Halcon Resources (HK) Reports In-Line Q3 EPS, Revenues Beat

Halcon Resources (NYSE: HK) reported Q3 EPS of ($0.06), in-line with the analyst estimate of ($0.06). Revenue for the quarter came in at $61.6 million versus the consensus estimate of $54.64 million.

Floyd C. Wilson, Halcón’s Chairman and CEO commented: “It was a busy quarter for Halcón, and one in which we accomplished many goals. As previously announced, we successfully entered into an agreement to monetize our water infrastructure assets at a premium value. We also bolstered our liquidity position further by negotiating an increase in our borrowing base by $75 million. We believe we have adequate liquidity in place to fully fund our capital spending in 2019 and 2020 assuming three to four rigs running. We were able to finalize a firm commitment to get a majority of our oil to the Gulf Coast, which we expect to be in service during the third quarter of 2019. We also had a very successful quarter with the drill-bit as we put eight new wells on line in Monument Draw, all of which are exceeding expectations and a few of which have 30 and 60-day production rates at the top end of all recent wells drilled in Ward and Reeves counties. We also continued to bring our recurring per unit operating costs down and kept our capital spending levels within expectations. We did incur a significant amount of non-recurring gas treating charges in Monument Draw during the third quarter related to elevated chemical treating driven by the unexpected loss of a third party sour gas sales line. The loss of this line also contributed to higher than expected gas flaring in the third quarter. We expect these treating costs to decline significantly over the next couple of quarters as we build out our in-house gas treating infrastructure in Monument Draw. Finally, we recently put online our first two wells in West Quito Draw and we expect these wells to be strong producers. As we look forward to 2019, we are focused on continuing to grow our production and gain scale; but in a cost-efficient manner.”

For earnings history and earnings-related data on Halcon Resources (HK) click here.

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