Small-cap Quicksilver Resources (NYSE:KWK) could be one of the best rocket-ship plays for rising natural gas and oil prices. The company focuses primarily on unconventional reservoirs, such as fractured shales, coal beds and tight sands, and as such, the firm is highly levered in its production — with 96% of its total coming from natural gas and NGLs.
Fallen prices caused Quicksilver to post lackluster top- and bottom-line performance during the second quarter. However, the firm’s strong financial profile, along with successful hedging programs, should keep it afloat in the short-term. Likewise, Quicksilver’s successful J.V. deals and steady progress in the Horn River Basin and Niobrara shale will be profitable in the future if Pickens’ natural gas predictions do not come true.
If they do — watch out, as the company’s shares could pop. Already, KWK has risen steadily from its lows as natural gas has regained its footing.