-for-one stock split on Jan. 31.

Analysts expected the company to earn 25 cents per share, on average, according to a survey by Thomson Financial.

Revenue increased to $157.5 million from $116.6 million. Analysts predicted revenue of $154 million, according to Thomson.

Quicksilver attributed the increase in sales of natural gas, natural gas liquids and oil to a 13 percent increase in daily production volume and a 23 percent increase in average selling prices. Production during the quarter totaled the equivalent of 211.2 million cubic feet of gas per day.

Looking ahead to the second quarter, the company said it expects to produce the equivalent of 225 million to 235 million cubic feet of gas per day, on average.

Quicksilver shares fell $1.73, or 4 percent, to $42 in midday trading.

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