What To Expect From Halcon Resources Corp (NYSE:HK)?

Posted by Lynn Eisler January 15, 2014 0 Comment 2413 views

The $1.3M market-capped oil and gas drilling & exploration company, Halcon Resources Corp (NYSE:HK), has been under a great deal of pressure to perform in the markets and the last few quarters have been pretty tough on it. Last week, the company had suffered a 12% dip and investors were definitely squirming. In the trailing 12 months, the company has posted a loss of almost 56%. The investment community is definitely losing confidence in Halcon Resources Corp (NYSE:HK) and in its ability to metamorphose into a more profitable and dominant oil producer. The lack of confidence in the company’s investors is definitely a worrisome trend as the company has managed to post an increase of almost 316% in its q-o-q sales for its most –recent quarter.

Insider buying

The results of the said quarter had been announced in 2013 November. Apart from its trailing 12-months, Halcon Resources Corp (NYSE:HK) has also managed to post a rise of 700% in its earnings per share in comparison to the same period from the previous year. Apart from this, the company’s insiders have also been taking a very bullish stand on the prospects of the Halcon Resources Corp (NYSE:HK) stock. There was almost a 110% rise in the insider ownership of this stock over the last 6 months. The company has accrued net losses amounting to $826M. In the trailing 12 months period, it posted sales of $834M.

The year to come

The company is making every attempt to reduce its capital spending in 2014 and also has some divestment plans in place. The company decreased its completions and drilling budget projection by 14%, for 2014 to around $950M. It is also planning with continuing its portfolio-management process and is slated to divest some of Halcon Resources Corp (NYSE:HK)’s noncore assets this year and is looking at total proceeds to be in the $300-$400 range. Hopefully all these measure will help it get into a position it wants to be in.

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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