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Quicksilver Resources Inc. (KWK - Analyst Report) continues to work on its strategy to sell assets at a favorable price and utilize the proceeds for future development. The company closed its previously announced Montana asset sale on Aug 30, 2013 to Synergy Offshore LLC.

The effective date of this transaction was Jan 1, 2013. Taking into consideration $4 million of Synergy’s ratable share of production and operating expense from the effective date and the actual closing date, the net proceeds of the sale come to $42 million.

Quicksilver will utilize the proceeds to reduce amounts outstanding under its Combined Credit Agreements. As of Jun 30, 2013, the company utilized $245 million from its Combined Credit Agreements with $105 million of credit facility remaining as on that date.

The primary objective of the company is to strengthen its balance sheet. During the second quarter Quicksilver sold 25% of its Barnett Shale assets to a Tokyo Gas subsidiary for $485 million and secured a long-term development partner in the Barnett.

Apart from this move of monetizing non-core assets and roping in new partners to develop existing acreage, Quicksilver is also making capital investment to assure organic growth. In the first half of 2013, the company invested $52 million in development work and is expected to continue to do so in the second half of the year.

Quicksilver Resources Inc. currently has a Zacks Rank #3 (Hold). Meanwhile other operators in the sector having a favorable Zacks Rank are Matador Resources Company (MTDR - Snapshot Report), Range Resources Corporation (RRC - Analyst Report) and VOC Energy Trust (VOC - Snapshot Report). All of them presently carry a Zacks Rank #1 (Strong Buy).

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