Quicksilver Gas Services LP (KGS, Financial) filed Amended Quarterly Report for the period ended 2011-09-30.
Quicksilver Gas Services Lp has a market cap of $229.93 million; its shares were traded at around $0 with a P/E ratio of 37.1. The dividend yield of Quicksilver Gas Services Lp stocks is 6.9%.
Our results of operations are significantly influenced by the volumes of natural gas gathered and processed through our systems. We gather, process, compress and treat natural gas pursuant primarily to long term, fixed fee-based contracts. However, a prolonged low commodity price environment could result in our customers reducing their production volumes which would cause a decrease in our revenue. All of our natural gas volumes gathered and processed in the Barnett Shale, Fayetteville Shale, Avalon Shale and Granite Wash during the three and nine months ended September 30, 2011 were subject to a mixture of percent-of-proceeds and fee-based contracts.
Our Management uses a variety of financial and operational measures to analyze our performance. We view these measures as important factors affecting our profitability and unitholder value and therefore we review them monthly for consistency and to identify trends in our operations. These performance measures are outlined below:
For the nine months ended September 30, 2011, approximately 73% of our revenue was derived from our operations in the Barnett Shale, including approximately 66% associated with Quicksilver. The risk of revenue fluctuations in the near-term is somewhat mitigated by the use of predominantly fixed-fee contracts for providing gathering and processing and treating services to our customers, but we are still susceptible to volume fluctuations. While the Frontier Gas Acquisition and the acquisition of Tristate reduce the concentration risk associated with our dependency on one producer and one geographic area, we continue to regularly review opportunities for both organic growth projects and acquisitions in other producing basins and with other producers.
Managements discussion and analysis of financial condition and results of operations are based on our condensed consolidated interim financial statements and related footnotes contained within Item 1 of Part I of this Quarterly Report. The process of preparing financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Our critical accounting estimates used in the preparation of the consolidated financial statements were discussed in Item 7 in our 2010 Annual Report on Form 10-K. These critical estimates, for which no significant changes have occurred in the nine months ended September 30, 2011, include estimates and assumptions pertaining to:
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Quicksilver Gas Services Lp has a market cap of $229.93 million; its shares were traded at around $0 with a P/E ratio of 37.1. The dividend yield of Quicksilver Gas Services Lp stocks is 6.9%.
Highlight of Business Operations:
We are a growth-oriented publicly traded Delaware master limited partnership engaged in gathering, compression, processing and treating of natural gas and delivery of NGLs produced in the Barnett Shale, Fayetteville Shale, Avalon Shale and in Granite Wash. We began operations in 2004 to provide midstream services primarily to Quicksilver as well as to other natural gas producers in the Barnett Shale. During the quarter and nine months ended September 30, 2011, Quicksilver accounted for 60% and 66%, respectively of our total revenue. Approximately 6% of our revenue for the nine months ended September 30, 2011 are comprised of natural gas purchased by Quicksilver from Eni SpA and gathered under Quicksilvers Alliance System gathering agreement.Our results of operations are significantly influenced by the volumes of natural gas gathered and processed through our systems. We gather, process, compress and treat natural gas pursuant primarily to long term, fixed fee-based contracts. However, a prolonged low commodity price environment could result in our customers reducing their production volumes which would cause a decrease in our revenue. All of our natural gas volumes gathered and processed in the Barnett Shale, Fayetteville Shale, Avalon Shale and Granite Wash during the three and nine months ended September 30, 2011 were subject to a mixture of percent-of-proceeds and fee-based contracts.
Our Management uses a variety of financial and operational measures to analyze our performance. We view these measures as important factors affecting our profitability and unitholder value and therefore we review them monthly for consistency and to identify trends in our operations. These performance measures are outlined below:
For the nine months ended September 30, 2011, approximately 73% of our revenue was derived from our operations in the Barnett Shale, including approximately 66% associated with Quicksilver. The risk of revenue fluctuations in the near-term is somewhat mitigated by the use of predominantly fixed-fee contracts for providing gathering and processing and treating services to our customers, but we are still susceptible to volume fluctuations. While the Frontier Gas Acquisition and the acquisition of Tristate reduce the concentration risk associated with our dependency on one producer and one geographic area, we continue to regularly review opportunities for both organic growth projects and acquisitions in other producing basins and with other producers.
Managements discussion and analysis of financial condition and results of operations are based on our condensed consolidated interim financial statements and related footnotes contained within Item 1 of Part I of this Quarterly Report. The process of preparing financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Our critical accounting estimates used in the preparation of the consolidated financial statements were discussed in Item 7 in our 2010 Annual Report on Form 10-K. These critical estimates, for which no significant changes have occurred in the nine months ended September 30, 2011, include estimates and assumptions pertaining to:
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