UPDATE: Bank of America Downgrades Quicksilver Resources to Underperform
According to Bank of America, Quicksilver Resources (NYSE: KWK) is downgraded to Underperform.
Bank of America said that KWK unveiled its 2012 capital budget of $370 mm, with a surprising $180mm devoted the Horn River Basin (HRB). “We have adjusted volumes to 0.3% growth at 417 mmcfepd (vs 514 mmcfepd), 2012 EPS to ($0.24) vs ($0.11), 4Q11 EPS to $0.03 vs $0.04, and 2012 EBITDA to $324 mm from $406 mm. Our new PO is $3 per share based on the shares trading at the sector average 7.3x 2012 EBITDA and at 20% of $15/share of NAV.”
Quicksilver Resources closed yesterday at $5.01.
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