Due to a host of items that negatively affected its results, Fort Worth, TX-based Quicksilver Resources Inc. reported second quarter 2003 net income of $1.1 million, or 5 cents per diluted share, a substantial decline from the company’s 2Q2002 results of $3.7 million (18 cents per diluted share).

Quicksilver said second quarter 2003 earnings were negatively affected by the following three items:

Natural gas production for the second quarter of 2003 was 8.1 Bcf, or 89 MMcf/d, versus 7.9 Bcf for the same period in 2002. The price realized for the company’s gas production in the second quarter of 2003 averaged $3.30/Mcf compared to $2.71/Mcf received in the same period of 2002. Natural gas, including natural gas liquids, comprised 87% of the company’s total production in the second quarter of 2003.

Quicksilver’s natural gas liquids production for the second quarter came in at 27,000 barrels versus 34,000 barrels in the second quarter of 2002. The price realized for natural gas liquids averaged $28.57 in the second quarter of 2003 compared to the average $15.99 realized in the similar quarter a year ago.

“While unexpected third party gas processing plant outages and tie-in delays caused less than projected production levels for the quarter, the growth picture for the company looks very good,” Glenn Darden, Quicksilver’s CEO. “In both Canada and Indiana, field results are coming in ahead of expectations. Quicksilver will add significant production and reserves by year-end.”

Net income for the first six months of 2003 was $7.5 million on revenue of $70.6 million, or 35 cents per diluted share before a one-time charge related to the cumulative effect of implementing an accounting change, which reduced net income by 11 cents per diluted share. During the first six months of 2002, Quicksilver posted net income of $5.9 million on revenue of $59.9 million or 29 cents per diluted share.

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