Quicksilver Resources (KWK) reported that the company will create a master limited partnership (MLP) and contribute part of its Barnett Shale assets to this new entity.
Quicksilver Resources said that the MLP will conduct an initial public offering and use some of the proceeds to purchase these assets. The company expects to raise $400 million from the sale and use the proceeds to retire debt.
Quicksilver Resources reported that the Barnett Shale assets being sold comprise 18% of the company’s production and 15% of its 2010 proved reserves in this basin. The company will own a large percentage of the MLP and act as the general partner of this entity.