The company estimates second-quarter production taxes; gathering, processing, and transportation expenses; and lease operating expenses in the corresponding range of 18–21 cents per Mcfe, $1.32–$1.36 per Mcfe and 88–92 cents per Mcfe. General & administrative expenses and depreciation, depletion and amortization expenses are expected to be 50–54 cents per Mcfe and 56–60 cents per Mcfe, respectively.
It continues to hedge a substantial amount of production to cushion against fluctuating prices. The company has hedged 200 MMcfd for the remainder of 2013 at a weighted average price of $5.10 per Mcfe, 170 MMcfd at a weighted average price of $5.08 for 2014 and 150 MMcfd at a weighted average price of $5.23 for 2015.
Quicksilver Resources will witness a slight reduction in its 2013 capital outlay due to the addition of $485.0 million as proceeds from the 25% Barnett stake sale.