Quicksilver Production Partners LP (QPP), a wholly-owned subsidiary of Fort Worth-based natural gas and oil exploration and production company Quicksilver Resources Inc. (NYSE: KWK), filed a registration statement February 10, 2012, on Form S-1 with the US Securities and Exchange Commission related to the proposed initial public offering of common units representing limited partner interests.

In connection with the initial public offering, Quicksilver will contribute certain of its Barnett Shale assets and related derivatives to QPP. Overall, Global Hunter Securities (GHS) analysts put the proved reserves at 430 bcf ($0.89/Mcfe multiple), and 2012E production at 64.3 MMcfe/d ($3.89/MMcfe/d).

QPP intends to use the net proceeds of the initial public offering and borrowings under a planned new bank credit facility (along with the issuance to Quicksilver of common and subordinated units) as consideration for the contribution by Quicksilver of such assets. Quicksilver intends to use the proceeds received from QPP to retire a portion of its debt.

Quicksilver announced its plans to form QPP as an MLP in mid-October. At the time, the company hoped to raise $400 million to pay down the approximately $940 million of public debt that is callable between now and the end of 2012. As of 2Q11, Quicksilver carried roughly $1.98 billion of outstanding debt, or a total debt to EV ratio of 55%, according to calculations presented by Dahlman Rose & Co. in a note to investors October 20.

JP Morgan and Credit Suisse are acting as lead book-running managers for the proposed offering.

GHS said the $250 million IPO wasn’t due to weaker expected investor interest and that the transaction should boost Quicksilver Resources’ liquidity and reduce leverage.