Halcón Resources Announces Preliminary 2016 Outlook
HOUSTON, TEXAS, Dec. 18, 2015 (GLOBE NEWSWIRE) -- Halcón Resources Corporation (NYSE:HK) (“Halcón” or the “Company”) today announced its preliminary 2016 outlook.
Despite being significantly hedged in 2016 at an average price of $80.59 per barrel of oil and currently having approximately $800 million of liquidity, the Company expects to take a more tempered approach to 2016 than originally planned due to continued weakness in oil prices.
Halcón’s preliminary drilling and completion budget for 2016 is $180 - $210 million. The Company expects to reduce drilling and completion activity in both the Williston Basin and the El Halcón area in East Texas in 2016. Halcón estimates that the reduced activity level in 2016 should result in a production profile that is flat to down approximately 5% when compared to 2015.
The Company expects to disclose additional guidance detail in conjunction with its fourth quarter and full-year 2015 earnings results, which is scheduled to be released in late February 2016.
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, 2014 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.
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.
Scott M. Zuehlke
VP, Investor Relations
(December 18, 2015 - 6:59 AM EST)
Hedging programs that E&Ps have in place in 2016 vary considerably. The chart below shows the range of oil and gas production for several E&Ps covered by hedging contracts. Pioneer Natural Resources (ticker: PXD) and Cimarex Energy (ticker: XEC) have hedged the largest portions of their remaining production at 85/75 and 80/90 percent, respectively, for oil and gas. This chart[Read More…]
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