Energy
Italy's ENI Grows In Texas, Via Quicksilver (E, KWK, UNG)
Published:
Last Updated:
Italian energy giant Eni SpA (NYSE:E) has acquired a 27.5% interest in the leases of Quicksilver Resources Inc. (NYSE:KWK) in Quicksilver’s Alliance properties in the Fort Worth basin. Quicksilver will receive $280 million in cash from the transaction, which the company will be used to pay down debt.
At the end of the first quarter of 2009, Quicksilver had more than $2.6 billion in long-term debt, and had written down more than $590 million in asset values due to the poor economy. Even with that debt burden and the write-down and the establishment of a new 52-week low in March, Quicksilver shares are up more than 50% since the beginning of the year. By comparison, United States Natural Gas ETF (NYSE:UNG) is down for 2009 by about 30%.
So far this morning in the pre-market, Quicksilver is up about 4.5%, to $8.56. The stock’s 52-week range is $3.74-$43.44. Eni’s ADRs are also up in the pre-market, by about 1.5%.
Paul Ausick
May 18, 2009
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
