Quicksilver Gas Services LP (KGS), headquartered in Fort Worth, Texas, gathers and processes natural gas produced from the Barnett Shale geologic formation in the Fort Worth Basin of north Texas. The company began operations in 2004 to provide midstream services primarily to Quicksilver Resources Inc., the owner of the company’s general partner, Quicksilver Gas Services GP LLC, as well as other natural gas producers.
Quicksilver recently released first quarter 2008 results. Net income for the first quarter was $2.9M, a three-fold increase as compared to net income of $0.8M in the prior-year same period. Earnings before interest, income taxes, depreciation and accretion, a non-GAAP measure, was $8.4M compared to $2.2M same quarter previous year. The unit distribution rate was increased 5% to $.315 by the company’s general partner. The first quarter distribution will be paid May 15, 2008 on all units to holders of record as of the close of business April 30, 2008.
Also within first quarter 2008, capital expenditures totaled $32.7M, including $0.5M for maintenance capital and the remainder for organic growth projects. Expenditures during the quarter included the connection of approximately 27 miles of gathering lines and 34 new wells to the gathering system. Continued construction of a new processing facility is expected to become operational during the first quarter 2009 and increase processing capacity by 125 million cubic feet per day.
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