Halcón Resources Corporation (NYSE:HK) (“Halcón” or the “Company”)
today announced its first quarter 2015 results.
The Company generated revenues of $136.2 million
for the three months ended March 31, 2015. Production increased 18%
quarter over prior year quarter to an average of 43,078 barrels of
oil equivalent per day (Boe/d). First quarter 2015 production was
80% oil, 9% natural gas liquids (NGLs) and 11% natural
gas.
Including the impact of hedges, Halcón realized
153% of the average NYMEX oil price, 24% of the average NYMEX oil
price for NGLs and 114% of the average NYMEX natural gas price
during the period.
Total operating costs per unit, after adjusting
for selected items (see Selected Operating Data table for
additional information), decreased by 31% to $19.60 per Boe in the
first quarter of 2015, compared to the first quarter of
2014.
After adjusting for selected items primarily
related to a non-cash pre-tax full cost ceiling impairment charge
(see Selected Item Review and Reconciliation table for additional
information), the net loss available to common stockholders was
$16.0 million, or $0.04 per diluted share, for the three months
ended March 31, 2015. The Company reported a net loss available to
common stockholders of $601.2 million, or $1.43 per diluted share
for the quarter.
Floyd C. Wilson, Chairman and Chief Executive
Officer, commented, “Well performance improved and completed well
costs trended down meaningfully in our core areas during the first
quarter of the year. We have recently executed on certain
initiatives towards the goal of improving our balance sheet and now
have sufficient liquidity to fund operations and service our debt
for the next several years, even in a low commodity price
environment.”
Recent Developments
As previously disclosed, Halcón recently
negotiated with certain bondholders to exchange approximately $252
million in face value of various tranches of its senior unsecured
notes into approximately 141 million common shares, which will
reduce annual cash interest expense by approximately $24
million. The Company also recently issued $700 million in
senior secured second lien notes due 2020 and used the net proceeds
to repay outstanding borrowings under its senior secured revolving
credit facility.
On May 4, 2015, Halcón’s Board of Directors
declared a quarterly dividend on shares of its 5.75% Series A
Cumulative Perpetual Convertible Preferred Stock equal to accrued
dividends for the three months ending May 31, 2015. The
Company will pay the dividend on June 1, 2015 to holders of record
on May 15, 2015. The dividend payments on all of the
outstanding 5.75% Series A Cumulative Perpetual Convertible
Preferred Stock will total approximately $4.9 million, and will be
paid in shares of Halcón’s common stock having a fair market value
(as determined under the certificate of designation governing such
preferred stock) equal to the aggregate dividend amount. The
Company will pay cash in lieu of issuing any fractional shares.
Liquidity and Capital
Spending
The Company’s liquidity as of March 31, 2015 was
approximately $384 million, which consisted of cash on hand plus
undrawn capacity on its senior secured revolving credit
facility. Pro forma for the aforementioned $700 million
senior secured second lien notes offering, and the related
reduction to the borrowing base on Halcón’s senior secured
revolving credit facility to $900 million from $1.05 billion,
liquidity as of March 31, 2015 was approximately $921 million.
During the first quarter of 2015, Halcón
incurred capital costs of $105.2 million on drilling and
completions, $3.8 million on infrastructure/seismic, $3.1 million
for leasehold and $1.7 million for A&D activity. In addition,
the Company incurred $32.1 million for capitalized interest,
G&A and other.
2015 Guidance Update
Halcón is providing second quarter 2015
production guidance, which accounts for approximately 800 Boe/d of
non-operated production in the Williston Basin that is currently
shut-in and approximately 1,200 Boe/d of non-operated production in
the Williston Basin that has been deferred due to low commodity
prices. The Company is also lowering its 2015 drilling and
completion budget by an additional $25 million to account for
continued service cost reductions. The following table summarizes
Halcón’s current 2015 guidance:
|
|
|
Full Year |
|
2Q15E |
|
2015E |
Production
(Boe/d) |
39,500 - 41,500 |
|
40,000 - 45,000 |
% Oil |
|
|
|
|
|
82 |
|
% |
|
% NGLs |
|
|
|
|
|
8 |
|
% |
|
% Gas |
|
|
|
|
|
10 |
|
% |
|
|
|
|
|
Drilling &
Completion Capex ($ in millions) (1) |
|
|
$325 -
$375 |
|
|
|
|
Leasehold,
Infrastructure, Seismic & Other Capex ($ in millions)
(1) |
|
|
|
|
$ |
20 |
|
|
|
|
|
|
|
Operating Costs
and Expenses ($/Boe) |
|
|
|
Lease Operating & Workover |
|
|
$8.00 - $10.00 |
|
|
|
|
Production Taxes |
|
|
$4.00 - $6.00 |
|
|
|
|
Cash G&A |
|
|
$4.00 - $6.00 |
|
|
|
|
Gathering, Transportation &
Other |
|
|
$1.50 - $2.50 |
|
|
|
|
(1) Excludes
capitalized interest and G&A. |
|
|
|
|
|
|
|
Hedging Update
The Company continues to target a hedge
portfolio in which approximately 80% of expected production is
hedged for the next 18 to 24 months. Halcón has 31,410 barrels per
day of oil hedged from April 1, 2015 to December 31, 2015 at an
average price of $90.28 per barrel. For 2016, the Company has
24,497 barrels per day of oil hedged at an average price of $81.12
per barrel. Halcón plans to opportunistically layer in additional
hedges to attain targeted levels and recently began adding hedges
for 2017. The Company estimates the pre-tax mark-to-market value of
its hedge portfolio to be approximately $334 million as of May 4,
2015.
An updated slide presentation containing
detailed information on Halcón’s hedge portfolio can be accessed on
its website at http://www.halconresources.com in the Investor
Relations section under Events & Presentations.
Conference Call and Webcast
Information
Halcón Resources Corporation (NYSE:HK) has
scheduled a conference call for Wednesday, May 6, 2015, at 10:00
a.m. EDT (9:00 a.m. CDT). To participate in the conference call,
dial (877) 810-3368 for domestic callers, and (914) 495-8561 for
international callers a few minutes before the call begins and
reference Halcón Resources conference ID 20710637. The
conference call will also be webcast live over the Internet on
Halcón Resources’ website at http://www.halconresources.com in the
Investor Relations section under Events & Presentations.
A telephonic replay of the call will be available approximately two
hours after the live broadcast ends and will be accessible through
May 13, 2015. To access the replay, dial (855) 859-2056 for
domestic callers or (404) 537-3406 for international callers, in
both cases referencing conference ID 20710637.
About Halcón Resources
Halcón Resources Corporation is an independent
energy company engaged in the acquisition, production, exploration
and development of onshore oil and natural gas properties in the
United States.
For more information contact Scott Zuehlke, Vice
President of Investor Relations, at 832-538-0314 or
szuehlke@halconresources.com.
Forward-Looking Statements
This release may contain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Statements that are not strictly
historical statements constitute forward-looking statements
and may often, but not always, be identified by the use
of such words such as "expects", "believes", "intends",
"anticipates", "plans", "estimates", "potential",
"possible", or "probable" or statements that certain
actions, events or results "may", "will", "should", or "could" be
taken, occur or be achieved. Additionally, initial production
rates, average 30 day production rates and improvements mentioned
herein are not necessarily indicative of future production rates or
performance. Forward-looking statements are based
on current beliefs and expectations and involve
certain assumptions or estimates that involve various
risks and uncertainties that could cause actual results to
differ materially from those reflected in the statements. These
risks include, but are not limited to, those set forth in the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2014 and other filings submitted by the Company
to the U.S. Securities and Exchange Commission
("SEC"), copies of which may be obtained from the SEC's
website at www.sec.gov or through the Company's website
at www.halconresources.com. Readers should not place
undue reliance on any such forward-looking statements, which are
made only as of the date hereof. The Company has no duty,
and assumes no obligation, to update forward-looking
statements as a result of new information, future events
or changes in the Company's expectations.
HALCÓN RESOURCES CORPORATION |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) |
|
(In thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March
31, |
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
Operating revenues: |
|
|
|
|
|
|
Oil, natural gas and natural gas liquids sales: |
|
|
|
|
|
|
Oil |
|
|
$ |
124,413 |
|
|
$ |
256,029 |
|
|
|
Natural gas |
|
|
|
6,959 |
|
|
|
9,409 |
|
|
|
Natural gas liquids |
|
|
|
4,068 |
|
|
|
8,759 |
|
|
|
Total oil, natural gas and natural
gas liquids sales |
|
|
|
135,440 |
|
|
|
274,197 |
|
|
|
Other |
|
|
754 |
|
|
|
952 |
|
|
|
Total operating revenues |
|
|
|
136,194 |
|
|
|
275,149 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
Production: |
|
|
|
|
|
|
Lease operating |
|
|
|
33,785 |
|
|
|
36,638 |
|
|
|
Workover and other |
|
|
|
3,114 |
|
|
|
2,789 |
|
|
|
Taxes other than income |
|
|
|
12,241 |
|
|
|
24,160 |
|
|
|
Gathering and
other |
|
|
13,746 |
|
|
|
5,073 |
|
|
|
Restructuring |
|
|
1,921 |
|
|
|
987 |
|
|
|
General and
administrative |
|
|
24,409 |
|
|
|
32,798 |
|
|
|
Depletion, depreciation
and accretion |
|
|
119,144 |
|
|
|
119,908 |
|
|
|
Full cost ceiling
impairment |
|
|
554,003 |
|
|
|
61,165 |
|
|
|
Total operating expenses |
|
|
|
762,363 |
|
|
|
283,518 |
|
|
Income (loss) from operations |
|
|
(626,169 |
) |
|
|
(8,369 |
) |
|
Other income (expenses): |
|
|
|
|
|
|
Net gain (loss) on
derivative contracts |
|
|
99,748 |
|
|
|
(33,656 |
) |
|
|
Interest expense and
other, net |
|
|
(61,307 |
) |
|
|
(30,939 |
) |
|
|
Total other income
(expenses) |
|
|
|
38,441 |
|
|
|
(64,595 |
) |
|
Income (loss) before income taxes |
|
|
(587,728 |
) |
|
|
(72,964 |
) |
|
Income tax benefit (provision) |
|
|
87 |
|
|
|
- |
|
|
Net income (loss) |
|
|
(587,641 |
) |
|
|
(72,964 |
) |
|
Series A preferred dividends |
|
|
(4,901 |
) |
|
|
(4,959 |
) |
|
Preferred dividends and accretion on redeemable noncontrolling
interest |
|
(8,651 |
) |
|
|
- |
|
|
Net income (loss) available to common
stockholders |
|
$ |
(601,193 |
) |
|
$ |
(77,923 |
) |
|
|
|
|
|
|
|
|
|
Net income (loss) per share of common
stock: |
|
|
|
|
|
|
Basic |
|
|
$ |
(1.43 |
) |
|
$ |
(0.19 |
) |
|
|
Diluted |
|
|
$ |
(1.43 |
) |
|
$ |
(0.19 |
) |
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
Basic |
|
|
|
419,684 |
|
|
|
413,521 |
|
|
|
Diluted |
|
|
|
419,684 |
|
|
|
413,521 |
|
|
|
|
|
|
|
|
|
|
HALCÓN RESOURCES CORPORATION |
|
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) |
|
(In thousands, except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
Current assets: |
|
|
|
|
|
Cash |
$ |
18,611 |
|
|
$ |
43,713 |
|
|
|
Accounts
receivable |
|
219,790 |
|
|
|
276,559 |
|
|
|
Receivables from derivative contracts |
|
351,785 |
|
|
|
352,530 |
|
|
|
Restricted cash |
|
16,322 |
|
|
|
16,131 |
|
|
|
Inventory |
|
4,379 |
|
|
|
4,693 |
|
|
|
Prepaids
and other |
|
10,235 |
|
|
|
9,079 |
|
|
|
Total current assets |
|
621,122 |
|
|
|
702,705 |
|
|
Oil
and natural gas properties (full cost method): |
|
|
|
|
|
Evaluated |
|
6,526,440 |
|
|
|
6,390,820 |
|
|
|
Unevaluated |
|
1,838,093 |
|
|
|
1,829,786 |
|
|
|
Gross oil and natural gas
properties |
|
8,364,533 |
|
|
|
8,220,606 |
|
|
|
Less - accumulated
depletion |
|
(3,623,652 |
) |
|
|
(2,953,038 |
) |
|
|
Net oil and natural gas
properties |
|
4,740,881 |
|
|
|
5,267,568 |
|
|
Other operating property and equipment: |
|
|
|
|
|
Gas gathering and other
operating assets |
|
129,116 |
|
|
|
126,804 |
|
|
|
Less - accumulated
depreciation |
|
(16,779 |
) |
|
|
(14,798 |
) |
|
|
Net other operating property and
equipment |
|
112,337 |
|
|
|
112,006 |
|
|
Other noncurrent assets: |
|
|
|
|
|
Receivables from
derivative contracts |
|
135,428 |
|
|
|
151,324 |
|
|
|
Debt issuance costs,
net |
|
53,659 |
|
|
|
55,904 |
|
|
|
Deferred income
taxes |
|
136,627 |
|
|
|
136,826 |
|
|
|
Equity in oil and
natural gas partnership |
|
4,315 |
|
|
|
4,309 |
|
|
|
Funds in escrow and
other |
|
2,094 |
|
|
|
3,833 |
|
|
Total assets |
$ |
5,806,463 |
|
|
$ |
6,434,475 |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable and
accrued liabilities |
$ |
415,378 |
|
|
$ |
607,750 |
|
|
|
Asset retirement
obligations |
|
142 |
|
|
|
106 |
|
|
|
Current portion of
deferred income taxes |
|
136,627 |
|
|
|
136,826 |
|
|
|
Total current liabilities |
|
552,147 |
|
|
|
744,682 |
|
|
Long-term debt |
|
3,892,321 |
|
|
|
3,746,736 |
|
|
Other noncurrent liabilities: |
|
|
|
|
|
Liabilities from
derivative contracts |
|
747 |
|
|
|
9,387 |
|
|
|
Asset retirement
obligations |
|
39,895 |
|
|
|
38,371 |
|
|
|
Other |
|
5,755 |
|
|
|
5,964 |
|
|
Commitments and contingencies |
|
|
|
|
Mezzanine equity: |
|
|
|
|
|
Redeemable
noncontrolling interest |
|
125,817 |
|
|
|
117,166 |
|
|
Stockholders' equity: |
|
|
|
|
|
Preferred stock:
1,000,000 shares of $0.0001 par value authorized; 340,960 and
345,000 |
|
|
|
|
|
shares of 5.75% Cumulative
Perpetual Convertible Series A, issued and outstanding |
|
|
|
|
|
at March 31, 2015 and December 31,
2014, respectively |
|
- |
|
|
|
- |
|
|
|
Common stock:
1,340,000,000 shares of $0.0001 par value authorized; |
|
|
|
|
|
436,192,820 and
427,808,306 shares issued and outstanding |
|
|
|
|
|
at March 31, 2015 and December 31,
2014, respectively |
|
42 |
|
|
|
42 |
|
|
|
Additional paid-in
capital |
|
3,014,207 |
|
|
|
2,995,402 |
|
|
|
Accumulated
deficit |
|
(1,824,468 |
) |
|
|
(1,223,275 |
) |
|
|
Total stockholders' equity |
|
1,189,781 |
|
|
|
1,772,169 |
|
|
Total liabilities and stockholders' equity |
$ |
5,806,463 |
|
|
$ |
6,434,475 |
|
|
|
|
|
|
HALCÓN RESOURCES CORPORATION |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
Cash flows from operating activities: |
|
|
|
|
|
Net income
(loss) |
|
$ |
(587,641 |
) |
|
$ |
(72,964 |
) |
|
Adjustments
to reconcile net income (loss) to net cash |
|
|
|
|
|
provided by
(used in) operating activities: |
|
|
|
|
|
|
Depletion,
depreciation and accretion |
|
|
119,144 |
|
|
|
119,908 |
|
|
|
Full cost
ceiling impairment |
|
|
554,003 |
|
|
|
61,165 |
|
|
|
Share-based
compensation, net |
|
|
4,772 |
|
|
|
4,332 |
|
|
|
Unrealized
loss (gain) on derivative contracts |
|
|
8,001 |
|
|
|
26,021 |
|
|
|
Amortization and write-off of deferred loan costs |
|
|
1,559 |
|
|
|
842 |
|
|
|
Non-cash
interest and amortization of discount and premium |
|
|
1,107 |
|
|
|
554 |
|
|
|
Accrued
settlements on derivative contracts |
|
|
(37,592 |
) |
|
|
- |
|
|
|
Other
income (expense) |
|
|
2,541 |
|
|
|
354 |
|
|
Cash flow
from operations before changes in working capital |
|
|
65,894 |
|
|
|
140,212 |
|
|
Changes in
working capital, net of acquisitions |
|
|
28,041 |
|
|
|
19,288 |
|
|
Net cash
provided by (used in) operating activities |
|
|
93,935 |
|
|
|
159,500 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
Oil and
natural gas capital expenditures |
|
|
(264,626 |
) |
|
|
(432,783 |
) |
|
|
Proceeds
received from sale of oil and natural gas assets |
|
|
964 |
|
|
|
1,533 |
|
|
|
Advance on
carried interest |
|
|
- |
|
|
|
(62,500 |
) |
|
|
Other
operating property and equipment capital expenditures |
|
|
(4,345 |
) |
|
|
(16,036 |
) |
|
|
Funds held
in escrow and other |
|
|
(5 |
) |
|
|
288 |
|
|
Net cash
provided by (used in) investing activities |
|
|
(268,012 |
) |
|
|
(509,498 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
Proceeds
from borrowings |
|
|
361,000 |
|
|
|
614,000 |
|
|
|
Repayments
of borrowings |
|
|
(217,000 |
) |
|
|
(266,000 |
) |
|
|
Debt
issuance costs |
|
|
- |
|
|
|
(126 |
) |
|
|
Common
stock issued |
|
|
6,019 |
|
|
|
- |
|
|
|
Restricted
cash |
|
|
(191 |
) |
|
|
- |
|
|
|
Offering
costs and other |
|
|
(853 |
) |
|
|
(344 |
) |
|
Net cash
provided by (used in) financing activities |
|
|
148,975 |
|
|
|
347,530 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash |
|
|
(25,102 |
) |
|
|
(2,468 |
) |
|
|
|
|
|
|
|
|
|
Cash at
beginning of period |
|
|
43,713 |
|
|
|
2,834 |
|
|
Cash at end
of period |
|
$ |
18,611 |
|
|
$ |
366 |
|
|
|
|
|
|
|
|
|
|
Disclosure of non-cash investing and financing
activities: |
|
|
|
|
|
|
Accrued
capitalized interest |
|
$ |
(8,270 |
) |
|
$ |
(4,763 |
) |
|
|
Asset
retirement obligations |
|
|
1,120 |
|
|
|
(730 |
) |
|
|
Series A
preferred dividends paid in common stock |
|
|
4,901 |
|
|
|
4,959 |
|
|
|
Accretion
of redeemable noncontrolling interest |
|
|
5,632 |
|
|
|
- |
|
|
|
Preferred
dividends on redeemable noncontrolling interest paid-in-kind |
|
3,019 |
|
|
|
- |
|
|
|
Common
stock issued |
|
|
2,182 |
|
|
|
- |
|
|
|
Offering
costs |
|
|
(78 |
) |
|
|
- |
|
|
HALCÓN RESOURCES CORPORATION |
SELECTED OPERATING DATA |
(Unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
Production volumes: |
|
|
|
|
|
Crude oil (MBbls) |
|
|
3,096 |
|
|
|
2,806 |
|
|
Natural gas (MMcf) |
|
|
2,635 |
|
|
|
1,792 |
|
|
Natural gas liquids (MBbls) |
|
|
342 |
|
|
|
191 |
|
|
Total (MBoe) |
|
|
3,877 |
|
|
|
3,296 |
|
|
Average daily production
(Boe/d) |
|
|
43,078 |
|
|
|
36,622 |
|
|
|
|
|
|
|
|
Average
prices: |
|
|
|
|
|
Crude oil (per Bbl) |
|
$ |
40.19 |
|
|
$ |
91.24 |
|
|
Natural gas (per Mcf) |
|
|
2.64 |
|
|
|
5.25 |
|
|
Natural gas liquids (per Bbl) |
|
|
11.89 |
|
|
|
45.86 |
|
|
Total per Boe |
|
|
34.93 |
|
|
|
83.19 |
|
|
|
|
|
|
|
|
Cash
effect of derivative contracts: |
|
|
|
|
|
Crude oil (per Bbl) |
|
$ |
34.27 |
|
|
$ |
(2.35 |
) |
|
Natural gas (per Mcf) |
|
|
0.62 |
|
|
|
(0.58 |
) |
|
Natural gas liquids (per Bbl) |
|
|
- |
|
|
|
- |
|
|
Total per Boe |
|
|
27.79 |
|
|
|
(2.32 |
) |
|
|
|
|
|
|
|
Average prices computed after cash effect of settlement of
derivative contracts: |
|
|
|
|
Crude oil (per Bbl) |
|
$ |
74.46 |
|
|
$ |
88.89 |
|
|
Natural gas (per Mcf) |
|
|
3.26 |
|
|
|
4.67 |
|
|
Natural gas liquids (per Bbl) |
|
|
11.89 |
|
|
|
45.86 |
|
|
Total per Boe |
|
|
62.72 |
|
|
|
80.87 |
|
|
|
|
|
|
|
|
Average
cost per Boe: |
|
|
|
|
|
Production: |
|
|
|
|
|
Lease operating |
|
$ |
8.71 |
|
|
$ |
11.12 |
|
|
Workover and other |
|
|
0.80 |
|
|
|
0.85 |
|
|
Taxes other than income |
|
|
3.16 |
|
|
|
7.33 |
|
|
Gathering and other (1) |
|
|
2.00 |
|
|
|
1.54 |
|
|
Restructuring |
|
|
0.50 |
|
|
|
0.30 |
|
|
General and administrative, as
adjusted (1) |
|
|
4.93 |
|
|
|
7.56 |
|
|
Depletion |
|
|
30.08 |
|
|
|
35.57 |
|
|
|
|
|
|
|
|
(1)
Represents gathering and other and general and administrative costs
per Boe, adjusted for items noted in the reconciliation below: |
|
|
|
|
|
|
|
General and
administrative: |
|
|
|
|
|
General and administrative, as
reported |
|
$ |
6.29 |
|
|
$ |
9.95 |
|
|
Share-based compensation: |
|
|
|
|
|
Non-cash |
|
|
(1.23 |
) |
|
|
(1.31 |
) |
|
Acquisition and merger transaction
costs and other: |
|
|
|
|
|
Cash |
|
|
(0.13 |
) |
|
|
(1.08 |
) |
|
General and administrative, as
adjusted |
|
$ |
4.93 |
|
|
$ |
7.56 |
|
|
|
|
|
|
|
|
Gathering and other, as
reported |
|
$ |
3.55 |
|
|
$ |
1.54 |
|
|
Rig termination / stacking
charges |
|
|
(1.55 |
) |
|
|
- |
|
|
Gathering and other, as
adjusted |
|
$ |
2.00 |
|
|
$ |
1.54 |
|
|
|
|
|
|
|
|
Total operating costs,
as reported |
|
$ |
22.51 |
|
|
$ |
30.79 |
|
|
Total adjusting items |
|
|
(2.91 |
) |
|
|
(2.39 |
) |
|
Total operating costs,
as adjusted(2) |
|
$ |
19.60 |
|
|
$ |
28.40 |
|
|
|
|
|
|
|
|
(2) Represents lease operating, workover and other
expense, taxes other than income, gathering and other expense and
general and administrative costs per Boe, adjusted for items noted
in reconciliation above. |
|
|
|
|
|
|
HALCÓN RESOURCES CORPORATION |
SELECTED ITEM REVIEW AND RECONCILIATION
(Unaudited) |
(In thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2015 |
|
|
|
2014 |
|
As
Reported: |
|
|
|
|
Net income (loss)
available to common stockholders, as reported |
|
$ |
(601,193 |
) |
|
$ |
(77,923 |
) |
Series A preferred
dividends |
|
|
4,901 |
|
|
|
4,959 |
|
Preferred dividends and
accretion on redeemable noncontrolling interest |
|
|
8,651 |
|
|
|
- |
|
Net income (loss) |
|
|
(587,641 |
) |
|
|
(72,964 |
) |
|
|
|
|
|
Impact of
Selected Items: |
|
|
|
|
Unrealized loss (gain)
on derivatives contracts: |
|
|
|
|
Crude oil |
|
$ |
7,581 |
|
|
$ |
25,347 |
|
Natural gas |
|
|
420 |
|
|
|
1,569 |
|
Total mark-to-market non-cash
charge |
|
|
8,001 |
|
|
|
26,916 |
|
Full cost ceiling
impairment |
|
|
554,003 |
|
|
|
61,165 |
|
Restructuring |
|
|
1,921 |
|
|
|
987 |
|
Rig termination /
stacking charges and other |
|
|
11,548 |
|
|
|
3,857 |
|
Selected items, before
income taxes |
|
|
575,473 |
|
|
|
92,925 |
|
Income tax effect of
selected items(1) |
|
|
(3,855 |
) |
|
|
(8,045 |
) |
Selected items, net of
tax |
|
|
571,618 |
|
|
|
84,880 |
|
|
|
|
|
|
As
Adjusted: |
|
|
|
|
Net income (loss)
available to common stockholders, excluding selected items |
|
$ |
(16,023 |
) |
|
$ |
11,916 |
|
Net income (loss) from
assumed conversions |
|
|
- |
|
|
|
- |
|
Net income (loss)
available to common stockholders after assumed conversions,
excluding selected items(2) |
|
$ |
(16,023 |
) |
|
$ |
11,916 |
|
|
|
|
|
|
Basic net income (loss)
per common share, as reported |
|
$ |
(1.43 |
) |
|
$ |
(0.19 |
) |
Impact of selected
items |
|
|
1.39 |
|
|
|
0.22 |
|
Basic net income (loss)
per common share, excluding selected items(2) |
|
$ |
(0.04 |
) |
|
$ |
0.03 |
|
|
|
|
|
|
Diluted net income
(loss) per common share, as reported |
|
$ |
(1.43 |
) |
|
$ |
(0.19 |
) |
Impact of selected
items |
|
|
1.39 |
|
|
|
0.22 |
|
Diluted net income
(loss) per common share, excluding selected items(2)(3) |
|
$ |
(0.04 |
) |
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities |
|
$ |
93,935 |
|
|
$ |
159,500 |
|
Changes in working
capital, net of acquisitions |
|
|
(28,041 |
) |
|
|
(19,288 |
) |
Cash flow from
operations before changes in working capital |
|
|
65,894 |
|
|
|
140,212 |
|
Cash components of
selected items |
|
|
48,530 |
|
|
|
4,379 |
|
Income tax effect of
selected items |
|
|
(4,051 |
) |
|
|
(1,583 |
) |
Cash flow from
operations before changes in working capital, adjusted for selected
items(2) |
|
$ |
110,373 |
|
|
$ |
143,008 |
|
|
|
|
|
|
|
|
|
(1) For the
2015 columns this represents tax impact using an estimated tax rate
of 37.04%. These columns include a $209.3 million adjustment for
the change in valuation allowance. For the 2014 columns this
represents tax impact using an estimated tax rate of 36.16%. These
columns include a $25.6 million adjustment for the change in
valuation allowance. |
(2) Net
income (loss) and earnings per share excluding selected items and
cash flow from operations before changes in working capital
adjusted for selected items are non-GAAP measures. These
financial measures are presented based on management's belief that
they will enable a user of the financial information to understand
the impact of these items on reported results. Additionally,
this presentation provides a beneficial comparison to similarly
adjusted measurements of prior periods. These financial
measures are not measures of financial performance under GAAP
and should not be considered as an alternative to net income,
earnings per share and cash flow from operations, as defined by
GAAP. These financial measures may not be comparable to
similarly named non-GAAP financial measures that other
companies may use and may not be useful in comparing the
performance of those companies to Halcón's performance. |
(3)
The impact of selected items for the three months ended March
31, 2015 and 2014 was calculated based upon weighted average
diluted shares of 419.7 million and 413.6 million, respectively,
due to the net income (loss) available to common stockholders,
excluding selected items. |
|
|
|
|
|
|
|
|
|
|
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