Why Shares of Quicksilver Resources Inc. Plunged Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Quicksilver Resources dropped 14% today after the oil and gas company reported earnings.
So what: First-quarter production dropped from 358 million cubic feet of natural gas equivalent per day, or MMcfed, to 246 million MMcfed and is expected to be 255-260 MMcfed next quarter. The result was a loss of $0.08 per share, which was a penny worse than expected.
Now what: Management has lowered debt to keep the company solvent, but still can't make meaningful progress in making a profit. Quicksilver has been swimming in red ink for a long time now, and it's simply a company I wouldn't bet on. There are better ways to play the energy market right now, particularly as liquids production increases around the country.
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The article Why Shares of Quicksilver Resources Inc. Plunged Today originally appeared on Fool.com.Travis Hoium and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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