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 8, 2007

QUICKSILVER RESOURCES INC.

(Exact Name of Registrant as Specified in Charter)

Delaware	001-14837	75-2756163
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

777 West Rosedale Street

Fort Worth, Texas 76104

(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 8, 2007, we issued a press release reporting our financial results for the quarter ended June 30, 2007.  A copy of the press release is attached as Exhibit 99.1.

The information set forth in Item 7.01 below is incorporated in this Item 2.02 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.

Item 7.01.  Regulation FD Disclosure.

Exhibit 99.2 contains certain information regarding the production volumes, as well as the average realized sales prices before and after the impact of financial hedges, for specified products and for specified regions for each of the first two quarters, and the first six months, of 2007.  The production and average realized sales price information set forth on Exhibit 99.2 with respect to each of the first two quarters, and the first six months, of 2007 is not necessarily indicative of production and average realized sales prices that may be obtained for the full year.  The information contained in Exhibit 99.2 should be read in conjunction with our financial statements and other information contained in our reports filed with or furnished to the Securities and Exchange Commission.

The information contained in this Item 7.01, including Exhibit 99.2 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.

Item 9.01.  Financial Statements and Exhibits.

(d) Exhibits:

Exhibit Number	Description
99.1	Press release dated August 8, 2007.
99.2	Historical production volumes.

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/ Philip Cook
	Philip Cook
	Senior Vice President -
	Chief Financial Officer

Date: August 8, 2007

Index to Exhibits

Exhibit Number	Description
99.1	Press release dated August 8, 2007.
99.2	Historical production volumes.

EX-99.1

Exhibit 99.1    

      

    

N e w s   R e l e a s e  

      

        QUICKSILVER RESOURCES INC.    

        777 West Rosedale Street    

Fort Worth, TX  76104    

www.qrinc.com    

      

Quicksilver Resources Reports Record Quarterly Results

Production Surges 27% to Record Levels

Net Income Increases 34% to $31.7 Million

FORT WORTH, TEXAS (August 8, 2007)– Quicksilver Resources Inc. (NYSE: KWK) today reported record quarterly revenues and production for the period ended June 30, 2007.  Net income for the second quarter of 2007 increased approximately 34 percent to $31.7 million ($0.38 per diluted share) as compared to $23.6 million ($0.29 per diluted share) in the prior-year quarter.  Total revenues of $136.4 million in the 2007 quarter were up more than 50 percent from the 2006 quarter.  Net cash from operating activities for the six months ended June 30, 2007 was $147.0 million, an increase of nearly 12 percent from $131.8 million generated in the same period of 2006, as presented in the attached Condensed Consolidated Statements of Cash Flows.

Second-Quarter 2007 Highlights

·   Produced record volumes of 208 MMcfe per day

·   Generated nearly $74 million of net cash from operating activities

·   Drilled a record 64 horizontal wells in the Fort Worth Basin; connected 44 wells

·   Increased recoveries of natural gas liquids per million cubic feet of natural gas in the Fort Worth Basin by 125 percent versus the prior-year quarter

“Record operating and financial results during the quarter highlight Quicksilver’s ability to efficiently execute our development programs and realize increasing value from our low-risk, high-growth asset portfolio,” said Glenn Darden, President and Chief Executive Officer.  “These results were driven primarily by our valuable position in the Fort Worth Basin Barnett Shale play.  In this area, quarterly production volumes increased 148 percent versus the second quarter of 2006 and increased more than 50 percent since the first quarter of this year.  We expect to achieve continued rapid growth from this play, where more than 90 percent of our acreage position remains to be developed.”

Production

Total average production increased nearly 27 percent to a record 208 million cubic feet of natural gas equivalent (MMcfe) per day versus the prior-year period of 164 MMcfe per day.  Total daily production volumes increased 11 percent sequentially from the first quarter of 2007, marking the company’s 16^th consecutive quarter of production growth.  Natural gas, including natural gas liquids (NGL), comprised approximately 95 percent of the company’s total production in the second quarter of 2007.

      

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Production on a thousand cubic feet of natural gas equivalent per day (Mcfe/d) basis for the company’s primary operating areas for the three months ended June 30 was as follows:

	Mcfe/d
Area	2007		2006		Change
Texas		76,911		31,050		148	%
Canada		53,812		49,780		8	%
Michigan		70,144		75,269		(7	%)
Other		7,294		8,132		(10	%)
Total company		208,161		164,231		27	%

Operations Update

In the Fort Worth Basin, the company drilled 64 wells (62.45 net) and connected 44 wells (41.99 net) to sales during the second quarter.  With 15 rigs currently working in the basin, the company now expects to drill at least 180 wells in the area during 2007.  Enhancements and expansions completed earlier this year at the Cowtown gas processing facility, which processes the company’s liquids-rich production from the Fort Worth Basin, have improved the efficiency of recoveries of these high-valued products, resulting in more than 110 barrels of NGLs recovered for each million cubic feet of gas processed.

In Canada, drilling activities were suspended, as expected, throughout the second quarter due to the spring break-up period.  Drilling activities resumed in late June and the company still expects to achieve a 10 percent annual production growth in 2007 from this area.

Capital expenditures for the second quarter of 2007 totaled approximately $247 million, of which approximately 72 percent was associated with drilling and completion activities, approximately 18 percent for midstream activities, approximately nine percent for acreage purchases, and approximately one percent for corporate capital.

Conference Call

The company will host a conference call to discuss second-quarter 2007 operational and financial results today, at 10:00 a.m. central time.

Quicksilver invites interested parties to participate in the call via the company’s website at http://www.qrinc.com or by calling 1-877-313-7932, using the conference ID number 6103696, prior to 9:55 a.m. central time.  A digital replay of the conference call will be available at 1:00 p.m. central time the same day, and will remain available for 30 days.  The replay can be dialed at 1-800-642-1687 and reference should be made to the conference ID number 6103696.  A replay will also be archived for 30 days on the company’s website.

      

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About Quicksilver Resources

Fort Worth, Texas-based Quicksilver Resources is a natural gas and crude oil exploration and production company engaged in the development and acquisition of long-lived, unconventional natural gas reserves, including coal bed methane, shale gas, and tight sands gas in North America.  The company has U.S. offices in Fort Worth, Texas; Granbury, Texas; Gaylord, Michigan; Corydon, Indiana 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

The statements in this press release regarding future events, occurrences, circumstances, activities, performance, outcomes and results are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Although these statements reflect the current views, assumptions and expectations of Quicksilver Resources’ management, the matters addressed herein are subject to numerous risks and uncertainties, which could cause actual activities, performance, outcomes and results to differ materially from those indicated.  Factors that could result in such differences or otherwise materially affect Quicksilver Resources’ financial condition, results of operations and cash flows include:  changes in general economic conditions; fluctuations in natural gas and crude oil prices; failure or delays in achieving expected production from natural gas and crude oil exploration and development projects; effects of hedging natural gas and crude oil prices; uncertainties inherent in estimates of natural gas and crude oil reserves and predicting natural gas and crude oil reservoir performance; competitive conditions in our industry; actions taken by third-party operators, processors and transporters; changes in the availability and cost of capital; delays in obtaining oilfield equipment and increases in drilling and other service costs; 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; and the effects of existing or future litigation; as well as, other factors disclosed in Quicksilver Resources’ filings with the Securities and Exchange Commission.  Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Investor & Media Contact:

Quicksilver Resources Inc.

Rick Buterbaugh

(817) 665-4835

KWK 07-09

      

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QUICKSILVER RESOURCES INC.
Unaudited Selected Operating Results
	Three Months Ended  June 30,				Six Months Ended June 30,
	2007		2006		2007		2006
Production:
Natural gas (MMcf)		14,695		13,123		28,860		25,635
Oil (MBbls)		158		154		308		297
NGL (MBbls)		550		150		848		234
Total (MMcfe)		18,943		14,945		35,797		28,823
United States (MMcfe)		14,046		10,415		25,848		19,968
Canada (MMcfe)		4,897		4,530		9,949		8,855
Total (MMcfe)		18,943		14,945		35,797		28,823
Average Daily Production:
Natural gas (Mcfd)		161,485		144,209		159,448		141,631
Oil (Bbld)		1,737		1,689		1,701		1,640
NGL (Bbld)		6,042		1,648		4,687		1,296
Total (Mcfed)		208,161		164,231		197,775		159,244
Average Sales Price Per Unit (excluding effects of hedging):
Natural gas (per Mcf)	$	6.49	$	5.24	$	6.12	$	6.16
Oil (per Bbl)	$	59.30	$	64.54	$	55.25	$	61.91
NGL (per Bbl)	$	40.52	$	41.80	$	38.16	$	41.12
Total (per Mcfe)	$	6.70	$	5.69	$	6.31	$	6.45
Average Sales Price Per Unit (including effects of hedging):
Natural gas (per Mcf)	$	6.96	$	5.54	$	6.86	$	6.23
Oil (per Bbl)	$	59.30	$	62.03	$	55.25	$	60.39
NGL (per Bbl)	$	40.52	$	41.80	$	38.16	$	41.12
Total (per Mcfe)	$	7.07	$	5.92	$	6.91	$	6.50
Expense per Mcfe:
United States production cost	$	1.78	$	1.77	$	1.78	$	1.73
Canada production cost	$	1.42	$	1.28	$	1.46	$	1.24
Total production cost	$	1.69	$	1.62	$	1.69	$	1.59
Production and ad valorem taxes	$	0.22	$	0.13	$	0.24	$	0.21
General and administrative expenses	$	0.54	$	0.36	$	0.57	$	0.41
Depletion, depreciation and accretion	$	1.47	$	1.20	$	1.47	$	1.24

      

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QUICKSILVER RESOURCES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

In thousands, except for share data – Unaudited

	June 30,			December 31,
	2007			2006
ASSETS
Current assets
Cash and cash equivalents	$	3,258		$	5,281
Accounts receivable, net of allowance for doubtful accounts		67,076			76,521
Current derivative assets		25,968			64,086
Other current assets		32,091			25,076
Total current assets		128,393			170,964
Investments in and advances to equity affiliates		7,333			7,434
Properties, plant and equipment – net (“full cost”)		2,099,055			1,679,280
Deferred derivative assets		-			3,753
Other assets		22,834			21,481
	$	2,257,615		$	1,882,912
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current portion of long-term debt	$	220		$	400
Accounts payable		137,888			109,914
Accrued derivative obligations		882			-
Accrued liabilities		40,887			67,697
Current deferred tax liability		7,923			21,378
Total current liabilities		187,800			199,389
Long-term debt		1,217,472			919,117
Derivative obligations		6,018			-
Asset retirement obligations		28,666			25,058
Deferred income taxes		180,311			156,251
Minority interest		7,892			7,431
Stockholders’ equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued		-			-
Common stock, $0.01 par value, 200,000,000 shares authorized and 81,207,935 and 80,181,593 shares issued, respectively		812			802
Paid in capital in excess of par value		256,528			238,063
Treasury stock of 2,600,536 and 2,579,671 shares, respectively		(11,558	)		(10,737	)
Accumulated other comprehensive income (loss)		41,998			60,099
Retained earnings		341,676			287,439
Total stockholders’ equity		629,456			575,666
	$	2,257,615		$	1,882,912

      

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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,
	2007			2006			2007			2006
Revenues
Oil, gas and related product sales	$	133,959		$	88,536		$	247,251		$	187,225
Other revenue		2,439			929			5,727			1,890
Total revenues		136,398			89,465			252,978			189,115
Expenses
Oil and gas production costs		31,989			24,220			60,558			45,630
Production and ad valorem taxes		4,212			1,986			8,702			6,159
Other operating costs		301			546			1,085			949
Depletion, depreciation and accretion		27,905			17,954			52,499			35,627
Provision for doubtful accounts		-			-			(264	)		-
General and administrative		10,298			5,437			20,260			11,691
Total expenses		74,705			50,143			142,840			100,056
Income (loss) from equity affiliates		282			(80	)		397			108
Operating income		61,975			39,242			110,535			89,167
Other income-net		(870	)		(498	)		(1,471	)		(848	)
Interest expense		18,216			10,566			33,168			19,768
Income before income taxes and minority interest		44,629			29,174			78,838			70,247
Income tax expense		12,770			5,555			24,065			19,093
Minority interest expense		128			11			191			11
Net income	$	31,731		$	23,608		$	54,582		$	51,143
Basic net income per common share	$	0.41		$	0.31		$	0.71		$	0.67
Diluted net income per common share	$	0.38		$	0.29		$	0.66		$	0.63
Weighted average common shares outstanding
Basic		77,594			76,723			77,396			76,383
Diluted		84,127			83,089			84,029			82,949

      

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QUICKSILVER RESOURCES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

In thousands-Unaudited

	For the Six Months Ended
	June 30,
	2007			2006
Operating activities:
Net income	$	54,582		$	51,143
Charges and credits to net income not affecting cash
Depletion, depreciation and accretion		52,499			35,627
Deferred income taxes		23,907			19,063
Non-cash compensation		6,288			2,819
Amortization of deferred loan costs		929			1,255
Income from equity affiliates		(397	)		(108	)
Minority interest		191			11
Non-cash gain from hedging activities		(981	)		77
Other		1,555			129
Changes in assets and liabilities
Accounts receivable		9,709			27,369
Inventory, prepaid expenses and other		(8,057	)		(13,674	)
Accounts payable		8,992			(1,423	)
Accrued liabilities and other		(2,250	)		9,502
Net cash provided by operating activities		146,967			131,790
Investing activities:
Development and exploration costs and other property additions		(435,086	)		(279,713	)
Return of investment from equity affiliates		167			365
Proceeds from sale of assets		162			4,854
Net cash used for investing activities		(434,757	)		(274,494	)
Financing activities:
Issuance of debt		312,157			408,742
Repayments of debt		(37,261	)		(271,719	)
Debt issuance costs		(2,546	)		(9,192	)
Proceeds from exercise of stock options		12,187			18,366
Minority interest contributions		167			4,506
Purchase of treasury stock		(821	)		(479	)
Net cash provided by financing activities		283,883			150,224
Effect of exchange rate changes in cash		1,884			(120	)
Net increase (decrease) in cash and cash equivalents		(2,023	)		7,400
Cash and cash equivalents at beginning of period		5,281			14,318
Cash and cash equivalents at end of period	$	3,258		$	21,718

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EX-99.2

Exhibit 99.2

Quicksilver Resources Inc.

Historical Production Volumes - By Product & Region

	2007
	Quarter Ended				Six Months
	Mar. 31,		June 30,		June 30,
Total Production (MMcfe)
US		11,803		14,046		25,849
Canada		5,052		4,897		9,949
Total		16,855		18,943		35,798
Gas Production (MMcf)
US		9,114		9,804		18,918
Canada		5,051		4,891		9,942
Total		14,165		14,695		28,860
Oil Production (MBbls)
US		150		158		308
Canada		0		0		0
Total		150		158		308
NGL Production (MBbls)
US		298		549		847
Canada		0		1		1
Total		298		550		848
Avg. price before impact of financial hedges [includes fixed price physical contracts]
Gas - per mcf
US	$	5.44	$	6.27	$	5.87
Canada	$	6.25	$	6.93	$	6.58
Consolidated	$	5.73	$	6.49	$	6.12
Oil  - per Bbl
US	$	50.99	$	59.30	$	55.25
Canada		-		-		-
Consolidated	$	50.99	$	59.30	$	55.25
NGL's - per Bbl
US	$	33.81	$	40.48	$	38.11
Canada		-	$	58.71	$	76.31
Consolidated	$	33.81	$	40.52	$	38.16
Avg. price after impact of financial hedges
Gas - per mcf
US	$	6.75	$	6.77	$	6.76
Canada	$	6.73	$	7.35	$	7.03
Consolidated	$	6.75	$	6.96	$	6.86
Oil  - per Bbl
US	$	50.99	$	59.30	$	55.25
Canada		-		-		-
Consolidated	$	50.99	$	59.30	$	55.25
NGL's - per Bbl
US	$	33.81	$	40.48	$	38.11
Canada		-	$	58.71	$	76.31
Consolidated	$	33.81	$	40.52	$	38.16