Bank of America Maintains Buy on Quicksilver Resources After Closing of Horn River JV Deal
In the report, Bank of America writes, "On a conference call this morning KWK management discussed the details of the Horn River midstream JV with KKR that it recently closed. Terms of the deal are as expected and reduce capex obligations in 2012. Also discussed was the first Niobrara horizontal test that looks promising and could unlock a game-changing discovery. Volumes out of the Barnett should be flat in 2012 with modest spend of $150mm. Management expects to announce an MLP in the next month with proceeds used to reduce net debt. While KWK faces many challenges, we think the company's efforts to reduce debt and capital spending, attract upstream JV partners in the Wolfcamp and Horn River Basin, and see success in the Niobrara will drive shares higher."
Bank of America maintains its Buy rating and $15 price objective on Quicksilver Resources, which is currently trading up $0.25 from yesterday's $6.87 closing price.
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