UPDATE: Bank of America Downgrades Quicksilver Resources to Underperform

According to Bank of America, Quicksilver Resources

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 (

). “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.