Quicksilver Resources Inc. Announces Receipt of Letter From Investor Group
FORT WORTH, TX -- (Marketwire) -- 10/18/10 -- Quicksilver Resources Inc. (NYSE: KWK) today announced that its Board of Directors has received a letter from Quicksilver Energy, L.P., an entity controlled by members of the Darden family, indicating that a group of investors consisting of Quicksilver Energy, L.P. and members of the Darden family (the 'Investor Group') is interested in exploring strategic alternatives for Quicksilver Resources Inc. The Investor Group is requesting an amendment to Quicksilver Resources Inc.'s rights plan in order to facilitate discussions between the Investor Group and other potential investors regarding a potential transaction.
The Board of Directors has established a committee of independent directors to consider any transaction that may be proposed by the Investor Group, as well as alternative transactions. The transaction committee has retained Credit Suisse Securities (USA) LLC and Tudor, Pickering, Holt & Co. Securities, Inc. as its independent financial advisors and Davis Polk & Wardwell LLP as its independent legal counsel. The Board of Directors cautions Quicksilver Resources Inc.'s shareholders and others considering trading in its securities that no decisions have been made by the transaction committee with respect to Quicksilver Resources Inc.'s response to the Investor Group's request, and that there can be no assurance that any proposal for a transaction will be received or that any transaction will be approved or consummated.
The text of the letter is set forth below.
October 15, 2010
Board of Directors of
Quicksilver Resources Inc.
Dear Directors:
Quicksilver Energy, L.P. and members of the Darden family (the 'Darden Family Interests') are formally expressing an interest in exploring strategic alternatives for Quicksilver Resources Inc. (the 'Company'), which could include, among other things, a possible take private transaction of the Company by the Darden Family Interests. In addition, we have all been made aware that another significant stockholder, SPO Partners & Co. ('SPO') has expressed an interest in receiving nonpublic information and engaging in discussions with us regarding strategic alternatives for the Company.
As any discussion between us and SPO would require that the Company amend its rights plan, we requested such an amendment to permit those discussions. In addition, we have also asked for permission to share, subject to a customary nondisclosure agreement, certain nonpublic information of the Company with any financial advisors that we retain.
While we are not in a position to provide the Board of Directors with our valuation of the Company at this time, and there can be no assurance that a take private proposal by us will be forthcoming, we are fully aware and would expect that any such proposal made by us would involve a substantial premium to the current market price.
The Darden Family Interests do not believe that it is in the best interests of the stockholders of the Company to withhold the granting of such requests solely because the granting of the foregoing requests will require public disclosure of the interest of the Darden Family Interests in exploring a possible transaction. We sincerely believe that a continued dialog is in the best interests of the stockholders of the Company.
Therefore, we ask the Board of Directors to amend the rights plan, as described above, and that our financial advisors and SPO each be granted access to non-public information pursuant to customary nondisclosure agreements.
We are available to discuss any of the foregoing at your convenience and ask that you give this request your prompt attention.
Sincerely,
Quicksilver Energy, L.P.
By: Pennsylvania Management, LLC,
Its General Partner
By: s/Glenn Darden
Glenn Darden,
Manager
cc: Thomas F. Darden
Anne Self Darden
Glenn D. West
Michael A. Saslaw
Richard D. Truesdell, Jr.
Leonard Kreynin
About Quicksilver Resources
Fort Worth, Texas-based Quicksilver Resources is a natural gas and crude oil exploration and production company engaged in the development and acquisition of long-lived, unconventional natural gas reserves, including coalbed methane, shale gas, and tight sands gas in North America. The company has U.S. offices in Fort Worth, Texas; Glen Rose, Texas and Cut Bank, Montana. Quicksilver's Canadian subsidiary, Quicksilver Resources Canada Inc., is headquartered in Calgary, Alberta. For more information about Quicksilver Resources, visit www.qrinc.com.
KWK 10-15
Investor & Media Contact:
Rick Buterbaugh
(817) 665-4835
