Energy
Italy's ENI Grows In Texas, Via Quicksilver (E, KWK, UNG)
Published:
Last Updated:
Italian energy giant Eni SpA (NYSE:E) has acquired a 27.5% interest in the leases of Quicksilver Resources Inc. (NYSE:KWK) in Quicksilver’s Alliance properties in the Fort Worth basin. Quicksilver will receive $280 million in cash from the transaction, which the company will be used to pay down debt.
At the end of the first quarter of 2009, Quicksilver had more than $2.6 billion in long-term debt, and had written down more than $590 million in asset values due to the poor economy. Even with that debt burden and the write-down and the establishment of a new 52-week low in March, Quicksilver shares are up more than 50% since the beginning of the year. By comparison, United States Natural Gas ETF (NYSE:UNG) is down for 2009 by about 30%.
So far this morning in the pre-market, Quicksilver is up about 4.5%, to $8.56. The stock’s 52-week range is $3.74-$43.44. Eni’s ADRs are also up in the pre-market, by about 1.5%.
Paul Ausick
May 18, 2009
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.