Quicksilver Gas Services: It's All About the Dividends
Joe Dawson submits:This investment recommendation is based on information in a July 2010 conference call during which Quicksilver Resources (KWK) announced it was selling its stake in Quicksilver Gas Services (KGS) to a private equity firm. During the call the CFO volunteered some information, the meaning of which the market seems to have missed. But first, what does Quicksilver Gas Services do?KGS is an MLP engaged in the gathering and processing of natural gas in the Fort Worth Texas Basin. Assets include a couple of gas processing plants and gas gathering facilities. It provides services to its former parent, Quicksilver Resources (KWK), and other third parties. KWK is an independent oil and gas exploration and production company with a presence in the Fort Worth Basin, which is part of the Barnett Shale natural gas play. All services are provided under fee based contracts. KGS does not take ownership of the gas it gathers and processes, thus revenue is not directly exposed to commodity prices.Complete Story »
- Original article
- Login or register to post comments


