Halcon Resources Corp (NYSE:HK) taking stock of common stock public offering
Halcon Resources Corporation (NYSE: HK) announced the pricing of an underwritten public offering of 38,000,000 common stock shares at $5.10/share. HK has given the underwriters a 30-day option to buy upto an additional 5,700,000 common stock shares of common stock. This offering is slated to settle and be closed on 13 August 2013 and is subject to all customary closing conditions.
The company intends on using the net proceeds from this offering for repaying a segment of the outstanding-borrowings under its senior-secured revolving credit facility. This has been, and will also continue to be drawn-upon to fund the acquisitions of producing and leasehold properties in core areas, to a certain extent.BMO Capital Markets and Barclays will be acting as the joint book-running managers for this offering.
There was a dip of 10.90% in Halcon Resources Corp (NYSE:HK) stock in Thursday’s trading session. The shares opened at a price of $5.13, touched an intraday high of $5.33 and closed at $5.23. Close to 40.72M shares were traded on Thursday while the average volume of shares that were traded in Thursday’s trading session was 3.77M. The company has a market cap of 1.94 billion.
Halcon Resources Corp (NYSE:HK) is essentially an independent energy company. It focuses on acquiring, producing, exploring and developing oil and natural-gas assets in the United States. The company’s reserves are situated largely in North Dakota, Texas, Montana, Oklahoma and Louisiana. On 1 August 2012, Halcon Resources Corp (NYSE:HK) acquired GeoResources.
HK’s position in the La Copita filed is spread over 3,720 gross acres and 2,829 net-acres in Texas’ Star County. As of 31 December 2012, HK’s average net daily-production was 623 barrels-of-oil-equivalent/day. Halcon Resources Corp (NYSE:HK) operates 100 percent of this particular production. The company’s working interest ranges from 75 percent to 100 percent.