Halcón Resources Corporation (NYSE:HK) (“Halcón” or the “Company”)
today announced its fourth quarter and full year 2016 results.
Production for the three months and full year
ended December 31, 2016 averaged 38,620 barrels of oil equivalent
per day (Boe/d) and 37,049 Boe/d, respectively. Production
was comprised of 76% oil, 12% natural gas liquids (NGLs) and 12%
natural gas for the quarter and for the full year. Halcón’s
fourth quarter production was negatively impacted by approximately
800 Boe/d due to inclement weather in the Williston
Basin.
Halcón generated total revenues of $130.3
million for the fourth quarter of 2016 and $420.2 million for the
full year. Adjusted EBITDA (see EBITDA Reconciliation table
for additional information) totaled $131.6 million and $518.6
million for the fourth quarter and full year 2016,
respectively.
Excluding the impact of hedges, Halcón realized
89% of the average NYMEX oil price, 25% of the average NYMEX oil
price for NGLs and 80% of the average NYMEX natural gas price
during the fourth quarter 2016. For the full year 2016,
excluding the impact of hedges, the Company realized 86% of the
average NYMEX oil price, 20% of the average NYMEX oil price for
NGLs and 70% of the average NYMEX natural gas price. Realized
hedge proceeds totaled approximately $62 million in the fourth
quarter and $330 million for the full year 2016.
Total operating costs per unit, after adjusting
for selected items (see Selected Operating Data table for
additional information), decreased by 4% to $17.06 per Boe during
the three months ended December 31, 2016, compared to the same
period of 2015. Total operating costs per unit for the full
year, after adjusting for selected items, were $17.10 per Boe,
representing a decrease of 5% compared to the full year
2015.
After adjusting for selected items (see Selected
Item Review and Reconciliation table for additional information),
net income was $60.6 million, or $0.66 per diluted share for the
fourth quarter of 2016. Halcón reported a net loss available
to common stockholders of $28.5 million, or $0.31 per diluted share
for the fourth quarter of 2016.
Liquidity and Capital
Spending
As of December 31, 2016 Halcón’s liquidity pro
forma for its recently announced acquisitions, divestitures and
capital market activities was approximately $699 million, which
consisted of cash on hand plus undrawn capacity on the Company’s
senior secured revolving credit facility which has a $600 million
borrowing base. Halcón is currently working with its senior
lenders on its spring 2017 redetermination and expects the
borrowing base to be revised to an amount between $600 million and
$650 million.
During the fourth quarter of 2016, the Company
incurred capital costs of approximately $44 million on drilling and
completions, and $8 million on infrastructure, seismic and
leasehold acquisitions. In addition, Halcón incurred less
than $2 million for capitalized interest, G&A and other.
The Company incurred capital costs of $175
million on drilling and completions, $2 million on
infrastructure/seismic and $12 million on leasehold acquisitions in
2016. In addition, Halcón incurred $79 million for
capitalized interest, G&A and other.
Guidance Update
The table below outlines the Company’s financial
guidance for the full year 2017. Halcón has revised its
D&C capex guidance for 2017 up to $300 million vs. prior
guidance of $280 million. This increase is driven primarily
by changing the drilling plan in Pecos County to drill more longer
lateral wells and adding two new wells to its Ward County asset
drilling plan based on the positive initial pilot well
results. Halcón expects its first quarter 2017 production to
average between 36,000 and 37,000 Boe/d which includes the negative
impact of approximately 750 Boe/d from inclement winter weather in
the Williston Basin. The Company expects second quarter
production to average between 32,000 and 34,000 Boe/d with the
second half of 2017 averaging between 40,000 and 42,000
Boe/d. Halcón’s production is back-end weighted in 2017 due
to the timing of its El Halcón sale and the acquisition of its
Delaware Basin assets in addition to the timing of completions in
which very few wells are expected to be put online during the first
5 months of 2017. The first and second quarters are
historically light on completion activity in the Williston Basin as
the Company tries to plan completions in months where winter
weather or the spring thaw is not an issue.
|
|
|
Guidance |
|
|
|
|
|
Guidance |
|
2017 Average Annual
Production (MBoe/d) |
|
|
37 -
39 |
|
|
%
Oil |
|
|
80.0% |
|
|
%
Gas |
|
|
10.0% |
|
|
%
NGL |
|
|
10.0% |
|
|
|
|
|
|
2017 Total D&C
Capex ($MM) |
|
|
$300 |
|
|
%
Bakken |
|
|
65% |
|
|
%
Delaware |
|
|
35% |
|
|
Infrastructure, Seismic
and Other Capex ($MM) |
|
|
$15 |
|
|
|
|
|
|
LOE & Workover
($/Boe) |
|
$8.00 - $10.00 |
|
Production Taxes
($/Boe) |
|
$3.50 - $5.50 |
|
Cash G&A
($/Boe) |
|
$3.00 - $5.00 |
|
GTO ($/Boe) |
|
$3.00 - $4.00 |
|
|
|
|
|
Note:
Assumes Pecos County acquisition in Delaware Basin which closed
on February 28, 2017 and El Halcón sale closes on March 9,
2017. |
|
|
|
|
|
|
Hedging Update
As of February 28, 2017, Halcón had 18,750
barrels per day of oil hedged for 2017 at an average price of
$55.07 per barrel. For 2018, the Company had 4,000 barrels
per day of oil hedged at an average price of $55.25 per
barrel.
Year End 2016 Proved
Reserves
The Company's estimated proved reserves as of
December 31, 2016 were approximately 148.6 million barrels of oil
equivalent (MMBoe). Year-end 2016 estimated proved reserves were
80% oil, 11% NGLs and 9% natural gas on an equivalent basis. Of
total estimated proved reserves, 76% were in the Williston Basin,
24% were in the East Texas Eagle Ford ("El Halcón") and less than
1% were in other areas. Year-end 2016 estimated proved reserves
were approximately 95% Company-operated and 58% proved
developed.
Halcón's estimated proved reserves at December
31, 2016 were prepared by the independent reserve engineering firm
Netherland, Sewell and Associates, Inc. in accordance with
Securities and Exchange Commission guidelines using average West
Texas Intermediate (WTI) crude oil spot price of $42.75 per barrel
for oil and Henry Hub natural gas spot price of $2.48 per million
British Thermal Unit for natural gas, before adjustments for energy
content, quality, midstream fees and basis
differentials.
Operations Update
Delaware Basin
As previously announced, Halcón closed today on
the acquisition of 20,901 net acres and ~2,600 Boe/d of
current production in Pecos County, Texas for $705 million in cash
consideration. Since the announcement, the Company has agreed
to acquire additional interests from a non-operating owner in the
acreage for $22.3 million. This incremental acquisition
includes 594 additional net acres and ~160 Boe/d of current
production and is expected to close in early March.
Halcón has also entered into an option agreement
which allows it to purchase up to 15,040 net acres located
primarily in Ward County, Texas for a cost of $11,000 per
acre. The Company recently completed drilling a vertical
“Pilot” well on the southern tract of the acreage. The
results from this vertical well indicated oil saturation across
1,000 vertical feet from the base of the third Bone Springs
carbonate to the base of the Wolfcamp section. The Company
also recently began drilling a horizontal well offsetting the pilot
hole in the upper Wolfcamp interval and expects to put this well
online in the second quarter of 2017. Halcón is also planning
to drill a vertical pilot well followed by a horizontal well on the
northern tract of the acreage in the third quarter of 2017.
Halcón expects to add a second operated rig to
the Delaware Basin in March 2017. The current plan is to run
these two rigs primarily in Pecos County during 2017 with just two
horizontal wells planned in Ward County. The Company plans to
spud 15 to 25 gross operated wells in the Delaware Basin in 2017
with an average working interest of approximately 67%. Halcón
expects to put 10 to 15 gross wells online in 2017 with an average
working interest of approximately 76%.
Williston Basin
Halcón currently has working interests in
approximately 121,000 net acres prospective for the Bakken and
Three Forks formations in the Williston Basin, substantially
all of which is held by production (HBP).
The Company operated an average of 1 rig and
1.25 rigs in the Williston Basin during the fourth
quarter and full year 2016, respectively.
Halcón spudded 7 wells and put 16 wells online
in the Williston Basin during the three months
ended December 31, 2016. The Company also participated in 15
non-operated wells during the quarter with an average working
interest of approximately 2.4%. Production averaged 30,797 Boe/d
during the fourth quarter of 2016 in the Williston Basin.
For the full year 2016, Halcón spudded 21 wells
and put 36 wells online in the Williston Basin. The Company
also participated in 22 non-operated wells during the year with an
average working interest of approximately 3.2%.
Halcón is currently running 1 operated rig and
plans to continue to run this rig on its FBIR acreage throughout
2017. The Company expects to add a second operated rig
beginning in second quarter of 2017. Halcón plans to drill
two pads on FBIR before moving it to Williams County in Q3 of 2017
to drill a five-well pad. The Company’s average estimated
D&C costs for its 2017 drilling plans are $5.9 million in FBIR
and $5.4 million in Williams County.
The Company plans to operate an average of 1.75
rigs and spud 45 to 50 gross operated wells in the Williston Basin
in 2017 with an average working interest of approximately 72%.
Halcón expects to put 30 to 35 gross wells online in 2017 with an
average working interest of approximately 78%. Halcón also expects
to participate in 100 to 120 gross non-operated wells in 2017 with
an average working interest of approximately 1.5%.
The Company is currently the operator of 225
producing Bakken wells and 75 Three Forks wells. Halcón currently
has 6 Bakken wells and 4 Three Forks wells being completed or
waiting on completion on its operated acreage.
"El Halcón" - East Texas Eagle Ford
As previously announced, Halcón has entered into
a purchase and sale agreement to divest its El Halcón assets for
$500 million in cash consideration. This sale is expected to
close in early March 2017.
The Company has had no rigs running in its El
Halcón area since the first quarter of 2016. For the full
year 2016, Halcón spudded 2 gross wells and put 7 gross wells
online. Production averaged 6,092 Boe/d during the fourth
quarter of 2016.
Fresh Start Accounting
Halcón adopted fresh-start accounting as of
September 9, 2016, the effective date of its emergence from chapter
11 bankruptcy proceedings, resulting in the Company becoming a new
entity for financial reporting purposes. Upon the adoption of
fresh-start accounting, Halcón’s assets and liabilities were
recorded at their fair values as of the fresh-start reporting date,
and as a result the Company’s consolidated financial statements
subsequent to September 9, 2016 may not be comparable to its
financial statements prior to September 9, 2016. Please
review Halcón’s Form 10-K for the year ended December 31, 2016 for
further details regarding fresh-start accounting and the financial
information presented at the end of this release.
Conference Call and Webcast
Information
Halcón Resources Corporation (NYSE:HK) has
scheduled a conference call for Wednesday, March 1, 2017, at 9:00
a.m. EST (8:00 a.m. CST). 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 65262241. 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. To access the replay,
dial (855) 859-2056 for domestic callers or (404) 537-3406 for
international callers, in both cases referencing conference ID
65262241.
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, 2016 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 |
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) |
(In thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
|
Predecessor |
|
Successor |
|
|
|
Predecessor |
|
|
|
|
|
|
|
|
|
|
|
Period from |
|
|
|
Period from |
|
|
|
|
|
|
|
Three Months |
|
|
|
Three Months |
|
September 10, 2016 |
|
|
|
January 1, 2016 |
|
|
|
|
|
|
|
Ended |
|
|
|
Ended |
|
through |
|
|
|
through |
|
Year Ended |
|
|
|
|
|
December 31, 2016 |
|
|
|
December 31, 2015 |
|
December 31, 2016 |
|
|
|
September 9, 2016 |
|
December 31, 2015 |
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil,
natural gas and natural gas liquids sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil |
|
$ |
118,526 |
|
|
|
|
|
$ |
107,978 |
|
|
|
|
$ |
139,786 |
|
|
|
|
|
$ |
248,064 |
|
|
$ |
512,346 |
|
|
|
Natural
gas |
|
|
5,933 |
|
|
|
|
|
|
4,914 |
|
|
|
|
|
6,756 |
|
|
|
|
|
|
9,511 |
|
|
|
22,509 |
|
|
|
Natural gas
liquids |
|
|
5,220 |
|
|
|
|
|
|
3,052 |
|
|
|
|
|
6,018 |
|
|
|
|
|
|
7,929 |
|
|
|
13,624 |
|
|
|
|
Total oil, natural gas
and natural gas liquids sales |
|
|
129,679 |
|
|
|
|
|
|
115,944 |
|
|
|
|
|
152,560 |
|
|
|
|
|
|
265,504 |
|
|
|
548,479 |
|
|
Other |
|
|
576 |
|
|
|
|
|
|
177 |
|
|
|
|
|
802 |
|
|
|
|
|
|
1,339 |
|
|
|
1,799 |
|
|
|
|
Total operating
revenues |
|
|
130,255 |
|
|
|
|
|
|
116,121 |
|
|
|
|
|
153,362 |
|
|
|
|
|
|
266,843 |
|
|
|
550,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
operating |
|
|
18,591 |
|
|
|
|
|
|
22,324 |
|
|
|
|
|
22,382 |
|
|
|
|
|
|
50,032 |
|
|
|
103,590 |
|
|
|
Workover
and other |
|
|
8,945 |
|
|
|
|
|
|
9,248 |
|
|
|
|
|
10,510 |
|
|
|
|
|
|
22,507 |
|
|
|
20,862 |
|
|
|
Taxes other
than income |
|
|
10,191 |
|
|
|
|
|
|
11,644 |
|
|
|
|
|
12,364 |
|
|
|
|
|
|
24,453 |
|
|
|
48,890 |
|
|
Gathering
and other |
|
|
12,040 |
|
|
|
|
|
|
9,698 |
|
|
|
|
|
14,677 |
|
|
|
|
|
|
29,279 |
|
|
|
40,281 |
|
|
Restructuring |
|
|
- |
|
|
|
|
|
|
222 |
|
|
|
|
|
- |
|
|
|
|
|
|
5,168 |
|
|
|
2,886 |
|
|
General and
administrative |
|
|
24,714 |
|
|
|
|
|
|
19,668 |
|
|
|
|
|
41,395 |
|
|
|
|
|
|
83,641 |
|
|
|
87,766 |
|
|
Depletion,
depreciation and accretion |
|
|
37,848 |
|
|
|
|
|
|
66,795 |
|
|
|
|
|
46,899 |
|
|
|
|
|
|
120,555 |
|
|
|
364,204 |
|
|
Full cost
ceiling impairment |
|
|
- |
|
|
|
|
|
|
611,787 |
|
|
|
|
|
420,934 |
|
|
|
|
|
|
754,769 |
|
|
|
2,626,305 |
|
|
Other
operating property and equipment impairment |
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
|
28,056 |
|
|
|
- |
|
|
|
|
Total operating
expenses |
|
|
112,329 |
|
|
|
|
|
|
751,386 |
|
|
|
|
|
569,161 |
|
|
|
|
|
|
1,118,460 |
|
|
|
3,294,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
|
17,926 |
|
|
|
|
|
|
(635,265 |
) |
|
|
|
|
(415,799 |
) |
|
|
|
|
|
(851,617 |
) |
|
|
(2,744,506 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain
(loss) on derivative contracts |
|
|
(20,165 |
) |
|
|
|
|
|
93,459 |
|
|
|
|
|
(27,740 |
) |
|
|
|
|
|
(17,998 |
) |
|
|
310,264 |
|
|
Interest
expense and other, net |
|
|
(23,382 |
) |
|
|
|
|
|
(52,672 |
) |
|
|
|
|
(28,861 |
) |
|
|
|
|
|
(122,249 |
) |
|
|
(232,878 |
) |
|
Reorganization items |
|
|
(1,493 |
) |
|
|
|
|
|
- |
|
|
|
|
|
(2,049 |
) |
|
|
|
|
|
913,722 |
|
|
|
- |
|
|
Gain (loss)
on extinguishment of debt |
|
|
- |
|
|
|
|
|
|
203,897 |
|
|
|
|
|
- |
|
|
|
|
|
|
81,434 |
|
|
|
761,804 |
|
|
Gain (loss)
on extinguishment of Convertible Note and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
modification of February 2012 Warrants |
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
(8,219 |
) |
|
Total other income (expenses) |
|
|
(45,040 |
) |
|
|
|
|
|
244,684 |
|
|
|
|
|
(58,650 |
) |
|
|
|
|
|
854,909 |
|
|
|
830,971 |
|
Income
(loss) before income taxes |
|
|
(27,114 |
) |
|
|
|
|
|
(390,581 |
) |
|
|
|
|
(474,449 |
) |
|
|
|
|
|
3,292 |
|
|
|
(1,913,535 |
) |
Income tax
benefit (provision) |
|
|
(1,387 |
) |
|
|
|
|
|
(2,862 |
) |
|
|
|
|
(4,744 |
) |
|
|
|
|
|
8,666 |
|
|
|
(9,086 |
) |
Net
income (loss) |
|
|
(28,501 |
) |
|
|
|
|
|
(393,443 |
) |
|
|
|
|
(479,193 |
) |
|
|
|
|
|
11,958 |
|
|
|
(1,922,621 |
) |
Series A
preferred dividends |
|
|
- |
|
|
|
|
|
|
(3,518 |
) |
|
|
|
|
- |
|
|
|
|
|
|
(8,847 |
) |
|
|
(17,517 |
) |
Preferred
dividends and accretion on redeemable noncontrolling interest |
|
- |
|
|
|
|
|
|
(27,751 |
) |
|
|
|
|
(791 |
) |
|
|
|
|
|
(35,905 |
) |
|
|
(66,820 |
) |
Net
income (loss) available to common stockholders |
|
$ |
(28,501 |
) |
|
|
|
|
$ |
(424,712 |
) |
|
|
|
$ |
(479,984 |
) |
|
|
|
|
$ |
(32,794 |
) |
|
$ |
(2,006,958 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) per share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.31 |
) |
|
|
|
|
$ |
(3.56 |
) |
|
|
|
$ |
(5.26 |
) |
|
|
|
|
$ |
(0.27 |
) |
|
$ |
(18.66 |
) |
|
|
Diluted |
|
$ |
(0.31 |
) |
|
|
|
|
$ |
(3.56 |
) |
|
|
|
$ |
(5.26 |
) |
|
|
|
|
$ |
(0.27 |
) |
|
$ |
(18.66 |
) |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
91,251 |
|
|
|
|
|
|
119,420 |
|
|
|
|
|
91,228 |
|
|
|
|
|
|
120,513 |
|
|
|
107,531 |
|
|
|
Diluted |
|
|
91,251 |
|
|
|
|
|
|
119,420 |
|
|
|
|
|
91,228 |
|
|
|
|
|
|
120,513 |
|
|
|
107,531 |
|
HALCÓN RESOURCES CORPORATION |
CONSOLIDATED BALANCE SHEETS
(Unaudited) |
(In thousands, except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
|
Predecessor |
|
|
|
|
December 31, 2016 |
|
|
|
December 31, 2015 |
Current assets: |
|
|
|
|
|
|
|
Cash |
|
$ |
24 |
|
|
|
|
$ |
8,026 |
|
|
Accounts
receivable |
|
|
147,762 |
|
|
|
|
|
173,624 |
|
|
Receivables
from derivative contracts |
|
|
5,923 |
|
|
|
|
|
348,861 |
|
|
Restricted
cash |
|
|
182 |
|
|
|
|
|
16,812 |
|
|
Prepaids
and other |
|
|
6,758 |
|
|
|
|
|
9,270 |
|
|
Total current assets |
|
|
160,649 |
|
|
|
|
|
556,593 |
|
Oil
and natural gas properties (full cost method): |
|
|
|
|
|
|
|
Evaluated |
|
|
1,269,034 |
|
|
|
|
|
7,060,721 |
|
|
Unevaluated |
|
|
316,439 |
|
|
|
|
|
1,641,356 |
|
|
Gross oil and natural gas properties |
|
|
1,585,473 |
|
|
|
|
|
8,702,077 |
|
|
Less -
accumulated depletion |
|
|
(465,849 |
) |
|
|
|
|
(5,933,688 |
) |
|
Net
oil and natural gas properties |
|
|
1,119,624 |
|
|
|
|
|
2,768,389 |
|
Other operating property and equipment: |
|
|
|
|
|
|
|
Gas
gathering and other operating assets |
|
|
38,617 |
|
|
|
|
|
130,090 |
|
|
Less -
accumulated depreciation |
|
|
(1,107 |
) |
|
|
|
|
(22,435 |
) |
|
Net
other operating property and equipment |
|
|
37,510 |
|
|
|
|
|
107,655 |
|
Other noncurrent assets: |
|
|
|
|
|
|
|
Receivables
from derivative contracts |
|
|
- |
|
|
|
|
|
16,614 |
|
|
Debt
issuance costs, net |
|
|
- |
|
|
|
|
|
7,633 |
|
|
Funds in
escrow and other |
|
|
1,887 |
|
|
|
|
|
1,808 |
|
Total assets |
|
$ |
1,319,670 |
|
|
|
|
$ |
3,458,692 |
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts
payable and accrued liabilities |
|
$ |
186,184 |
|
|
|
|
$ |
295,085 |
|
|
Liabilities
from derivative contracts |
|
|
16,434 |
|
|
|
|
|
- |
|
|
Other |
|
|
4,935 |
|
|
|
|
|
163 |
|
|
Total current liabilities |
|
|
207,553 |
|
|
|
|
|
295,248 |
|
Long-term debt, net |
|
|
964,653 |
|
|
|
|
|
2,873,637 |
|
Other noncurrent liabilities: |
|
|
|
|
|
|
|
Liabilities
from derivative contracts |
|
|
486 |
|
|
|
|
|
290 |
|
|
Asset
retirement obligations |
|
|
31,985 |
|
|
|
|
|
46,853 |
|
|
Other |
|
|
2,305 |
|
|
|
|
|
6,264 |
|
Commitments and contingencies |
|
|
|
|
|
|
Mezzanine equity: |
|
|
|
|
|
|
|
Redeemable
noncontrolling interest |
|
|
- |
|
|
|
|
|
183,986 |
|
Stockholders' equity: |
|
|
|
|
|
|
|
Predecessor
Preferred stock: 1,000,000 shares of $0.0001 par value
authorized; |
|
|
|
|
|
|
|
244,724 shares of 5.75% Cumulative Perpetual Convertible Series A,
issued |
|
|
|
|
|
|
|
and
outstanding |
|
|
- |
|
|
|
|
|
- |
|
|
Predecessor
Common stock: 1,340,000,000 shares of $0.0001 par value |
|
|
|
|
|
|
|
authorized;122,523,559 shares issued and outstanding |
|
|
- |
|
|
|
|
|
12 |
|
|
Predecessor
Additional paid-in capital |
|
|
- |
|
|
|
|
|
3,283,097 |
|
|
Successor
Common stock: 1,000,000,000 shares of $0.0001 par value
authorized; |
|
|
|
|
|
|
|
92,991,183 shares issued and outstanding |
|
|
9 |
|
|
|
|
|
- |
|
|
Successor
Additional paid-in capital |
|
|
592,663 |
|
|
|
|
|
- |
|
|
Retained
earnings (accumulated deficit) |
|
|
(479,984 |
) |
|
|
|
|
(3,230,695 |
) |
|
Total stockholders' equity |
|
|
112,688 |
|
|
|
|
|
52,414 |
|
Total liabilities and stockholders' equity |
|
$ |
1,319,670 |
|
|
|
|
$ |
3,458,692 |
|
HALCÓN RESOURCES CORPORATION |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
|
|
Predecessor |
|
|
Successor |
|
|
|
Predecessor |
|
|
|
|
|
|
|
|
|
|
|
|
Period from |
|
|
|
Period from |
|
|
|
|
|
|
Three Months |
|
|
|
|
Three Months |
|
|
September 10, 2016 |
|
|
|
January 1, 2016 |
|
|
|
|
|
|
Ended |
|
|
|
|
Ended |
|
|
through |
|
|
|
through |
|
Year Ended |
|
|
|
|
December 31, 2016 |
|
|
|
|
December 31, 2015 |
|
|
December 31, 2016 |
|
|
|
September 9, 2016 |
|
December 31, 2015 |
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
(28,501 |
) |
|
|
|
|
$ |
(393,443 |
) |
|
|
$ |
(479,193 |
) |
|
|
|
$ |
11,958 |
|
|
$ |
(1,922,621 |
) |
Adjustments
to reconcile net income (loss) to net cash provided by (used |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in)
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depletion,
depreciation and accretion |
|
|
37,848 |
|
|
|
|
|
|
66,795 |
|
|
|
|
46,899 |
|
|
|
|
|
120,555 |
|
|
|
364,204 |
|
|
Full cost
ceiling impairment |
|
|
- |
|
|
|
|
|
|
611,787 |
|
|
|
|
420,934 |
|
|
|
|
|
754,769 |
|
|
|
2,626,305 |
|
|
Other
operating property and equipment impairment |
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
|
28,056 |
|
|
|
- |
|
|
Share-based
compensation, net |
|
|
8,323 |
|
|
|
|
|
|
3,284 |
|
|
|
|
21,519 |
|
|
|
|
|
4,876 |
|
|
|
14,529 |
|
|
Unrealized
loss (gain) on derivative contracts |
|
|
82,111 |
|
|
|
|
|
|
35,310 |
|
|
|
|
112,449 |
|
|
|
|
|
263,732 |
|
|
|
129,282 |
|
|
Amortization and write-off of deferred loan costs |
|
|
- |
|
|
|
|
|
|
1,355 |
|
|
|
|
- |
|
|
|
|
|
6,371 |
|
|
|
7,357 |
|
|
Non-cash
interest and amortization of discount and premium |
|
|
2,129 |
|
|
|
|
|
|
480 |
|
|
|
|
2,506 |
|
|
|
|
|
1,515 |
|
|
|
2,509 |
|
|
Reorganization items |
|
|
(16,523 |
) |
|
|
|
|
|
- |
|
|
|
|
(15,963 |
) |
|
|
|
|
(929,084 |
) |
|
|
- |
|
|
Loss (gain)
on extinguishment of debt |
|
|
- |
|
|
|
|
|
|
(203,897 |
) |
|
|
|
- |
|
|
|
|
|
(81,434 |
) |
|
|
(761,804 |
) |
|
Loss (gain)
on extinguishment of Convertible Note and modification of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February 2012
Warrants |
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
8,219 |
|
|
Accrued
settlements on derivative contracts |
|
|
4,197 |
|
|
|
|
|
|
(9,208 |
) |
|
|
|
(18,498 |
) |
|
|
|
|
- |
|
|
|
(47,011 |
) |
|
Other
expense (income) |
|
|
173 |
|
|
|
|
|
|
3,129 |
|
|
|
|
79 |
|
|
|
|
|
(4,233 |
) |
|
|
8,934 |
|
Cash flow
from operations before changes in working capital |
|
|
89,757 |
|
|
|
|
|
|
115,592 |
|
|
|
|
90,732 |
|
|
|
|
|
177,081 |
|
|
|
429,903 |
|
Changes in
working capital |
|
|
1,057 |
|
|
|
|
|
|
19,213 |
|
|
|
|
12,404 |
|
|
|
|
|
(1,733 |
) |
|
|
37,096 |
|
Net cash
provided by (used in) operating activities |
|
|
90,814 |
|
|
|
|
|
|
134,805 |
|
|
|
|
103,136 |
|
|
|
|
|
175,348 |
|
|
|
466,999 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and
natural gas capital expenditures |
|
|
(51,170 |
) |
|
|
|
|
|
(127,678 |
) |
|
|
|
(61,459 |
) |
|
|
|
|
(226,617 |
) |
|
|
(659,419 |
) |
|
Proceeds
received from sales of oil and natural gas assets |
|
|
888 |
|
|
|
|
|
|
111 |
|
|
|
|
888 |
|
|
|
|
|
(407 |
) |
|
|
1,222 |
|
|
Other
operating property and equipment capital expenditures |
|
|
(519 |
) |
|
|
|
|
|
(925 |
) |
|
|
|
(750 |
) |
|
|
|
|
(950 |
) |
|
|
(10,838 |
) |
|
Funds held
in escrow and other |
|
|
- |
|
|
|
|
|
|
26 |
|
|
|
|
(1,721 |
) |
|
|
|
|
200 |
|
|
|
1,903 |
|
Net cash
provided by (used in) investing activities |
|
|
(50,801 |
) |
|
|
|
|
|
(128,466 |
) |
|
|
|
(63,042 |
) |
|
|
|
|
(227,774 |
) |
|
|
(667,132 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds
from borrowings |
|
|
85,000 |
|
|
|
|
|
|
255,000 |
|
|
|
|
115,000 |
|
|
|
|
|
886,000 |
|
|
|
1,834,000 |
|
|
Repayments
of borrowings |
|
|
(127,000 |
) |
|
|
|
|
|
(251,804 |
) |
|
|
|
(159,000 |
) |
|
|
|
|
(727,648 |
) |
|
|
(1,643,804 |
) |
|
Cash
payments to Noteholders and Preferred Holders |
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
(10,013 |
) |
|
|
|
|
(97,521 |
) |
|
|
- |
|
|
Debt
issuance costs |
|
|
- |
|
|
|
|
|
|
(3,865 |
) |
|
|
|
- |
|
|
|
|
|
(1,977 |
) |
|
|
(29,568 |
) |
|
Series A
preferred dividends |
|
|
- |
|
|
|
|
|
|
(3,521 |
) |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
(8,177 |
) |
|
Common
stock issued |
|
|
- |
|
|
|
|
|
|
2 |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
15,356 |
|
|
Restricted
cash |
|
|
- |
|
|
|
|
|
|
(133 |
) |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
(543 |
) |
|
Offering
costs and other |
|
|
- |
|
|
|
|
|
|
(246 |
) |
|
|
|
- |
|
|
|
|
|
(511 |
) |
|
|
(2,818 |
) |
Net cash
provided by (used in) financing activities |
|
|
(42,000 |
) |
|
|
|
|
|
(4,567 |
) |
|
|
|
(54,013 |
) |
|
|
|
|
58,343 |
|
|
|
164,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in cash |
|
|
(1,987 |
) |
|
|
|
|
|
1,772 |
|
|
|
|
(13,919 |
) |
|
|
|
|
5,917 |
|
|
|
(35,687 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at
beginning of period |
|
|
2,011 |
|
|
|
|
|
|
6,254 |
|
|
|
|
13,943 |
|
|
|
|
|
8,026 |
|
|
|
43,713 |
|
Cash at end
of period |
|
$ |
24 |
|
|
|
|
|
$ |
8,026 |
|
|
|
$ |
24 |
|
|
|
|
$ |
13,943 |
|
|
$ |
8,026 |
|
HALCÓN RESOURCES CORPORATION |
SELECTED OPERATING
DATA (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
2016 (3) |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
Production
volumes: |
|
|
|
|
|
|
|
|
Crude oil
(MBbls) |
|
|
2,717 |
|
|
|
2,923 |
|
|
|
10,368 |
|
|
|
12,019 |
|
Natural
gas (MMcf) |
|
|
2,490 |
|
|
|
2,679 |
|
|
|
9,571 |
|
|
|
10,123 |
|
Natural
gas liquids (MBbls) |
|
|
421 |
|
|
|
411 |
|
|
|
1,597 |
|
|
|
1,457 |
|
Total
(MBoe) |
|
|
3,553 |
|
|
|
3,780 |
|
|
|
13,560 |
|
|
|
15,163 |
|
Average
daily production (Boe/d) |
|
|
38,620 |
|
|
|
41,087 |
|
|
|
37,049 |
|
|
|
41,542 |
|
|
|
|
|
|
|
|
|
|
Average prices: |
|
|
|
|
|
|
|
|
Crude oil
(per Bbl) |
|
$ |
43.62 |
|
|
$ |
36.94 |
|
|
$ |
37.41 |
|
|
$ |
42.63 |
|
Natural
gas (per Mcf) |
|
|
2.38 |
|
|
|
1.83 |
|
|
|
1.70 |
|
|
|
2.22 |
|
Natural
gas liquids (per Bbl) |
|
|
12.40 |
|
|
|
7.43 |
|
|
|
8.73 |
|
|
|
9.35 |
|
Total per
Boe |
|
|
36.50 |
|
|
|
30.67 |
|
|
|
30.83 |
|
|
|
36.17 |
|
|
|
|
|
|
|
|
|
|
Cash effect of
derivative contracts: |
|
|
|
|
|
|
|
|
Crude oil
(per Bbl) |
|
$ |
22.73 |
|
|
$ |
43.11 |
|
|
$ |
31.76 |
|
|
$ |
35.87 |
|
Natural
gas (per Mcf) |
|
|
0.08 |
|
|
|
1.03 |
|
|
|
0.12 |
|
|
|
0.84 |
|
Natural
gas liquids (per Bbl) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total per
Boe |
|
|
17.43 |
|
|
|
34.07 |
|
|
|
24.37 |
|
|
|
28.99 |
|
|
|
|
|
|
|
|
|
|
Average prices computed
after cash effect of settlement of derivative contracts: |
|
|
|
|
|
|
|
|
Crude oil
(per Bbl) |
|
$ |
66.35 |
|
|
$ |
80.05 |
|
|
$ |
69.17 |
|
|
$ |
78.50 |
|
Natural
gas (per Mcf) |
|
|
2.46 |
|
|
|
2.86 |
|
|
|
1.82 |
|
|
|
3.06 |
|
Natural
gas liquids (per Bbl) |
|
|
12.40 |
|
|
|
7.43 |
|
|
|
8.73 |
|
|
|
9.35 |
|
Total per
Boe |
|
|
53.93 |
|
|
|
64.74 |
|
|
|
55.20 |
|
|
|
65.16 |
|
|
|
|
|
|
|
|
|
|
Average cost per
Boe: |
|
|
|
|
|
|
|
|
Production: |
|
|
|
|
|
|
|
|
Lease
operating |
|
$ |
5.23 |
|
|
$ |
5.91 |
|
|
$ |
5.34 |
|
|
$ |
6.83 |
|
Workover
and other |
|
|
2.52 |
|
|
|
2.45 |
|
|
|
2.43 |
|
|
|
1.38 |
|
Taxes
other than income |
|
|
2.87 |
|
|
|
3.08 |
|
|
|
2.72 |
|
|
|
3.22 |
|
Gathering
and other, as adjusted (1) |
|
|
2.54 |
|
|
|
2.21 |
|
|
|
2.32 |
|
|
|
2.00 |
|
Restructuring |
|
|
- |
|
|
|
0.06 |
|
|
|
0.38 |
|
|
|
0.19 |
|
General
and administrative, as adjusted (1) |
|
|
3.90 |
|
|
|
4.15 |
|
|
|
4.29 |
|
|
|
4.57 |
|
Depletion |
|
|
10.27 |
|
|
|
17.03 |
|
|
|
11.80 |
|
|
|
23.37 |
|
|
|
|
|
|
|
|
|
|
(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 |
|
$ |
6.95 |
|
|
$ |
5.20 |
|
|
$ |
9.22 |
|
|
$ |
5.79 |
|
Share-based compensation: |
|
|
|
|
|
|
|
|
Non-cash |
|
|
(2.34 |
) |
|
|
(0.87 |
) |
|
|
(1.95 |
) |
|
|
(0.96 |
) |
Transaction costs, key employee retention agreements and
other: |
|
|
|
|
|
|
|
|
Cash |
|
|
(0.71 |
) |
|
|
(0.18 |
) |
|
|
(2.98 |
) |
|
|
(0.26 |
) |
General
and administrative, as adjusted |
|
$ |
3.90 |
|
|
$ |
4.15 |
|
|
$ |
4.29 |
|
|
$ |
4.57 |
|
|
|
|
|
|
|
|
|
|
Gathering and other, as
reported |
|
$ |
3.39 |
|
|
$ |
2.57 |
|
|
$ |
3.24 |
|
|
$ |
2.66 |
|
Rig
termination / stacking charges |
|
|
(0.85 |
) |
|
|
(0.36 |
) |
|
|
(0.92 |
) |
|
|
(0.66 |
) |
Gathering and other, as
adjusted |
|
$ |
2.54 |
|
|
$ |
2.21 |
|
|
$ |
2.32 |
|
|
$ |
2.00 |
|
|
|
|
|
|
|
|
|
|
Total operating costs,
as reported |
|
$ |
20.96 |
|
|
$ |
19.21 |
|
|
$ |
22.95 |
|
|
$ |
19.88 |
|
Total
adjusting items |
|
|
(3.90 |
) |
|
|
(1.41 |
) |
|
|
(5.85 |
) |
|
|
(1.88 |
) |
Total operating costs,
as adjusted (2) |
|
$ |
17.06 |
|
|
$ |
17.80 |
|
|
$ |
17.10 |
|
|
$ |
18.00 |
|
(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. |
(3) For illustrative
purposes, the Company has combined the Successor and Predecessor
results to derive combined results for the year ended December
31, 2016. The combination was generated by addition of
comparable financial statement line items. However, because of
various adjustments to the consolidated financial statements
in connection with the application of fresh-start reporting,
including asset valuation adjustments and liability adjustments,
the results of operations for the Successor may not be
comparable to those of the Predecessor. The financial information
preceding the table above provides the Successor and the
Predecessor GAAP results for the applicable periods. The
Company believes that subject to consideration of the impact of
fresh-start reporting, combining the results of the Predecessor and
Successor provide meaningful information about, for instance,
production, revenues and costs, that assist a reader in
understanding the Company’s financial results for the applicable
periods. |
HALCÓN RESOURCES CORPORATION |
SELECTED ITEM REVIEW AND RECONCILIATION
(Unaudited) |
(In thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
|
Predecessor |
|
Successor |
|
|
|
Predecessor |
|
|
|
|
|
|
|
|
Period from |
|
|
|
Period from |
|
|
|
|
Three Months |
|
|
|
Three Months |
|
September 10, 2016 |
|
|
|
January 1, 2016 |
|
|
|
|
Ended |
|
|
|
Ended |
|
through |
|
|
|
through |
|
Year Ended |
|
|
December 31, 2016 |
|
|
|
December 31, 2015 |
|
December 31, 2016 |
|
|
|
September 9, 2016 |
|
December 31, 2015 |
As
Reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common stockholders, as reported |
|
$ |
(28,501 |
) |
|
|
|
$ |
(424,712 |
) |
|
$ |
(479,984 |
) |
|
|
|
$ |
(32,794 |
) |
|
$ |
(2,006,958 |
) |
Series A preferred
dividends |
|
|
- |
|
|
|
|
|
3,518 |
|
|
|
- |
|
|
|
|
|
8,847 |
|
|
|
17,517 |
|
Preferred dividends and
accretion on redeemable noncontrolling interest |
|
|
- |
|
|
|
|
|
27,751 |
|
|
|
791 |
|
|
|
|
|
35,905 |
|
|
|
66,820 |
|
Net income (loss) |
|
$ |
(28,501 |
) |
|
|
|
$ |
(393,443 |
) |
|
$ |
(479,193 |
) |
|
|
|
$ |
11,958 |
|
|
$ |
(1,922,621 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of
Selected Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss (gain)
on derivatives contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude
oil |
|
$ |
81,335 |
|
|
|
|
$ |
33,291 |
|
|
$ |
111,658 |
|
|
|
|
$ |
262,813 |
|
|
$ |
123,441 |
|
Natural
gas |
|
|
776 |
|
|
|
|
|
2,019 |
|
|
|
791 |
|
|
|
|
|
919 |
|
|
|
5,841 |
|
Total
mark-to-market non-cash charge |
|
|
82,111 |
|
|
|
|
|
35,310 |
|
|
|
112,449 |
|
|
|
|
|
263,732 |
|
|
|
129,282 |
|
Full cost ceiling
impairment |
|
|
- |
|
|
|
|
|
611,787 |
|
|
|
420,934 |
|
|
|
|
|
754,769 |
|
|
|
2,626,305 |
|
Other operating
property and equipment impairment |
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
28,056 |
|
|
|
- |
|
Loss (gain) on
extinguishment of debt |
|
|
- |
|
|
|
|
|
(203,897 |
) |
|
|
- |
|
|
|
|
|
(81,434 |
) |
|
|
(761,804 |
) |
Loss (gain) on
extinguishment of Convertible Note and modification of February
2012 Warrants |
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
8,219 |
|
Deferred financing
costs expensed, net(1) |
|
|
- |
|
|
|
|
|
128 |
|
|
|
- |
|
|
|
|
|
3,582 |
|
|
|
1,331 |
|
Reorganization
items |
|
|
1,493 |
|
|
|
|
|
- |
|
|
|
2,049 |
|
|
|
|
|
(913,722 |
) |
|
|
- |
|
Restructuring |
|
|
- |
|
|
|
|
|
222 |
|
|
|
- |
|
|
|
|
|
5,168 |
|
|
|
2,886 |
|
Rig termination /
stacking charges, key employee retention agreements, transaction
costs and other |
|
|
5,519 |
|
|
|
|
|
4,915 |
|
|
|
6,443 |
|
|
|
|
|
40,689 |
|
|
|
24,998 |
|
Selected items, before
income taxes |
|
|
89,123 |
|
|
|
|
|
448,465 |
|
|
|
541,875 |
|
|
|
|
|
100,840 |
|
|
|
2,031,217 |
|
Income tax effect of
selected items(2) |
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
Selected items, net of
tax |
|
$ |
89,123 |
|
|
|
|
$ |
448,465 |
|
|
$ |
541,875 |
|
|
|
|
$ |
100,840 |
|
|
$ |
2,031,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Adjusted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common stockholders, excluding selected items |
|
$ |
60,622 |
|
|
|
|
$ |
55,022 |
|
|
$ |
62,682 |
|
|
|
|
$ |
112,798 |
|
|
$ |
108,596 |
|
Net income (loss) from
assumed conversions |
|
|
|
|
|
|
4,245 |
|
|
|
|
|
|
|
10,778 |
|
|
|
19,799 |
|
Net income (loss)
available to common stockholders after assumed conversions,
excluding selected items(3) |
|
$ |
60,622 |
|
|
|
|
$ |
59,267 |
|
|
$ |
62,682 |
|
|
|
|
$ |
123,576 |
|
|
$ |
128,395 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss)
per common share, as reported |
|
$ |
(0.31 |
) |
|
|
|
$ |
(3.56 |
) |
|
$ |
(5.26 |
) |
|
|
|
$ |
(0.27 |
) |
|
$ |
(18.66 |
) |
Impact of selected
items |
|
|
0.97 |
|
|
|
|
|
4.02 |
|
|
|
5.95 |
|
|
|
|
|
1.21 |
|
|
|
19.67 |
|
Basic net income (loss)
per common share, excluding selected items(3) |
|
$ |
0.66 |
|
|
|
|
$ |
0.46 |
|
|
$ |
0.69 |
|
|
|
|
$ |
0.94 |
|
|
$ |
1.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per common share, as reported |
|
$ |
(0.31 |
) |
|
|
|
$ |
(3.56 |
) |
|
$ |
(5.26 |
) |
|
|
|
$ |
(0.27 |
) |
|
$ |
(18.66 |
) |
Impact of selected
items |
|
|
0.97 |
|
|
|
|
|
3.97 |
|
|
|
5.95 |
|
|
|
|
|
1.13 |
|
|
|
19.63 |
|
Diluted net income
(loss) per common share, excluding selected items(3)(4) |
|
$ |
0.66 |
|
|
|
|
$ |
0.41 |
|
|
$ |
0.69 |
|
|
|
|
$ |
0.86 |
|
|
$ |
0.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities |
|
$ |
90,814 |
|
|
|
|
$ |
134,805 |
|
|
$ |
103,136 |
|
|
|
|
$ |
175,348 |
|
|
$ |
466,999 |
|
Changes in working
capital, net of acquisitions |
|
|
(1,057 |
) |
|
|
|
|
(19,213 |
) |
|
|
(12,404 |
) |
|
|
|
|
1,733 |
|
|
|
(37,096 |
) |
Cash flow from
operations before changes in working capital |
|
|
89,757 |
|
|
|
|
|
115,592 |
|
|
|
90,732 |
|
|
|
|
|
177,081 |
|
|
|
429,903 |
|
Cash components of
selected items |
|
|
19,338 |
|
|
|
|
|
11,467 |
|
|
|
42,953 |
|
|
|
|
|
66,092 |
|
|
|
66,316 |
|
Income tax effect of
selected items(2) |
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
Cash flow from
operations before changes in working capital, adjusted for selected
items(4) |
|
$ |
109,095 |
|
|
|
|
$ |
127,059 |
|
|
$ |
133,685 |
|
|
|
|
$ |
243,173 |
|
|
$ |
496,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Represents charges related to the write-off of debt issuance costs
associated with the Predecessor Credit Agreement. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) For
the 2016 (Successor) and 2015 (Predecessor) columns, this
represents tax impact using an estimated tax rate of 0.0% due to
the Company maintaining a full 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 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 December 31,
2016 (Successor), the period of September 10, 2016 through December
31, 2016 (Successor), and the period of January 1,
2016 through September 9, 2016 (Predecessor) was calculated
based upon weighted average diluted shares of 91.5 million, 91.3
million and 144.3 million, respectively, due to the net
income available to common stockholders, excluding
selected items. The impact of selected items for the three
months ended and year ended December 31, 2015 (Predecessor) was
calculated based upon weighted average diluted shares of 144.8
million and 131.8 million, respectively, due to the net income
available to Predecessor common stockholders excluding selected
items. |
HALCÓN RESOURCES CORPORATION |
EBITDA RECONCILIATION
(Unaudited) |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
2016 (2) |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
Net income (loss), as
reported |
|
$ |
(28,501 |
) |
|
$ |
(393,443 |
) |
|
$ |
(467,235 |
) |
|
$ |
(1,922,621 |
) |
Interest
expense |
|
|
23,126 |
|
|
|
49,751 |
|
|
|
152,477 |
|
|
|
220,588 |
|
Depletion, depreciation and accretion |
|
|
37,848 |
|
|
|
66,795 |
|
|
|
167,454 |
|
|
|
364,204 |
|
Full cost
ceiling impairment |
|
|
- |
|
|
|
611,787 |
|
|
|
1,175,703 |
|
|
|
2,626,305 |
|
Other
operating property and equipment impairment |
|
|
- |
|
|
|
- |
|
|
|
28,056 |
|
|
|
- |
|
Income
tax provision (benefit) |
|
|
1,387 |
|
|
|
2,862 |
|
|
|
(3,922 |
) |
|
|
9,086 |
|
Share-based compensation |
|
|
8,323 |
|
|
|
3,284 |
|
|
|
26,395 |
|
|
|
14,529 |
|
Interest
income |
|
|
(3 |
) |
|
|
(5 |
) |
|
|
(36 |
) |
|
|
(94 |
) |
(Gain)
loss on sale of other assets |
|
|
276 |
|
|
|
(18 |
) |
|
|
706 |
|
|
|
1,362 |
|
EBITDA(1) |
|
$ |
42,456 |
|
|
$ |
341,013 |
|
|
$ |
1,079,598 |
|
|
$ |
1,313,359 |
|
Impact of non-recurring
items: |
|
|
|
|
|
|
|
|
Restructuring |
|
|
- |
|
|
|
222 |
|
|
|
5,168 |
|
|
|
2,886 |
|
Reorganization items |
|
|
1,493 |
|
|
|
- |
|
|
|
(911,673 |
) |
|
|
- |
|
Loss
(gain) on extinguishment of debt |
|
|
- |
|
|
|
(203,897 |
) |
|
|
(81,434 |
) |
|
|
(761,804 |
) |
Loss
(gain) on extinguishment of Convertible Note and modification of
February 2012 Warrants |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,219 |
|
Loss
(gain) on mark-to-market of embedded derivative and tranche
rights |
|
|
- |
|
|
|
(1,042 |
) |
|
|
(5,734 |
) |
|
|
2,772 |
|
Unrealized loss (gain) on derivatives contracts |
|
|
82,111 |
|
|
|
35,310 |
|
|
|
376,181 |
|
|
|
129,282 |
|
Write-off
of deferred loan costs |
|
|
- |
|
|
|
128 |
|
|
|
3,582 |
|
|
|
1,331 |
|
Rig
termination / stacking charges |
|
|
3,003 |
|
|
|
1,360 |
|
|
|
12,467 |
|
|
|
9,945 |
|
Transaction costs, key employee retention agreements and other |
|
|
2,516 |
|
|
|
7,223 |
|
|
|
40,399 |
|
|
|
10,832 |
|
Adjusted EBITDA(1) |
|
$ |
131,579 |
|
|
$ |
180,317 |
|
|
$ |
518,554 |
|
|
$ |
716,822 |
|
(1) EBITDA and Adjusted
EBITDA 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 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. |
|
(2) For illustrative
purposes, the Company has combined the Successor and Predecessor
results to derive combined results for the year ended December 31,
2016. The combination was generated by addition of comparable
financial statement line items. However, because of various
adjustments to the consolidated financial statements in connection
with the application of fresh-start reporting, including asset
valuation adjustments and liability adjustments, the results of
operations for the Successor may not be comparable to those of the
Predecessor. The financial information preceding the table above
provides the Successor and the Predecessor GAAP results for the
applicable periods. The Company believes that subject to
consideration of the impact of fresh-start reporting, combining the
results of the Predecessor and Successor provide meaningful
information about, for instance, production, revenues and costs,
that assist a reader in understanding the Company’s financial
results for the applicable periods. |
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