Halcón Announces 2014 Earnings

Company Reduces Rigs to Cut Costs
Halcon Resource's Eagle Ford Acreage Map

Halcon Resource’s Eagle Ford Acreage Map | Click to Enlarge

Halcón Resources announced its 2014 results that included a net income for of $71.7 million and record production for its Eagle Ford operations.

Related: Halcón Resources Reduces 2015 Budget | Bakken Shale

Halcón operations in the Eagle Ford saw a production growth of 136% year-over-year. The company operated an average of three rigs in El Halcón during the fourth quarter, but currently have only one rig running. For 2015 El Halcón drilling program will focus on capturing leases and holding acreage. Foremost, the company will focus on ways to reduce completed well costs.

Other 2014 highlights include:

  • Q4 revenues of $239.5 million
  • Revenues for the full year 2014 totaled $1,148.3 million, an increase of 15% compared to the full year 2013
  • Q4 production was 46,076 barrels of oil equivalent per day (Boe/d) and 42,107 Boe/d, respectively
  • Production was comprised of 81% oil, 9% natural gas liquids (NGLs) and 10% natural gas for the quarter and 83% oil, 7% NGLs and 10% natural gas for the year.
  • Q4 operating costs per unit decreased by 23% compared to the same period of 2013
  • Total operating costs per unit for the full year were $24.14 per Boe, representing a decrease of 17%
Floyd C. Wilson, Chairman & CEO stated “We’ve reduced our 2015 drilling completion budget several times over the past few months. Service costs have come down significantly and continue to come down since the beginning of the year. Companywide, we currently have 26 operated wells being completed or waiting on completion. We’re operating three rigs, two in the Williston and one at El Halcón in East Texas.”

Halcón expects that completed well costs will decline by an additional 10% to 20% by midyear. In addition to across-the-board service cost reductions, they also plan to bring certain tasks in-house in order to reduce middlemen cost.

Read more at halconresources.com

Halcón Resources Focused on El Halcón Area Sweet Spots

Current Production Approximately 10,400 boe/d in El Halcón
Halcon Resource's Eagle Ford Acreage Map

Halcon Resource’s Eagle Ford Acreage Map | Click to Enlarge

In its first quarter 2014 report, Halcón Resources made the claim that its entire East Texas El Halcón area is “de-risked and repeatable”. That may sound a little like a sales pitch, and likely, it is. Halcón Resources CEO, Floyd Wilson, has indicated within the last year that a sale of the company wouldn’t be out of the question. For the time being however, no definitive or official statements have been made by Halcón Resources, but it sounds like a nice bow is being wrapped around the company for a potential buyer.

During the first quarter, Halcón further strengthened its Eagle Ford position by divesting some of its’ non-core East Texas properties, and in a separate transaction in March 2014, the company acquired nine wells in El Halcón from Aresco LP. The purchase price of the wells was undisclosed.

[Read more…]

Austin Exploration Eagle Ford Well with Halcón Resources Has Good Initial Production (IP) Rates

Austin's Burleson County, TX Well Had Initial Production of 1,066 boe/d (87% oil)
Austin Exploration Eagle Ford Acreage Map

Austin Exploration Eagle Ford Acreage Map | Click to Enlarge

Australian-based Austin Exploration saw good initial production (IP) rates from its’ first Eagle Ford well with farmee partner

Halcón Resources in late March 2014 of 1,066 boe/d (87% oil). The well (Stifflemire #1H) was drilled to a total depth of 17,000 feet with an 8000 foot horizontal leg into the Eagle Ford Shale.

Austin Exploration entered the Eagle Ford in 2011, and in May 2013 announced a farm-out program with Halcón, whereby Halcón agreed to pay for the cost of three horizontal wells to earn a 70% interest in 4,400 acres of Austin’s Birch Project. The cost to drill these wells is approximately $10 million per well.

[Read more…]

Aresco LP Sells Eagle Ford Wells to Halcón Resources

Deal Includes Nine Wells Located in Halcón's Core Operating Area
El Halcon Eagle Ford Play Map

El Halcon Eagle Ford Play Map | Click to Enlarge

Dallas-based Aresco-LP announced the sale of nine wells to Halcón Resources Corporation in March 2014 for an undisclosed amount.

The wells are located within Halcón’s ~100,000-acre “El Halcón” core operating area in Brazos and Madison Counties.




[Read more…]

Halcón Resources Will Spend 40% of its 2014 Budget in the Eagle Ford – ~$380 Million

Halcón Resources Increases Fourth-Quarter Production By 43%
Halcon Resource's Eagle Ford Acreage Map

Halcon Resource’s Eagle Ford Acreage Map | Click to Enlarge

Halcón plans on spending ~$380 million in its East Texas Eagle Ford acreage (El Halcón) in 2014. That’s approximately 40% of the company’s budget.

At the end of February, 2014, there were 45 Eagle Ford wells producing, 10 wells completing or waiting on completion, and 4 wells being drilled.

Read moreHalcon Holds Production Guidance & Lowers its 2014 Capital Budget

Halcón currently has working interests in approximately 100,000 net acres tied to prospective drilling in the Eagle Ford formation in East Texas. The Company plans to operate an average of 3 rigs and spud 40 to 50 gross operated wells in 2014.

[Read more…]

Halcon Reduces 2014 Capital Spending Plans – Production Guidance Flat

Also Planning $300-400 Million in Asset Sales in 2014
El Halcon Eagle Ford Play Map

El Halcon Eagle Ford Play Map | Click to Enlarge

Halcon Resources is lowering its capital budget for 2014 and keeping its production guidance the same at 38,000-42,000 boe/d.

The company originally planned to spend more than $1 billion, but has lowered its budget 14% to $950 million.

Approximately $125 million will be spent on leasehold, infrastructure, and seismic. Halcon also plans to divest $300-400 million in properties in 2014.

Floyd C. Wilson, CEO, stated, “We expect to fund our entire 2014 capital budget with a combination of cash flow from operations, borrowings under our revolving credit facility and proceeds from additional non-core asset sales.”

Read more at halconresources.com