##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2007
 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period fromto
 Commission file number: 001-14837
 Quicksilver Resources Inc.
  Delaware
    
    75-2756163(State or other jurisdiction of
    
    (I.R.S. Employer Identification No.)incorporation or organization)777 West Rosedale, Fort Worth, Texas
    
    76104(Address of principal executive offices)
    
    (Zip Code)
 (817) 665-5000
  None
  þ o
  þ o o
 o þ
  Title of Class
    
    Outstanding as of July 31, 2007Common Stock, $0.01 par value
    
    78,425,511




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##### 



QUICKSILVER RESOURCES INC.
INDEX TO FORM 10-Q
For the Period Ending June 30, 2007
  
 PagePART I. FINANCIAL INFORMATIONItem 1. Financial Statements (Unaudited)Report of Independent Registered Public Accounting Firm
    
    3Condensed Consolidated Balance Sheets at June 30, 2007 and December 31, 2006
    
    4Condensed Consolidated Statements of Income and Comprehensive Income for the Three and
Six Months Ended June 30, 2007 and 2006
    
    5Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2007 and 2006
    
    6Notes to Condensed Consolidated Interim Financial Statements
    
    7Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    18Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    28Item 4. Controls and Procedures
    
    30PART II. OTHER INFORMATIONItem 1. Legal Proceedings
    
    31Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    31Item 4. Submission of Matters to a Vote of Security Holders
    
    32Item 6. Exhibits
    
    33Signatures
    
    34Description of Non-Employee Director CompensationAwareness Letter of Deloitte & Touche LLPCertification Pursuant to Section 302Certification Pursuant to Section 302Certification Pursuant to Section 906
  2




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##### Table of Contents



PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements (Unaudited)
 
 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
    Share-Based Payment
  
 3




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##### Table of Contents



QUICKSILVER RESOURCES INC.
 
 CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands, except for share data  Unaudited
 June 30,
    
    
    December 31,2007
    
    
    2006ASSETSCurrent assetsCash and cash equivalents
    
    $
    3,258
    
    
    $
    5,281Accounts receivable, net of allowance for doubtful accounts
    
    
    67,076
    
    
    
    76,521Current derivative assets
    
    
    25,968
    
    
    
    64,086Other current assets
    
    
    32,091
    
    
    
    25,076Total current assets
    
    
    128,393
    
    
    
    170,964Investments in and advances to equity affiliates
    
    
    7,333
    
    
    
    7,434Property, plant and equipment  net (full cost)
    
    
    2,099,055
    
    
    
    1,679,280Non-current derivative assets
    
    
    
    
    
    
    3,753Other assets
    
    
    22,834
    
    
    
    21,481$
    2,257,615
    
    
    $
    1,882,912LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilitiesCurrent portion of long-term debt
    
    $
    220
    
    
    $
    400Accounts payable
    
    
    137,888
    
    
    
    109,914Accrued liabilities
    
    
    40,887
    
    
    
    67,697Derivative obligations
    
    
    882
    
    
    
    Current deferred income taxes
    
    
    7,923
    
    
    
    21,378Total current liabilities
    
    
    187,800
    
    
    
    199,389Long-term debt
    
    
    1,217,472
    
    
    
    919,117Derivative obligations
    
    
    6,018
    
    
    
    Asset retirement obligations
    
    
    28,666
    
    
    
    25,058Deferred income taxes
    
    
    180,311
    
    
    
    156,251Minority interest
    
    
    7,892
    
    
    
    7,431Stockholders equityPreferred stock, $0.01 par value, 10,000,000 shares authorized,
no shares issued and outstanding
    
    
    
    
    
    
    Common stock, $0.01 par value, 200,000,000 shares authorized
and 81,207,935 and 80,181,593 shares issued, respectively
    
    
    812
    
    
    
    802Paid in capital in excess of par value
    
    
    256,528
    
    
    
    238,063Treasury stock of 2,600,536 and 2,579,671 shares, respectively
    
    
    (11,558
    )
    
    
    (10,737
    )Accumulated other comprehensive income
    
    
    41,998
    
    
    
    60,099Retained earnings
    
    
    341,676
    
    
    
    287,439Total stockholders equity
    
    
    629,456
    
    
    
    575,666$
    2,257,615
    
    
    $
    1,882,912
  4




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##### Table of Contents



QUICKSILVER RESOURCES INC.
 
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
In thousands, except for per share data  Unaudited
 For the Three Months Ended
    
    
    For the Six Months EndedJune 30,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006RevenuesOil, gas and related product sales
    
    $
    133,959
    
    
    $
    88,536
    
    
    $
    247,251
    
    
    $
    187,225Other revenue
    
    
    2,439
    
    
    
    929
    
    
    
    5,727
    
    
    
    1,890Total revenues
    
    
    136,398
    
    
    
    89,465
    
    
    
    252,978
    
    
    
    189,115ExpensesOil and gas production costs
    
    
    31,989
    
    
    
    24,220
    
    
    
    60,558
    
    
    
    45,630Production and ad valorem taxes
    
    
    4,212
    
    
    
    1,986
    
    
    
    8,702
    
    
    
    6,159Other operating costs
    
    
    301
    
    
    
    546
    
    
    
    1,085
    
    
    
    949Depletion, depreciation and accretion
    
    
    27,905
    
    
    
    17,954
    
    
    
    52,499
    
    
    
    35,627Provision for bad debts
    
    
    
    
    
    
    
    
    
    
    (264
    )
    
    
    General and administrative
    
    
    10,298
    
    
    
    5,437
    
    
    
    20,260
    
    
    
    11,691Total expenses
    
    
    74,705
    
    
    
    50,143
    
    
    
    142,840
    
    
    
    100,056Income (loss) from equity affiliates
    
    
    282
    
    
    
    (80
    )
    
    
    397
    
    
    
    108Operating income
    
    
    61,975
    
    
    
    39,242
    
    
    
    110,535
    
    
    
    89,167Other income-net
    
    
    (870
    )
    
    
    (498
    )
    
    
    (1,471
    )
    
    
    (848
    )Interest expense
    
    
    18,216
    
    
    
    10,566
    
    
    
    33,168
    
    
    
    19,768Income before income taxes and minority interest
    
    
    44,629
    
    
    
    29,174
    
    
    
    78,838
    
    
    
    70,247Income tax expense
    
    
    12,770
    
    
    
    5,555
    
    
    
    24,065
    
    
    
    19,093Minority interest
    
    
    128
    
    
    
    11
    
    
    
    191
    
    
    
    11Net income
    
    $
    31,731
    
    
    $
    23,608
    
    
    $
    54,582
    
    
    $
    51,143Other comprehensive income, net of income taxesReclassification adjustments  hedge settlements
    
    
    (4,643
    )
    
    
    (2,324
    )
    
    
    (14,153
    )
    
    
    (830
    )Unrealized gain (loss) on derivative instruments
    
    
    16,751
    
    
    
    16,094
    
    
    
    (18,928
    )
    
    
    39,566Foreign currency translation adjustments
    
    
    13,356
    
    
    
    4,907
    
    
    
    14,980
    
    
    
    4,911Comprehensive income
    
    $
    57,195
    
    
    $
    42,285
    
    
    $
    36,481
    
    
    $
    94,790Basic net income per common share
    
    $
    0.41
    
    
    $
    0.31
    
    
    $
    0.71
    
    
    $
    0.67Diluted net income per common share
    
    $
    0.38
    
    
    $
    0.29
    
    
    $
    0.66
    
    
    $
    0.63Weighted average common shares outstandingBasic
    
    
    77,594
    
    
    
    76,723
    
    
    
    77,396
    
    
    
    76,383Diluted
    
    
    84,127
    
    
    
    83,089
    
    
    
    84,029
    
    
    
    82,949
  5




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QUICKSILVER RESOURCES INC.
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
In thousands  Unaudited
 For the Six Months EndedJune 30,2007
    
    
    2006Operating activities:Net income
    
    $
    54,582
    
    
    $
    51,143Charges and credits to net income not affecting cashDepletion,depreciation and accretion
    
    
    52,499
    
    
    
    35,627Deferred income taxes
    
    
    23,907
    
    
    
    19,063Non-cash compensation
    
    
    6,288
    
    
    
    2,819Amortization of deferred loan costs
    
    
    929
    
    
    
    1,255Non-cash (gain) loss from hedging activities
    
    
    (981
    )
    
    
    77Income from equity affiliates
    
    
    (397
    )
    
    
    (108
    )Minority interest
    
    
    191
    
    
    
    11Other non-cash items
    
    
    1,555
    
    
    
    129Changes in assets and liabilitiesAccounts receivable
    
    
    9,709
    
    
    
    27,369Current and other assets
    
    
    (8,057
    )
    
    
    (13,674
    )Accounts payable
    
    
    8,992
    
    
    
    (1,423
    )Accrued and other liabilities
    
    
    (2,250
    )
    
    
    9,502Net cash provided by operating activities
    
    
    146,967
    
    
    
    131,790Investing activities:Purchases of property, plant and equipment
    
    
    (435,086
    )
    
    
    (279,713
    )Return of investment in equity affiliates
    
    
    167
    
    
    
    365Proceeds from sales of properties
    
    
    162
    
    
    
    4,854Net cash used for investing activities
    
    
    (434,757
    )
    
    
    (274,494
    )Financing activities:Issuance of debt
    
    
    312,157
    
    
    
    408,742Repayments of debt
    
    
    (37,261
    )
    
    
    (271,719
    )Debt issuance costs
    
    
    (2,546
    )
    
    
    (9,192
    )Proceeds from exercise of stock options
    
    
    12,187
    
    
    
    18,366Minority interest contributions
    
    
    167
    
    
    
    4,506Purchase of treasury stock
    
    
    (821
    )
    
    
    (479
    )Net cash provided by financing activities
    
    
    283,883
    
    
    
    150,224Effect of exchange rates on cash
    
    
    1,884
    
    
    
    (120
    )Net (decrease) increase in cash and cash equivalents
    
    
    (2,023
    )
    
    
    7,400Cash and cash equivalents at beginning of period
    
    
    5,281
    
    
    
    14,318Cash and cash equivalents at end of period
    
    $
    3,258
    
    
    $
    21,718
  6




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##### Table of Contents



QUICKSILVER RESOURCES INC.
 
 NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
UNAUDITED
 1. ACCOUNTING POLICIES AND DISCLOSURES
    Net Income per Common Share
  Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006(in thousands, except per share amounts)Net income
    
    $
    31,731
    
    
    $
    23,608
    
    
    $
    54,582
    
    
    $
    51,143Impact of assumed conversions  interest on 1.875%
contingently convertible debentures, net of income taxes
    
    
    475
    
    
    
    475
    
    
    
    950
    
    
    
    950Net income available to stockholders assuming
conversion of contingently convertible debentures
    
    $
    32,206
    
    
    $
    24,083
    
    
    $
    55,532
    
    
    $
    52,093Weighted average common shares-basic
    
    
    77,594
    
    
    
    76,723
    
    
    
    77,396
    
    
    
    76,383Effect of dilutive securities:Employee stock options
    
    
    816
    
    
    
    1,110
    
    
    
    905
    
    
    
    1,327Employee stock awards
    
    
    809
    
    
    
    348
    
    
    
    820
    
    
    
    331Contingently convertible debentures
    
    
    4,908
    
    
    
    4,908
    
    
    
    4,908
    
    
    
    4,908Weighted average common shares-diluted
    
    
    84,127
    
    
    
    83,089
    
    
    
    84,029
    
    
    
    82,949Basic net income per common share
    
    $
    0.41
    
    
    $
    0.31
    
    
    $
    0.71
    
    
    $
    0.67Diluted net income per common share
    
    $
    0.38
    
    
    $
    0.29
    
    
    $
    0.66
    
    
    $
    0.63
 7




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Recently Issued Accounting Standards
 Accounting for Uncertainty in Income Taxes  An Interpretation of FASB Statement No.
109 Accounting for Income Taxes.
      Amendment of FASB
Interpretation No. 39
 8




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##### Table of Contents



2. HEDGING
  June 30,
    
    
    December 31,2007
    
    
    2006(in thousands)Derivative assets:Fixed price sale commitments
    
    $
    11
    
    
    $
    53Natural gas basis swaps
    
    
    
    
    
    
    159Crude oil financial collars
    
    
    242
    
    
    
    689Natural gas financial swaps
    
    
    
    
    
    
    1,009Natural gas financial collars
    
    
    27,971
    
    
    
    65,982$
    28,224
    
    
    $
    67,892Derivative liabilities:Floating price natural gas financial
swaps
    
    $
    10
    
    
    $
    53Natural gas basis swaps
    
    
    343
    
    
    
    NGL financial swaps
    
    
    712
    
    
    
    Crude oil financial collars
    
    
    719
    
    
    
    Natural gas financial swaps
    
    
    3,779
    
    
    
    Natural gas financial collars
    
    
    3,593
    
    
    
    $
    9,156
    
    
    $
    53
   3. LONG-TERM DEBT
  June 30,
    
    
    December 31,2007
    
    
    2006(in thousands)Senior secured credit facility
    
    $
    719,422
    
    
    $
    421,123Senior subordinated notes
    
    
    350,000
    
    
    
    350,000Contingently convertible
debentures, net of unamortized
discount
    
    
    148,050
    
    
    
    147,994Other loans
    
    
    220
    
    
    
    4001,217,692
    
    
    
    919,517Less current maturities
    
    
    (220
    )
    
    
    (400
    )$
    1,217,472
    
    
    $
    919,117
  9




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##### Table of Contents



4. ASSET RETIREMENT OBLIGATIONS
   Six Months Ended June 30,2007
    
    
    2006(in thousands)Beginning asset retirement obligation
    
    $
    25,206
    
    
    $
    20,965Additional liability incurred
    
    
    1,845
    
    
    
    1,186Accretion expense
    
    
    764
    
    
    
    649Change in estimates
    
    
    
    
    
    
    29(Gain) loss on settlement of liability
    
    
    (3
    )
    
    
    96Asset retirement costs incurred
    
    
    3
    
    
    
    (122
    )Currency translation adjustment
    
    
    1,000
    
    
    
    326Ending asset retirement obligation
    
    $
    28,815
    
    
    $
    23,129
 10




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##### Table of Contents



5. COMMITMENTS AND CONTINGENCIES
  2007
    
    $
    19,2352008
    
    
    29,1062009
    
    
    29,0912010
    
    
    2,753$
    80,185
  2008
    
    $
    4,3922009
    
    
    9,5062010
    
    
    10,4942011
    
    
    10,494Thereafter
    
    
    70,154$
    105,040
  th ab initio
  6. STOCK-BASED COMPENSATION
 Share-Based Payment .
 11




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Employee Stock Plans
 2006 Equity Plan
  Stock Options
  Wtd AvgExerciseShares
    
    
    PriceOutstanding at beginning of year
    
    
    1,689,190
    
    
    $
    16.84Granted
    
    
    
    
    
    
    Exercised
    
    
    (638,194
    )
    
    
    16.91Forfeited
    
    
    (8,190
    )
    
    
    11.01Outstanding at period end
    
    
    1,042,806
    
    
    $
    16.85Exercisable at June 30, 2007
    
    
    767,279
    
    
    $
    17.95Vested or expected to vest
at June 30, 2007
    
    
    1,302,605
    
    
    $
    16.79
   12




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##### Table of Contents



Restricted Stock
   Wtd AvgGrant Date FairShares
    
    
    ValueOutstanding at beginning of year
    
    
    511,873
    
    
    $
    38.35Granted
    
    
    420,694
    
    
    
    36.73Vested
    
    
    (94,583
    )
    
    
    39.82Forfeited
    
    
    (32,546
    )
    
    
    36.39Outstanding at period end
    
    
    805,438
    
    
    $
    37.41
  7. CONDENSED CONSOLIDATING FINANCIAL INFORMATION
  Condensed Consolidating Balance Sheets
 June 30, 2007Non-
    
    
    
    
    
    
    QuicksilverQuicksilver
    
    
    Guarantor
    
    
    Guarantor
    
    
    
    
    
    
    Resources Inc.Resources Inc.
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    Consolidated(in thousands)ASSETSCurrent assets
    
    $
    158,611
    
    
    $
    268,141
    
    
    $
    87,591
    
    
    $
    (385,950
    )
    
    $
    128,393Investments in subsidiaries (equity method)
    
    
    600,553
    
    
    
    178,314
    
    
    
    2
    
    
    
    (771,536
    )
    
    
    7,333Property and equipment, net
    
    
    1,343,598
    
    
    
    87,662
    
    
    
    667,795
    
    
    
    
    
    
    
    2,099,055Other assets
    
    
    21,481
    
    
    
    38,279
    
    
    
    1,353
    
    
    
    (38,279
    )
    
    
    22,834Total assets
    
    $
    2,124,243
    
    
    $
    572,396
    
    
    $
    756,741
    
    
    $
    (1,195,765
    )
    
    $
    2,257,615LIABILITIESCurrent liabilities
    
    $
    394,332
    
    
    $
    135,751
    
    
    $
    43,667
    
    
    $
    (385,950
    )
    
    $
    187,800Non-current liabilities
    
    
    1,100,455
    
    
    
    24,427
    
    
    
    345,864
    
    
    
    (38,279
    )
    
    
    1,432,467Minority interest
    
    
    
    
    
    
    7,892
    
    
    
    
    
    
    
    
    
    
    
    7,892Stockholders equity
    
    
    629,456
    
    
    
    404,326
    
    
    
    367,210
    
    
    
    (771,536
    )
    
    
    629,456Total liabilities and stockholders equity
    
    $
    2,124,243
    
    
    $
    572,396
    
    
    $
    756,741
    
    
    $
    (1,195,765
    )
    
    $
    2,257,615
 13




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##### Table of Contents



December 31, 2006Non-
    
    
    
    
    
    
    QuicksilverQuicksilver
    
    
    Guarantor
    
    
    Guarantor
    
    
    
    
    
    
    Resources Inc.Resources Inc.
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    Consolidated(in thousands)ASSETSCurrent assets
    
    $
    165,061
    
    
    $
    250,928
    
    
    $
    78,531
    
    
    $
    (323,556
    )
    
    $
    170,964Investments in subsidiaries (equity method)
    
    
    510,548
    
    
    
    131,750
    
    
    
    
    
    
    
    (634,864
    )
    
    
    7,434Property and equipment, net
    
    
    1,043,037
    
    
    
    87,025
    
    
    
    549,218
    
    
    
    
    
    
    
    1,679,280Other assets
    
    
    22,397
    
    
    
    
    
    
    
    2,837
    
    
    
    
    
    
    
    25,234Total assets
    
    $
    1,741,043
    
    
    $
    469,703
    
    
    $
    630,586
    
    
    $
    (958,420
    )
    
    $
    1,882,912LIABILITIESCurrent liabilities
    
    $
    368,073
    
    
    $
    91,414
    
    
    $
    63,458
    
    
    $
    (323,556
    )
    
    $
    199,389Non-current liabilities
    
    
    797,304
    
    
    
    24,577
    
    
    
    278,545
    
    
    
    
    
    
    
    1,100,426Minority interest
    
    
    
    
    
    
    
    
    
    
    7,431
    
    
    
    
    
    
    
    7,431Stockholders equity
    
    
    575,666
    
    
    
    353,712
    
    
    
    281,152
    
    
    
    (634,864
    )
    
    
    575,666Total liabilities and stockholders equity
    
    $
    1,741,043
    
    
    $
    469,703
    
    
    $
    630,586
    
    
    $
    (958,420
    )
    
    $
    1,882,912
 Condensed Consolidating Statements of Income
 For the Three Months Ended June 30, 2007Non-
    
    
    
    
    
    
    QuicksilverQuicksilver
    
    
    Guarantor
    
    
    Guarantor
    
    
    
    
    
    
    Resources Inc.Resources Inc.
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    Consolidated(in thousands)Revenues
    
    $
    88,770
    
    
    $
    9,878
    
    
    $
    44,158
    
    
    $
    (6,408
    )
    
    $
    136,398Operating expenses
    
    
    54,687
    
    
    
    5,056
    
    
    
    21,370
    
    
    
    (6,408
    )
    
    
    74,705Income from equity affiliates
    
    
    16
    
    
    
    266
    
    
    
    
    
    
    
    
    
    
    
    282Income from operations
    
    
    34,099
    
    
    
    5,088
    
    
    
    22,788
    
    
    
    
    
    
    
    61,975Equity in net earnings of subsidiaries
    
    
    19,615
    
    
    
    2,972
    
    
    
    
    
    
    
    (22,587
    )
    
    
    Interest expense and other
    
    
    13,705
    
    
    
    (80
    )
    
    
    3,849
    
    
    
    
    
    
    
    17,474Income tax provision
    
    
    8,278
    
    
    
    1,809
    
    
    
    2,683
    
    
    
    
    
    
    
    12,770Net income
    
    $
    31,731
    
    
    $
    6,331
    
    
    $
    16,256
    
    
    $
    (22,587
    )
    
    $
    31,731
 For the Three Months Ended June 30, 2006Non-
    
    
    
    
    
    
    QuicksilverQuicksilver
    
    
    Guarantor
    
    
    Guarantor
    
    
    
    
    
    
    Resources Inc.Resources Inc.
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    Consolidated(in thousands)Revenues
    
    $
    53,875
    
    
    $
    10,727
    
    
    $
    28,582
    
    
    $
    (3,719
    )
    
    $
    89,465Operating expenses
    
    
    34,341
    
    
    
    3,850
    
    
    
    15,671
    
    
    
    (3,719
    )
    
    
    50,143Income from equity affiliates
    
    
    2
    
    
    
    (82
    )
    
    
    
    
    
    
    
    
    
    
    (80
    )Income from operations
    
    
    19,536
    
    
    
    6,795
    
    
    
    12,911
    
    
    
    
    
    
    
    39,242Equity in net earnings of subsidiaries
    
    
    15,978
    
    
    
    148
    
    
    
    
    
    
    
    (16,126
    )
    
    
    Interest expense and other
    
    
    6,787
    
    
    
    11
    
    
    
    3,281
    
    
    
    
    
    
    
    10,079Income tax provision
    
    
    5,119
    
    
    
    2,374
    
    
    
    (1,938
    )
    
    
    
    
    
    
    5,555Net income
    
    $
    23,608
    
    
    $
    4,558
    
    
    $
    11,568
    
    
    $
    (16,126
    )
    
    $
    23,608
 For the Six Months Ended June 30, 2007Non-
    
    
    
    
    
    
    QuicksilverQuicksilver
    
    
    Guarantor
    
    
    Guarantor
    
    
    
    
    
    
    Resources Inc.Resources Inc.
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    Consolidated(in thousands)Revenues
    
    $
    159,638
    
    
    $
    18,634
    
    
    $
    85,592
    
    
    $
    (10,886
    )
    
    $
    252,978Operating expenses
    
    
    101,148
    
    
    
    9,499
    
    
    
    43,079
    
    
    
    (10,886
    )
    
    
    142,840Income from equity affiliates
    
    
    22
    
    
    
    375
    
    
    
    
    
    
    
    
    
    
    
    397Income from operations
    
    
    58,512
    
    
    
    9,510
    
    
    
    42,513
    
    
    
    
    
    
    
    110,535Equity in net earnings of subsidiaries
    
    
    34,351
    
    
    
    4,253
    
    
    
    
    
    
    
    (38,604
    )
    
    
    Interest expense and other
    
    
    24,826
    
    
    
    (90
    )
    
    
    7,152
    
    
    
    
    
    
    
    31,888Income tax provision
    
    
    13,455
    
    
    
    3,360
    
    
    
    7,250
    
    
    
    
    
    
    
    24,065Net income
    
    $
    54,582
    
    
    $
    10,493
    
    
    $
    28,111
    
    
    $
    (38,604
    )
    
    $
    54,582
 14




---



##### Table of Contents



For the Six Months Ended June 30, 2006Non-
    
    
    
    
    
    
    QuicksilverQuicksilver
    
    
    Guarantor
    
    
    Guarantor
    
    
    
    
    
    
    Resources Inc.Resources Inc.
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    Consolidated(in thousands)Revenues
    
    $
    108,843
    
    
    $
    24,105
    
    
    $
    60,949
    
    
    $
    (4,782
    )
    
    $
    189,115Operating expenses
    
    
    67,956
    
    
    
    8,224
    
    
    
    28,658
    
    
    
    (4,782
    )
    
    
    100,056Income from equity affiliates
    
    
    2
    
    
    
    106
    
    
    
    
    
    
    
    
    
    
    
    108Income from operations
    
    
    40,889
    
    
    
    15,987
    
    
    
    32,291
    
    
    
    
    
    
    
    89,167Equity in net earnings of subsidiaries
    
    
    33,656
    
    
    
    148
    
    
    
    
    
    
    
    (33,804
    )
    
    
    Interest expense and other
    
    
    12,940
    
    
    
    9
    
    
    
    5,982
    
    
    
    
    
    
    
    18,931Income tax provision
    
    
    10,462
    
    
    
    5,592
    
    
    
    3,039
    
    
    
    
    
    
    
    19,093Net income
    
    $
    51,143
    
    
    $
    10,534
    
    
    $
    23,270
    
    
    $
    (33,804
    )
    
    $
    51,143
 Condensed Consolidating Statements of Cash Flows
 For the Six Months Ended June 30, 2007Non-
    
    
    
    
    
    
    QuicksilverQuicksilver
    
    
    Guarantor
    
    
    Guarantor
    
    
    
    
    
    
    Resources Inc.Resources Inc.
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    Consolidated(in thousands)Cash flow provided by operations
    
    $
    70,544
    
    
    $
    1,581
    
    
    $
    74,842
    
    
    $
    
    
    
    $
    146,967Cash flow used for investing activities
    
    
    (363,182
    )
    
    
    (47,649
    )
    
    
    (114,882
    )
    
    
    90,956
    
    
    
    (434,757
    )Cash flow provided by financing activities
    
    
    292,304
    
    
    
    46,068
    
    
    
    36,467
    
    
    
    (90,956
    )
    
    
    283,883Effect of exchange rates on cash
    
    
    390
    
    
    
    
    
    
    
    1,494
    
    
    
    
    
    
    
    1,884Net increase (decrease) in cash & equivalents
    
    
    56
    
    
    
    
    
    
    
    (2,079
    )
    
    
    
    
    
    
    (2,023
    )Cash & equivalents at beginning of period
    
    
    83
    
    
    
    
    
    
    
    5,198
    
    
    
    
    
    
    
    5,281Cash & equivalents at end of period
    
    $
    139
    
    
    $
    
    
    
    $
    3,119
    
    
    $
    
    
    
    $
    3,258
 For the Six Months Ended June 30, 2006Non-
    
    
    
    
    
    
    QuicksilverQuicksilver
    
    
    Guarantor
    
    
    Guarantor
    
    
    
    
    
    
    Resources Inc.Resources Inc.
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    Consolidated(in thousands)Cash flow provided by operations
    
    $
    32,019
    
    
    $
    39,917
    
    
    $
    59,854
    
    
    $
    
    
    
    $
    131,790Cash flow used for investing activities
    
    
    (148,436
    )
    
    
    (37,392
    )
    
    
    (88,666
    )
    
    
    
    
    
    
    (274,494
    )Cash flow provided by financing activities
    
    
    123,526
    
    
    
    
    
    
    
    26,698
    
    
    
    
    
    
    
    150,224Effect of exchange rates on cash
    
    
    
    
    
    
    
    
    
    
    (120
    )
    
    
    
    
    
    
    (120
    )Net decrease in cash & equivalents
    
    
    7,109
    
    
    
    2,525
    
    
    
    (2,234
    )
    
    
    
    
    
    
    7,400Cash & equivalents at beginning of period
    
    
    8,990
    
    
    
    (4,410
    )
    
    
    9,738
    
    
    
    
    
    
    
    14,318Cash & equivalents at end of period
    
    $
    16,099
    
    
    $
    (1,885
    )
    
    $
    7,504
    
    
    $
    
    
    
    $
    21,718
 8. SUPPLEMENTAL CASH FLOW INFORMATION
  Six Months Ended June 30,2007
    
    
    2006(in thousands)Interest
    
    $
    32,383
    
    
    $
    12,982Income taxes
    
    $
    695
    
    
    $
    3
  Six Months Ended June 30,2007
    
    
    2006(in thousands)Noncash investing activities  changes in
working capital
associated with property and equipment
    
    $
    (5,582
    )
    
    $
    (26,950
    )
 9. RELATED PARTY TRANSACTIONS
  15




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##### Table of Contents



10. SEGMENT INFORMATION
  UnitedStates
    
    Canada
    
    Corporate
    
    Consolidated(in thousands)For the Three Months EndedJune 30, 2007Revenues
    
    $
    99,290
    
    
    $
    37,108
    
    
    $
    
    
    
    $
    136,398Depletion, depreciation and accretion
    
    
    18,529
    
    
    
    9,131
    
    
    
    245
    
    
    
    27,905Operating income
    
    
    52,391
    
    
    
    20,127
    
    
    
    (10,543
    )
    
    
    61,975Property and equipment costs incurred
    
    
    232,457
    
    
    
    14,104
    
    
    
    365
    
    
    
    246,926June 30, 2006Revenues
    
    $
    63,393
    
    
    $
    26,072
    
    
    $
    
    
    
    $
    89,465Depletion, depreciation and accretion
    
    
    11,273
    
    
    
    6,484
    
    
    
    197
    
    
    
    17,954Operating income
    
    
    31,570
    
    
    
    13,306
    
    
    
    (5,634
    )
    
    
    39,242Property and equipment costs incurred
    
    
    104,926
    
    
    
    13,587
    
    
    
    644
    
    
    
    119,157For the Six Months EndedJune 30, 2007Revenues
    
    $
    179,719
    
    
    $
    73,259
    
    
    $
    
    
    
    $
    252,978Depletion, depreciation and accretion
    
    
    34,145
    
    
    
    17,883
    
    
    
    471
    
    
    
    52,499Operating income
    
    
    92,161
    
    
    
    39,105
    
    
    
    (20,731
    )
    
    
    110,535Property and equipment costs incurred
    
    
    394,871
    
    
    
    33,663
    
    
    
    970
    
    
    
    429,504June 30, 2006Revenues
    
    $
    130,606
    
    
    $
    58,509
    
    
    $
    
    
    
    $
    189,115Depletion, depreciation and accretion
    
    
    21,625
    
    
    
    13,683
    
    
    
    319
    
    
    
    35,627Operating income
    
    
    68,144
    
    
    
    33,033
    
    
    
    (12,010
    )
    
    
    89,167Property and equipment costs incurred
    
    
    200,487
    
    
    
    51,068
    
    
    
    1,207
    
    
    
    252,762Fixed Assets  netJune 30, 2007
    
    $
    1,546,495
    
    
    $
    548,974
    
    
    $
    3,586
    
    
    $
    2,099,055December 31, 2006
    
    $
    1,258,807
    
    
    $
    417,199
    
    
    $
    3,274
    
    
    $
    1,679,280
 16




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##### Table of Contents



11. QUICKSILVER GAS SERVICES LP
   17




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##### Table of Contents



ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 Forward-Looking Information
  
    
    changes in general economic conditions;
    
    fluctuations in natural gas and crude oil prices;
    
    failure or delays in achieving expected production from natural gas and crude oil
exploration and development projects;
    
    effects of hedging natural gas and crude oil prices;
    
    uncertainties inherent in estimates of natural gas and crude oil reserves and
predicting natural gas and crude oil reservoir performance;
    
    competitive conditions in our industry;
    
    actions taken by third-party operators, processors and transporters;
    
    changes in the availability and cost of capital;
    
    delays in obtaining oilfield equipment and increases in drilling and other service costs;
    
    operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control;
    
    the effects of existing and future laws and governmental regulations;
    
    the effects of existing or future litigation; and
    
    factors discussed in our Form 10-K for the year ended December 31, 2006.
  18




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##### Table of Contents



RESULTS OF OPERATIONS
 Summary Financial Data
Three Months Ended June 30, 2007 Compared with the Three Months Ended June 30, 2006
 Three Months EndedJune 30,2007
    
    2006(in thousands)Total operating revenues
    
    $
    136,398
    
    
    $
    89,465Total operating expenses
    
    
    74,705
    
    
    
    50,143Operating income
    
    
    61,975
    
    
    
    39,242Net income
    
    
    31,731
    
    
    
    23,608
  Operating Revenues
  Gas, Oil and Related Product Sales
  Three Months EndedJune 30,2007
    
    
    2006Natural gas, oil and NGL sales (in thousands)United States
    
    $
    97,967
    
    
    $
    62,608Canada
    
    
    35,992
    
    
    
    25,928Total
    
    $
    133,959
    
    
    $
    88,536Product sale revenues (in thousands)Natural gas sales
    
    $
    102,308
    
    
    $
    72,735Oil and condensate sales
    
    
    9,374
    
    
    
    9,533NGL sales
    
    
    22,277
    
    
    
    6,268Total
    
    $
    133,959
    
    
    $
    88,536Average daily sales volumeNatural gas  McfdUnited States
    
    
    107,740
    
    
    
    94,585Canada
    
    
    53,745
    
    
    
    49,624Total
    
    
    161,485
    
    
    
    144,209Oil and condensate  BbldUnited States
    
    
    1,737
    
    
    
    1,688Canada
    
    
    
    
    
    
    1Total
    
    
    1,737
    
    
    
    1,689NGL  BbldUnited States
    
    
    6,031
    
    
    
    1,623Canada
    
    
    11
    
    
    
    25Total
    
    
    6,042
    
    
    
    1,648
 19




---



##### Table of Contents



Three Months EndedJune 30,2007
    
    
    2006Total sales  McfedUnited States
    
    
    154,349
    
    
    
    114,451Canada
    
    
    53,812
    
    
    
    49,780Total
    
    
    208,161
    
    
    
    164,231Unit prices  including impact of hedgesNatural gas  per McfUnited States
    
    $
    6.77
    
    
    $
    5.45Canada
    
    
    7.35
    
    
    
    5.71Consolidated
    
    
    6.96
    
    
    
    5.54Oil and condensate  per BblUnited States
    
    $
    59.30
    
    
    $
    62.03Canada
    
    
    
    
    
    
    51.43Consolidated
    
    
    59.30
    
    
    
    62.03NGL  per BblUnited States
    
    $
    40.48
    
    
    $
    41.55Canada
    
    
    58.71
    
    
    
    57.36Consolidated
    
    
    40.52
    
    
    
    41.80
   Other Revenues
  20




---



##### Table of Contents



Operating Expenses
  Oil and Gas Operations Expense
 Three Months EndedJune 30,2007
    
    
    2006(in thousands, except per unitamounts)Oil and gas operations expenseUnited States
    
    $
    25,027
    
    
    $
    18,429Canada
    
    
    6,962
    
    
    
    5,791Total
    
    $
    31,989
    
    
    $
    24,220Oil and gas operations expense  per McfeUnited States
    
    $
    1.78
    
    
    $
    1.77Canada
    
    
    1.42
    
    
    
    1.28Consolidated
    
    
    1.69
    
    
    
    1.62
    Production and Ad Valorem Taxes
  Depletion, Depreciation and Accretion
 Three Months EndedJune 30,2007
    
    
    2006(in thousands, except per unitamounts)Depletion
    
    $
    22,858
    
    
    $
    14,874Depreciation of other fixed assets
    
    
    4,644
    
    
    
    2,745Accretion
    
    
    403
    
    
    
    335Total depletion, depreciation and accretion
    
    $
    27,905
    
    
    $
    17,954Average depletion cost per Mcfe
    
    $
    1.21
    
    
    $
    1.00
 21




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##### Table of Contents



General and Administrative Expense
  Interest Expense
  Income Tax Expense
  Summary Financial Data
Six Months Ended June 30, 2007 Compared with the Six Months Ended June 30, 2006
 Six Months EndedJune 30,2007
    
    2006(in thousands)Total operating revenues
    
    $
    252,978
    
    
    $
    189,115Total operating expenses
    
    
    142,840
    
    
    
    100,056Operating income
    
    
    110,535
    
    
    
    89,167Net income
    
    
    54,582
    
    
    
    51,143
  Operating Revenues
  22




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##### Table of Contents



Gas, Oil and Related Product Sales
  Six Months EndedJune 30,2007
    
    
    2006Natural gas, oil and NGL sales (in thousands)United States
    
    $
    177,230
    
    
    $
    129,293Canada
    
    
    70,021
    
    
    
    57,932Total
    
    $
    247,251
    
    
    $
    187,225Product sale revenues (in thousands)Natural gas sales
    
    $
    197,870
    
    
    $
    159,657Oil and condensate sales
    
    
    17,013
    
    
    
    17,926NGL sales
    
    
    32,368
    
    
    
    9,642Total
    
    $
    247,251
    
    
    $
    187,225Average daily sales volumeNatural gas  McfdUnited States
    
    
    104,521
    
    
    
    92,817Canada
    
    
    54,927
    
    
    
    48,814Total
    
    
    159,448
    
    
    
    141,631Oil and condensate  BbldUnited States
    
    
    1,701
    
    
    
    1,639Canada
    
    
    
    
    
    
    1Total
    
    
    1,701
    
    
    
    1,640NGL  BbldUnited States
    
    
    4,681
    
    
    
    1,279Canada
    
    
    6
    
    
    
    17Total
    
    
    4,687
    
    
    
    1,296Total sales  McfedUnited States
    
    
    142,810
    
    
    
    110,323Canada
    
    
    54,965
    
    
    
    48,921Total
    
    
    197,775
    
    
    
    159,244Unit prices  including impact of hedgesNatural gas  per McfUnited States
    
    $
    6.76
    
    
    $
    6.06Canada
    
    
    7.03
    
    
    
    6.54Consolidated
    
    
    6.86
    
    
    
    6.23Oil and condensate  per BblUnited States
    
    $
    55.25
    
    
    $
    60.40Canada
    
    
    
    
    
    
    53.21Consolidated
    
    
    55.25
    
    
    
    60.39NGL  per BblUnited States
    
    $
    38.11
    
    
    $
    41.02Canada
    
    
    76.31
    
    
    
    47.98Consolidated
    
    
    38.16
    
    
    
    41.12
 23




---



##### Table of Contents



Other Revenues
  Operating Expenses
  Oil and Gas Operations Expense
 Six Months EndedJune 30,2007
    
    
    2006(in thousands, except per unitamounts)Oil and gas operations expenseUnited States
    
    $
    46,063
    
    
    $
    34,628Canada
    
    
    14,495
    
    
    
    11,002Total
    
    $
    60,558
    
    
    $
    45,630Oil and gas operations expense  per McfeUnited States
    
    $
    1.78
    
    
    $
    1.73Canada
    
    
    1.46
    
    
    
    1.24Consolidated
    
    
    1.69
    
    
    
    1.59
 24




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##### Table of Contents



Production and Ad Valorem Taxes
  Depletion, Depreciation and Accretion
 Six Months EndedJune 30,2007
    
    
    2006(in thousands, except per unitamounts)Depletion
    
    $
    43,219
    
    
    $
    29,671Depreciation of other fixed assets
    
    
    8,516
    
    
    
    5,307Accretion
    
    
    764
    
    
    
    649Total depletion, depreciation and accretion
    
    $
    52,499
    
    
    $
    35,627Average depletion cost per Mcfe
    
    $
    1.21
    
    
    $
    1.03
  General and Administrative Expense
  25




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##### Table of Contents



Interest Expense
  Income Tax Expense
  LIQUIDITY, CAPITAL RESOURCES AND FINANCIAL POSITION
    26




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##### Table of Contents



Six Months EndedJune 30, 2007(in thousands)Exploration and developmentUnited States
    
    $
    320,595Canada
    
    
    23,746Total exploration and development
    
    
    344,341Gas processing and transportationUnited States
    
    
    71,449Canada
    
    
    9,579Total gas processing and transportation
    
    
    81,028Corporate and office
    
    
    4,135Total plant and equipment costs incurred
    
    $
    429,504
   June 30,
    
    
    December 31,2007
    
    
    2006(in thousands)Senior secured credit facility
    
    $
    719,422
    
    
    $
    421,123Senior subordinated notes
    
    
    350,000
    
    
    
    350,000Convertible subordinated debentures
    
    
    148,050
    
    
    
    147,994Other loans
    
    
    220
    
    
    
    400Total debt
    
    
    1,217,692
    
    
    
    919,517Stockholders equity
    
    
    629,456
    
    
    
    575,666$
    1,847,148
    
    
    $
    1,495,183
 Financial Position
  
    
    A $419.8 million increase in our net property, plant and equipment assets includes
approximately $429.5 million in capital costs incurred for development, exploitation
and exploration of our oil and gas properties as well as additional natural gas
processing and gathering system assets in Texas.
    
    We incurred additional long-term debt of $274.9 million primarily as a result of
our capital expenditures of $435.1 million exceeding our cash flow from operations by
$288.1 million. These borrowings have been drawn from our senior secured credit
facility.
    
    Our current and deferred derivative assets have decreased $41.9 million and we
have recorded current and non-current derivative liabilities of $0.9 million and $6.0
million, respectively. These fluctuations reflect the relatively less favorable
pricing of our financial derivatives as compared to the forward pricing of natural
gas, crude oil and NGLs at June 30, 2007. Additionally, our current deferred tax
liability decreased $13.5 million as a result of the lower estimated fair value of
our natural gas, crude oil and NGL financial derivatives.
    
    Accumulated other comprehensive income decreased $33.1 million as a result of the
decrease in the estimated fair value of our financial derivatives, net of income
taxes. Partially offsetting that decrease was a $14.8 million increase in our
currency translation adjustment that resulted from the strengthening of the Canadian
dollar in relation to the U.S. dollar over the first six months of 2007.
 Recently Issued Accounting Standards
 Accounting for Uncertainty in Income Taxes  An Interpretation of FASB Statement No.
109
 27




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##### Table of Contents



Accounting for Income Taxes.
      Amendment of FASB
Interpretation No. 39
 
 ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
   Commodity Price Risk
  th
 28




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##### Table of Contents



Remaining
    
    
    
    Price PerProduct
    
    Type
    
    Contract Period
    
    Volume
    
    Mcf or Bbl
    
    Fair Value(in thousands)Gas
    
    Collar
    
    Jul 2007-Oct 2007
    
    10,000 Mcfd
    
    $7.50-11.50
    
    $
    1,052Gas
    
    Collar
    
    Jul 2007-Oct 2007
    
    10,000 Mcfd
    
    7.50-11.75
    
    
    1,057Gas
    
    Collar
    
    Jul 2007-Oct 2007
    
    5,000 Mcfd
    
    7.50-11.78
    
    
    529Gas
    
    Collar
    
    Jul 2007-Oct 2007
    
    5,000 Mcfd
    
    7.50-11.80
    
    
    532Gas
    
    Collar
    
    Jul 2007-Dec 2007
    
    20,000 Mcfd
    
    7.00-  9.15
    
    
    676Gas
    
    Collar
    
    Jul 2007-Dec 2007
    
    10,000 Mcfd
    
    8.00-11.20
    
    
    1,905Gas
    
    Collar
    
    Jul 2007-Dec 2007
    
    10,000 Mcfd
    
    9.00-12.10
    
    
    3,453Gas
    
    Collar
    
    Jul 2007-Dec 2007
    
    20,000 Mcfd
    
    9.00-12.10
    
    
    6,906Gas
    
    Collar
    
    Jul 2007-Mar 2008
    
    15,000 Mcfd
    
    7.50-  8.70
    
    
    200Gas
    
    Collar
    
    Jul 2007-Mar 2008
    
    5,000 Mcfd
    
    7.50-  8.90
    
    
    131Gas
    
    Collar
    
    Jul 2007-Mar 2008
    
    10,000 Mcfd
    
    9.00-12.00
    
    
    4,173Gas
    
    Collar
    
    Jul 2007-Mar 2008
    
    10,000 Mcfd
    
    9.00-12.05
    
    
    4,185Gas
    
    Collar
    
    Nov 2007-Mar 2008
    
    10,000 Mcfd
    
    8.00-15.00
    
    
    1,002Gas
    
    Collar
    
    Nov 2007-Mar 2008
    
    10,000 Mcfd
    
    8.00-15.65
    
    
    1,010Gas
    
    Collar
    
    Jan 2008-Dec 2008
    
    20,000 Mcfd
    
    7.50-  9.15
    
    
    (1,614
    )Gas
    
    Collar
    
    Apr 2008-Mar 2009
    
    20,000 Mcfd
    
    7.50-  9.35
    
    
    (1,979
    )Gas
    
    Collar
    
    Apr 2008-Mar 2009
    
    20,000 Mcfd
    
    8.00-10.20
    
    
    1,160Oil
    
    Collar
    
    Jul 2007-Dec 2007
    
    500 Bbld
    
    70.00-91.10
    
    
    242Oil
    
    Collar
    
    Jul 2007-Dec 2007
    
    500 Bbld
    
    60.00-72.80
    
    
    (196
    )Oil
    
    Collar
    
    Jan 2008-Dec 2008
    
    500 Bbld
    
    65.00-73.90
    
    
    (373
    )Oil
    
    Collar
    
    Jan 2008-Dec 2008
    
    500 Bbld
    
    65.00-77.45
    
    
    (150
    )Gas
    
    Swap
    
    Jan 2008-Dec 2008
    
    25,000 Mcfd
    
    $8.13
    
    
    (2,383
    )Gas
    
    Swap
    
    Jan 2008-Dec 2008
    
    7,500 Mcfd
    
    8.13
    
    
    (715
    )Gas
    
    Swap
    
    Jan 2008-Dec 2008
    
    5,000 Mcfd
    
    8.14
    
    
    (459
    )Gas
    
    Swap
    
    Jan 2008-Dec 2008
    
    2,500 Mcfd
    
    8.15
    
    
    (221
    )NGL
    
    Swap
    
    Jul 2007-Dec 2007
    
    1,000 Bbld
    
    40.32
    
    
    (712
    )Gas
    
    Basis Swap
    
    Jul 2007-Dec 2007
    
    25,000 Mcfd
    
    
    
    
    (42
    )Gas
    
    Basis Swap
    
    Jul 2007-Dec 2007
    
    20,000 Mcfd
    
    
    
    
    Gas
    
    Basis Swap
    
    Jan 2008-Dec 2008
    
    10,000 Mcfd
    
    
    
    
    (151
    )Gas
    
    Basis Swap
    
    Jan 2008-Dec 2008
    
    10,000 Mcfd
    
    
    
    
    (151
    )Total
    
    $
    19,067
  29




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##### Table of Contents



Weighted AvgProduct
    
    Type
    
    
    Contract Period
    
    
    Volume
    
    
    Price per Mcf
    
    
    Fair Value(in thousands)Fixed price sale contractsGas
    
    Sales
    
    Jul-Aug 2007
    
    161 Mcfd
    
    $
    7.98
    
    
    $
    11Financial derivativesGas
    
    Floating Price
    
    Jul-Aug 2007
    
    161 Mcfd
    
    
    
    
    
    $
    (10
    )Total-net
    
    $
    1
  
 ITEM 4. Controls and Procedures
 Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
  Changes in Internal Control Over Financial Reporting
  30




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##### Table of Contents



PART II  OTHER INFORMATION
 
 ITEM 1. Legal Proceedings
  th ab initio
 
 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
 Issuer Purchases of Equity Securities
  MaximumTotal Number of
    
    
    Number ofShares
    
    
    Shares thatPurchased as
    
    
    May Yet BePart of Publicly
    
    
    PurchasedTotal Number
    
    
    
    
    
    
    Announced
    
    
    Under theof Shares
    
    
    Average Price
    
    
    Plans or
    
    
    Plans orPeriod
    
    Purchased (1)
    
    
    Paid per Share
    
    
    Programs (2)
    
    
    Programs (2)April 1 to April 30, 2007
    
    
    7,487
    
    
    $
    42.04
    
    
    
    
    
    
    
    May 1 to May 31, 2007
    
    
    44
    
    
    $
    41.47
    
    
    
    
    
    
    
    June 1 to June 30, 2007
    
    
    236
    
    
    $
    44.81
    
    
    
    
    
    
    
    Total
    
    
    7,767
    
    
    $
    42.12
    
    
    
    
    
    
    
    
 
 (1)
    
    Represents shares of common stock surrendered by employees to satisfy the Companys income tax
withholding obligations arising upon the vesting of restricted stock issued under our Amended and Restated
1999 Stock Option and Retention Plan.(2)
    
    The Company does not currently have in place any publicly announced, specific plans or programs to
purchase equity securities. 31




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##### Table of Contents



ITEM 4. Submission of Matters to a Vote of Security Holders
  Election of Directors
  Total VoteTotal Vote for
    
    Withheld forName
    
    Each Director
    
    Each DirectorAnne Darden Self
    
    
    71,937,817
    
    
    
    1,572,105Steven M. Morris
    
    
    73,375,319
    
    
    
    134,603
  Ratification of Appointment of Independent Registered Public Accounting Firm
  For
    
    
    73,175,326Against
    
    
    314,015Abstentions
    
    
    20,581
 32




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##### Table of Contents



ITEM 6. Exhibits:
 Exhibit No.
    
    Description10.1
    
    Quicksilver Resources Inc. 2007 Executive Bonus Plan (filed as Exhibit 10.1 to
the Companys Form 8-K filed April 16, 2007 and included herein by reference).10.2
    
    Quicksilver Resources Inc. Amended and Restated 2006 Equity Plan (filed as
Exhibit 10.1 to the Companys Form 8-K filed May 25, 2007 and included herein
by reference).10.3
    
    Form of Non-Employee Director Restricted Share Agreement pursuant to the
Quicksilver Resources Inc. Amended and Restated 2006 Equity Plan (Three-Year
Vesting) (filed as Exhibit 10.2 to the Companys Form 8-K filed May 25, 2007
and included herein by reference).10.4
    
    Quicksilver Resources Inc. Amended and Restated 1999 Stock Option and Retention
Stock Plan (filed as Exhibit 10.3 to the Companys Form 8-K filed May 25, 2007
and included herein by reference).10.5
    
    Quicksilver Resources Inc. Amended and Restated 2004 Non-Employee Director
Equity Plan (filed as Exhibit 10.4 to the Companys Form 8-K filed May 25, 2007
and included herein by reference).*10.6
    
    Description of Non-Employee Director Compensation for Quicksilver Resources Inc.*15.1
    
    Awareness Letter of Deloitte & Touche LLP.*31.1
    
    Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*31.2
    
    Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*32.1
    
    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
 
 *
    
    Filed herewith 33




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##### Table of Contents



SIGNATURES
   Quicksilver Resources Inc.By:
    /s/ Glenn DardenGlenn DardenPresident and Chief Executive OfficerBy:
    /s/ Philip CookPhilip CookSenior Vice President - Chief Financial Officer 34




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##### Table of Contents



EXHIBIT INDEX
 Exhibit No.
    
    Description10.1
    
    Quicksilver Resources Inc. 2007 Executive Bonus Plan (filed as Exhibit 10.1 to
the Companys Form 8-K filed April 16, 2007 and included herein by reference).10.2
    
    Quicksilver Resources Inc. Amended and Restated 2006 Equity Plan (filed as
Exhibit 10.1 to the Companys Form 8-K filed May 25, 2007 and included herein
by reference).10.3
    
    Form of Non-Employee Director Restricted Share Agreement pursuant to the
Quicksilver Resources Inc. Amended and Restated 2006 Equity Plan (Three-Year
Vesting) (filed as Exhibit 10.2 to the Companys Form 8-K filed May 25, 2007
and included herein by reference).10.4
    
    Quicksilver Resources Inc. Amended and Restated 1999 Stock Option and Retention
Stock Plan (filed as Exhibit 10.3 to the Companys Form 8-K filed May 25, 2007
and included herein by reference).10.5
    
    Quicksilver Resources Inc. Amended and Restated 2004 Non-Employee Director
Equity Plan (filed as Exhibit 10.4 to the Companys Form 8-K filed May 25, 2007
and included herein by reference).*10.6
    
    Description of Non-Employee Director Compensation for Quicksilver Resources Inc.*15.1
    
    Awareness Letter of Deloitte & Touche LLP.*31.1
    
    Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*31.2
    
    Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*32.1
    
    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
 
 *
    
    Filed herewith 35