Fort Worth, TX-based Quicksilver Resources reported that itsthird quarter earnings set a company best record with net incomerising 372%. Net income was $4.8 million ($0.26 per share) comparedto $1 million ($0.08 per share) during the third quarter 1999. Thecompany accredited the breakout quarter to higher prices andincreased volume production and sales of natural gas and oil. Thecompany’s net natural gas sales went from $10.4 million for 3Q 1999to $20.3 million for 3Q2000, a 96% increase. Gas production volumesalso jumped 65% between the two time periods to end up at 7 Bcf inthe third quarter of this year. Gas prices on average increasedabout 19%. Natural gas liquids (NGL) followed in tandem, growing to$957,000 with volumes growing 175% and prices by 213% when comparedto the same time period last year. Oil sales enjoyed similar leaps,growing 112% to $6.8 million over last year’s $3.2 million figure.Crude production also rose 41% higher to finish at 305 bbls. Theaverage crude oil price grew approximately 50%.

Range Resources Corp., another Fort Worth, TX-based producer,reported its third quarter net income was significantly lower thanlast year for the same time period due primarily to hedging. Thecompany posted a net income of $7.8 million for the third quarter2000, a drop from its 3Q 1999 posting of $13 million. The company’srealized price per Mcfe after hedging rose 27% to $2.91. Oil andgas sales rose from $37.5 million for 3Q 1999 to $40.6 million forthe same time period this year. However, production fell off fromlast year for the same time period. Natural gas production droppedfrom 136 MMcf/d to 114 MMcf/d. Oil production followed the slide,from 5,996 b/d to 5,278 b/d for 3Q 2000. The company attributed theslides primarily to dispositions. Natural gas liquids was the lonebright spot, rising from 971 b/d to 983 b/d. Based on the company’shedges and current futures prices, Range estimates that itsrealized price in the fourth quarter will rise by over $1.00 perMcfe, adding more than $14 million to net income and cash flow.

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