John H. Scully‘s SPO Advisory Corp recently decreased its stake in Quicksilver Resources Inc (NYSE:KWK). The fund now owns 17.64 million shares with a current market value of around $43.00 million. According to a Form 4 filing with the SEC, the fund sold 7.35 million shares at an weighted average price of $2.71 apiece.
An independent oil and gas company, Quicksilver Resources Inc (NYSE:KWK) engages in the acquisition, exploration, development, and production of onshore oil and gas in North America (core areas – Barnett Shale, Horn River and Horseshoe Canyon), focusing primarily on unconventional reservoirs in which hydrocarbons may be found in geological conditions such as fractured coalbeds or shales. On the 1st of May, the company announced that it completed the previously announced sale of its jointly owned holdings with SWEPI LP in the Sand Wash Basin to Southwestern Energy Company (NYSE:SWN) for gross cash proceeds of $180.00 million.
Quicksilver Resources Inc (NYSE:KWK)’s stock has been quite volatile in the past 6 months, bearing a Beta of 1.72 and currently trading at $2.40 per share, which is only around 2.65 times the company’s earnings per share, compared to the Oil & Gas industry average P/E ratio of 29.30. Generating EPS of $0.92 in 2013, the company is expected to produce a loss of $0.32 per share this year. In its preliminary 2013 and full-year results report, Quicksilver’s CEO, Glenn Darden, declared that over the last year, the company has reduced debt, enhanced liquidity, and advanced projects, and that 2014 is shaping up to be a significant year for the company.
Steven Cohen‘sSac Capital Advisors owns a stake of 6.55 million shares of Quicksilver Resources Inc (NYSE:KWK). Led by Mark Mcgoldrick and Jason Maynard, Mouth Kellett Capital Management is another fund which is positive about the prospects of Quicksilver, holding a position of 7.32 million shares of the company.
Spo Advisory Corp has a very concentrated equity portfolio worth nearly $7.20 billion. 31.50% of that value is invested in Schwab (Charles) Corp. PRFD ‘B’ (NYSE:SCHW-B), in which the fund holds 46.35 million shares, and in Liberty Global plc – Class C Ordinary Shares (NASDAQ:LBTYK), in which the fund holds 12.58 million.