Quicksilver Resources Inc. is continuing to “hammer on the cost side” of its business, deferring elective spending in the energy patch and cutting back on staff. A recently announced joint venture (JV) in the Barnett Shale with Tokyo Gas Co. Ltd. was welcome news (see NGI, April 8), but there is more work ahead. “We are focused on the most important projects and we’re bringing in partners to both reduce debt and assist in the development of our assets,” said CEO Glenn Darden. “The company is very serious about reducing costs and living within cash flows.” Over the last year, the employee count has come down by about 20%. The Fort Worth, TX-based operator reported an adjusted net loss of $6 million (minus 4 cents/share) compared with a loss in 1Q2012 of $15 million (minus 9 cents). Since it was able to complete a long-sought Barnett Shale deal and in light of “challenging” natural gas liquids pricing, the company has shelved plans to create a Barnett master limited partnership (see NGI, Nov. 12, 2012).
Articles from Deferring
Former natural gas industry executive Sheffield Nelson has filed a ballot initiative in Arkansas to raise the state’s severance tax on natural gas production to 7% from the current 5% of market value.
Questerre Energy Corp. said late Monday it is deferring two exploration projects in its primary development area, the Utica Shale in Quebec’s St. Lawrence Lowlands, and will decide whether to proceed after the provincial government’s environmental review panel issues a report on shale gas development in February.
OG&E Monday proposed to the Oklahoma Corporation Commission (OCC) that it recover only 50% of its higher natural gas costs this summer — deferring the allowed recovery until later this year — to give customers a break on their bills.
NRG Energy Inc. last Monday said that it was deferring the $53.5 million principal payment due on its NRG Northeast Generating LLC bond series, but in a sliver of good news the financially troubled generator said last week it made the $24.7 million interest payment due on the series.
U.S. Chamber of Commerce President Thomas Donohue said he favors deferring the re-opening of the stock exchanges on New York City’s Wall Street until damaged electricity and telephone grids have been repaired.