Halcón Resources Corporation (NYSE:HK) (“Halcón” or the “Company”)
today announced its first quarter 2018 financial and operating
results, provided an operational update and revised 2018 guidance.
Net production for the three months ended March
31, 2018 averaged 10,967 barrels of oil equivalent per day (Boe/d),
which was a 75% increase from the fourth quarter of 2017 production
level of 6,283 Boe/d. Additionally, the first quarter
production rate is more than 100% higher than Halcón’s fourth
quarter 2017 production rate pro forma for the Williston Non-Op
asset sale. Production was comprised of 70% oil, 15% natural
gas liquids (NGLs) and 15% natural gas for the first quarter.
Halcón generated total revenues of $49.3 million
for the first quarter of 2018. The Company reported a net
loss available to common stockholders of $(2.6) million or a net
loss per basic and diluted share of $(0.02) for the same
period. After adjusting for selected items (see Selected Item
Review and Reconciliation table for additional information), the
Company generated a net loss of $(8.7) million, or $(0.06) per
diluted share for the first quarter of 2018. Adjusted EBITDA
(see EBITDA Reconciliation table for additional information)
totaled $18.1 million for the first quarter of 2018 as compared to
$2.2 million for the fourth quarter of 2017.
Excluding the impact of hedges, Halcón realized
99% of the average NYMEX oil price, 41% of the average NYMEX oil
price for NGLs and 87% of the average NYMEX natural gas price
during the first quarter of 2018. Halcón realized hedge
losses of approximately $5.2 million during the first quarter.
Liquidity and Capital
Spending
The Company recently received approval on its
senior secured revolving credit facility for a borrowing base of
$200 million effective May 1, 2018. This represents a 100%
increase in Halcón’s borrowing base vs. its previous level of $100
million. As of March 31, 2018, Halcón’s liquidity was $380
million pro forma for the closing of its West Quito Draw
acquisition and the new borrowing base. This liquidity
consisted of $182 million of pro forma cash on hand plus $200
million of undrawn revolver availability, less letters of credit
outstanding.
During the first quarter of 2018, Halcón
incurred capital costs of approximately $116 million on drilling
and completions, $112 million on acquisitions and $38 million on
infrastructure, seismic and other.
Hedging Update
As of May 2, 2018, Halcón had 10,673 barrels per
day (bbl/d) of oil hedged for the last nine months of 2018 at an
average price of $52.92 per barrel. For 2019, the Company has
14,000 bbl/d of oil hedged at an average price of $55.76 per
barrel.
As of May 2, 2018, Halcón had 7,500 MMBtu/d of
natural gas hedged for the last nine months of 2018 at an average
price of $3.16 per MMBtu. For 2019, the Company has 5,000
MMBtu/d of gas hedged at an average price of $2.81 per MMBtu.
Operations Update
Halcón is currently producing in excess of
13,500 Boe/d net. The Company expects second quarter 2018
production to average between 13,000 and 14,000 Boe/d net.
Halcón is currently running three operated rigs in the Delaware
Basin with a fourth operated rig coming in the next few
weeks. These four rigs will spend most of the remainder of
2018 in Monument Draw and West Quito Draw. The Company also has one
full-time frac crew operating and plans to source a spot frac crew
in the second half of 2018.
Halcón currently holds 22,479 net acres in its
Monument Draw area. The Company has five horizontal lower
Wolfcamp wells producing in this area. Additionally, Halcón
has two wells waiting on completion and another three wells
currently being drilled in this area. Halcon’s average 30 day
peak IP rate for its first five operated horizontal wells in
Monument Draw was 1,575 Boe/d (average completed lateral length of
8,706 feet). This area is currently producing approximately 3,850
Boe/d, net.
Halcón currently holds 10,622 net acres in its
West Quito Draw area. The Company plans to spud its first
operated horizontal Wolfcamp well in this area this summer.
This area is currently producing approximately 1,350 Boe/d,
net.
Halcón currently holds 27,115 net acres in its
Hackberry Draw area. The Company has drilled and completed 14
horizontal wells (twelve Wolfcamp, one 2nd Bone Spring and one 3rd
Bone Spring). Additionally, Halcón has three wells flowing
back after frac, one well being drilled out and another well
currently being frac’d in this area. Halcon’s average 30 day
peak IP rate for its first 9 operated Wolfcamp horizontal wells
with 30 day rates available in Hackberry Draw was 936 Boe/d.
The Company’s first 2nd Bone Spring horizontal well in Hackberry
Draw, the Berkley State West 2H, is one of the three wells
currently flowing back after frac. This area is
currently producing approximately 8,250 Boe/d, net.
Revised 2018 Guidance
The guidance table below has been updated from
previous 2018 guidance to reflect the addition of a fourth operated
rig in May, 2018 as well as the inclusion of the Company’s recently
acquired West Quito Draw properties. This guidance also
assumes a second spot frac crew is operating from mid-August to
October, 2018.
|
|
|
|
|
2Q 2018 |
4Q 2018 |
Full Year 2018 |
Production
(Boe/d) |
|
|
|
Total |
13,000
- 14,000 |
23,000
- 25,000 |
15,000
– 20,000 |
%
Oil |
|
|
68% -
72% |
%
Gas |
|
|
14% -
16% |
%
NGL |
|
|
14% -
16% |
|
|
|
|
Capex
($MM) |
|
|
|
D&C
Capex (1) |
|
|
$425 -
$475 |
Infrastructure, Seismic and Other Capex |
|
|
$70 -
$90 |
|
|
|
|
Operating Costs
and Expenses |
|
|
|
Lease
Operating & Workover ($/Boe) |
|
|
$4.25
– $5.25 |
Gathering, Transportation & Other ($/Boe) |
|
|
$3.00
– $4.00 |
Cash
G&A ($MM) |
|
|
$40 -
$45 |
Production Taxes (% of Revenue) |
|
|
6% –
7% |
|
|
|
|
(1) Excludes
capitalized G&A. |
|
|
|
|
|
|
|
Floyd C. Wilson commented “Our revised 2018
guidance includes the impact of our recently acquired West Quito
properties and the addition of a fourth rig in May. It’s important
to note that our revised 2018 production guidance assumes we don’t
bring a second spot frac crew in until Mid-August of 2018. This
timing results in back-end weighted production growth for us in
2018 with a fourth quarter production rate expected to be around
24,000 boe/d. This sets us up nicely as we head into 2019. I also
want to emphasize that our 2018 drilling plan consists of almost
entirely long laterals in excess of 9,000 feet. Although long
lateral development results in longer cycle times, long laterals
are a more capital efficient way to develop assets over the
long-run. We are well positioned to withstand any takeaway issues
in the Permian through 2019 with takeaway contracts in place for
oil and gas. We are evaluating ways to create value and have
options available to us including joint venture and infrastructure
divestiture opportunities. We continue to focus on execution and
efforts to control costs while optimizing drilling and completion
programs.”
Conference Call and Webcast
Information
Halcón Resources Corporation (NYSE:HK) has
scheduled a conference call for Thursday, May 3, 2018, at 11:00
a.m. EDT (10:00 a.m. CDT). To participate in the conference
call, dial (800) 239-9838 for domestic callers, and (323) 794-2551
for international callers a few minutes before the call begins and
reference Halcón Resources conference ID 9312036. The
conference call will also be webcast live over the Internet on
Halcón Resources’ website at http://www.halconresources.com in the
Investors section under Events and Presentations.
About Halcón Resources
Halcón Resources Corporation is an independent
energy company focused on the acquisition, production, exploration
and development of liquids-rich onshore oil and natural gas assets
in the United States.
For more information contact Quentin Hicks,
Executive Vice President of Finance, Capital Markets & Investor
Relations, at 832-538-0557 or qhicks@halconresources.com.
Forward-Looking Statements
This release contains 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.
Forward-looking statements include, among others, statements about
anticipated production, divestitures, liquidity, capital spending
and drilling and completion plans. Forward-looking
statements may often, but not always, be identified by
the use of such words such as "expects", "believes",
"intends", "anticipates", "plans", "estimates", “projects”,
"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, 2017 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, |
|
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
Operating revenues: |
|
|
|
|
|
|
Oil, natural gas and natural gas liquids sales: |
|
|
|
|
|
|
Oil |
|
$ |
43,069 |
|
|
$ |
122,521 |
|
|
|
Natural gas |
|
|
2,319 |
|
|
|
6,219 |
|
|
|
Natural gas liquids |
|
|
3,712 |
|
|
|
6,025 |
|
|
|
Total oil, natural gas and natural gas liquids sales |
|
|
49,100 |
|
|
|
134,765 |
|
|
|
Other |
|
|
155 |
|
|
|
833 |
|
|
|
Total operating revenues |
|
|
49,255 |
|
|
|
135,598 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
Production: |
|
|
|
|
|
|
Lease
operating |
|
|
|
4,915 |
|
|
|
20,644 |
|
|
|
Workover and other |
|
|
1,361 |
|
|
|
11,441 |
|
|
|
Taxes other than income |
|
|
3,029 |
|
|
|
11,576 |
|
|
|
Gathering
and other |
|
|
6,422 |
|
|
|
11,942 |
|
|
|
Restructuring |
|
|
101 |
|
|
|
755 |
|
|
|
General and
administrative |
|
|
15,210 |
|
|
|
20,849 |
|
|
|
Depletion,
depreciation and accretion |
|
|
15,991 |
|
|
|
32,886 |
|
|
|
(Gain) loss
on sale of oil and natural gas properties |
|
|
3,679 |
|
|
|
(231,190 |
) |
|
|
Total operating expenses |
|
|
50,708 |
|
|
|
(121,097 |
) |
|
Income (loss) from operations |
|
|
(1,453 |
) |
|
|
256,695 |
|
|
Other income (expenses): |
|
|
|
|
|
|
Net gain (loss) on derivative contracts |
|
|
5,903 |
|
|
|
26,398 |
|
|
|
Interest expense and other |
|
|
(7,048 |
) |
|
|
(24,843 |
) |
|
|
Gain (loss) on extinguishment of debt |
|
|
- |
|
|
|
(56,898 |
) |
|
|
Total
other income (expenses) |
|
|
|
(1,145 |
) |
|
|
(55,343 |
) |
|
Income (loss) before income taxes |
|
|
(2,598 |
) |
|
|
201,352 |
|
|
Income tax benefit (provision) |
|
|
- |
|
|
|
(12,000 |
) |
|
Net income (loss) |
|
|
(2,598 |
) |
|
|
189,352 |
|
|
Non-cash preferred dividend |
|
|
- |
|
|
|
(801 |
) |
|
Net income (loss) available to common
stockholders |
|
$ |
(2,598 |
) |
|
$ |
188,551 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share of common
stock: |
|
|
|
|
|
|
Basic |
|
$ |
(0.02 |
) |
|
$ |
2.07 |
|
|
|
Diluted |
|
$ |
(0.02 |
) |
|
$ |
1.69 |
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
Basic |
|
|
153,884 |
|
|
|
91,274 |
|
|
|
Diluted |
|
|
153,884 |
|
|
|
112,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HALCÓN RESOURCES CORPORATION |
|
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) |
|
(In thousands, except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
March 31, 2018 |
|
December 31, 2017 |
|
Current assets: |
|
|
|
|
|
Cash and
cash equivalents |
$ |
382,075 |
|
|
$ |
424,071 |
|
|
|
Accounts
receivable |
|
41,608 |
|
|
|
36,416 |
|
|
|
Receivables from derivative contracts |
|
13,465 |
|
|
|
677 |
|
|
|
Prepaids
and other |
|
10,520 |
|
|
|
10,628 |
|
|
|
Total current
assets |
|
447,668 |
|
|
|
471,792 |
|
|
Oil
and natural gas properties (full cost method): |
|
|
|
|
|
Evaluated |
|
984,861 |
|
|
|
877,316 |
|
|
|
Unevaluated |
|
898,515 |
|
|
|
765,786 |
|
|
|
Gross oil and
natural gas properties |
|
1,883,376 |
|
|
|
1,643,102 |
|
|
|
Less - accumulated
depletion |
|
(584,616 |
) |
|
|
(570,155 |
) |
|
|
Net oil and
natural gas properties |
|
1,298,760 |
|
|
|
1,072,947 |
|
|
Other operating property and equipment: |
|
|
|
|
|
Other operating
property and equipment |
|
130,820 |
|
|
|
101,282 |
|
|
|
Less - accumulated
depreciation |
|
(5,424 |
) |
|
|
(4,092 |
) |
|
|
Net other
operating property and equipment |
|
125,396 |
|
|
|
97,190 |
|
|
Other noncurrent assets: |
|
|
|
|
|
Receivables from
derivative contracts |
|
4,590 |
|
|
|
- |
|
|
|
Funds in escrow and
other |
|
21,658 |
|
|
|
1,691 |
|
|
Total assets |
$ |
1,898,072 |
|
|
$ |
1,643,620 |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable and
accrued liabilities |
$ |
113,606 |
|
|
$ |
131,087 |
|
|
|
Liabilities from
derivative contracts |
|
26,448 |
|
|
|
19,248 |
|
|
|
Total current
liabilities |
|
140,054 |
|
|
|
150,335 |
|
|
Long-term debt, net |
|
612,055 |
|
|
|
409,168 |
|
|
Other noncurrent liabilities: |
|
|
|
|
|
Liabilities from
derivative contracts |
|
7,097 |
|
|
|
7,751 |
|
|
|
Asset retirement
obligations |
|
4,641 |
|
|
|
4,368 |
|
|
Commitments and contingencies |
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
Common
stock: 1,000,000,000 shares of $0.0001 par value
authorized; |
|
|
|
|
|
160,468,799 and 149,379,491 shares issued and outstanding as of
March 31, 2018 |
|
|
|
|
|
and
December 31, 2017, respectively |
|
16 |
|
|
|
15 |
|
|
|
Additional paid-in capital |
|
1,081,105 |
|
|
|
1,016,281 |
|
|
|
Retained
earnings (accumulated deficit) |
|
53,104 |
|
|
|
55,702 |
|
|
|
Total stockholders' equity |
|
1,134,225 |
|
|
|
1,071,998 |
|
|
Total liabilities and stockholders' equity |
$ |
1,898,072 |
|
|
$ |
1,643,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HALCÓN RESOURCES CORPORATION |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
|
|
|
|
March 31, |
|
|
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
Net income
(loss) |
|
$ |
(2,598 |
) |
|
$ |
189,352 |
|
|
|
Adjustments
to reconcile net income (loss) to net cash |
|
|
|
|
|
|
provided by
(used in) operating activities: |
|
|
|
|
|
|
|
Depletion,
depreciation and accretion |
|
|
15,991 |
|
|
|
32,886 |
|
|
|
|
(Gain) loss
on sale of oil and natural gas properties |
|
|
3,679 |
|
|
|
(231,190 |
) |
|
|
|
Stock-based
compensation, net |
|
|
3,581 |
|
|
|
8,347 |
|
|
|
|
Unrealized
loss (gain) on derivative contracts |
|
|
(11,113 |
) |
|
|
(24,214 |
) |
|
|
|
Amortization of deferred loan costs |
|
|
292 |
|
|
|
185 |
|
|
|
|
Amortization of discount and premium |
|
|
132 |
|
|
|
1,644 |
|
|
|
|
Loss (gain)
on extinguishment of debt |
|
|
- |
|
|
|
56,898 |
|
|
|
|
Accrued
settlements on derivative contracts |
|
|
1,492 |
|
|
|
(1,265 |
) |
|
|
|
Other
income (expense) |
|
|
(1,386 |
) |
|
|
(883 |
) |
|
|
Cash flow
from operations before changes in working capital |
|
|
10,070 |
|
|
|
31,760 |
|
|
|
Changes in
working capital |
|
|
(22,652 |
) |
|
|
13,800 |
|
|
|
Net cash
provided by (used in) operating activities |
|
|
(12,582 |
) |
|
|
45,560 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
Oil and
natural gas capital expenditures |
|
|
(127,885 |
) |
|
|
(43,803 |
) |
|
|
|
Proceeds
received from sale of oil and natural gas properties |
|
|
(4,034 |
) |
|
|
477,306 |
|
|
|
|
Acquisition
of oil and natural gas properties |
|
|
(132,464 |
) |
|
|
(707,304 |
) |
|
|
|
Acquisition
of other operating property and equipment |
|
|
- |
|
|
|
(25,538 |
) |
|
|
|
Other
operating property and equipment capital expenditures |
|
|
(30,721 |
) |
|
|
(502 |
) |
|
|
|
Proceeds
received from sale of other operating property and equipment |
|
|
1,899 |
|
|
|
10,286 |
|
|
|
|
Funds held
in escrow and other |
|
|
157 |
|
|
|
- |
|
|
|
Net cash
provided by (used in) investing activities |
|
|
(293,048 |
) |
|
|
(289,555 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
Proceeds
from borrowings |
|
|
206,000 |
|
|
|
1,029,000 |
|
|
|
|
Repayments
of borrowings |
|
|
- |
|
|
|
(1,065,000 |
) |
|
|
|
Cash
payments to Noteholders |
|
|
- |
|
|
|
(30,917 |
) |
|
|
|
Debt
issuance costs |
|
|
(3,371 |
) |
|
|
(15,508 |
) |
|
|
|
Preferred
stock issued |
|
|
- |
|
|
|
400,055 |
|
|
|
|
Common
stock issued |
|
|
63,480 |
|
|
|
- |
|
|
|
|
Offering
costs and other |
|
|
(2,475 |
) |
|
|
(11,502 |
) |
|
|
Net cash
provided by (used in) financing activities |
|
|
263,634 |
|
|
|
306,128 |
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents |
|
|
(41,996 |
) |
|
|
62,133 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents at beginning of period |
|
|
424,071 |
|
|
|
24 |
|
|
|
Cash and
cash equivalents at end of period |
|
$ |
382,075 |
|
|
$ |
62,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HALCÓN RESOURCES
CORPORATION |
SELECTED OPERATING
DATA (Unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
Production volumes: |
|
|
|
|
Crude oil
(MBbls) |
|
|
693 |
|
|
|
2,631 |
|
Natural
gas (MMcf) |
|
|
886 |
|
|
|
2,439 |
|
Natural
gas liquids (MBbls) |
|
|
146 |
|
|
|
425 |
|
Total
(MBoe) |
|
|
987 |
|
|
|
3,463 |
|
Average
daily production (Boe/d) |
|
|
10,967 |
|
|
|
38,478 |
|
|
|
|
|
|
Average
prices: |
|
|
|
|
Crude oil
(per Bbl) |
|
$ |
62.15 |
|
|
$ |
46.57 |
|
Natural
gas (per Mcf) |
|
|
2.62 |
|
|
|
2.55 |
|
Natural
gas liquids (per Bbl) |
|
|
25.42 |
|
|
|
14.18 |
|
Total per
Boe |
|
|
49.75 |
|
|
|
38.92 |
|
|
|
|
|
|
Cash
effect of derivative contracts: |
|
|
|
|
Crude oil
(per Bbl) |
|
$ |
(7.63 |
) |
|
$ |
0.79 |
|
Natural
gas (per Mcf) |
|
|
0.09 |
|
|
|
0.05 |
|
Natural
gas liquids (per Bbl) |
|
|
- |
|
|
|
- |
|
Total per
Boe |
|
|
(5.28 |
) |
|
|
0.63 |
|
|
|
|
|
|
Average
prices computed after cash effect of settlement of derivative
contracts: |
|
|
|
|
Crude oil
(per Bbl) |
|
$ |
54.52 |
|
|
$ |
47.36 |
|
Natural
gas (per Mcf) |
|
|
2.71 |
|
|
|
2.60 |
|
Natural
gas liquids (per Bbl) |
|
|
25.42 |
|
|
|
14.18 |
|
Total per
Boe |
|
|
44.47 |
|
|
|
39.55 |
|
|
|
|
|
|
Average
cost per Boe: |
|
|
|
|
Production: |
|
|
|
|
Lease
operating |
|
$ |
4.98 |
|
|
$ |
5.96 |
|
Workover
and other |
|
|
1.38 |
|
|
|
3.30 |
|
Taxes
other than income |
|
|
3.07 |
|
|
|
3.34 |
|
Gathering
and other, as adjusted (1) |
|
|
5.55 |
|
|
|
2.66 |
|
Restructuring |
|
|
0.10 |
|
|
|
0.22 |
|
General
and administrative, as adjusted (1) |
|
|
11.35 |
|
|
|
3.44 |
|
Depletion |
|
|
14.65 |
|
|
|
9.07 |
|
|
|
|
|
|
(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 |
|
$ |
15.41 |
|
|
$ |
6.02 |
|
Stock-based compensation: |
|
|
|
|
Non-cash |
|
|
(3.63 |
) |
|
|
(2.41 |
) |
Transaction costs and other: |
|
|
|
|
Cash |
|
|
(0.43 |
) |
|
|
(0.17 |
) |
General
and administrative, as adjusted(2) |
|
$ |
11.35 |
|
|
$ |
3.44 |
|
|
|
|
|
|
Gathering and other, as
reported |
|
$ |
6.51 |
|
|
$ |
3.45 |
|
Rig stacking
charges |
|
|
(0.96 |
) |
|
|
(0.79 |
) |
Gathering and other, as
adjusted(3) |
|
$ |
5.55 |
|
|
$ |
2.66 |
|
|
|
|
|
|
Total operating costs,
as reported |
|
$ |
31.35 |
|
|
$ |
22.07 |
|
Total adjusting
items |
|
|
(5.02 |
) |
|
|
(3.37 |
) |
Total operating costs,
as adjusted(4) |
|
$ |
26.33 |
|
|
$ |
18.70 |
|
|
|
|
|
|
(2) General
and administrative, as adjusted, is a non-GAAP measure that
excludes non-cash stock-based compensation charges relating to
equity awards under our incentive stock plans, as well as other
cash charges associated with certain transactions. The Company
believes that it is useful to understand the effects that these
charges have on general and administrative expenses and total
operating costs and that exclusion of such charges is useful for
comparison to prior periods. (3) Gathering and other, as adjusted,
is a non-GAAP measure that excludes rig stacking charges incurred
as a result of reductions in our drilling activities due to a
dramatic decline in oil and natural gas prices beginning in 2014.
The Company believes that it is useful to understand the effects
that these charges have on gathering and other expense and total
operating costs and that exclusion of such charges is useful for
comparison to prior periods. (4) 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, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
As
Reported: |
|
|
|
|
|
Net income (loss)
available to common stockholders, as reported |
|
$ |
(2,598 |
) |
|
$ |
188,551 |
|
|
Non-cash preferred
dividend |
|
|
- |
|
|
|
801 |
|
|
Net income (loss), as
reported |
|
|
(2,598 |
) |
|
|
189,352 |
|
|
|
|
|
|
|
|
Impact of
Selected Items: |
|
|
|
|
|
Unrealized loss (gain)
on derivatives contracts: |
|
|
|
|
|
Crude oil |
|
$ |
(10,125 |
) |
|
$ |
(23,560 |
) |
|
Natural
gas |
|
|
(988 |
) |
|
|
(654 |
) |
|
Total
mark-to-market non-cash charge |
|
|
(11,113 |
) |
|
|
(24,214 |
) |
|
(Gain) loss on sale of
oil and natural gas properties |
|
|
3,679 |
|
|
|
(231,190 |
) |
|
Loss (gain) on
extinguishment of debt |
|
|
- |
|
|
|
56,898 |
|
|
Restructuring |
|
|
101 |
|
|
|
755 |
|
|
Rig stacking charges,
transaction costs and other |
|
|
1,219 |
|
|
|
3,330 |
|
|
Selected items, before
income taxes |
|
|
(6,114 |
) |
|
|
(194,421 |
) |
|
Income tax effect of
selected items (1) |
|
|
- |
|
|
|
12,000 |
|
|
Selected items, net of
tax |
|
|
(6,114 |
) |
|
|
(182,421 |
) |
|
|
|
|
|
|
|
As
Adjusted: |
|
|
|
|
|
Net income (loss)
available to common stockholders, excluding selected items (2) |
|
$ |
(8,712 |
) |
|
$ |
6,931 |
|
|
|
|
|
|
|
|
Basic net income (loss)
per common share, as reported |
|
$ |
(0.02 |
) |
|
$ |
2.07 |
|
|
Impact of selected
items |
|
|
(0.04 |
) |
|
|
(1.99 |
) |
|
Basic net income (loss)
per common share, excluding selected items (2) |
|
$ |
(0.06 |
) |
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per common share, as reported |
|
$ |
(0.02 |
) |
|
$ |
1.69 |
|
|
Impact of selected
items |
|
|
(0.04 |
) |
|
|
(1.63 |
) |
|
Diluted net income
(loss) per common share, excluding selected items (2)(3) |
|
$ |
(0.06 |
) |
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities |
|
$ |
(12,582 |
) |
|
$ |
45,560 |
|
|
Changes in working
capital |
|
|
22,652 |
|
|
|
(13,800 |
) |
|
Cash flow from
operations before changes in working capital |
|
|
10,070 |
|
|
|
31,760 |
|
|
Cash components of
selected items |
|
|
(24 |
) |
|
|
5,271 |
|
|
Income tax effect of
selected items (1) |
|
|
- |
|
|
|
12,000 |
|
|
Cash flow from
operations before changes in working capital, adjusted for selected
items (2) |
|
$ |
10,046 |
|
|
$ |
49,031 |
|
|
|
|
|
|
|
|
|
(1) For
the 2017 column, this represents the tax impact from the estimated
alternative minimum tax generated primarily by the gain from the
sale of the El Halcón Assets.(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 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 31,2018
was calculated based upon weighted average diluted shares of 153.9
million due to the net loss available to common stockholders,
excluding selected items. The impact of selected items for
the three months ended March 31, 2017 was calculated based
upon weighted average diluted shares of 112.1 million due to the
net income available to common stockholders, excluding selected
items. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HALCÓN RESOURCES CORPORATION |
ADJUSTED EBITDA RECONCILIATION
(Unaudited) |
(In thousands) |
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
Net income (loss), as
reported |
|
$ |
(2,598 |
) |
|
$ |
189,352 |
|
|
Impact of adjusting
items: |
|
|
|
|
|
Interest
expense |
|
|
9,602 |
|
|
|
25,190 |
|
|
Depletion, depreciation and accretion |
|
|
15,991 |
|
|
|
32,886 |
|
|
Income
tax provision (benefit) |
|
|
- |
|
|
|
12,000 |
|
|
Stock-based compensation |
|
|
3,581 |
|
|
|
8,347 |
|
|
Interest
income |
|
|
(1,165 |
) |
|
|
(99 |
) |
|
(Gain)
loss on sale of other assets |
|
|
(1,241 |
) |
|
|
68 |
|
|
Restructuring |
|
|
101 |
|
|
|
755 |
|
|
Loss
(gain) on extinguishment of debt |
|
|
- |
|
|
|
56,898 |
|
|
(Gain)
loss on sale of oil and natural gas properties |
|
|
3,679 |
|
|
|
(231,190 |
) |
|
Unrealized loss (gain) on derivatives contracts |
|
|
(11,113 |
) |
|
|
(24,214 |
) |
|
Rig
stacking charges |
|
|
945 |
|
|
|
2,743 |
|
|
Transaction costs and other |
|
|
274 |
|
|
|
587 |
|
|
Adjusted EBITDA(1) |
|
$ |
18,056 |
|
|
$ |
73,323 |
|
|
|
|
|
|
|
|
(1)
Adjusted EBITDA is a non-gaap measure, which is presented based on
management's belief that it 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. This financial measure is not a measure of financial
performance under GAAP and should not be considered as an
alternative to GAAP. This financial measure 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. |
|
|
|
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