Halcón Resources Corporation (ticker: HK) averaged 6,283 BOEPD in Q4 2017, comprised of 70% oil, 15% NGLs and 15% natural gas. The company generated total revenues of $25.3 million for the fourth quarter of 2017, but reported a net loss attributed to common stockholders of $93.1 million, or a net loss per basic and diluted share of $(0.63).
For 2017, Halcón reported a net income attributed to common stockholders of $487.679 million, or $3.67 per basic share, and $3.65 per diluted share.
During the fourth quarter of 2017, Halcón incurred capital costs of approximately $94 million on drilling and completions and $37 million on infrastructure, seismic and other expenditures.
Monument Draw update
In December 2017, the company acquired 4,413 net acres adjacent to its Monument Draw area for approximately $104 million. In January 2018, Halcón closed on the acquisition of 8,320 net acres in its Monument Draw north option for $108 million.
On February 6, 2018, the company entered into a purchase and sale agreement to purchase 10,524 net acres and ~1,100 BOEPD of associated current production in Western Ward County for $200 million. The West Quito Draw acquisition is expected to close in early April 2018.
Operations
Halcón said it is currently producing in excess of 12,000 BOEPD net. The company expects first quarter 2018 production to average between 10,500 and 11,500 BOEPD net. Halcón is currently running three operated rigs in the Delaware Basin and is considering adding a fourth rig later in 2018 to focus on the West Quito Draw once that acquisition closes.
The company also has one full-time frac crew operating, which will continue to work for Halcón for the remainder of 2018. Halcón said it also plans to source a spot frac crew from time to time in 2018 to ensure its drilled but uncompleted well inventory stays at “reasonable levels.”
Halcón currently holds 21,679 net acres in its Monument Draw area, in addition to an option to acquire an additional 7,680 net acres on the eastern side of its acreage. The company has five horizontal lower Wolfcamp wells producing in this area with two additional wells currently being drilled.
Halcón currently holds 27,035 net acres in its Hackberry Draw area. Since acquiring most of this acreage in early 2017, the company has drilled and completed 10 horizontal wells (nine Wolfcamp and one 3rd Bone Spring). Halcón currently has one well waiting on completion and three additional wells currently being drilled in Hackberry Draw (two Wolfcamp and one 2nd Bone Spring well).
