Goldman Sees Little Upside In Quicksilver Resources (KWK)

Goldman Sachs said it sees little upside in shares of Quicksilver Resources, Inc.

after the company reported earnings yesterday that were above estimates. It has a $13 price target and rates the shares at Sell. In a note to investors Goldman Sachs writes, "We maintain our Sell rating on Quicksilver. KWK’s remaining inventory of uncompleted wells in the Barnett Shale provides relatively low capital cost growth near term. However, we generally believe that the Street is already focused on other key catalysts, most notably potential joint ventures. Following management comments on recent conference calls, we believe an upstream and/or midstream joint venture in the Horn River Basin is possible, though it is unclear whether it would come with a meaningful upfront cash payment versus a large carry whereby the counterparty would cover Quicksilver’s future capital costs." Shares of Quicksilver Resources closed at $12.68, down 26‎ cents.