UBS Maintains a 'Neutral' on Quicksilver Resources (KWK); 2012 Production Guidance Disappoints

UBS maintains a 'Neutral' on Quicksilver Resources (NYSE: KWK) price target lowered from $7 to $5.

UBS analyst says, "KWK introduced ‘12 capex of $370 MM, just below our estimate of $400 MM and well below consensus of $465 MM. Despite ’12 E&D capex ~$170 MM above previously disclosed estimated maintenance capex of $130 MM (as of Oct 2011), KWK is now targeting flat YoY production in 2012, down from stale guidance of 20% and well below UBSe 15% & consensus of 11%. The disappointing ‘12 production guidance also puts KWK’s LT growth capability in question, and we now forecast flat production in ‘13 and mid-single digit growth in 2014+."

"We changed our ‘12-13E EPS/CFPS to $(0.30)/$0.70 & $(0.35)/$0.65 from $(0.35)/$0.80 & $(0.40)/$0.90, respectively. Our 2P NAV fell by ~$4/sh to $8.0/share. Our NAV at NYMEX strip prices is less than $1/share."

For an analyst ratings summary and ratings history on Quicksilver Resources click here. For more ratings news on Quicksilver Resources click here.

Shares of Quicksilver Resources closed at $5.01 yesterday.

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