8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  August 7, 2012

QUICKSILVER RESOURCES INC.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation) 001-14837 (Commission File Number) 75-2756163 (IRS Employer Identification No.)

801 Cherry Street

Suite 3700, Unit 19

Fort Worth, Texas 76102

 (Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (817) 665-5000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition.

On August 7, 2012, we issued a press release reporting our operating and financial results for the quarter ended June 30, 2012.  A copy of the press release is attached as Exhibit 99.1 and is incorporated herein by reference.  The information contained in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished to the Securities and Exchange Commission and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section.

The press release contains a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission.  We presented adjusted net income for all periods presented in the press release to exclude the effect on net income of certain revenue, expense, gain and loss associated with items not typically included in published estimates, in order to enhance the user’s overall understanding of our current financial performance.  As part of the press release, we provided a reconciliation of adjusted net income to net income, which is the most comparable financial measure determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”).  Our management believes this non-GAAP measure provides useful information to both management and investors by excluding certain revenues and expenses that may not be indicative of our core operating results, and will enhance the ability of management and investors to compare our results of operations from period to period.

Item 9.01.  Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Description
99.1	Press Release dated August 7, 2012.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

QUICKSILVER RESOURCES INC.
By:	/s/ John C. Regan
	John C. Regan
	Senior Vice President – Chief Financial Officer

Date:  August 7, 2012

INDEX TO EXHIBITS

Exhibit Number	Description
99.1	Press Release dated August 7, 2012.

EX-99.1

Exhibit 99.1

	N e w s   R e l e a s e
	QUICKSILVER RESOURCES INC.
	801 Cherry Street
	Fort Worth, TX  76102
	www.qrinc.com

Quicksilver Resources Reports 2012 Second-Quarter Results

Company Posts Stellar Horn River Results and Strengthens

Financial Flexibility with Amended Credit Facility

FORT WORTH, TEXAS (August 7, 2012) – Quicksilver Resources Inc. (NYSE: KWK) today announced preliminary 2012 second-quarter results.

Highlights:

· Secured financial covenant flexibility in Combined Credit Agreements, providing time to manage the balance sheet and develop emerging plays

· Completed first multi-well pad in Horn River, with individual wells testing in excess of 20 MMcfd

· Advanced negotiations on two joint ventures

· Improved well performance and drill/complete costs in the Colorado Niobrara project

· Reduced second-half 2012 capital expenditures by $50 million and deferred commitments in the Horn River Basin

· Nearly 50 percent of expected 2013 production hedged at a weighted average price of $5.30/Mcf

“Quicksilver is aggressively attacking costs and capital expenditures in this low commodity price environment.  We have proactively amended our credit facility, reduced capital spending and pushed out capital commitments in the Horn River Basin and our other operating areas.  At the same time, we have made significant gains in British Columbia and Colorado,” said Glenn Darden, President and CEO.  “Negotiations on two joint ventures have progressed significantly. We believe these transactions will help push this company forward.”

Financial Results

Adjusted net loss for the second quarter, a non-GAAP financial measure, was $21 million, or $0.13 per diluted share, compared to adjusted net income of $11 million, or $0.06 per diluted share in the 2011 period. Including the impact of one-time items, the net loss for the second quarter was $673 million, or $3.96 per diluted share, compared to net income of $109 million, or $0.61 per diluted share, in the prior-year period. Second-quarter 2012 results were impacted by a $992 million non-cash impairment of oil and gas properties due to lower average natural gas and NGL prices compared to the 12 months ended March 31, 2012 and non-cash gains of $8 million related to hedge ineffectiveness. Further details of adjusted net income are included in the tables following this earnings release.

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Production

Production averaged 359 million cubic feet of natural gas equivalent (MMcfe) per day during the second quarter, down from 417 MMcfe per day in the prior-year quarter, and down from 377 MMcfe in the first quarter of 2012. The decline from both periods is primarily due to the delay in bringing Horn River volumes online, a reduction in completion activity in the Barnett Shale (45 fewer wells were connected to sales in the first half of 2012 compared to the first half of 2011), natural production decline of existing wells and temporary shut-ins to support new development activity. Shut-ins of certain uneconomic production had an immaterial impact on second-quarter volumes. The production volumes for the second quarter of 2012 were 80% natural gas and 20% natural gas liquids (NGLs), crude oil and condensate.

Revenues and Expenses

Production revenue for the second quarter of 2012 was $151 million, down 28% from the prior-year quarter and down 12% from the first quarter of 2012.  The decrease in production revenue from both periods was caused by the production declines described above and lower realized prices for natural gas and NGLs.

Lease operating expense for the second quarter of 2012 was $22 million, or $0.66/Mcfe, compared to $24 million, or $0.64/Mcfe in the prior-year quarter and $29 million, or $0.84/Mcfe in the first quarter of 2012. The reduction from the first quarter is mainly due to shut-ins of uneconomic wells in the Barnett Shale resulting in lower water hauling and gas lift expense and a decline in well workover activity in both the U.S. and Canada.

Interest expense for the second quarter of 2012 was $40 million, or $1.23/Mcfe, compared to $48 million, or $1.25/Mcfe in the prior-year quarter. The decline is primarily related to lower amortization of deferred financing fees and higher capitalized interest related to expanded spending on the company’s exploratory assets.

Debt

At June 30, 2012, Quicksilver’s total debt was approximately $2.1 billion. In August 2012, Quicksilver amended its Combined Credit Agreements, and as part of that process, accelerated the fall redetermination. Based on reserves at June 30, 2012, the redetermined global borrowing base was set at $850 million, the interest coverage covenant was adjusted downward to provide increased flexibility, and other limitations were introduced, including increased interest margins and additional financial and other covenants. The company has approximately $410 million utilized under its Combined Credit Agreements on a pro-forma basis, reflecting the anticipated near-term reductions in Canadian letters of credit obligations.

Operational Update

Canada - Horn River Basin

Shortly after the end of the second quarter, Quicksilver finalized completion operations on its eight-well drilling pad, its first multi-well pad in the basin. With production curtailed due to the flow limitations of the test equipment, individual wells tested at rates in excess of 20 MMcfd, with the

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highest rate at 27 MMcfd. These wells were drilled with 6,000 to 8,500-foot laterals. The pad is estimated to have the capacity to produce in excess of 150 MMcfd of gas.

Once initial production rates are established, Quicksilver’s current plan is to restrict the flow from the pad to optimize midstream commitments under various agreements, and subsequently, to increase production to meet increased throughput commitments as necessary, or if natural gas prices improve. Therefore, no additional wells are planned to be drilled in the second half of 2012 as was contemplated in the original budget.

United States – Barnett Shale

Quicksilver drilled 7 gross (7 net) wells and connected 14 gross (10.6 net) wells to sales in the second quarter. At June 30, 2012, Quicksilver had a remaining uncompleted well inventory of 24 gross operated wells that have been drilled in the Barnett Shale but await completion or connection to sales lines.

As of June 30, 2012, the company is operating one rig in the high-BTU acreage of the Barnett Shale, and is scaling back activity with plans to drill four wells, complete six wells, and connect eight wells to sales for the remainder of 2012.

United States – Sand Wash Basin

The company continues to see improvements in well performance and drilling/completion cost in its Colorado Niobrara project. In the second quarter, the company drilled two vertical wells and recompleted a third well using a different fracture stimulation method. Initial production rates for the newer vertical wells have come in at approximately 100 barrels of oil equivalent (Boe) per day, which is primarily oil, and these wells exhibit a relatively shallow production decline. Preliminary estimates of ultimate recoveries are in the range of 200,000 Boe per well. This recovery estimate is consistent with historical recoveries from producing wells in this area of the Sand Wash Basin.

The company plans to drill one well and complete two wells for the remainder of 2012 and defer construction of a planned gathering line and related facilities.

Quicksilver holds approximately 210,000 net acres in the Sand Wash Basin of Northwest Colorado, which the company believes are situated in the oil window prospective of the Niobrara formation.

United States – West Texas

Quicksilver is currently completing two wells after seeing promising shows while drilling in its West Texas project, one in Pecos County targeting the Third Bone Springs formation and one in Upton County targeting the Wolfcamp formation.

The company plans to drill and complete two wells during the remainder of 2012.

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Quicksilver holds approximately 155,000 net acres across the Delaware and Midland basins of West Texas, of which the company believes approximately 105,000 net acres are situated in the oil window of the Wolfcamp and Bone Springs formations.

Canada - Horseshoe Canyon

Drilling, completion and pipeline activities were suspended for most of the second quarter due to the seasonal break-up period. The company does not expect to drill any further wells in Horseshoe Canyon during the second half of 2012.

Capital Program

During the second quarter of 2012, the company incurred approximately $155 million of capital expenditures, of which approximately $131 million was associated with drilling and completion activities, $5 million for midstream activities, $11 million for acreage purchases, and $8 million for corporate and other purposes. For the six months ended June 30, 2012, the total capital program was $291 million. The capital budget for 2012 was 70% weighted to the first half of the year to accommodate an increase in the midstream commitments in the Horn River Basin and for the additional drilling rig utilized during the first quarter in the Barnett Shale.

Capital spending is projected to be $70 million for the second half of 2012 and approximately $360 million for full-year 2012, or $50 million less than the original budget of $410 million. The reduction in capital spending is due to a reduction in drilling and related activity across the company’s assets as discussed in the operational updates above.

Third Quarter Outlook

Third-quarter average daily production volume is expected to be 385-400 MMcfe per day. Full-year 2012 average production volume is expected to be 365-380 MMcfe per day with drilling activity further reduced from what was contemplated in the previous quarter’s guidance.

For the third-quarter 2012, average unit expenses, on a Mcfe basis, are expected as follows:

·	Lease operating expense	$0.60 - $0.64
·	Gathering, processing & transportation	1.16 -   1.20
·	Production and ad-valorem taxes	0.21 -   0.23
·	General and administrative	0.43 -   0.47
·	Depletion, depreciation & accretion	1.30 -   1.35

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Hedging

The company has 272 MMcfed of hedges in place for 2012 at a weighted average price of $6.02, which covers greater than 70% of expected total equivalent production for the remainder of 2012, and 160 MMcfd of hedges for 2013 at a weighted average price of $5.30.

Conference Call

The company will host a conference call to discuss second-quarter operating and financial results at 10:00 a.m. central time today.

Quicksilver invites interested parties to listen to the call via the company’s website at www.qrinc.com or by calling 1-877-313-7932, using the conference ID number 41140500, approximately 10 minutes before the call.  A digital replay of the conference call will be available at 2:00 p.m. central time the same day, and will remain available for 30 days.  The replay can be dialed at 1-855-859-2056 using the conference ID number 41140500.  The replay will also be archived for 30 days on the company’s website.

Use of Non-GAAP Financial Measure

This news release and the accompanying schedule include the non-generally accepted accounting principles ("non-GAAP") financial measure of adjusted net income.  The accompanying schedule provides reconciliations of this non-GAAP financial measure to its most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP").  Our non-GAAP financial measure should not be considered as an alternative to GAAP measures such as net income or operating income or any other GAAP measure of liquidity or financial performance.

About Quicksilver Resources

Fort Worth, Texas-based Quicksilver Resources is an independent oil and gas company engaged in the exploration, development and acquisition of oil and gas, primarily from unconventional reservoirs including gas from shales and coal beds in North America.  The company has U.S. offices in Fort Worth, Texas; Glen Rose, Texas; Craig, Colorado; Steamboat Springs, Colorado and Cut Bank, Montana.  Quicksilver’s Canadian subsidiary, Quicksilver Resources Canada Inc., is headquartered in Calgary, Alberta.  For more information about Quicksilver Resources, visit www.qrinc.com.

Forward-Looking Statements

Certain statements contained in this press release and other materials we file with the SEC, or in other written or oral statements made or to be made by us, other than statements of historical fact, are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995.  Forward-looking statements give our current expectations or forecasts of future events.  Words such as “may,” “assume,” “forecast,” “position,” “predict,” “strategy,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “project,” “budget,” “potential,” or “continue,” and similar expressions are used to identify forward-looking statements.  They can be affected by assumptions used or by known or unknown risks or uncertainties.  Consequently, no forward-looking statements can be guaranteed.  Actual results may vary materially.  You are cautioned not to place undue reliance on any forward-looking statements.  You should also understand that it is not possible to predict or identify all such factors and should not consider the following list to be a complete statement of all potential risks and uncertainties.  Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include: changes in general economic conditions; fluctuations in natural gas, NGL and oil prices; failure or delays in

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achieving expected production from exploration and development projects; uncertainties inherent in estimates of natural gas, NGL and oil reserves and predicting natural gas, NGL and oil reservoir performance; effects of hedging natural gas, NGL and oil prices; fluctuations in the value of certain of our assets and liabilities; competitive conditions in our industry; actions taken or non-performance by third parties, including suppliers, contractors, operators, processors, transporters, customers and counterparties; changes in the availability and cost of capital; delays in obtaining oilfield equipment and increases in drilling and other service costs; delays in construction of transportation pipelines and gathering, processing and treating facilities; operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control; the effects of existing and future laws and governmental regulations including environmental and climate change requirements; the effects of existing or future litigation; failure to or delays in completing Quicksilver’s proposed initial public offering of common units representing limited partner interests in a master limited partnership holding portions of our Barnett Shale assets; and additional factors described elsewhere in this press release.

This list of factors is not exhaustive, and new factors may emerge or changes to these factors may occur that would impact our business.  Additional information regarding these and other factors may be contained in our filings with the SEC, especially on Forms 10-K, 10-Q and 8-K.  All such risk factors are difficult to predict, and are subject to material uncertainties that may affect actual results and may be beyond our control.  The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to update any of these forward-looking statements to reflect subsequent events or circumstances except to the extent required by applicable law.

All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements.

# # #

Investor Contact:

David Erdman

(817) 665-4023

KWK 12-14

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QUICKSILVER RESOURCES INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

In thousands, except for per share data - Unaudited

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Revenue:
Production	$	150,503		$	207,706		$	322,323		$	398,006
Sales of purchased natural gas		9,442			19,560			21,529			39,986
Other		8,617			21,180			(29,820	)		22,641
Total revenue		168,562			248,446			314,032			460,633
Operating expense:
Lease operating		21,599			24,484			50,290			45,693
Gathering, processing and transportation		42,624			46,726			85,701			91,088
Production and ad valorem taxes		7,189			8,506			13,952			16,087
Costs of purchased natural gas		9,337			19,557			21,274			39,300
Depletion, depreciation and accretion		51,942			54,704			106,381			107,175
Impairment		991,921			-			1,054,668			49,063
General and administrative		18,405			15,770			37,501			34,161
Other operating		134			23			150			183
Total expense		1,143,151			169,770			1,369,917			382,750
Crestwood earn-out		-			-			41,097			-
Operating income (loss)		(974,589	)		78,676			(1,014,788	)		77,883
Loss from earnings of BBEP		-			(26,207	)		-			(47,091	)
Other income - net		65			123,178			157			124,299
Fortune Creek accretion		(4,830	)		-			(9,571	)		-
Interest expense		(40,076	)		(47,552	)		(80,246	)		(93,730	)
Income (loss) before income taxes		(1,019,430	)		128,095			(1,104,448	)		61,361
Income tax expense (benefit)		(346,889	)		19,508			(371,983	)		23,532
Net income (loss)	$	(672,541	)	$	108,587		$	(732,465	)	$	37,829
Earnings (loss) per common share - basic	$	(3.96	)	$	0.63		$	(4.31	)	$	0.22
Earnings (loss) per common share - diluted	$	(3.96	)	$	0.61		$	(4.31	)	$	0.22
Basic weighted average shares outstanding		170,043			168,984			169,991			168,928
Diluted weighted average shares outstanding		170,043			179,668			169,991			169,786

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QUICKSILVER RESOURCES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

In thousands, except share data - Unaudited

	June 30, 2012			December 31, 2011
ASSETS
Current assets
Cash	$	14,003		$	13,146
Accounts receivable - net of allowance for doubtful accounts		64,667			95,282
Derivative assets at fair value		189,536			162,845
Other current assets		36,690			29,154
Total current assets		304,896			300,427
Property, plant and equipment - net
Oil and gas properties, full cost method (including unevaluated costs of
$481,735 and $433,341, respectively)		2,346,209			3,226,476
Other property and equipment		249,857			234,043
Property, plant and equipment - net		2,596,066			3,460,519
Derivative assets at fair value		159,189			183,982
Deferred income taxes		134,190			-
Other assets		50,183			50,534
	$	3,244,524		$	3,995,462
LIABILITIES AND EQUITY
Current liabilities
Current portion of long-term debt	$	-		$	18
Accounts payable		111,941			142,672
Accrued liabilities		139,257			142,193
Derivative liabilities at fair value		-			4,028
Current deferred tax liability		45,968			45,262
Total current liabilities		297,166			334,173
Long-term debt		2,069,726			1,903,431
Partnership Liability		130,357			122,913
Asset retirement obligations		94,872			85,568
Derivative Liabilities at fair value		6,538
Other liabilities		28,461			28,461
Deferred income taxes		38,611			258,997
Commitments and contingencies
Stockholders' Equity
Preferred stock, par value $0.01, 10,000,000 shares authorized, none outstanding					-
Common stock, $0.01 par value, 400,000,000 shares authorized;
178,811,191 and 176,980,483 shares issued, respectively		1,788			1,770
Paid in capital in excess of par value		747,029			737,015
Treasury stock of 5,735,074 and 5,379,702 shares, respectively		(48,715	)		(46,351	)
Accumulated other comprehensive income		256,529			214,858
Retained earnings		(377,838	)		354,627
Total stockholders' equity		578,793			1,261,919
	$	3,244,524		$	3,995,462

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QUICKSILVER RESOURCES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

In thousands - Unaudited

	For the Six Months Ended June 30,
	2012			2011
Operating activities:
Net income (loss)	$	(732,465	)	$	37,829
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depletion, depreciation and accretion		106,381			107,175
Impairment expense		1,054,668			49,063
Crestwood earn-out		(41,097	)		-
Deferred income tax expense (benefit)		(372,741	)		17,667
Non-cash gain (loss) from hedging and derivative activities		61,503			(19,933	)
Stock-based compensation		10,021			10,386
Non-cash interest expense		3,469			7,872
Fortune Creek accretion		9,571			-
Gain on disposition of BBEP units		-			(123,752	)
Loss from BBEP in excess of cash distributions		-			60,050
Other		328			1,111
Changes in assets and liabilities:
Accounts receivable		30,600			(8,608	)
Prepaid expenses and other assets		(5,031	)		(4,426	)
Accounts payable		(21,838	)		(25,859	)
Accrued and other liabilities		(3,853	)		14,777
Net cash provided by operating activities		99,516			123,352
Investing activities:
Purchases of property, plant and equipment		(307,169	)		(396,156	)
Proceeds from Crestwood earn-out		41,097			-
Proceeds from sale of BBEP units		-			134,423
Proceeds from sales of property and equipment		3,372			3,123
Net cash used for investing activities		(262,700	)		(258,610	)
Financing activities:
Issuance of debt		255,775			256,445
Repayments of debt		(88,115	)		(170,172	)
Debt issuance costs paid		(148	)		-
Distribution of Fortune Creek Partnership funds		(1,845	)		-
Proceeds from exercise of stock options		11			622
Purchase of treasury stock		(2,364	)		(4,801	)
Net cash provided by financing activities		163,314			82,094
Effect of exchange rate changes in cash		727			(1,771	)
Net increase (decrease) in cash		857			(54,935	)
Cash at beginning of period		13,146			54,937
Cash at end of period	$	14,003		$	2

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QUICKSILVER RESOURCES INC.

Unaudited Selected Operating Results

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Average Daily Production:
Natural Gas (MMcfd)		285.6			333.1			294.2			325.9
NGL (Bbld)		11,365			13,191			11,449			12,381
Oil (Bbld)		807			823			826			770
Total (MMcfed)		358.7			417.2			367.9			404.8
Average Realized Prices, including hedging:
Natural Gas (per Mcf)	$	3.98		$	5.06		$	4.16		$	5.06
NGL (per Bbl)		39.36			39.38			41.18			38.66
Oil (per Bbl)		85.73			96.28			90.28			92.02
Total (Mcfe)		4.61			5.47			4.81			5.43
Expense per Mcfe:
Lease operating expense:
Cash expense	$	0.65		$	0.63		$	0.74		$	0.61
Equity compensation		0.01			0.01			0.01			0.01
Total lease operating expense:	$	0.66		$	0.64		$	0.75		$	0.62
Gathering, processing and transportation expense	$	1.31		$	1.23		$	1.28		$	1.24
Production and ad valorem taxes	$	0.22		$	0.22		$	0.21		$	0.22
Depletion, depreciation and accretion	$	1.59		$	1.44		$	1.59		$	1.46
General and administrative expense:
Cash expense	$	0.36		$	0.28		$	0.35		$	0.33
Audit and accounting fees		0.08			0.02			0.07			0.01
Equity compensation		0.12			0.12			0.14			0.13
Total general and administrative expense	$	0.56		$	0.42		$	0.56		$	0.47
Interest expense:
Cash expense on debt outstanding	$	1.32		$	1.16		$	1.27		$	1.19
Fees paid on letters of credit outstanding		0.00			0.03			0.00			0.02
Premium on senior notes repurchased		-			0.01			-			0.01
Non-cash interest		0.04			0.10			0.04			0.11
Capitalized interest		(0.13	)		(0.05	)		(0.12	)		(0.04	)
Total interest expense	$	1.23		$	1.25		$	1.19		$	1.29

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QUICKSILVER RESOURCES INC.

Production, on a million cubic feet of natural gas equivalent (MMcfe)

per day basis, by operating area

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Barnett Shale		287.1		338.6		295.5		328.6
Other U.S.		3.5		3.1		3.7		3.2
Total U.S.		290.6		341.7		299.2		331.8
Horseshoe Canyon		53.2		58.3		55.6		58.8
Horn River		14.9		17.2		13.1		14.2
Total Canada		68.1		75.5		68.7		73.0
Total Company		358.7		417.2		367.9		404.8

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QUICKSILVER RESOURCES INC.

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME

In thousands, except per share data - Unaudited

	For the Three Months Ended June 30, 2012
	As Reported			Adjustments			Adjusted Net Income
Revenue:
Production	$	150,503		$	-		$	150,503
Sales of purchased natural gas		9,442			-			9,442
Other		8,617			(8,100	)		517
Total revenue		168,562			(8,100	)		160,462
Operating expense:
Lease operating		21,599			-			21,599
Gathering, processing and transportation		42,624			-			42,624
Production and ad valorem taxes		7,189			-			7,189
Costs of purchased natural gas		9,337			-			9,337
Depletion, depreciation and accretion		51,942			-			51,942
Impairment		991,921			(991,921	)		-
General and administrative		18,405			(2,691	)		15,714
Other operating		134			-			134
Total expense		1,143,151			(994,612	)		148,539
Crestwood earn-out		-			-			-
Operating income (loss)		(974,589	)		986,512			11,923
Income from earnings of BBEP		-			-			-
Other income - net		65			-			65
Fortune Creek accretion		(4,830	)		-			(4,830	)
Interest expense		(40,076	)		-			(40,076	)
Income before income taxes		(1,019,430	)		986,512			(32,918	)
Income tax expense (benefit)		(346,889	)		(335,368	)		(11,521	)
Net income (loss)	$	(672,541	)	$	651,144		$	(21,397	)
Earnings (loss) per common share - diluted	$	(3.96	)				$	(0.13	)
Diluted weighted average shares outstanding		170,043						170,043

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	Page 13 of 15

QUICKSILVER RESOURCES INC.

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME

In thousands, except per share data - Unaudited

	For the Three Months Ended June 30, 2011
	As Reported			Adjustments			Adjusted Net Income
Revenue:
Production	$	207,706		$	-		$	207,706
Sales of purchased natural gas		19,560			-			19,560
Other		21,180			(19,115	)		2,065
Total revenue		248,446			(19,115	)		229,331
Operating expense:
Lease operating		24,484			-			24,484
Gathering, processing and transportation		46,726			-			46,726
Production and ad valorem taxes		8,506			-			8,506
Costs of purchased natural gas		19,557			-			19,557
Depletion, depreciation and accretion		54,704			-			54,704
Impairment		-			-			-
General and administrative		15,770			-			15,770
Other operating		23			-			23
Total expense		169,770			-			169,770
Crestwood earn-out		-			-			-
Operating income (loss)		78,676			(19,115	)		59,561
Income (loss) from earnings of BBEP		(26,207	)		30,773			4,566
Other income (loss) - net		123,178			(122,463	)		715
Interest expense		(47,552	)		656			(46,896	)
Income before income taxes		128,095			(110,149	)		17,946
Income tax expense		19,508			12,545			6,963
Net income (loss)	$	108,587		$	(97,604	)	$	10,983
Earnings (loss) per common share - diluted	$	0.61					$	0.06
Diluted weighted average shares outstanding		179,668						179,668

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	Page 14 of 15

QUICKSILVER RESOURCES INC.

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME

In thousands, except per share data - Unaudited

	For the Six Months Ended June 30, 2012
	As Reported			Adjustments			Adjusted Net Income
Revenue:
Production	$	322,323		$	-		$	322,323
Sales of purchased natural gas		21,529			-			21,529
Other		(29,820	)		31,326			1,506
Total revenue		314,032			31,326			345,358
Operating expense:
Lease operating		50,290			-			50,290
Gathering, processing and transportation		85,701			-			85,701
Production and ad valorem taxes		13,952			-			13,952
Costs of purchased natural gas		21,274			-			21,274
Depletion, depreciation and accretion		106,381			-			106,381
Impairment		1,054,668			(1,054,668	)		-
General and administrative		37,501			(3,491	)		34,010
Other operating		150			-			150
Total expense		1,369,917			(1,058,159	)		311,758
Crestwood earn-out		41,097			(41,097	)		-
Operating income (loss)		(1,014,788	)		1,048,388			33,600
Income from earnings of BBEP		-			-			-
Other income - net		157			-			157
Fortune Creek accretion		(9,571	)		-			(9,571	)
Interest expense		(80,246	)		-			(80,246	)
Income before income taxes		(1,104,448	)		1,048,388			(56,060	)
Income tax expense (benefit)		(371,983	)		(352,362	)		(19,621	)
Net income (loss)	$	(732,465	)	$	696,026		$	(36,439	)
Earnings (loss) per common share - diluted	$	(4.31	)				$	(0.21	)
Diluted weighted average shares outstanding		169,991						169,991

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	NEWS RELEASE
	Page 15 of 15

QUICKSILVER RESOURCES INC.

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME

In thousands, except per share data - Unaudited

	For the Six Months Ended June 30, 2011
	As Reported			Adjustments			Adjusted Net Income
Revenue:
Production	$	398,006		$	-		$	398,006
Sales of purchased natural gas		39,986			-			39,986
Other		22,641			(19,115	)		3,526
Total revenue		460,633			(19,115	)		441,518
Operating expense:
Lease operating		45,693			-			45,693
Gathering, processing and transportation		91,088			-			91,088
Production and ad valorem taxes		16,087			-			16,087
Costs of purchased natural gas		39,300			-			39,300
Depletion, depreciation and accretion		107,175			-			107,175
Impairment		49,063			(49,063	)		-
General and administrative		34,161			-			34,161
Other operating		183			-			183
Total expense		382,750			(49,063	)		333,687
Operating income		77,883			29,948			107,831
Income (loss) from earnings of BBEP		(47,091	)		54,095			7,004
Other income (loss) - net		124,299			(123,752	)		547
Interest expense		(93,730	)		656			(93,074	)
Income before income taxes		61,361			(39,053	)		22,308
Income tax expense		23,532			14,977			8,555
Net income (loss)	$	37,829		$	(24,076	)	$	13,753
Earnings per common share - diluted	$	0.22					$	0.08
Diluted weighted average shares outstanding		169,786						169,786