Halcón Resources Announces the Sale of its Non-Operated Williston Basin Assets for ~$110 Million
September 20 2017 - 7:00AM
Halcón Resources Corporation (NYSE:HK) (“Halcón” or the “Company”)
today announced it has entered into an agreement to sell its
remaining non-operated assets in the Williston Basin to a private
company for approximately $104 million in cash, subject to
customary closing conditions and adjustments. The effective
date of the transaction is April 1, 2017 and is expected to close
within 60 days. These properties currently produce
approximately 1,891 Bbl/d of oil, 1,931 Mcf/d of gas and 65 Bbl/d
of natural gas liquids. Separately, in August the Company
closed on a ~$6 million cash sale of additional non-operated
Williston Basin assets to a different party.
The borrowing base on Halcón’s senior secured
revolving credit facility will be reduced to $100 million upon
closing of the non-operated asset sale. As indicated in the
table below, as of June 30, 2017, Halcón's liquidity was
approximately $773 million pro forma for these asset sales and
other previously announced transactions.
|
|
|
50% of |
|
|
Assumed |
|
|
|
Williston Basin |
HY Debt & |
Non-Core |
Williston Basin |
Exercise of the |
|
Face Value |
Actual HK |
(Operated Assets) |
100% of 2L Notes |
Asset |
(Non-Op Assets) |
Monument Draw |
Adjusted HK |
Capitalization ($MM) |
6/30/2017 |
Sale (1) |
Repayment (1)(2) |
Sales |
Sales (3) |
North Option |
6/30/2017 |
|
|
|
|
|
|
|
|
|
Cash & Cash
Equivalents |
$ |
0 |
|
$ |
1,400 |
|
$ |
(745 |
) |
$ |
20 |
|
$ |
109 |
|
$ |
(108 |
) |
$ |
676 |
|
|
|
|
|
|
|
|
|
|
Senior Secured
Revolving Credit Facility |
|
153 |
|
|
|
(153 |
) |
|
|
|
|
|
- |
|
12.000% Senior Secured
Second Lien Notes due 2022 |
|
113 |
|
|
|
(113 |
) |
|
|
|
|
|
- |
|
6.75% Senior Unsecured
Notes due 2025 |
|
850 |
|
|
|
(425 |
) |
|
|
|
|
|
425 |
|
Total Debt |
$ |
1,116 |
|
|
|
|
|
|
|
$ |
425 |
|
|
|
|
|
|
|
|
|
|
Total Net Debt / (Cash) |
$ |
1,116 |
|
|
|
|
|
|
|
$ |
(251 |
) |
|
|
|
|
|
|
|
|
|
Stockholders'
Equity |
|
732 |
|
|
477 |
|
|
(68 |
) |
|
|
|
|
|
1,140 |
|
Total Capitalization |
$ |
1,848 |
|
|
|
|
|
|
|
$ |
1,565 |
|
|
|
|
|
|
|
|
|
|
Borrowing Base |
$ |
650 |
|
$ |
(510 |
) |
|
|
|
$ |
(40 |
) |
|
$ |
100 |
|
Less: Borrowings |
|
(153 |
) |
|
|
|
|
|
|
|
- |
|
Less: Letters of
Credit |
|
(6 |
) |
|
3 |
|
|
|
|
|
|
|
(3 |
) |
Plus: Cash |
|
0 |
|
|
|
|
|
|
|
|
676 |
|
Total Liquidity |
$ |
491 |
|
|
|
|
|
|
|
$ |
773 |
|
|
|
|
|
|
|
|
|
|
Note: $477
MM adjustment to Stockholders' Equity reflects estimated gain on
sale of Williston Basin operated assets. |
|
|
|
|
(1) Impact
of legal fees, advisory fees and cash taxes are not included in
table. |
|
|
|
|
|
|
(2)
Assumes 50% of 6.75% Senior Unsecured Notes outstanding are
redeemed at 103% pursuant to the terms of the amended
indenture. |
|
|
|
Assumes 100% of 12.0% Senior Secured Second Lien Notes
outstanding are redeemed, including related prepayment
premiums. |
|
|
|
(3)
Remaining ~$104 MM of the Williston Basin Non-Op Sales is expected
to close in Q4 '17. |
|
|
|
|
|
|
Upon the closing the sale of the non-operated
assets in the Williston Basin, Halcón will have completed its
transition into a pure play Delaware Basin focused company.
In less than nine months, the Company has sold approximately 2,000
wellbores across its legacy assets for aggregate cash proceeds in
excess of $2 billion. With over 41,500 net acres in the core
of the Delaware Basin and strong liquidity, Halcón is well
positioned for significant growth going forward.
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.
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