Morningstar Rating

Stock Research and Analysis

by David Meats

Bulls Say

Recovering oil prices will boost cash flows that can be redeployed to reduce debt or accelerate activity in increasingly profitable oil fields.
The company’s Bakken acreage includes a foothold in the optimum sweet spot and yields impressive and repeatable well performance.
Switching to multipad development in the El Halcon play will shave off $1 million in completed well costs and meaningfully improve economics. Read more 

Bears Say

The lucrative Fort Berthold portion of Halcon’s Bakken acreage represents a small portion of the company’s overall leasehold there, with less impressive returns in the remainder.
The potential of the Tuscaloosa Marine Shale is unproved, and reliability is questionable--operators there have been plagued by mechanical issues on numerous wells.
Halcon is one of the most leveraged names in the E&P space, and in the event of a slowdown the company may find it challenging to continue meeting debt-service obligations. Read more 

Management

CEO Floyd Wilson is well known in the energy business. He has led a number of independent energy companies, with each stint culminating in the outright sale of the business, which Wilson believes is the best way to deliver value to shareholders. Most   Read more 

Profile

Halcon Resources is an independent oil and gas producer in the United States that operates in three primary regions: the Bakken in North Dakota, the El Halcon extension   Read more 

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