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Stock to Keep Your Eyes on: Halcon Resources Corporation (NYSE: HK)


On Friday, Shares of Halcon Resources Corporation (NYSE: HK) showed the bearish trend with a lower momentum of -5.79% and ended its trading session at $4.56. The company traded total volume of 5,975,006 shares as contrast to its average volume of 3.74M shares. The company has a market value of $789.52M and about 173.14M shares outstanding.

Halcón Resources Corporation (HK) recently declared its first quarter 2018 financial results.

Halcón generated total revenues of $49.30M for the first quarter of 2018.  The Company stated a net loss available to common stockholders of $(2.60)M 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 $(8.70)M, or $(0.06) per diluted share for the first quarter of 2018.  Adjusted EBITDA (see EBITDA Reconciliation table for additional information) totaled $18.10M for the first quarter of 2018 as contrast to $2.20M for the fourth quarter of 2017.

Liquidity and Capital Spending:

The Company recently received approval on its senior secured revolving credit facility for a borrowing base of $200.0M effective May 1, 2018.  This represents a 100% increase in Halcón’s borrowing base vs. its previous level of $100.0M.  As of March 31, 2018, Halcón’s liquidity was $380.0M pro forma for the closing of its West Quito Draw acquisition and the new borrowing base.  This liquidity consisted of $182.0M of pro forma cash on hand plus $200.0M of undrawn revolver availability, less letters of credit outstanding.

During the first quarter of 2018, Halcón incurred capital costs of about $116.0M on drilling and completions, $112.0M on acquisitions and $38.0M on infrastructure, seismic and other.

The Company offered gross profit margin of 80.20%. ROE was recorded as 28.90% while beta factor was 4.00. The stock, as of recent close, has shown the weekly downbeat performance of -12.14% which was maintained at -39.76% in this year.

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