Italy's ENI Grows In Texas, Via Quicksilver (E, KWK, UNG)
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%.
May 18, 2009