XML 37 R46.htm IDEA: XBRL DOCUMENT v2.4.0.8
Condensed Consolidating Financial Information (Tables)
 12 Months Ended
Dec. 31, 2013
Condensed Consolidating Financial Information [Abstract]  
List of Subsidiaries
Guarantor Subsidiaries -
Restricted
 
Non-Guarantor Subsidiaries
 
Restricted
 
Unrestricted
 
 
 
 
 
Cowtown Pipeline Funding, Inc.
 
Quicksilver Resources Canada Inc.
 
Makarios Resources International Holdings LLC (2)
Cowtown Pipeline Management, Inc.
 
Cowtown Drilling Inc. (1)
 
1622834 Alberta Inc. (2)
Cowtown Pipeline L.P.
 
Quicksilver Resources Partners Operating Ltd. (2)
 
Makarios Midstream Inc. (2)
Cowtown Gas Processing L.P.
 
0942065 B.C. Ltd. (3)
 
Makarios Resources International Inc. (2)
Barnett Shale Operating LLC (2)
 
0942069 B.C Ltd. (3)
 
Quicksilver Production Partners GP LLC (2)
QPP Parent LLC (3)
 
 
 
Quicksilver Production Partners LP (2)
QPP Holdings LLC (3)
 
 
 
 
Silver Stream Pipeline Company LLC (3)
 
 
 
 
(1)
This entity was inactive for the three-year period ended December 31, 2013.
(2) 
These entities were created in 2011.
(3) 
These entities were created in 2012.
Condensed Consolidating Balance Sheets
Condensed Consolidating Balance Sheets
 
December 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
$
349,586

 
$
10,735

 
$
53,034

 
$
(19,642
)
 
$
393,713

 
$
909

 
$
1,110

 
$
(1,772
)
 
$
393,960

Property and equipment
455,822

 
15,486

 
307,865

 
—

 
779,173

 
—

 
81,632

 
—

 
860,805

Investment in subsidiaries (equity method)
(217,852
)
 
—

 
(33,840
)
 
217,852

 
(33,840
)
 
(33,840
)
 
—

 
67,680

 
—

Other assets
472,792

 
—

 
32,892

 
(390,723
)
 
114,961

 
—

 
—

 
—

 
114,961

Total assets
$
1,060,348

 
$
26,221

 
$
359,951

 
$
(192,513
)
 
$
1,254,007

 
$
(32,931
)
 
$
82,742

 
$
65,908

 
$
1,369,726

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
$
124,275

 
$
12,210

 
$
17,167

 
$
(19,642
)
 
$
134,010

 
$
888

 
$
1,671

 
$
(1,772
)
 
$
134,797

Long-term liabilities
1,942,043

 
19,242

 
542,659

 
(390,723
)
 
2,113,221

 
—

 
1,546

 
126,132

 
2,240,899

Quicksilver stockholders’ equity
(1,005,970
)
 
(5,231
)
 
(199,875
)
 
217,852

 
(993,224
)
 
(33,819
)
 
79,525

 
(58,452
)
 
(1,005,970
)
Total liabilities and equity
$
1,060,348

 
$
26,221

 
$
359,951

 
$
(192,513
)
 
$
1,254,007

 
$
(32,931
)
 
$
82,742

 
$
65,908

 
$
1,369,726


 
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

Quicksilver 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
Condensed Consolidating Statements of Income
 
For the Year Ended December 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)
Revenue
$
416,516

 
$
788

 
$
144,258

 
$
—

 
$
561,562

 
$
—

 
$
22,364

 
$
(22,364
)
 
$
561,562

Operating expenses
329,975

 
346

 
118,481

 
—

 
448,802

 
—

 
9,808

 
(22,364
)
 
436,246

Tokyo Gas Transaction gain
339,328

 
—

 
—

 
—

 
339,328

 
—

 
—

 
—

 
339,328

Equity in net earnings of subsidiaries
(9,896
)
 
—

 
(6,682
)
 
9,896

 
(6,682
)
 
12,563

 
—

 
(5,881
)
 
—

Operating income (loss)
415,973

 
442

 
19,095

 
9,896

 
445,406

 
12,563

 
12,556

 
(5,881
)
 
464,644

Fortune Creek accretion
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(19,245
)
 
(19,245
)
Interest expense and other
(242,279
)
 
—

 
(26,959
)
 
—

 
(269,238
)
 
—

 
7

 
—

 
(269,231
)
Income tax expense
(12,076
)
 
—

 
(2,474
)
 
—

 
(14,550
)
 
—

 
—

 
—

 
(14,550
)
Net income (loss)
$
161,618

 
$
442

 
$
(10,338
)
 
$
9,896

 
$
161,618

 
$
12,563

 
$
12,563

 
$
(25,126
)
 
$
161,618

Other comprehensive loss
(40,166
)
 
—

 
(11,446
)
 
—

 
(51,612
)
 
—

 
—

 
—

 
(51,612
)
Equity in OCI of subsidiaries
(11,446
)
 
—

 
—

 
11,446

 
—

 
—

 
—

 
—

 
—

Comprehensive income (loss)
$
110,006

 
$
442

 
$
(21,784
)
 
$
21,342

 
$
110,006

 
$
12,563

 
$
12,563

 
$
(25,126
)
 
$
110,006


 
For the Year Ended 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)
Revenue
$
611,477

 
$
4,574

 
$
95,887

 
$
(2,900
)
 
$
709,038

 
$
—

 
$
14,639

 
$
(14,639
)
 
$
709,038

Operating expenses
2,643,690

 
4,109

 
577,696

 
(2,900
)
 
3,222,595

 
—

 
7,940

 
(14,639
)
 
3,215,896

Crestwood earn-out
41,097

 
—

 
—

 
—

 
41,097

 
—

 
—

 
—

 
41,097

Equity in net earnings of subsidiaries
(437,510
)
 
—

 
(12,747
)
 
437,510

 
(12,747
)
 
6,726

 
—

 
6,021

 
—

Operating income (loss)
(2,428,626
)
 
465

 
(494,556
)
 
437,510

 
(2,485,207
)
 
6,726

 
6,699

 
6,021

 
(2,465,761
)
Fortune Creek accretion
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(19,472
)
 
(19,472
)
Interest expense and other
(152,077
)
 
—

 
(10,914
)
 
—

 
(162,991
)
 
21

 
27

 
—

 
(162,943
)
Income tax (expense) benefit
228,097

 
(163
)
 
67,658

 
—

 
295,592

 
—

 
—

 
(22
)
 
295,570

Net income (loss)
$
(2,352,606
)
 
$
302

 
$
(437,812
)
 
$
437,510

 
$
(2,352,606
)
 
$
6,747

 
$
6,726

 
$
(13,473
)
 
$
(2,352,606
)
Other comprehensive income (loss)
(57,273
)
 
—

 
3,908

 
—

 
(53,365
)
 
—

 
—

 
—

 
(53,365
)
Equity in OCI of subsidiaries
3,908

 
—

 
—

 
(3,908
)
 
—

 
—

 
—

 
—

 
—

Comprehensive income (loss)
$
(2,405,971
)
 
$
302

 
$
(433,904
)
 
$
433,602

 
$
(2,405,971
)
 
$
6,747

 
$
6,726

 
$
(13,473
)
 
$
(2,405,971
)





 
For the Year Ended December 31, 2011
 
Quicksilver
Resources Inc.
 
Restricted
Guarantor
Subsidiaries
 
Restricted
Non-Guarantor
Subsidiaries
 
Consolidating
Eliminations
 
Quicksilver
Resources Inc.
Consolidated
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Revenue
$
778,741

 
$
4,573

 
$
163,864

 
$
(3,555
)
 
$
943,623

Operating expenses
603,582

 
64,476

 
156,516

 
(3,555
)
 
821,019

Equity in net earnings of subsidiaries
(40,725
)
 
—

 
—

 
40,725

 
—

Operating income (loss)
134,434

 
(59,903
)
 
7,348

 
40,725

 
122,604

Income from earnings of BBEP
(8,439
)
 
—

 
—

 
—

 
(8,439
)
Interest expense and other
39,252

 
18

 
(5,526
)
 
—

 
33,744

Income tax (expense) benefit
(75,201
)
 
20,960

 
(3,622
)
 
—

 
(57,863
)
Net income (loss)
$
90,046

 
$
(38,925
)
 
$
(1,800
)
 
$
40,725

 
$
90,046

Other comprehensive income (loss)
67,493

 
—

 
17,178

 
(17,178
)
 
67,493

Equity in OCI of subsidiaries
17,178

 
—

 
—

 
—

 
17,178

Comprehensive income (loss)
$
174,717

 
$
(38,925
)
 
$
15,378

 
$
23,547

 
$
174,717
Condensed Consolidating Statements Of Cash Flows
Condensed Consolidating Statements of Cash Flows
 
For the Year Ended December 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 by (used in) operating activities
$
(78,565
)
 
$
—

 
$
16,456

 
$
(62,109
)
 
$
—

 
$
10,409

 
$
(51,700
)
Capital expenditures
(67,263
)
 
—

 
(33,520
)
 
(100,783
)
 
—

 
(505
)
 
(101,288
)
Proceeds from Tokyo Gas Transaction
463,999

 
—

 
—

 
463,999

 
—

 
—

 
463,999

Proceeds from Synergy Transaction
42,297

 
—

 
—

 
42,297

 
—

 
—

 
42,297

Proceeds from sale of properties and equipment
7,128

 
—

 
43

 
7,171

 
—

 
—

 
7,171

Purchase of marketable securities
(213,738
)
 
—

 
—

 
(213,738
)
 
—

 
—

 
(213,738
)
Maturities and sales of marketable securities
47,603

 
—

 
—

 
47,603

 
—

 
—

 
47,603

Net cash flow provided by (used in) investing activities
280,026

 
—

 
(33,477
)
 
246,549

 
—

 
(505
)
 
246,044

Issuance of debt
1,215,266

 
—

 
22,086

 
1,237,352

 
—

 
—

 
1,237,352

Repayments of debt
(1,157,969
)
 
—

 
(150,413
)
 
(1,308,382
)
 
—

 
—

 
(1,308,382
)
Debt issuance costs
(26,296
)
 
—

 
—

 
(26,296
)
 
—

 
—

 
(26,296
)
Intercompany Note
(147,103
)
 
—

 
147,103

 
—

 
—

 
—

 
—

Distribution of Fortune Creek Partnership funds
—

 
—

 
—

 
—

 
—

 
(14,965
)
 
(14,965
)
Purchase of treasury stock
(1,927
)
 
—

 
—

 
(1,927
)
 
—

 
—

 
(1,927
)
Net cash flow provided by (used in) financing activities
(118,029
)
 
—

 
18,776

 
(99,253
)
 
—

 
(14,965
)
 
(114,218
)
Effect of exchange rates on cash
—

 
—

 
(1,755
)
 
(1,755
)
 
—

 
5,781

 
4,026

Net increase in cash and equivalents
83,432

 
—

 
—

 
83,432

 
—

 
720

 
84,152

Cash and equivalents at beginning of period
4,618

 
—

 
—

 
4,618

 
—

 
333

 
4,951

Cash and equivalents at end of period
$
88,050

 
$
—

 
$
—

 
$
88,050

 
$
—

 
$
1,053

 
$
89,103


 
For the Year Ended December 31, 2012
 
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 by operating activities
$
163,353

 
$
656

 
$
49,271

 
$
213,280

 
$
—

 
$
14,447

 
$
227,727

Capital expenditures
(231,934
)
 
(656
)
 
(242,158
)
 
(474,748
)
 
—

 
(10,731
)
 
(485,479
)
Proceeds from Crestwood earn-out
41,097

 
—

 
—

 
41,097

 
—

 
—

 
41,097

Proceeds from sale of properties and equipment
72,362

 
—

 
363

 
72,725

 
—

 
—

 
72,725

Net cash flow used in investing activities
(118,475
)
 
(656
)
 
(241,795
)
 
(360,926
)
 
—

 
(10,731
)
 
(371,657
)
Issuance of debt
228,500

 
—

 
239,459

 
467,959

 
—

 
—

 
467,959

Repayments of debt
(264,018
)
 
—

 
(46,412
)
 
(310,430
)
 
—

 
—

 
(310,430
)
Debt issuance costs
(1,972
)
 
—

 
(1,050
)
 
(3,022
)
 
—

 
—

 
(3,022
)
Distribution of Fortune Creek Partnership funds
—

 
—

 
—

 
—

 
—

 
(14,285
)
 
(14,285
)
Proceeds from exercise of stock options
11

 
—

 
—

 
11

 
—

 
—

 
11

Purchase of treasury stock
(3,144
)
 
—

 
—

 
(3,144
)
 
—

 
—

 
(3,144
)
Net cash flow provided by (used in) financing activities
(40,623
)
 
—

 
191,997

 
151,374

 
—

 
(14,285
)
 
137,089

Effect of exchange rates on cash
—

 
—

 
527

 
527

 
—

 
(1,881
)
 
(1,354
)
Net increase (decrease) in cash and equivalents
4,255

 
—

 
—

 
4,255

 
—

 
(12,450
)
 
(8,195
)
Cash and equivalents at beginning of period
363

 
—

 
—

 
363

 
—

 
12,783

 
13,146

Cash and equivalents at end of period
$
4,618

 
$
—

 
$
—

 
$
4,618

 
$
—

 
$
333

 
$
4,951

 
 
For the Year Ended December 31, 2011
 
Quicksilver
Resources Inc.
 
Restricted
Guarantor
Subsidiaries
 
Restricted
Non-Guarantor
Subsidiaries
 
Quicksilver
and Restricted
Subsidiaries
 
Fortune
Creek
 
Consolidating
Eliminations
 
Quicksilver
Resources Inc.
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Net cash flow provided by operating activities
$
202,043

 
$
2,225

 
$
48,785

 
$
253,053

 
$
—

 
$
—

 
$
253,053

Capital expenditures
(518,454
)
 
(2,225
)
 
(169,928
)
 
(690,607
)
 
—

 
—

 
(690,607
)
Proceeds from sale of BBEP units
272,965

 
—

 
—

 
272,965

 
—

 
—

 
272,965

Investment in Fortune Creek
—

 
—

 
(12,783
)
 
(12,783
)
 
—

 
12,783

 
—

Proceeds from sale of properties and equipment
2,959

 
—

 
1,204

 
4,163

 
—

 
—

 
4,163

Net cash flow provided by (used in) investing activities
(242,530
)
 
(2,225
)
 
(181,507
)
 
(426,262
)
 
—

 
12,783

 
(413,479
)
Issuance of debt
587,500

 
—

 
268,322

 
855,822

 
—

 
—

 
855,822

Repayments of debt
(588,862
)
 
—

 
(254,246
)
 
(843,108
)
 
—

 
—

 
(843,108
)
Debt issuance costs
(9,160
)
 
—

 
(3,346
)
 
(12,506
)
 
—

 
—

 
(12,506
)
Proceeds from exercise of stock options
1,299

 
—

 
—

 
1,299

 
—

 
—

 
1,299

Partnership funds received
—

 
—

 
—

 
—

 
135,696

 
(12,783
)
 
122,913

Creation of partnership liability
—

 
—

 
122,913

 
122,913

 
(122,913
)
 
—

 
—

Purchase of treasury stock
(4,864
)
 
—

 
—

 
(4,864
)
 
—

 
—

 
(4,864
)
Net cash flow provided by (used in) financing activities
(14,087
)
 
—

 
133,643

 
119,556

 
12,783

 
(12,783
)
 
119,556

Effect of exchange rates on cash
—

 
—

 
(921
)
 
(921
)
 
—

 
—

 
(921
)
Net increase (decrease) in cash and equivalents
(54,574
)
 
—

 
—

 
(54,574
)
 
12,783

 
—

 
(41,791
)
Cash and equivalents at beginning of period
54,937

 
—

 
—

 
54,937

 
—

 
—

 
54,937

Cash and equivalents at end of period
$
363

 
$
—

 
$
—

 
$
363

 
$
12,783

 
$
—

 
$
13,146