CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Note 19 to the consolidated financial statements in our 2012 Annual Report on Form 10-K contains a more complete description of our guarantor, non-guarantor, restricted and unrestricted subsidiaries under the indentures for our senior notes and senior subordinated notes.

The following tables present financial information about Quicksilver and our restricted subsidiaries for the three-month period covered by the consolidated financial statements. Under the indentures for our senior notes and senior subordinated notes, Fortune Creek is not considered to be a subsidiary and therefore it is presented separately from the other subsidiaries for these purposes.

Condensed Consolidating Balance Sheets



	March 31, 2013
	Quicksilver Resources Inc.			Restricted Guarantor Subsidiaries			Restricted Non- Guarantor Subsidiaries			Restricted Subsidiary Eliminations			Quicksilver and Restricted Subsidiaries			Unrestricted Non- Guarantor Subsidiaries			Fortune Creek		Consolidating Eliminations			Quicksilver Resources Inc. Consolidated
	(In thousands)
ASSETS
Current assets	$	205,156		$	109,951		$	67,481		$	(221,780	)	$	160,808		$	13,962		$	826	$	(27,880	)	$	147,716
Property and equipment	631,481			16,314			291,083			—			938,878			—			88,654		—			1,027,532
Investment in subsidiaries (equity method)	(199,396		)	—			(31,143		)	199,396			(31,143		)	(31,143		)	—		62,286			—
Other assets	335,598			—			41,983			(243,620		)	133,961			—			—		—			133,961
Total assets	$	972,839		$	126,265		$	369,404		$	(266,004	)	$	1,202,504		$	(17,181	)	$	89,480	$	34,406		$	1,309,209

LIABILITIES AND EQUITY
Current liabilities	$	213,212		$	112,512		$	32,234		$	(221,780	)	$	136,178		$	13,941		$	2,004	$	(27,880	)	$	124,243
Long-term liabilities	1,962,558			19,242			518,332			(243,620		)	2,256,512			—			1,572		129,814			2,387,898
Stockholders' equity	(1,202,931		)	(5,489		)	(181,162		)	199,396			(1,190,186		)	(31,122		)	85,904		(67,528		)	(1,202,932		)
Total liabilities and equity	$	972,839		$	126,265		$	369,404		$	(266,004	)	$	1,202,504		$	(17,181	)	$	89,480	$	34,406		$	1,309,209



	December 31, 2012
	Quicksilver Resources Inc.			Restricted Guarantor Subsidiaries			Restricted Non- Guarantor Subsidiaries			Restricted Subsidiary Eliminations			Quicksilver and Restricted Subsidiaries			Unrestricted Non- Guarantor Subsidiaries			Fortune Creek		Consolidating Eliminations			Quicksilver Resources Inc. Consolidated
	(In thousands)
ASSETS
Current assets	$	261,130		$	105,695		$	76,088		$	(222,586	)	$	220,327		$	13,250		$	391	$	(26,455	)	$	207,513
Property and equipment	621,073			20,007			296,462			—			937,542			—			91,516		—			1,029,058
Investment in subsidiaries (equity method)	(191,725		)	—			(42,883		)	191,725			(42,883		)	(42,905		)	—		85,788			—
Other assets	346,972			—			41,865			(243,620		)	145,217			—			—		—			145,217
Total assets	$	1,037,450		$	125,702		$	371,532		$	(274,481	)	$	1,260,203		$	(29,655	)	$	91,907	$	59,333		$	1,381,788
LIABILITIES AND EQUITY
Current liabilities	$	255,678		$	112,133		$	33,475		$	(222,586	)	$	178,700		$	13,230		$	2,316	$	(26,455	)	$	167,791
Long-term liabilities	1,914,568			19,242			524,107			(243,620		)	2,214,297			—			1,585		130,912			2,346,794
Stockholders' equity	(1,132,796		)	(5,673		)	(186,050		)	191,725			(1,132,794		)	(42,885		)	88,006		(45,124		)	(1,132,797		)
Total liabilities and equity	$	1,037,450		$	125,702		$	371,532		$	(274,481	)	$	1,260,203		$	(29,655	)	$	91,907	$	59,333		$	1,381,788

Condensed Consolidating Statements of Income



	For the Three Months Ended March 31, 2013
	Quicksilver Resources Inc.			Restricted Guarantor Subsidiaries		Restricted Non- Guarantor Subsidiaries			Restricted Subsidiary Eliminations		Quicksilver and Restricted Subsidiaries			Unrestricted Non- Guarantor Subsidiaries		Fortune Creek		Consolidated Eliminations			Quicksilver Resources Inc. Consolidated
	(In thousands)
Revenue	$	88,900		$	214	$	29,589		$	—	$	118,703		$	—	$	5,325	$	(5,325	)	$	118,703
Operating expenses	97,024			30		28,459			—		125,513			—		2,389		(5,325		)	122,577
Equity in net earnings of subsidiaries	(4,191		)	—		(1,908		)	4,191		(1,908		)	2,937		—		(1,029		)	—
Operating income (loss)	(12,315		)	184		(778		)	4,191		(8,718		)	2,937		2,936		(1,029		)	(3,874		)
Fortune Creek accretion	—			—		—			—		—			—		—		(4,845		)	(4,845		)
Interest expense and other	(41,168		)	—		(2,925		)	—		(44,093		)	—		1		—			(44,092		)
Income tax (expense) benefit	(6,224		)	—		(672		)	—		(6,896		)	—		—		—			(6,896		)
Net income (loss)	$	(59,707	)	$	184	$	(4,375	)	$	4,191	$	(59,707	)	$	2,937	$	2,937	$	(5,874	)	$	(59,707	)
Other comprehensive income (loss)	(11,003		)	—		(3,451		)	3,451		(11,003		)	—		—		—			(11,003		)
Equity in OCI of subsidiaries	(3,451		)	—		—			—		(3,451		)	—		—		—			(3,451		)
Comprehensive income (loss)	$	(74,161	)	$	184	$	(7,826	)	$	7,642	$	(74,161	)	$	2,937	$	2,937	$	(5,874	)	$	(74,161	)



	For the Three Months Ended March 31, 2012 (Restated)
	Quicksilver Resources Inc.			Restricted Guarantor Subsidiaries			Restricted Non- Guarantor Subsidiaries			Restricted Subsidiary Eliminations			Quicksilver and Restricted Subsidiaries			Unrestricted Non- Guarantor Subsidiaries		Fortune Creek		Consolidated Eliminations			Quicksilver Resources Inc. Consolidated
	(In thousands)
Revenue	$	148,590		$	1,130		$	24,049		$	(903	)	$	172,866		$	—	$	2,397	$	(2,397	)	$	172,866
Operating expenses	315,612			909			167,460			(903		)	483,078			—		1,267		(2,397		)	481,948
Crestwood earn-out	41,097			—			—			—			41,097			—		—		—			41,097
Equity in net earnings of subsidiaries	(110,342		)	—			(3,611		)	110,342			(3,611		)	1,130		—		2,481			—
Operating income (loss)	(236,267		)	221			(147,022		)	110,342			(272,726		)	1,130		1,130		2,481			(267,985		)
Fortune Creek accretion	—			—			—			—			—			—		—		(4,741		)	(4,741		)
Interest expense and other	(38,643		)	—			(1,434		)	—			(40,077		)	—		—		—			(40,077		)
Income tax (expense) benefit	63,345			(77		)	37,970			—			101,238			—		—		—			101,238
Net income	$	(211,565	)	$	144		$	(110,486	)	$	110,342		$	(211,565	)	$	1,130	$	1,130	$	(2,260	)	$	(211,565	)
Other comprehensive income (loss)	21,759			—			12,390			(12,390		)	21,759			—		—		—			21,759
Equity in OCI of subsidiaries	12,390			—			—			—			12,390			—		—		—			12,390
Comprehensive income (loss)	$	(177,416	)	$	144		$	(98,096	)	$	97,952		$	(177,416	)	$	1,130	$	1,130	$	(2,260	)	$	(177,416	)

Condensed Consolidating Statements of Cash Flows



	For the Three Months Ended March 31, 2013
	Quicksilver Resources Inc.			Restricted Guarantor Subsidiaries			Restricted Non-Guarantor Subsidiaries			Quicksilver and Restricted Subsidiaries			Unrestricted Non-Guarantor Subsidiaries		Fortune Creek			Quicksilver Resources Inc. Consolidated
	(In thousands)
Net cash flow provided (used) by operating activities	$	(27,331	)	$	4		$	10,648		$	(16,679	)	$	—	$	2,285		$	(14,394	)
Purchases of property, plant and equipment	(18,824		)	(4		)	(8,110		)	(26,938		)	—		(504		)	(27,442		)
Proceeds from Crestood earn-out	—			—			—			—			—		—			—
Proceeds from sale of properties and equipment	591			—			17			608			—		—			608
Net cash flow used by investing activities	(18,233		)	(4		)	(8,093		)	(26,330		)	—		(504		)	(26,834		)
Issuance of debt	51,000			—			3,040			54,040			—		—			54,040
Repayments of debt	—			—			(4,011		)	(4,011		)	—		—			(4,011		)
Distribution of Fortune Creek Partnership funds	—			—			—			—			—		(3,198		)	(3,198		)
Purchase of treasury stock	(1,007		)	—			—			(1,007		)	—		—			(1,007		)
Net cash flow provided (used) by financing activities	49,993			—			(971		)	49,022			—		(3,198		)	45,824
Effect of exchange rates on cash	—			—			(1,584		)	(1,584		)	—		1,887			303
Net increase (decrease) in cash and equivalents	4,429			—			—			4,429			—		470			4,899
Cash and equivalents at beginning of period	4,618			—			—			4,618			—		333			4,951
Cash and equivalents at end of period	$	9,047		$	—		$	—		$	9,047		$	—	$	803		$	9,850



	For the Three Months Ended March 31, 2012 (Restated)
	Quicksilver Resources Inc.			Restricted Guarantor Subsidiaries			Restricted Non-Guarantor Subsidiaries			Quicksilver and Restricted Subsidiaries			Fortune Creek			Quicksilver Resources Inc. Consolidated
	(In thousands)
Net cash flow provided (used) by operating activities	$	(3,195	)	$	438		$	27,099		$	24,342		$	3,028		$	27,370
Purchases of property, plant and equipment	(95,994		)	(438		)	(77,304		)	(173,736		)	(1,186		)	(174,922		)
Proceeds from Crestood earn-out	41,097			—			—			41,097			—			41,097
Proceeds from sale of properties and equipment	269			—			191			460			—			460
Net cash flow used by investing activities	(54,628		)	(438		)	(77,113		)	(132,179		)	(1,186		)	(133,365		)
Issuance of debt	100,000			—			61,658			161,658			—			161,658
Repayments of debt	(40,018		)	—			(13,097		)	(53,115		)	—			(53,115		)
Debt issuance costs	(191		)	—			—			(191		)	—			(191		)
Proceeds from exercise of stock options	10			—			—			10			—			10
Purchase of treasury stock	(2,341		)	—			—			(2,341		)	—			(2,341		)
Net cash flow provided (used) by financing activities	57,460			—			48,561			106,021			—			106,021
Effect of exchange rates on cash	—			—			1,453			1,453			(1,593		)	(140		)
Net increase (decrease) in cash and equivalents	(363		)	—			—			(363		)	249			(114		)
Cash and equivalents at beginning of period	363			—			—			363			12,783			13,146
Cash and equivalents at end of period	$	—		$	—		$	—		$	—		$	13,032		$	13,032