Halcón Resources Announces the Closing of its Water Infrastructure Asset Divestiture
December 20 2018 - 4:05PM
Halcón Resources Corporation (NYSE:HK) (“Halcón” or the “Company”)
today announced it has closed on the previously announced
divestiture of all of its water infrastructure assets across the
Delaware Basin to a subsidiary of WaterBridge Resources LLC for
$200 million in cash.
In addition to the $200 million received today,
the Company has an opportunity to earn potential incentive payments
of up to $25.0 million per year for each of the next five years
($125 million total) subject to Halcón’s ability to meet certain
annual incentive thresholds which will be driven by, among other
things, the Company’s development program.
Upon closing of this sale, Halcón’s senior
secured revolving borrowing base was increased to $275
million. As of September 30, 2018, pro forma for the $200
million in sale proceeds and undrawn revolver capacity, the Company
had liquidity of $418 million.
Floyd C. Wilson, Halcón’s Chairman and CEO
commented “The proceeds from this transaction as well as the
increase in our borrowing base provide us plenty of liquidity to
fund our capital program in 2019 and beyond. Given the recent
decline in commodity prices we are dropping a rig early in the
first quarter of 2019 and plan on running two rigs for the
remainder of 2019. We will update the market formally with
our 2019 plans and guidance in the first quarter of 2019.”
Scotiabank and BMO Capital Markets advised
Halcón on the divestiture of its water infrastructure
assets.
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,
Executive Vice President of Finance, Capital Markets & Investor
Relations, at 303.802.5541 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, 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.
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