Quicksilver Resources Acquires CMS Energy's Natural Gas and Crude Oil Properties

Strategic Insights -

Quicksilver Resources Inc., a natural gas and crude oil production company, has signed a letter of intent with CMS Energy Corporation to acquire CMS's natural gas and crude oil exploration and production properties in Michigan and other states. The acquisition includes over 180,000 net leasehold acres producing approximately 54,000 Mcf equivalent net per day from various formations. The transaction is expected to close by the end of the first quarter and is expected to be accretive to Quicksilver's 2000 cash flow and net income. The acquisition will almost double Quicksilver's production to over 110 million cubic feet equivalent per day.

Key Takeaways:

  • Quicksilver Resources Inc. has signed a letter of intent with CMS Energy Corporation to acquire CMS's natural gas and crude oil exploration and production properties in Michigan, Ohio, Kentucky, and Indiana.
  • The acquisition includes over 180,000 net leasehold acres producing approximately 54,000 Mcf equivalent net per day from the Antrim Shale, Niagaran, and Prairie du Chien formations.
  • Estimated reserves were not disclosed.
  • The transaction is expected to close by the end of the first quarter.
  • Quicksilver expects the acquisition to be accretive to its 2000 cash flow and net income.
  • The acquisition will almost double Quicksilver's production to over 110 million cubic feet equivalent per day.
  • Quicksilver Resources is a natural gas and crude oil production company engaged in the acquisition, exploitation, and development of long-lived producing natural gas and crude oil properties.
  • The company has U.S. offices in Gaylord, Michigan, Cut Bank, Montana, and Casper, Wyoming, and a Canadian office in Calgary, Alberta.

Statistics:

  • 180,000 net leasehold acres acquired as part of the deal.
  • 54,000 Mcf equivalent net per day production from the Antrim Shale, Niagaran, and Prairie du Chien formations.
  • 110 million cubic feet equivalent per day production expected after the acquisition.
  • 2000 cash flow and net income expected to be accretive.
  • 1Q 2001 expected closing date for the transaction.

Sources:

  • Quicksilver Resources Inc. press release, January 19, 2001.
  • PRNewswire, January 19, 2001.
  • U.S. Securities and Exchange Commission filings, referenced in the press release.