Boston, MA 05\/09\/2014 (wallstreetpr) \u2013\u00a0Halcon Resources Corp (NYSE:HK) <\/b>announced its first quarter results ended March 31, 2014 with solid growth in production compared to previous year period.<\/p>\n
High productions drive revenue growth<\/b><\/p>\n
During first quarter 2014, Halcon\u2019s revenues were up by 44% to $275.1 million versus $190.9 million in the three months period 2013. The significant growth was due to 41% year over year increase in production volumes to ~37K barrels of oil equivalent per day (Boe\/d), including 85% of oil, 6% of natural gas liquids (NGLs) and 9% of natural gas.<\/p>\n
Halcon Resources Corp (NYSE:HK) realized favorable average pricing of the NYMEX for oil and natural gas, excluding the impact of price hedges. It helped to decrease the operating costs per unit by 8% year over year to $28.40 per Boe.<\/p>\n
As a result of decreasing operating costs and adjustment of non-cash impairment charges, Halcon reported an adjusted net profit of $11.9 million and adjusted EPS of $0.03.<\/p>\n
Divestiture will reduce liquidity pressure<\/b><\/p>\n
In 2014, Halcon continues to evaluate and divest non-core assets to improve the overall margins and reduce the liquidity pressure. Halcon is divesting its East Texas asset (non-core) for $450 million by May 2014, which has estimated reserves of ~16.3 MMBoe as of December 31, 2013.<\/p>\n
As of March 31, 2014, Halcon Resources Corp (NYSE:HK)\u2019s borrowing base increased to $800 million with growing credit facility and expects to reduce ~$100 million of borrowings from the sale of East Texas assets.<\/p>\n
Incurring capital costs will deliver future growth<\/b><\/p>\n
Overall capital spending on oil and gas increased to $432.8 million during 1Q2014 versus $380.1 million a year\u2019s ego. The increase was due to the incurring capital costs on drilling and completions ($331.2 million), infrastructure and seismic ($14.2 million) and acquisition in the TMS and El Halcon areas ($113.8 million).<\/p>\n
Going ahead<\/b><\/p>\n
The additional capital spent on drilling and completions expects to deliver growth in production in coming quarters. In addition, the pending sales from East Texas assets may further increase the production volume and expects productions in a range of 38,000-42,000 Boe\/d in FY2014.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/09\/2014 (wallstreetpr) \u2013\u00a0Halcon Resources Corp (NYSE:HK) announced its first quarter results ended March 31, 2014 with solid growth in production compared to previous […]<\/p>\n","protected":false},"author":15,"featured_media":21685,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[3081,3082],"stock_ticker":[],"class_list":["post-21679","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-halcon-resources-corp-nysehk","tag-nysehk","entry"],"acf":[],"yoast_head":"\n