US based oil and gas producer Quicksilver Resources Inc. (NYSE: KWK) has formed a partnership with investment firm Kohlberg Kravis Roberts & Co. (NYSE: KKR) to further the development of Quicksilver’s Horn River project. The 130,000 leased acres are thought to hold more than 10 trillion cubic feet of natural gas.
Of independent oil & gas producers, Quicksilver is probably the smallest, trailing behind Range Resources Corp. (NYSE: RRC) and SandRidge Energy Inc. (NYSE: SD) and others, mostly due to its lack of natural gas liquids production. The deal with KKR will free up capital for Quicksilver to invest in its more liquids-rich plays in Canada and the US.
Under the terms of the deal, Quicksilver will contribute its compression and gathering systems at Horn River, and KKR will toss in $125 million for a 50% stake in the project. Quicksilver is the operator and “KKR will carry Quicksilver on its portion of future development costs on the initial treating facility in exchange for preferential distributions to KKR.”
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks