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Petroleum

Quicksilver Resources Completes Acquisition of CMS Energy's Gas and Oil Properties

Strategic Insights

— 1 min read

Quicksilver Resources Inc. announced the completion of its acquisition from CMS Energy Corporation of its natural gas and crude oil exploration and production properties in Michigan, Ohio, Kentucky, and Indiana. The sale includes approximately 180,000 net leasehold acres producing 49,000 Mcf equivalent (Mcfe) net per day. The acquisition strengthens Quicksilver's position in Michigan, making it the largest independent gas producer in the state. The transaction is expected to be significantly accretive to Quicksilver's 2000 cash flow and net income, with an estimated reserve base of 610 Bcfe.

Key Takeaways:

  • Quicksilver Resources Inc. acquired CMS Energy Corporation's natural gas and crude oil exploration and production properties in Michigan, Ohio, Kentucky, and Indiana.
  • The sale includes approximately 180,000 net leasehold acres producing 49,000 Mcf equivalent (Mcfe) net per day.
  • The acquisition strengthens Quicksilver's position in Michigan, making it the largest independent gas producer in the state.
  • The transaction is expected to be significantly accretive to Quicksilver's 2000 cash flow and net income.
  • The estimated reserve base is approximately 610 Bcfe, with a proved producing component of almost 70%.
  • Houston Kauffman, Quicksilver's Vice President of Acquisitions, Divestments & Trades, stated that the acquisition will enhance operating and marketing efficiencies, and significantly increase development drilling inventory.
  • Bill Lamkin, Quicksilver's Executive Vice President and Chief Financial Officer, commented that the acquisition will have a positive impact on the company's financial picture.

Statistics:

  • Approximately 180,000 net leasehold acres were acquired.
  • The sale produces 49,000 Mcf equivalent (Mcfe) net per day.
  • The transaction was valued at approximately $163 million, subject to certain post-closing adjustments.
  • The estimated reserve base is 610 Bcfe.
  • The proved producing component of the reserves is almost 70%.
  • Quicksilver Resources Inc. has U.S. offices in Gaylord, Michigan, Cut Bank, Montana, and Casper, Wyoming, and a Canadian office in Calgary, Alberta.

Sources:

  • "Quicksilver Resources Inc. Completes Acquisition of CMS Energy's Gas and Oil Properties" (PR Newswire, April 3, 2000)
  • Quicksilver Resources Inc., Press Release (April 3, 2000)

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