(RTTNews) -  Natural gas and crude oil explorer Quicksilver Resources Inc. (KWK: News ) Monday turned in a modest profit for the third quarter, reflecting much lower one-time charges. Adjusted earnings declined year-over-year on lower revenues due mainly to lower average realized prices for all commodities.

For the third quarter, net income attributable to Quicksilver was $730 thousand or breakeven per share, compared to net loss of $3.76 million or $0.02 per share in the previous year.

The results of the latest quarter included, among others, pre-tax net charges of $49.9 million related to the company's 40% stake in BreitBurn Energy Partners, or BBEP. The charges included gains related to the early settlement of hedges and interest rate swaps, and a charge for the unrealized mark-to-market loss on oil and gas derivative positions.

The prior-year results included a charge of $103.5 million related to the unrealized mark-to-market loss of derivative positions held by BBEP and a charge of $9.6 million pertaining to the company's settlement of litigation.

Excluding items, net income came down to $42.74 million or $0.25 a share from $69.79 million or $0.40 a share in the year-ago period.

On average, 24 analysts polled by Thomson Reuters expected the company to report earnings of $0.22 per share for the third quarter. Analysts' estimate typically excludes special items.

Operating income decreased year-over-year to $103.70 million from $119.99 million.
Total revenue for the period dipped to $206.66 million from $236.26 million in the third quarter of the prior fiscal year. Fourteen analysts were expecting revenue of $206.10 in the third quarter.

Sale of Natural gas, natural gas liquids, or NGL, and crude oil fetched revenue of $198.28 million, compared to $218.21 million a year ago. Sales of purchased natural gas added $5.96 million to revenue of fiscal 2009 third quarter. Other revenues decreased to $2.41 million from $18.05 million.

Quicksilver noted that higher production volumes from its properties in the Fort Worth Basin in Texas and Horseshoe Canyon area in Alberta, Canada, and lower production costs were more than offset by lower average realized prices of the fossil fuels, which resulted in about a 19% decrease in the average realized price per thousand cubic feet of natural gas equivalent, or Mcfe, after hedge consideration.

Total average daily production climbed 12% to 311.2 million cubic feet of natural gas equivalent, or Mmcfe, per day from 277.0 Mmcfe per day in the prior-year quarter. Natural Gas production went up to 221,168 thousand cubic feet per day, or Mcfd, from 199,820 Mcfd. NGL production increased to 14.02 thousand barrels per day, or Bbld, from 11.53 Bbld, while Oil production dipped to 981 Bbld from 1,334 Bbld in the third quarter of the past year.

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