Halcón Resources Corporation (NYSE:HK) (“Halcón” or the “Company”)
today announced its first quarter 2016 results.
Production for the three months ended March 31,
2016 averaged 39,527 barrels of oil equivalent per day
(Boe/d). Production was comprised of 77% oil, 11% natural gas
liquids (NGLs) and 12% natural gas for the quarter.
Halcón generated total revenues of $81.3 million
for the first quarter of 2016. In addition, Halcón realized a
net gain on settled derivative contracts of $107.7 million during
the quarter.
Excluding the impact of hedges, Halcón realized
80% of the average NYMEX oil price, 14% of the average NYMEX oil
price for NGLs and 75% of the average NYMEX natural gas price
during the first quarter of 2016.
Total operating costs per unit, after adjusting
for selected items (see Selected Operating Data table for
additional information), decreased by 15% to $16.66 per Boe during
the three months ended March 31, 2016, compared to the same period
of 2015.
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), net income was $29.7 million, or $0.21 per diluted
share for the first quarter of 2016. Halcón reported a net
loss available to common stockholders of $566.9 million, or $4.72
per diluted share for the first quarter.
Liquidity and Capital
Spending
As of March 31, 2016 Halcón’s liquidity was
approximately $564 million, which consisted of cash on hand plus
undrawn capacity on the Company’s senior secured revolving credit
facility with a $700 million borrowing base. The Company’s
next scheduled borrowing base redetermination date is September 1,
2016.
During the first quarter of 2016, the Company
incurred capital costs of $52 million on drilling and completions,
and approximately $2 million on infrastructure, seismic and
leasehold acquisitions. In addition, Halcón incurred $36
million for capitalized interest, G&A and other.
Hedging Update
Halcón has 25,331 barrels per day of oil hedged
for the last nine months of 2016 at an average price of $80.50 per
barrel. For 2017, the Company has 3,750 barrels per day of
oil hedged at an average price of $65.75 per barrel. Halcón
estimates the pre-tax mark-to-market value of its hedge portfolio
to be approximately $220 million as of May 5, 2016.
Operations Update
The Company is currently running 1 operated rig
in the Fort Berthold area of the Williston Basin and plans to keep
this rig running through the remainder of 2016. Halcón has no
other operated rigs running and the Company does not plan
additional rigs until oil prices improve. The Company
currently has 14 wells in the Bakken being completed or waiting on
completion and none in the Eagle Ford.
Bakken/Three Forks
The Company operated an average of 2 rigs in
the Williston Basin during the first quarter of 2016.
Halcón spudded 4 wells and put 5 wells online in
the Fort Berthold area of the Williston Basin during the
three months ended March 31, 2016. The Company also participated in
3 non-operated wells during the quarter across the basin with an
average working interest of approximately 6.75%. Production
averaged 28,606 Boe/d during the first quarter of 2016 in the
Williston Basin.
Halcón currently has working interests in
approximately 123,000 net acres prospective for the Bakken and
Three Forks formations in the Williston Basin, substantially
all of which are held by production (HBP). With one operated rig
running, the Company plans to spud 15 gross operated wells over the
remaining nine months of 2016 with an average working interest of
approximately 64%. Halcón also expects to participate in 15-20
gross non-operated wells over the last nine months of 2016 with an
average working interest of approximately 0.5%. Halcón
expects operated wells put online over the remainder of 2016 to
have an average EUR of approximately 900 MBoe. Current
estimated operated drilling and completion costs are $6.2 million
in FBIR and $5.7 million in Williams County.
The Company is currently the operator of 211
producing Bakken wells and 66 Three Forks wells.
"El Halcón" - East Texas Eagle Ford
The Company operated 1 rig in El Halcón during
the first quarter of 2016. Halcón spudded 2 wells and put 4 wells
online in the play during the three months ended March 31,
2016. Production averaged 8,380 Boe/d during the first quarter of
2016 in El Halcón.
Halcón currently has working interests in
approximately 88,000 net acres prospective for the Eagle Ford
formation in East Texas, approximately 76% of which is HBP.
The Company currently operates 113 El Halcón wells. Halcón
anticipates adding a rig back to this area when oil prices
improve.
Conference Call and Webcast
Information
Halcón Resources Corporation (NYSE:HK) has
scheduled a conference call for Tuesday, May 10, 2016, 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 93994718. 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 until
May 17, 2016. To access the replay, dial (855) 859-2056 for
domestic callers or (404) 537-3406 for international callers, in
both cases referencing conference ID 93994718.
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 Quentin Hicks,
Senior Vice President of Finance & Investor Relations, at
832-538-0557 or qhicks@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. 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, 2015 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, |
|
|
| |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
| Operating revenues: |
|
|
|
|
|
|
| |
Oil, natural gas and natural gas liquids sales: |
|
|
|
|
|
|
| |
Oil |
|
|
$ |
74,967 |
|
|
$ |
124,413 |
|
|
|
| |
Natural gas |
|
|
|
3,742 |
|
|
|
6,959 |
|
|
|
| |
Natural gas liquids |
|
|
|
1,937 |
|
|
|
4,068 |
|
|
|
| |
Total oil, natural gas and natural
gas liquids sales |
|
|
|
80,646 |
|
|
|
135,440 |
|
|
|
| |
Other |
|
|
703 |
|
|
|
754 |
|
|
|
| |
Total operating revenues |
|
|
|
81,349 |
|
|
|
136,194 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
| |
Production: |
|
|
|
|
|
|
| |
Lease operating |
|
|
|
20,578 |
|
|
|
33,785 |
|
|
|
| |
Workover and other |
|
|
|
7,791 |
|
|
|
3,114 |
|
|
|
| |
Taxes other than income |
|
|
|
7,258 |
|
|
|
12,241 |
|
|
|
| |
Gathering
and other |
|
|
11,384 |
|
|
|
13,746 |
|
|
|
| |
Restructuring |
|
|
4,884 |
|
|
|
1,921 |
|
|
|
| |
General and
administrative |
|
|
41,616 |
|
|
|
24,409 |
|
|
|
| |
Depletion,
depreciation and accretion |
|
|
55,266 |
|
|
|
119,144 |
|
|
|
| |
Full cost
ceiling impairment |
|
|
496,900 |
|
|
|
554,003 |
|
|
|
| |
Other
operating property and equipment impairment |
|
|
28,056 |
|
|
|
- |
|
|
|
| |
Total operating expenses |
|
|
|
673,733 |
|
|
|
762,363 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Income (loss) from operations |
|
|
(592,384 |
) |
|
|
(626,169 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| Other income (expenses): |
|
|
|
|
|
|
| |
Net gain (loss) on derivative contracts |
|
|
18,742 |
|
|
|
99,748 |
|
|
|
| |
Interest expense and other, net |
|
|
(47,791 |
) |
|
|
(61,307 |
) |
|
|
| |
Gain (loss) on extinguishment of debt |
|
|
81,434 |
|
|
|
- |
|
|
|
| |
Total other income (expenses) |
|
|
|
52,385 |
|
|
|
38,441 |
|
|
|
| Income (loss) before income taxes |
|
|
(539,999 |
) |
|
|
(587,728 |
) |
|
|
| Income tax benefit (provision) |
|
|
- |
|
|
|
87 |
|
|
|
| Net income (loss) |
|
|
(539,999 |
) |
|
|
(587,641 |
) |
|
|
| Series A preferred dividends |
|
|
(3,198 |
) |
|
|
(4,901 |
) |
|
|
| Preferred dividends and accretion on redeemable noncontrolling
interest |
|
(23,665 |
) |
|
|
(8,651 |
) |
|
|
| Net income (loss) available to common
stockholders |
|
$ |
(566,862 |
) |
|
$ |
(601,193 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) per share of common
stock: |
|
|
|
|
|
|
| |
Basic |
|
|
$ |
(4.72 |
) |
|
$ |
(7.16 |
) |
|
|
| |
Diluted |
|
|
$ |
(4.72 |
) |
|
$ |
(7.16 |
) |
|
|
| Weighted average common shares
outstanding: |
|
|
|
|
|
|
| |
Basic |
|
|
|
120,011 |
|
|
|
83,937 |
|
|
|
| |
Diluted |
|
|
|
120,011 |
|
|
|
83,937 |
|
|
|
| |
|
|
|
|
|
|
|
|
| HALCÓN RESOURCES CORPORATION |
|
| CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) |
|
| (In thousands, except share and per share
amounts) |
|
| |
|
|
|
|
|
| |
|
March 31, |
|
December 31, |
|
| |
|
|
2016 |
|
|
|
2015 |
|
|
|
Current assets: |
|
|
|
|
|
|
Cash |
$ |
8,603 |
|
|
$ |
8,026 |
|
|
|
|
Accounts
receivable |
|
139,245 |
|
|
|
173,624 |
|
|
|
|
Receivables from derivative contracts |
|
262,493 |
|
|
|
348,861 |
|
|
|
|
Restricted cash |
|
16,977 |
|
|
|
16,812 |
|
|
|
|
Inventory |
|
4,761 |
|
|
|
4,635 |
|
|
|
|
Prepaids
and other |
|
7,923 |
|
|
|
4,635 |
|
|
|
|
Total current assets |
|
440,002 |
|
|
|
556,593 |
|
|
| Oil
and natural gas properties (full cost method): |
|
|
|
|
|
|
Evaluated |
|
7,522,052 |
|
|
|
7,060,721 |
|
|
|
|
Unevaluated |
|
1,270,045 |
|
|
|
1,641,356 |
|
|
|
|
Gross oil and natural gas
properties |
|
8,792,097 |
|
|
|
8,702,077 |
|
|
|
|
Less - accumulated
depletion |
|
(6,483,529 |
) |
|
|
(5,933,688 |
) |
|
|
|
Net oil and natural gas
properties |
|
2,308,568 |
|
|
|
2,768,389 |
|
|
|
Other operating property and equipment: |
|
|
|
|
|
|
Gas gathering and other
operating assets |
|
100,187 |
|
|
|
130,090 |
|
|
|
|
Less - accumulated
depreciation |
|
(21,795 |
) |
|
|
(22,435 |
) |
|
| |
Net other operating property and
equipment |
|
78,392 |
|
|
|
107,655 |
|
|
|
Other noncurrent assets: |
|
|
|
|
|
|
Receivables from
derivative contracts |
|
13,857 |
|
|
|
16,614 |
|
|
|
|
Debt issuance costs,
net |
|
6,007 |
|
|
|
7,633 |
|
|
|
|
Equity in oil and
natural gas partnership |
|
64 |
|
|
|
209 |
|
|
|
|
Funds in escrow and
other |
|
1,590 |
|
|
|
1,599 |
|
|
|
Total assets |
$ |
2,848,480 |
|
|
$ |
3,458,692 |
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable and
accrued liabilities |
$ |
213,615 |
|
|
$ |
295,085 |
|
|
|
|
Asset retirement
obligations |
|
164 |
|
|
|
163 |
|
|
|
|
Total current liabilities |
|
213,779 |
|
|
|
295,248 |
|
|
|
Long-term debt, net |
|
2,879,517 |
|
|
|
2,873,637 |
|
|
|
Other noncurrent liabilities: |
|
|
|
|
|
|
Liabilities from
derivative contracts |
|
143 |
|
|
|
290 |
|
|
|
|
Asset retirement
obligations |
|
47,948 |
|
|
|
46,853 |
|
|
|
|
Other |
|
7,238 |
|
|
|
6,264 |
|
|
| Commitments and contingencies |
|
|
|
|
|
Mezzanine equity: |
|
|
|
|
|
|
Redeemable
noncontrolling interest |
|
207,651 |
|
|
|
183,986 |
|
|
|
Stockholders' equity (deficit): |
|
|
|
|
|
|
Preferred stock:
1,000,000 shares of $0.0001 par value authorized; 222,454 and
244,724 |
|
|
|
|
|
|
shares of 5.75% Cumulative
Perpetual Convertible Series A, issued and outstanding |
|
|
|
|
|
|
at March 31, 2016 and December 31,
2015, respectively |
|
- |
|
|
|
- |
|
|
|
|
Common stock:
1,340,000,000 shares of $0.0001 par value authorized; |
|
|
|
|
|
|
122,739,612 and 122,523,559 shares
issued and outstanding |
|
|
|
|
|
|
at March 31, 2016 and December 31,
2015, respectively |
|
12 |
|
|
|
12 |
|
|
|
|
Additional paid-in
capital |
|
3,286,551 |
|
|
|
3,283,097 |
|
|
|
|
Accumulated
deficit |
|
(3,794,359 |
) |
|
|
(3,230,695 |
) |
|
|
|
Total stockholders' equity
(deficit) |
|
(507,796 |
) |
|
|
52,414 |
|
|
|
Total liabilities and stockholders' equity
(deficit) |
$ |
2,848,480 |
|
|
$ |
3,458,692 |
|
|
| |
|
|
|
|
|
|
|
|
|
| HALCÓN RESOURCES CORPORATION |
|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited) |
|
| (In thousands) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Three Months Ended March 31, |
|
| |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
| Cash flows from operating activities: |
|
|
|
|
|
| Net income
(loss) |
|
$ |
(539,999 |
) |
|
$ |
(587,641 |
) |
|
| Adjustments
to reconcile net income (loss) to net cash |
|
|
|
|
|
| provided by
(used in) operating activities: |
|
|
|
|
|
| |
Depletion,
depreciation and accretion |
|
|
55,266 |
|
|
|
119,144 |
|
|
| |
Full cost
ceiling impairment |
|
|
496,900 |
|
|
|
554,003 |
|
|
| |
Other
operating property and equipment impairment |
|
|
28,056 |
|
|
|
- |
|
|
| |
Share-based
compensation, net |
|
|
2,145 |
|
|
|
4,772 |
|
|
| |
Unrealized
loss (gain) on derivative contracts |
|
|
88,978 |
|
|
|
8,001 |
|
|
| |
Amortization and write-off of deferred loan costs |
|
|
1,746 |
|
|
|
1,559 |
|
|
| |
Non-cash
interest and amortization of discount and premium |
|
|
551 |
|
|
|
1,107 |
|
|
| |
Loss (gain)
on extinguishment of debt |
|
|
(81,434 |
) |
|
|
- |
|
|
| |
Accrued
settlements on derivative contracts |
|
|
(32,882 |
) |
|
|
(37,592 |
) |
|
| |
Other
income (expense) |
|
|
1,925 |
|
|
|
2,541 |
|
|
| Cash flow
from operations before changes in working capital |
|
|
21,252 |
|
|
|
65,894 |
|
|
| Changes in
working capital |
|
|
13,122 |
|
|
|
28,041 |
|
|
| Net cash
provided by (used in) operating activities |
|
|
34,374 |
|
|
|
93,935 |
|
|
| |
|
|
|
|
|
|
|
| Cash flows from investing activities: |
|
|
|
|
|
| |
Oil and
natural gas capital expenditures |
|
|
(116,759 |
) |
|
|
(264,626 |
) |
|
| |
Other
operating property and equipment capital expenditures |
|
|
(646 |
) |
|
|
(4,345 |
) |
|
| |
Funds held
in escrow and other |
|
|
(351 |
) |
|
|
959 |
|
|
| Net cash
provided by (used in) investing activities |
|
|
(117,756 |
) |
|
|
(268,012 |
) |
|
| |
|
|
|
|
|
|
|
| Cash flows from financing activities: |
|
|
|
|
|
| |
Proceeds
from borrowings |
|
|
286,000 |
|
|
|
361,000 |
|
|
| |
Repayments
of borrowings |
|
|
(200,648 |
) |
|
|
(217,000 |
) |
|
| |
Debt
issuance costs |
|
|
(1,185 |
) |
|
|
- |
|
|
| |
Common
stock issued |
|
|
- |
|
|
|
6,019 |
|
|
| |
Restricted
cash |
|
|
(151 |
) |
|
|
(191 |
) |
|
| |
Offering
costs and other |
|
|
(57 |
) |
|
|
(853 |
) |
|
| Net cash
provided by (used in) financing activities |
|
|
83,959 |
|
|
|
148,975 |
|
|
| |
|
|
|
|
|
|
|
| Net increase (decrease) in cash |
|
|
577 |
|
|
|
(25,102 |
) |
|
|
|
|
|
|
|
|
|
|
| Cash at
beginning of period |
|
|
8,026 |
|
|
|
43,713 |
|
|
| Cash at end
of period |
|
$ |
8,603 |
|
|
$ |
18,611 |
|
|
| |
|
|
|
|
|
|
|
| HALCÓN RESOURCES CORPORATION |
|
| SELECTED OPERATING DATA |
|
| (Unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
Production volumes: |
|
|
|
| Crude oil (MBbls) |
|
2,776 |
|
|
3,096 |
|
|
| Natural gas (MMcf) |
|
2,520 |
|
|
2,635 |
|
|
| Natural gas liquids (MBbls) |
|
401 |
|
|
342 |
|
|
| Total (MBoe) |
|
3,597 |
|
|
3,877 |
|
|
| Average daily production
(Boe/d) |
|
39,527 |
|
|
43,078 |
|
|
|
|
|
|
|
| Average
prices: |
|
|
|
| Crude oil (per Bbl) |
$ |
27.01 |
|
$ |
40.19 |
|
|
| Natural gas (per Mcf) |
|
1.48 |
|
|
2.64 |
|
|
| Natural gas liquids (per Bbl) |
|
4.83 |
|
|
11.89 |
|
|
| Total per Boe |
|
22.42 |
|
|
34.93 |
|
|
|
|
|
|
|
| Cash
effect of derivative contracts: |
|
|
|
| Crude oil (per Bbl) |
$ |
38.68 |
|
$ |
34.27 |
|
|
| Natural gas (per Mcf) |
|
0.14 |
|
|
0.62 |
|
|
| Natural gas liquids (per Bbl) |
|
- |
|
|
- |
|
|
| Total per Boe |
|
29.95 |
|
|
27.79 |
|
|
|
|
|
|
|
| Average
prices computed after cash effect of settlement of derivative
contracts: |
|
|
|
| Crude oil (per Bbl) |
$ |
65.69 |
|
$ |
74.46 |
|
|
| Natural gas (per Mcf) |
|
1.62 |
|
|
3.26 |
|
|
| Natural gas liquids (per Bbl) |
|
4.83 |
|
|
11.89 |
|
|
| Total per Boe |
|
52.37 |
|
|
62.72 |
|
|
|
|
|
|
|
| Average
cost per Boe: |
|
|
|
| Production: |
|
|
|
| Lease operating |
$ |
5.72 |
|
$ |
8.71 |
|
|
| Workover and other |
|
2.17 |
|
|
0.80 |
|
|
| Taxes other than income |
|
2.02 |
|
|
3.16 |
|
|
| Gathering and other, as adjusted
(1) |
|
2.23 |
|
|
2.00 |
|
|
| Restructuring |
|
1.36 |
|
|
0.50 |
|
|
| General and administrative, as
adjusted (1) |
|
4.52 |
|
|
4.93 |
|
|
| Depletion |
|
14.72 |
|
|
30.08 |
|
|
| |
|
|
|
| (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 |
$ |
11.57 |
|
$ |
6.29 |
|
|
| Share-based compensation: |
|
|
|
| Non-cash |
|
(0.60 |
) |
|
(1.23 |
) |
|
| Transaction costs, key employee
retention agreements and other: |
|
|
|
| Cash |
|
(6.45 |
) |
|
(0.13 |
) |
|
| General and administrative, as
adjusted |
$ |
4.52 |
|
$ |
4.93 |
|
|
|
|
|
|
|
| Gathering and other, as reported |
$ |
3.16 |
|
$ |
3.55 |
|
|
| Rig termination / stacking
charges |
|
(0.93 |
) |
|
(1.55 |
) |
|
| Gathering and other, as adjusted |
$ |
2.23 |
|
$ |
2.00 |
|
|
|
|
|
|
|
| Total operating costs,
as reported |
$ |
24.64 |
|
$ |
22.51 |
|
|
| Total adjusting items |
|
(7.98 |
) |
|
(2.91 |
) |
|
| Total operating costs,
as adjusted(2) |
$ |
16.66 |
|
$ |
19.60 |
|
|
|
|
|
|
|
| (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, |
|
| |
|
|
2016 |
|
|
|
2015 |
|
|
| As
Reported: |
|
|
|
|
|
| Net income (loss)
available to common stockholders, as reported |
|
$ |
(566,862 |
) |
|
$ |
(601,193 |
) |
|
| Series A preferred
dividends |
|
|
3,198 |
|
|
|
4,901 |
|
|
| Preferred dividends and
accretion on redeemable noncontrolling interest |
|
|
23,665 |
|
|
|
8,651 |
|
|
| Net income (loss), as
reported |
|
|
(539,999 |
) |
|
|
(587,641 |
) |
|
| |
|
|
|
|
|
| Impact of
Selected Items: |
|
|
|
|
|
| Unrealized loss (gain)
on derivatives contracts: |
|
|
|
|
|
| Crude oil |
|
$ |
88,841 |
|
|
$ |
7,581 |
|
|
| Natural gas |
|
|
137 |
|
|
|
420 |
|
|
| Total mark-to-market non-cash
charge |
|
|
88,978 |
|
|
|
8,001 |
|
|
| Full cost ceiling
impairment |
|
|
496,900 |
|
|
|
554,003 |
|
|
| Other operating
property and equipment impairment |
|
|
28,056 |
|
|
|
- |
|
|
| Loss (gain) on
extinguishment of debt |
|
|
(81,434 |
) |
|
|
- |
|
|
| Deferred financing
costs expensed, net (1) |
|
|
665 |
|
|
|
- |
|
|
| Restructuring |
|
|
4,884 |
|
|
|
1,921 |
|
|
| Rig termination /
stacking charges, key employee retention agreements and other |
|
|
27,524 |
|
|
|
11,548 |
|
|
| Selected items, before
income taxes |
|
|
565,573 |
|
|
|
575,473 |
|
|
| Income tax effect of
selected items (2) |
|
|
- |
|
|
|
(3,855 |
) |
|
| Selected items, net of
tax |
|
|
565,573 |
|
|
|
571,618 |
|
|
| |
|
|
|
|
|
| As
Adjusted: |
|
|
|
|
|
| Net income (loss)
available to common stockholders, excluding selected items |
|
$ |
25,574 |
|
|
$ |
(16,023 |
) |
|
| Net income (loss) from
assumed conversions |
|
|
4,140 |
|
|
|
- |
|
|
| Net income (loss)
available to common stockholders after assumed conversions,
excluding selected items (3) |
|
$ |
29,714 |
|
|
$ |
(16,023 |
) |
|
| |
|
|
|
|
|
| Basic net income (loss)
per common share, as reported |
|
$ |
(4.72 |
) |
|
$ |
(7.16 |
) |
|
| Impact of selected
items |
|
|
4.93 |
|
|
|
6.97 |
|
|
| Basic net income (loss)
per common share, excluding selected items (3) |
|
$ |
0.21 |
|
|
$ |
(0.19 |
) |
|
| |
|
|
|
|
|
| Diluted net income
(loss) per common share, as reported |
|
$ |
(4.72 |
) |
|
$ |
(7.16 |
) |
|
| Impact of selected
items |
|
|
4.93 |
|
|
|
6.97 |
|
|
| Diluted net income
(loss) per common share, excluding selected items (3)(4) |
|
$ |
0.21 |
|
|
$ |
(0.19 |
) |
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| Net cash provided by
(used in) operating activities |
|
$ |
34,374 |
|
|
$ |
93,935 |
|
|
| Changes in working
capital |
|
|
(13,122 |
) |
|
|
(28,041 |
) |
|
| Cash flow from
operations before changes in working capital |
|
|
21,252 |
|
|
|
65,894 |
|
|
| Cash components of
selected items |
|
|
63,455 |
|
|
|
48,530 |
|
|
| Income tax effect of
selected items (2) |
|
|
- |
|
|
|
(4,051 |
) |
|
| Cash flow from
operations before changes in working capital, adjusted for selected
items (4) |
|
$ |
84,707 |
|
|
$ |
110,373 |
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| (1)
Represents charges related to the write-off of debt issuance costs
associated with decreases in the Company's borrowing base under its
senior revolving credit facility. |
|
| (2) For the
2016 column this represents tax impact using an estimated tax rate
of 0.0% due to the Company maintaining a full valuation allowance.
For the 2015 column this represents tax impact using an estimated
tax rate of 37.04%. This column includes a $209.3 million
adjustment for the change in valuation allowance. |
|
| (3) 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. |
|
| (4) The
impact of selected items for the three months ended March 31, 2016
and 2015 was calculated based upon weighted average diluted shares
of 143.8 million and 83.9 million, respectively, due to the net
income available to common stockholders, excluding selected
items. |
|
| |
|
|
|
|
|
Quentin Hicks
SVP, Finance & Investor Relations
(832) 538-0557
Halcon Resources (NYSE:HK)
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From Mar 2024 to Apr 2024
Halcon Resources (NYSE:HK)
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From Apr 2023 to Apr 2024
