Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - BATTALION OIL CORP | d311018d8k.htm |
Exhibit 99.1
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NEWS RELEASE |
Halcón Resources Announces Fourth Quarter and Full Year 2011 Financial Results
HOUSTON, TEXAS – March 5, 2012 – Halcón Resources Corporation (“Halcón Resources” or the “Company”) (NASDAQ: HK) today announced its fourth quarter and full year 2011 financial results and provided guidance on its production, unit cost and capital expenditure outlook for 2012.
Fourth Quarter and Full Year 2011 Financial Results
Halcón Resources generated oil and natural gas sales of $25.5 million for the quarter ended December 31, 2011 and oil and natural gas sales of $103.5 million for the full year 2011. Cash flows from operations before changes in working capital (a non-GAAP measure) were $4.7 million or $0.18 per basic and diluted share for the quarter, and $33.0 million, or $1.26 per basic and diluted share, for the year.
The Company reported a net loss for the quarter of $12.2 million, or $0.46 per basic and diluted share and a net loss of $1.4 million, or $0.05 per basic and diluted share for the full year 2011. Results for the three months ended December 31, 2011 included $13.3 million in unrealized derivative losses.
Halcón Resources produced an average of 4,087 and 4,121 barrels of oil equivalent per day (Boe/d) during the three months and full year ended December 31, 2011, respectively, 70% of which was oil and natural gas liquids (NGLs).
Before the effect of derivatives, the Company realized an average price of $93.35 per barrel (Bbl) of oil, $57.45 per Bbl of NGLs and $3.58 per million cubic feet (Mcf) of natural gas during the fourth quarter of 2011. For the full year 2011, Halcón Resources realized an average price of $93.86 per Bbl of oil, $56.14 per Bbl of NGLs and $4.01 per Mcf of natural gas. Taking into account the effect of hedges, the Company realized an average price of $90.35 per Bbl of oil, $56.14 per Bbl of NGLs and $4.77 per Mcf of natural gas for the full year 2011.
During the fourth quarter, per unit lease operating expense was $24.69 per barrel of oil equivalent (Boe). Lease operating expense for the year was $33.3 million, or $22.16 per Boe. Total per unit cash operating expense (including lease operating, taxes other than income and general and administrative) was $45.23 per Boe for the fourth quarter of 2011 and $37.40 per Boe for the full year 2011.
Proved Reserves
As of December 31, 2011 Halcón Resources’ estimated proved oil and natural gas reserves of 21.1 million barrels of oil equivalent (MMBoe) are composed of 12.4 million barrels of oil, 2.0 million barrels of NGLs and 40.1 billion cubic feet of natural gas. The present value of the Company’s estimated future oil and gas revenues, net of estimated expenses, discounted at an annual rate of 10% is $391.8 million. Proved developed reserves account for 64% of total estimated proved reserves and the properties have a 13.7 year reserve-to-production ratio. Halcón Resources’ proved reserves are 68% oil and NGLs.
Recent Developments
On February 8, 2012, Halcón Resources, LLC, a newly-formed company led by Floyd C. Wilson, former Chairman and Chief Executive Officer of Petrohawk Energy Corporation, recapitalized RAM Energy Resources, Inc. (“RAM”) with a $550.0 million investment structured as the purchase of $275.0 million in new common stock, a $275.0 million five-year 8% convertible note and warrants for the purchase of an additional 36,666,666 shares of our common stock at an exercise price of $4.50 per share. At closing, Floyd C. Wilson was appointed as Chairman, President and Chief Executive Officer and RAM’s name was changed to Halcón Resources Corporation. Additionally, on February 9, 2012, the Company’s ticker symbol was changed to “HK”. Halcón Resources’ common stock currently trades on the NASDAQ Global Market.
Following the recapitalization, the Company’s primary focus is to expand its leasehold position in areas it has determined are prospective for oil or liquids-rich resource plays. Halcón Resources has identified several target resource plays for potential leasehold acquisition, including the Utica Shale/Point Pleasant formations in Ohio and Pennsylvania, the Mississippian Lime formation in Northern Oklahoma and Southern Kansas, the Wilcox formation in Southwest Louisiana and the Woodbine/Eagle Ford formations in East Texas. In addition to ongoing lease acquisition efforts in its targeted resource plays, the Company has identified several new exploratory areas it believes are prospective for oil and liquids-rich hydrocarbons.
2012 Guidance
Production for the full year 2012 is estimated to be between 2,255 – 2,295 MMBoe, 70% of which is expected to be oil and NGLs. The Company expects 2012 production to come from existing Halcón Resources properties, targeted resource plays and liquids-rich exploratory areas. The capital expenditure budget for 2012 is approximately $1.1 billion (65% leasehold acquisitions, 25% drilling and completions, 7% infrastructure and 3% seismic) and is subject to revision based on various factors.
Additional guidance for the full year 2012 is as follows:
Lease Operating Expense ($/Boe): $10.00—$11.00
Production (Ad Valorem and Severance) Taxes ($/Boe): $4.00—$5.00
General and Administrative ($/Boe): $7.00—$8.00
Forward-Looking Statements
This press release contains forward-looking information regarding Halcón Resources that is intended to be covered by the safe harbor “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995, based on Halcón Resources’ current expectations and includes statements regarding acquisitions and divestitures, estimates of future production, future results of operations, quality and nature of the asset base, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as “expects”, “anticipates”, “plans”, “estimates”, “potential”, “possible”, “probable”, or “intends”, or stating that certain actions, events or results “may”, “will”, “should”, or “could” be taken, occur or be achieved). Statements concerning oil and gas reserves also may be deemed to be forward-looking statements in that they reflect estimates based on certain assumptions including that the resources involved can be economically exploited. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to: the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; risks associated with the timing of and potential proceeds from divestitures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks and risks related to weather such as hurricanes and other natural disasters); uncertainties as to the availability and cost of financing; fluctuations in oil and gas prices; risks associated with derivative positions; inability to realize expected value from acquisitions, inability of our management team to execute its plans to meet its goals, shortages of drilling equipment, oil field personnel and services, unavailability of gathering systems, pipelines and storage and processing facilities and the possibility that government policies may change or governmental approvals may be delayed or withheld. Additional information on these and other factors which could affect Halcón Resources’ operations or financial results are included in Halcón Resources’ reports on file with the SEC. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Halcón Resources does not assume any obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.
About Halcón Resources
Halcón Resources Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.
Contact:
Scott M. Zuehlke
Director of Investor Relations
Halcón Resources
(832) 538-0314
Halcón Resources Corporation
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
| As of December 31, | ||||||||
| 2011 | 2010 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: |
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| Cash and cash equivalents |
$ | 49 | $ | 37 | ||||
| Accounts receivable: |
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| Oil and natural gas sales, net of allowance of $0 ($50 at December 31, 2010) |
9,519 | 9,797 | ||||||
| Joint interest operations, net of allowance of $280 ($479 at December 31, 2010) |
597 | 631 | ||||||
| Other, net of allowance of $14 ($48 at December 31, 2010) |
172 | 155 | ||||||
| Derivative assets |
260 | 1,340 | ||||||
| Prepaid expenses |
936 | 1,657 | ||||||
| Deferred tax asset |
2,601 | 3,526 | ||||||
| Inventory |
4,310 | 3,382 | ||||||
| Other current assets |
1,793 | 4 | ||||||
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| Total current assets |
20,237 | 20,529 | ||||||
| PROPERTIES AND EQUIPMENT, AT COST: |
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| Proved oil and natural gas properties and equipment, using full cost accounting |
715,666 | 689,472 | ||||||
| Other property and equipment |
9,979 | 10,072 | ||||||
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| 725,645 | 699,544 | |||||||
| Less accumulated depreciation, amortization and impairment |
(509,126 | ) | (489,634 | ) | ||||
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| Total properties and equipment |
216,519 | 209,910 | ||||||
| OTHER ASSETS: |
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| Deferred tax asset |
24,102 | 31,001 | ||||||
| Deferred loan costs, net of accumulated amortization of $1,053 ($5,012 at December 31, 2010) |
5,966 | 2,609 | ||||||
| Other |
978 | 952 | ||||||
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| Total assets |
$ | 267,802 | $ | 265,001 | ||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: |
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| Accounts payable: |
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| Trade |
$ | 12,890 | $ | 17,149 | ||||
| Oil and natural gas proceeds due others |
8,564 | 9,414 | ||||||
| Other |
359 | 452 | ||||||
| Accrued liabilities: |
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| Compensation |
1,600 | 1,948 | ||||||
| Interest |
464 | 2,448 | ||||||
| Income taxes |
406 | 699 | ||||||
| Other |
778 | 10 | ||||||
| Derivative liabilities |
265 | — | ||||||
| Asset retirement obligations |
1,010 | 639 | ||||||
| Long-term debt due within one year |
— | 127 | ||||||
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| Total current liabilities |
26,336 | 32,886 | ||||||
| DERIVATIVE LIABILITIES |
805 | 203 | ||||||
| LONG-TERM DEBT |
202,000 | 196,965 | ||||||
| ASSET RETIREMENT OBLIGATIONS |
32,703 | 30,770 | ||||||
| OTHER LONG-TERM LIABILITIES |
10 | 10 | ||||||
| COMMITMENTS AND CONTINGENCIES |
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| STOCKHOLDERS’ EQUITY: |
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| Common stock, $0.0001 par value, 33,333,333 shares authorized, 27,694,583 and 27,532,610 shares issued, 26,244,452 and 26,128,995 shares outstanding at December 31, 2011 and 2010, respectively |
3 | 3 | ||||||
| Additional paid-in capital |
229,414 | 226,047 | ||||||
| Treasury stock - 1,450,131 shares (1,403,615 shares at December 31, 2010) at cost |
(7,159 | ) | (6,976 | ) | ||||
| Accumulated deficit |
(216,310 | ) | (214,907 | ) | ||||
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| Stockholders’ equity |
5,948 | 4,167 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 267,802 | $ | 265,001 | ||||
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Halcón Resources Corporation
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
| Three months ended December 31, | Years ended December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| REVENUES AND OTHER OPERATING INCOME: |
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| Oil and natural gas sales |
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| Oil |
$ | 20,818 | $ | 19,665 | $ | 82,968 | $ | 76,563 | ||||||||
| Natural gas |
2,421 | 4,095 | 10,673 | 20,265 | ||||||||||||
| NGLs |
2,298 | 3,695 | 9,880 | 14,156 | ||||||||||||
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| Total oil and natural gas sales |
25,537 | 27,455 | 103,521 | 110,984 | ||||||||||||
| Realized gains (losses) on derivatives |
108 | (2,375 | ) | (1,078 | ) | (5,193 | ) | |||||||||
| Unrealized gains (losses) on derivatives |
(13,250 | ) | 250 | 5,269 | 6,386 | |||||||||||
| Other |
44 | 32 | 168 | 157 | ||||||||||||
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| Total revenues and other operating income |
12,439 | 25,362 | 107,880 | 112,334 | ||||||||||||
| OPERATING EXPENSES: |
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| Oil and natural gas production taxes |
1,460 | 1,498 | 5,740 | 6,063 | ||||||||||||
| Oil and natural gas production expenses |
9,282 | 8,738 | 33,330 | 33,891 | ||||||||||||
| Depreciation and amortization |
5,691 | 6,838 | 21,345 | 27,225 | ||||||||||||
| Accretion expense |
418 | 239 | 1,641 | 1,527 | ||||||||||||
| Share-based compensation |
1,357 | 826 | 3,584 | 3,110 | ||||||||||||
| Restructuring costs |
1,071 | — | 1,071 | — | ||||||||||||
| General and administrative, overhead and other expenses, net of operator’s overhead fees |
6,266 | 4,105 | 17,179 | 14,799 | ||||||||||||
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| Total operating expenses |
25,545 | 22,244 | 83,890 | 86,615 | ||||||||||||
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| Operating income (loss) |
(13,106 | ) | 3,118 | 23,990 | 25,719 | |||||||||||
| OTHER INCOME (EXPENSE): |
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| Interest expense |
(3,623 | ) | (5,539 | ) | (17,373 | ) | (22,655 | ) | ||||||||
| Interest income |
1 | 3 | 5 | 27 | ||||||||||||
| Loss on interest rate derivatives |
(14 | ) | — | (712 | ) | — | ||||||||||
| Other income (expense) |
61 | 28 | (511 | ) | 321 | |||||||||||
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| INCOME (LOSS) BEFORE INCOME TAXES |
(16,681 | ) | (2,390 | ) | 5,399 | 3,412 | ||||||||||
| INCOME TAX PROVISION (BENEFIT) |
(4,477 | ) | 1,904 | 6,802 | 995 | |||||||||||
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| Net income (loss) |
$ | (12,204 | ) | $ | (4,294 | ) | $ | (1,403 | ) | $ | 2,417 | |||||
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| BASIC INCOME (LOSS) PER SHARE |
$ | (0.46 | ) | $ | (0.16 | ) | $ | (0.05 | ) | $ | 0.09 | |||||
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| BASIC WEIGHTED AVERAGE SHARES OUTSTANDING |
26,269,992 | 26,206,234 | 26,258,230 | 26,142,060 | ||||||||||||
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| DILUTED INCOME (LOSS) PER SHARE |
$ | (0.46 | ) | $ | (0.16 | ) | $ | (0.05 | ) | $ | 0.09 | |||||
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| DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING |
26,269,992 | 26,206,234 | 26,258,230 | 26,142,060 | ||||||||||||
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Halcón Resources Corporation
Consolidated Statements of Cash Flows
(in thousands)
| Three months ended December 31, | Years ended December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
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| Net income (loss) |
$ | (12,204 | ) | $ | (4,294 | ) | $ | (1,403 | ) | $ | 2,417 | |||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities- |
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| Depreciation and amortization |
5,691 | 6,838 | 21,345 | 27,225 | ||||||||||||
| Amortization of deferred loan costs |
338 | 522 | 3,663 | 2,088 | ||||||||||||
| Non-cash interest |
— | 750 | 362 | 3,086 | ||||||||||||
| Accretion expense |
418 | 239 | 1,641 | 1,527 | ||||||||||||
| Unrealized (gain) loss on derivatives, net of premium amortization |
13,487 | 2,361 | (3,460 | ) | (1,498 | ) | ||||||||||
| Unrealized loss on interest rate derivatives |
(50 | ) | — | 506 | — | |||||||||||
| Deferred income tax provision (benefit) |
(4,580 | ) | 1,510 | 6,549 | 577 | |||||||||||
| Other expense (income) |
193 | — | 193 | (574 | ) | |||||||||||
| Share-based compensation |
1,357 | 826 | 3,584 | 3,110 | ||||||||||||
| Restructuring costs |
90 | — | 90 | — | ||||||||||||
| Loss (gain) on disposal of other property, equipment and subsidiary |
(38 | ) | — | (60 | ) | (38 | ) | |||||||||
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| Cash flow from operations before changes in working capital |
4,702 | 8,752 | 33,010 | 37,920 | ||||||||||||
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| Changes in working capital - |
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| Accounts receivable |
(998 | ) | 681 | 295 | 3,704 | |||||||||||
| Prepaid expenses, inventory and other assets |
(280 | ) | 259 | (231 | ) | 1,857 | ||||||||||
| Derivative premiums |
— | (730 | ) | 4,889 | (4,468 | ) | ||||||||||
| Accounts payable and proceeds due others |
2,462 | (1,060 | ) | (5,219 | ) | 543 | ||||||||||
| Accrued liabilities and other |
64 | 190 | (2,322 | ) | (1,527 | ) | ||||||||||
| Income taxes payable |
87 | 517 | (294 | ) | 44 | |||||||||||
| Asset retirement obligations |
(15 | ) | (37 | ) | (293 | ) | (198 | ) | ||||||||
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| Total changes in working capital |
1,320 | (180 | ) | (3,175 | ) | (45 | ) | |||||||||
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| Net cash provided by operating activities |
6,022 | 8,572 | 29,835 | 37,875 | ||||||||||||
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| CASH FLOWS FROM INVESTING ACTIVITIES: |
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| Payments for oil and natural gas properties and equipment |
(5,614 | ) | (6,059 | ) | (25,214 | ) | (33,535 | ) | ||||||||
| Proceeds from sales of oil and natural gas properties |
— | 48,888 | 462 | 49,366 | ||||||||||||
| Payments for other property and equipment |
(169 | ) | (144 | ) | (672 | ) | (865 | ) | ||||||||
| Proceeds from sales of other property and equipment |
37 | — | 48 | 4 | ||||||||||||
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| Net cash provided by (used in) investing activities |
(5,746 | ) | 42,685 | (25,376 | ) | 14,970 | ||||||||||
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| CASH FLOWS FROM FINANCING ACTIVITIES: |
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| Payments on long-term debt |
(10,399 | ) | (60,872 | ) | (245,621 | ) | (98,490 | ) | ||||||||
| Proceeds from borrowings on long-term debt |
12,001 | 10,079 | 250,167 | 46,340 | ||||||||||||
| Payments for deferred loan costs |
(822 | ) | — | (7,825 | ) | — | ||||||||||
| Payments for equity issuance costs |
(985 | ) | — | (985 | ) | — | ||||||||||
| Stock repurchased |
(66 | ) | (456 | ) | (183 | ) | (787 | ) | ||||||||
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| Net cash used in financing activities |
(271 | ) | (51,249 | ) | (4,447 | ) | (52,937 | ) | ||||||||
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| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
5 | 8 | 12 | (92 | ) | |||||||||||
| CASH AND CASH EQUIVALENTS, beginning of year |
44 | 29 | 37 | 129 | ||||||||||||
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| CASH AND CASH EQUIVALENTS, end of year |
$ | 49 | $ | 37 | $ | 49 | $ | 37 | ||||||||
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| SUPPLEMENTAL CASH FLOW INFORMATION: |
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| Cash paid for income taxes |
$ | 23 | $ | (236 | ) | $ | 554 | $ | 380 | |||||||
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| Cash paid for interest |
$ | 3,290 | $ | 4,470 | $ | 15,326 | $ | 17,988 | ||||||||
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| DISCLOSURE OF NON CASH INVESTING AND FINANCING ACTIVITIES: |
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| Asset retirement obligations |
$ | 979 | $ | 2,859 | $ | 956 | $ | 3,006 | ||||||||
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Halcón Resources Corporation
Production by Area
(Unaudited)
| Texas | Oklahoma | Louisiana | Other | Total | ||||||||||||||||
| Three Months Ended December 31, 2011 |
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| Aggregate Net Production |
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| Oil (MBbls) |
130 | 73 | 14 | 6 | 223 | |||||||||||||||
| NGLs (MBbls) |
31 | 6 | — | 3 | 40 | |||||||||||||||
| Natural Gas (MMcf) |
343 | 124 | 181 | 29 | 677 | |||||||||||||||
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| MBoe |
218 | 100 | 44 | 14 | 376 | |||||||||||||||
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| Three Months Ended December 31, 2010 |
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| Aggregate Net Production |
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| Oil (MBbls) |
134 | 78 | 17 | 9 | 238 | |||||||||||||||
| NGLs (MBbls) |
79 | 3 | — | 2 | 84 | |||||||||||||||
| Natural Gas (MMcf) |
688 | 205 | 175 | 34 | 1,102 | |||||||||||||||
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| MBoe |
327 | 115 | 46 | 17 | 505 | |||||||||||||||
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| Change in MBoe |
(109 | ) | (15 | ) | (2 | ) | (3 | ) | (129 | ) | ||||||||||
| Percentage change in MBoe |
-33.3 | % | -13.0 | % | -4.4 | % | -17.7 | % | -25.5 | % | ||||||||||
| Texas | Oklahoma | Louisiana | Other | Total | ||||||||||||||||
| Year Ended December 31, 2011 |
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| Aggregate Net Production |
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| Oil (MBbls) |
499 | 297 | 60 | 28 | 884 | |||||||||||||||
| NGLs (MBbls) |
147 | 16 | — | 13 | 176 | |||||||||||||||
| Natural Gas (MMcf) |
1,562 | 410 | 558 | 132 | 2,662 | |||||||||||||||
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| MBoe |
906 | 382 | 153 | 63 | 1,504 | |||||||||||||||
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| Year Ended December 31, 2010 |
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| Aggregate Net Production |
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| Oil (MBbls) |
559 | 322 | 79 | 35 | 995 | |||||||||||||||
| NGLs (MBbls) |
341 | 10 | — | 13 | 364 | |||||||||||||||
| Natural Gas (MMcf) |
3,128 | 849 | 689 | 150 | 4,816 | |||||||||||||||
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| MBoe |
1,421 | 473 | 194 | 73 | 2,161 | |||||||||||||||
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| Change in MBoe |
(515 | ) | (91 | ) | (41 | ) | (10 | ) | (657 | ) | ||||||||||
| Percentage Change in MBoe |
-36.2 | % | -19.2 | % | -21.1 | % | -13.7 | % | -30.4 | % | ||||||||||
Halcón Resources Corporation
Selected Operating Data
(Unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Production volumes: |
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| Oil (MBbls) |
223 | 238 | 884 | 995 | ||||||||||||
| NGL (MBbls) |
40 | 84 | 176 | 364 | ||||||||||||
| Natural gas (MMcf) |
677 | 1,102 | 2,662 | 4,816 | ||||||||||||
| Total (Mboe) |
376 | 505 | 1,504 | 2,161 | ||||||||||||
| Average sale prices received: |
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| Oil (per Bbl) |
$ | 93.35 | $ | 82.63 | $ | 93.86 | $ | 76.95 | ||||||||
| NGL (per Bbl) |
57.45 | 43.99 | 56.14 | 38.89 | ||||||||||||
| Natural gas (per Mcf) |
3.58 | 3.72 | 4.01 | 4.21 | ||||||||||||
| Total per Boe |
$ | 67.92 | $ | 54.37 | $ | 68.83 | $ | 51.36 | ||||||||
| Cash effect of derivative contracts: |
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| Oil (per Bbl) |
$ | (0.26 | ) | $ | (12.70 | ) | $ | (3.51 | ) | $ | (6.14 | ) | ||||
| NGL (per Bbl) |
— | — | — | — | ||||||||||||
| Natural gas (per Mcf) |
0.25 | 0.59 | 0.76 | 0.19 | ||||||||||||
| Total per Boe |
$ | 0.29 | $ | (4.70 | ) | $ | (0.72 | ) | $ | (2.40 | ) | |||||
| Average prices computed after cash effect of settlement of derivative contracts: |
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| Oil (per Bbl) |
$ | 93.09 | $ | 69.93 | $ | 90.35 | $ | 70.81 | ||||||||
| NGL (per Bbl) |
57.45 | 43.99 | 56.14 | 38.89 | ||||||||||||
| Natural gas (per Mcf) |
3.83 | 4.31 | 4.77 | 4.40 | ||||||||||||
| Total per Boe |
$ | 68.21 | $ | 49.67 | $ | 68.11 | $ | 48.96 | ||||||||
| Expenses (per Boe): |
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| Oil and natural gas production taxes |
$ | 3.88 | $ | 2.97 | $ | 3.82 | $ | 2.81 | ||||||||
| Oil and natural gas production expenses |
24.69 | 17.30 | 22.16 | 15.68 | ||||||||||||
| General and administrative |
16.66 | 8.13 | 11.42 | 6.85 | ||||||||||||
| Total per Boe |
$ | 45.23 | $ | 28.40 | $ | 37.40 | $ | 25.34 | ||||||||
| Cash flow from operations (a) |
$ | 4,702 | $ | 8,752 | $ | 33,010 | $ | 37,920 | ||||||||
| Cash flow from operations (per basic and diluted share) |
$ | 0.18 | $ | 0.33 | $ | 1.26 | $ | 1.45 | ||||||||
| (a) | Represents cash flow from operations before changes in working capital. See the Consolidated Statement of Cash Flows for a reconciliation from this non-GAAP financial measure to the most comparable GAAP financial measure. |
Halcón Resources Corporation
2011 Proved Oil and Natural Gas Reserves
(Unaudited)
| Oil MBbl |
Gas MMcf |
NGL MBbl |
MBoe | Reserve % |
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| Proved developed producing |
8,342 | 16,697 | 1,158 | 12,283 | 58 | % | ||||||||||||||
| Proved developed nonproducing |
301 | 4,300 | 80 | 1,098 | 5 | % | ||||||||||||||
| Proved undevolped |
3,728 | 19,057 | 772 | 7,676 | 37 | % | ||||||||||||||
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| Total proved |
12,371 | 40,054 | 2,010 | 21,057 | 100 | % | ||||||||||||||
| Developed |
8,643 | 20,997 | 1,238 | 13,381 | ||||||||||||||||
| % Developed |
70 | % | 52 | % | 62 | % | 64 | % | ||||||||||||
The Company’s total proved reserve reconciliation is as follows:
| Oil MBbl |
Gas MMcf |
NGL MBbl |
MBoe | |||||||||||||
| As of December 31, 2010 |
13,086 | 53,608 | 2,375 | 24,396 | ||||||||||||
| Extensions, discoveries and additions (a) |
339 | 20 | 1 | 343 | ||||||||||||
| Purchases |
5 | — | — | 5 | ||||||||||||
| Production |
(884 | ) | (2,662 | ) | (176 | ) | (1,504 | ) | ||||||||
| Revisions of previous estimates (b) |
(175 | ) | (10,912 | ) | (190 | ) | (2,183 | ) | ||||||||
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| As of December 31, 2011 |
12,371 | 40,054 | 2,010 | 21,057 | ||||||||||||
| (a) | The Company added 0.3 MMBoe in proved reserve extensions, discoveries and additions in 2011 primarily as a result of development drilling in the Electra/Burkburnett field in North Texas and in the La Copita field in South Texas. A significant portion of these reserves is a result of drilling locations in the Electra/Burkburnett, Northeast Fitts and Allen fields that were not booked as proved locations at year-end 2010. |
| (b) | Total revisions of previous reserve estimates decreased proved reserves by 2.2 MMBoe or approximately 9% of reserves at the beginning of the year. The revisions included a positive increase of 0.9 MMBoe or 4% of the beginning of the year proved reserves caused by higher crude oil and natural gas prices. This positive revision was offset by the downward revision of 1.4 MMBoe caused by the transfer of proved reserves to unproved categories as a result of updated geological and engineering evaluations and changes to the Company development plans during 2011, and 1.7 MMBoe of downward revisions were mostly due to changes in well performance. |