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An overview of Halcon Resources

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A quick snapshot of Halcon Resources

Halcon Resources (HK) released its 3Q14 financial results on November 10. Before going into the details of the results, we’ll give an overview of HK’s operations. Halcon Resources (HK) is a Texas-based energy exploration and production company. The company primarily focuses on developing onshore liquids-rich oil and natural gas assets.

On an oil equivalent basis, the company’s production averaged 40,769 barrels per day for the first nine months of 2014.

Asset map

HK’s oil and gas assets consist of undeveloped acreages in the unconventional liquids-rich regions in the US. These include:

  • The Bakken/Three Forks in North Dakota
  • The Eagle Ford in East Texas
  • The Utica/Point Pleasant formations in Ohio and Pennsylvania
  • The Tuscaloosa Marine Shale in Mississippi and Louisiana
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State-wise acreage split

2013 acreage split

HK’s developed and undeveloped oil and natural gas acreage in Texas accounted for ~44% of the company’s total acreage. In 2012, HK acquired assets in the East Texas and the Williston Basin, which collectively accounted for an increase of 1,942 MBoe in production.

However, in May 2014, Halcon divested the East Texas assets to a privately owned company.

Halcon’s share price down

In the past year, HK’s share price has gone down by ~20.7%. The decline has been sharp since June this year, when crude oil price started to plummet. From its high in mid-June, WTI (or West Texas Intermediate) crude oil price has fallen ~30% until now.

HK released its 3Q14 earnings on November 10. On that day, its share price remained almost unchanged from the previous day’s close at $3.25. Other energy upstream companies active in exploration and production of oil and natural gas that have released 3Q14 financial results include Chesapeake Energy (CHK), Anadarko Petroleum (APC), and Sandridge Energy (SD). CHK’s share increased ~7%, APC’s stock increased ~1%, and SD’s share price increased ~4%. Some of these companies are components of the Energy Select Sector SPDR ETF (XLE).

Continue reading to find out more about Halcon’s 3Q14 results.

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