Halcon Resources Corp (NYSE:HK) downgraded by analysts
Halcon Resources Corp (NYSE:HK), the U.S.-based company focused on the acquisition, production, exploration of onshore liquids-rich oil and natural gas assets with reserves located in Texas, North Dakota, Louisiana, Oklahoma and Montana, is reportedly cutting its production estimate to 42M boe/ day from 47M. The company is expected to officially announce its production outlook with quarter 2013 results.
As a result, Halcon Resources has been downgraded by analysts at Stifel Nicolaus. Stifel has downgraded Halcon’s shares from a “buy” rating to “hold rating. They have set $8.00 as target price on the stock. In addition, analysts at Canaccord Genuity lowered their price target from $7.50 to $7.00 for Halcon’s shares; Johnson Rice research analysts also downgraded shares of Halcon from a “focus list” rating to an “overweight” rating, while Raymond James reiterated a “buy” rating on shares of the company.
In total, two analysts have given a “sell” rating, six ha rated a “hold” rating, and one analyst has assigned a “strong buy” rating to Halcon Resources Corp (NYSE:HK)’s stock. Currently, the company has a consensus rating of “Buy” and price target of $8.25.
On the other hand, Halcon Resources Corp. said that it has priced an underwritten public offering of 38,000,000 shares of its stock at $5.10 per share price. A 30-day option has been granted to the underwriters to buy up to an additional 5,700,000 shares of the stock. The company plans to use the fund to repay a part of the outstanding borrowings.
Canada Pension Plan Investment, one of the main shareholders, bought 5,185,553 shares of the common stock at an average price of $5.10 per share, on August 8. The total transaction was $26,446,320.30.
On August 1, the company reported $0.08 earnings per share in its quarterly earnings, beating the analysts’ consensus estimate of $0.06. Halcon’s revenue was $214.30 million for the quarter, compared to the consensus estimate of $208.55 million.