Attached files
Exhibit
99.1
 |
N e
w s R e l e a s
e
QUICKSILVER GAS SERVICES LP
777
West Rosedale Street
Fort
Worth, TX 76104
www.kgslp.com
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Quicksilver Gas Services to
Acquire Alliance Midstream Assets for $87.1 Million
2010
Capital Budget Set at $80 Million
FORT WORTH, TEXAS, (December 10,
2009) – Quicksilver Gas Services LP (NYSE: KGS) announced today that it
has entered into a purchase and sale agreement with Quicksilver Resources Inc.
(NYSE: KWK) to acquire the midstream gathering and treating assets associated
with the Alliance project, located in the northern portion of the Fort Worth
Basin, for approximately $87.1 million. The acquired assets consist
of gathering systems and related compression facilities with an aggregate
current capacity of 115 million cubic feet per day (MMcfd), and a plant with
amine treating capacity of 180 MMcfd and dehydration treating capacity of 200
MMcfd to the gathered gas. The acquisition is expected to close on or
about January 4, 2010, subject to customary closing conditions.
Quicksilver
Gas Services LP also announced that its board of directors has approved a
capital expenditure budget of $80 million for 2010, including approximately $44
million associated with the Alliance assets to be acquired. The 2010
capital expenditure budget includes approximately $50 million for the
construction of pipelines, gathering systems and well connections and
approximately $30 million associated with its natural gas processing and
treating facilities.
About
Quicksilver Gas Services
Quicksilver
Gas Services LP is a midstream master limited partnership engaged in the
business of gathering and processing natural gas produced from the Barnett Shale
formation in the Fort Worth Basin in north Texas. Headquartered in
Fort Worth, the company’s predecessors began operations in 2004 to provide
midstream services primarily to Quicksilver Resources Inc. For more
information about Quicksilver Gas Services, visit www.kgslp.com.
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NEWS
RELEASE
Page 2 of
2
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Forward-Looking
Statements
The
statements in this news release regarding future events, occurrences,
circumstances, activities, performance, outcomes and results are forward-looking
statements. Although these statements reflect the current views,
assumptions and expectations of Quicksilver Gas Services LP’s management, the
matters addressed herein are subject to numerous risks and uncertainties, which
could cause actual activities, performance, outcomes and results to differ
materially from those indicated. Factors that could result in such
differences or otherwise materially affect Quicksilver Gas Services LP’s
financial condition, results of operations and cash flows
include: changes in general economic conditions;
fluctuations in natural gas prices; failure or delays in Quicksilver Resources
Inc. and third parties achieving expected production from natural gas projects;
competitive
conditions in our industry; actions taken or non-performance by third parties,
including suppliers, contractors, operators, processors, transporters and
customers; fluctuations in the value of certain of our assets and liabilities;
changes in the availability and cost of capital; operating hazards, natural
disasters, weather-related delays, casualty losses and other matters beyond our
control; construction costs or capital expenditures exceeding estimated or
budgeted amounts; the effects of existing and future laws and governmental
regulations; and the effects of current and future litigation; as well as other
factors disclosed in Quicksilver Gas Services LP’s filings with the Securities
and Exchange Commission. Except as required by law, we do not intend
to update or revise any forward-looking statements, whether as a result of new
information, future events, or otherwise.
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Investor
and Media Contact:
Rick
Buterbaugh
817-665-4835
KGS
09-13
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