Opinion on  Quicksilver Resources Inc. (KWK)     Sector: Energy  >  Industry: Oil & Gas Operations
F&D costs and operating margins are well above its competitors

Today's stock selection:
KWK Quicksilver Resources
Reference:
http://www.zacks.com/newsroom/commentary/index_pdf.php?id=785...

Quicksilver Resources reported an 85% year over year
increase in net income at $0.25 per share on strong
production growth through the drillbit and favorable
commodity prices. The company s strategy of acquiring
acreage on the cheap and subsequently developing its
low risk reserve base allows it to have industry leading
F&D costs and operating margins that are well above its
competitors. Quicksilver s bread and butter, the Barnett
Key numners:

Profit Margin (ttm):	82.82%
Operating Margin (ttm):	44.21%

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Management Effectiveness Return on Assets (ttm): 6.52% Return on Equity (ttm): 62.88%

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Income Statement Revenue (ttm): 602.18M Revenue Per Share (ttm): 3.852 Qtrly Revenue Growth (yoy): 35.10% Gross Profit (ttm): 405.49M EBITDA (ttm): 397.36M Net Income Avl to Common (ttm): 498.70M Diluted EPS (ttm): 2.97 Qtrly Earnings Growth (yoy): 84.60%

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Balance Sheet
Total Cash (mrq):	1.98M
Total Cash Per Share (mrq):	0.012
Total Debt (mrq):	1.12B
Total Debt/Equity (mrq):	1.087
Current Ratio (mrq):	0.577
Book Value Per Share (mrq):	6.471

shale of northeast Texas, will be the main contributor to
company growth, driving earnings up 110% and 35% in
2008 and 2009, respectively. Barnett production should
grow by double digits through 2013. We are upgrading
KWK from a Hold to a Buy with a price target of $52.00
per share and are increasing our 08 and 09 earnings
estimates to $1.47 from $1.16 per share and from $1.59 to
$1.99 per share, respectively.
Quicksilver Resources, Inc., an independent energy company, engages in the acquisition, exploitation, exploration, development, production, and sale of natural gas, natural gas liquids (NGLs), and crude oil in North America. It also involves in marketing, processing, and transmission of natural gas.