Halcón Resources Corp. Announces Second Quarter 2019 Results

DENVER, Aug. 08, 2019 - Halcón Resources Corporation (OTC PINK:HKRS) (“Halcón” or the “Company”) today announced its second quarter 2019 results and provided an update on operations and other matters.

Net production for the three months ended June 30, 2019 averaged 18,055 barrels of oil equivalent per day (Boe/d). Production was comprised of 57% oil, 17% natural gas liquids (NGLs) and 26% natural gas for the quarter.

Halcón generated total revenues of $56.4 million for the second quarter of 2019. The Company reported a net loss available to common stockholders of $(640.8) million or net loss per basic and diluted share of $(4.03) for the second quarter of 2019. Adjusted EBITDA (see EBITDA Reconciliation table for additional information) totaled $27.4 million during the second quarter of 2019 compared to $21.9 million in the first quarter.

Excluding the impact of hedges, Halcón realized 95% of the average NYMEX oil price, 25% of the average NYMEX oil price for NGLs and -25% of the average NYMEX natural gas price (see Selected Operating Data table for additional information) during the second quarter of 2019. Realized hedge gains totaled approximately $6.2 million during the second quarter.

Total operating costs per unit, after adjusting for selected items (see Selected Operating Data table for additional information), were $21.45 per Boe for the second quarter of 2019, compared to $21.73 per Boe for the first quarter of 2019.


Liquidity and Capital Spending

As of June 30, 2019, Halcón’s liquidity was $37 million consisting of $2 million in cash on hand plus $37 million available under the revolving credit facility less $2 million in letters of credit outstanding.

During the second quarter of 2019, Halcón incurred capital costs of approximately $29 million on drilling and completions and $35 million on infrastructure, seismic and other.


Hedging Update

As of August 8, 2019, Halcón had ~8,500 barrels per day (Bbl/d) of oil hedged for the last six months of 2019 at an average price of $55.73 per barrel. For 2020, the Company had ~5,000 Bbl/d of oil hedged at an average price of $58.85 per barrel. Halcón also had Magellen East Houston vs. Cushing basis swaps in place for ~5,000 Bbl/d in the fourth quarter of 2019 at +$3.72 per barrel and ~9,000 Bbl/d in 2020 at +$2.95 per barrel.

As of August 8, 2019, Halcón had 22,342 MMBtu/d of natural gas hedged for the last six months of 2019 at an average price of $2.81 per MMBtu. The Company had WAHA vs. NYMEX basis differential swaps in place for 25,500 MMBtu/d for last six months of 2019 at an average swap price of -$1.18 per MMBtu/d.

As of August 8, 2019, Halcón had ~3,500 barrels per day of natural gas liquids hedged for the last six months of 2019 at $29.21 per barrel.


Restructuring Update

As previously announced, the Company entered into a restructuring support agreement (the “RSA”) on August 2, 2019 and filed a pre-packaged bankruptcy plan on August 7, 2019. Halcón will continue to operate as usual during the bankruptcy and will continue pay its vendors, employees and other operating partners in the normal course of business. Pursuant to the restructuring plan, Halcón will launch a $165 million equity rights offering of which $150 million is backstopped by certain bondhonders. The Company expects this offering to close and fund concurrent with its emergence from bankruptcy in late September or early October of 2019. Halcón also received a commitment for a new senior secured revolving credit facility with an expected $275 million borrowing base which will go effective upon emergence from bankruptcy. The Company expects its liquidity to be in excess of $150 million upon emergence from bankruptcy with a leverage profile of less than 1.5x (net debt/LTM EBITDA).


About Halcón Resources

Halcón Resources Corporation is an independent energy company focused on the acquisition, production, exploration and development of liquids-rich onshore oil and natural gas assets in the United States.

For more information contact Quentin Hicks, Executive Vice President - CFO & Treasurer, at 303-802-5541 or qhicks@halconresources.com.


Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not strictly historical statements constitute forward-looking statements. Forward-looking statements include, among others, statements about anticipated production, liquidity, capital spending, drilling and completion plans, and forward guidance. Forward-looking statements may often, but not always, be identified by the use of such words such as "expects", "believes", "intends", "anticipates", "plans", "estimates", “projects”, "potential", "possible", or "probable" or statements that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, the ability to confirm and consummate a plan of reorganization in accordance with the terms of the restructuring support agreement; risks attendant to the bankruptcy process, including the effects thereof on the Company’s business and on the interests of various constituents, the length of time that the Company might be required to operate in bankruptcy and the continued availability of operating capital during the pendency of such proceedings; risks associated with third party motions in any bankruptcy case, which may interfere with the ability to confirm and consummate a plan of reorganization, potential adverse effects on the Company’s liquidity or results of operations; increased costs to execute the reorganization, effects on market price of the Company’s common stock and on the Company’s ability to access the capital markets, and the risks set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and other filings submitted by the Company to the U.S. Securities and Exchange Commission (SEC), copies of which may be obtained from the SEC's website at www.sec.gov or through the Company's website at www.halconresources.com. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. The Company has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company's expectations.


HALCÓN RESOURCES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)

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