Quicksilver Resources (NYSE:KWK) and Kohlberg Kravis Roberts (NYSE:KKR) said today they have formed a partnership to construct and operate natural gas midstream services to support producer customers in British Columbia and the Northwest Territories of Canada.
Under the terms of the transaction, Quicksilver contributed its existing 20-mile, 20-inch gathering line and compression facilities, as well as 10-year contracts for gas deliveries into the facilities.
KKR paid $125 million to Quicksilver in exchange for a 50% interest in the partnership, and will carry Quicksilver on its portion of future development costs in exchange for preferential distributions.
A planned treating facility will lower Quicksilver's cost to get its producer natural gas to market by $0.80 per million cubic feet.
The companies plan to jointly build and operate natural gas gathering, transportation and processing infrastructure to maximize the value of the production stream from Quicksilver's development in the Horn River Basin.
In addition to keeping an eye on Quicksilver stock, investors may want to watch nat gas ETFs to see if the merger news spurs the sector.
The First Trust ISE-Revere Natural Gas Index Fund (AMEX:FCG) is trading up over .1% Tuesday.
The Daily Natural Gas Related Bull 2x Shares (FCGL) is trading down over 7.7% Tuesday, and the SPDR S&P Oil & Gas Exploration & Production ETF (AMEX:XOP) is trading up about .6%.
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.
I feel honored and privileged to have found such a great
Launch related slideshow:
Tuesday 5/21 Insider Buying Report: APA, AIG
Monday 5/20 Insider Buying Report: LPSN, FTEK
Monday 5/20 Insider Buying Report: LMNX, GFF
Daily Wrap: May 21, 2013
Weaker Sales Send BBY Lower
HD Raises Guidance After Strong Q1
Analyst Moves: YHOO, CPB, EV
Analyst Moves: PCLN, MSFT, LMCA
Analyst Moves: CCL, OIS
Tuesday Sector Leaders: Shipping, Education & Training Services
Tuesday Sector Laggards: Music & Electronics Stores, Precious Metals
Monday Sector Leaders: Metals & Mining, Precious Metals
Tuesday's ETF with Unusual Volume: IXN
Tuesday's ETF Movers: KWT, GDXJ
URA, GLDX: Big ETF Outflows
Daily Dividend Report: XRX, DGX, DKS, UVV, AWR
Daily Dividend Report: JPM, ALL, HRL, VAL, JOY
Daily Dividend Report: UMPQ, SJT, CRT, AVIV, SPAN
Initial Jobless Claims Jump by 32k
Jobless Claims Fall to Five Year Low
Hiring Picture Improves In April
Weekly Market Wrap: May 17, 2013
Weekly Market Wrap: May 10, 2013
Weekly Market Wrap: May 3, 2013
Week Ahead Market Report: May 13, 2013
Week Ahead Market Report: May 6, 2013
Week Ahead Market Report: April 29, 2013