Dec. 20, 2014, 1:34 PM
- These five oil and gas producers have among the highest net debt-to-capital ratios in the industry, writes Avi Salzman, which could be an issue if oil prices stay at these levels:
- Ultra Petroleum (NYSE:UPL) at 115%, EXCO Resources (NYSE:XCO) at 90.3%, Halcon Resources (NYSE:HK) at 68.7%, W&T Offshore (NYSE:WTI) at 68.1%, Energy XXI (NASDAQ:EXXI) at 65.2%.
- Previously: Barron's: Five oils to buy now (Dec. 20, 2014)
Dec. 8, 2014, 7:20 PM
- With valuations at a decade low, oil execs such as Chesapeake Energy’s (NYSE:CHK) Archie Dunham and Ring Energy's (NYSEMKT:REI) Tim Rochford are driving the sector's biggest wave of insider buying since 2012, according to Bloomberg data.
- Rochford and two other board members bought a total of more than 30K REI shares over the past month; the CEO says the company can stay profitable even should oil slip to $50/bbl.
- “Most of these execs that are buying have been in the industry as long as I have, so they know how supply and demand works and they’re buying quality stocks,” says Dunham, who recently bought 500K CHK shares in his biggest purchase since joining the company’s board in 2012.
- Loews Corp. (NYSE:L), which owns about half of Diamond Offshore (NYSE:DO), bought 1.18M DO shares in November and bought another ~410K shares last week.
- Halcon Resources (NYSE:HK) and Goodrich Petroleum (NYSE:GDP) are among companies operating in the costliest U.S. shale-producing regions, but execs from those companies are buyers as well.
Dec. 2, 2014, 5:44 PM
- Oil producers with the most debt are the most at risk in a ~$70/bbl oil price environment, since they have more relative cash flow directed toward interest payments rather than drilling, so they’re most likely to see production declines.
- For investors looking to limit risk, MarketWatch's Philip Van Doorn provides a list of U.S. shale oil producers with market values of at least $50M and share prices above $1 with the highest ratios of debt to equity, in order: UPL, MPO, MRD, ISRL, JONE, XCO, PQ, GDP, LINE, HK.
Dec. 1, 2014, 3:32 PM
- Prices of bonds issued by low-rated energy companies are falling sharply despite today's rebound in oil prices, amid worries that this year’s slump in oil markets will lead to a cash crunch.
- The most actively traded junk bonds at midday were Linn Energy’s (LINE -5.8%) two B-rated notes due 2019, which fell 9% to $0.82 on the dollar, pushing yields up to ~11.5%; Halcon Resources' (HK -1.3%) 2021 bond, which started weakening Friday, has dropped 10% today to $0.69 on the dollar, pushing up the yield to 17%.
- Energy XXI’s (EXXI -15.8%) debt which matures in 2017 fell 5.5% to $0.85 on the dollar and yielding 15.5%; Quicksilver Resources' (KWK +38.3%) bonds due 2016 have rebounded slightly but still trade ~$0.22 on the dollar.
- Should oil prices fall below $65/bbl and stay there for the next three years, J.P. Morgan high-yield energy analyst Tarek Hamid estimates that up to 40% of all energy junk bonds could default over the next several years.
Dec. 1, 2014, 9:13 AM
Nov. 28, 2014, 10:28 AM
- Ladenburg Thalman throws in the towel on Oasis Petroleum (OAS -30%), Denbury Resources (DNR -14.9%), Resolute Energy (REN -18.3%) following OPEC's decision yesterday to hold production levels and the resulting tumble in crude oil, with WTI crude -6.4% to $69.95 per barrel.
- Some others: Bonanza Creek (BCEI -21.5%), Northern Oil & Gas (NOG -16.2%), Warren Resources (WRES -16.3%), Halcon Resources (HK -22%), Triangle Petroleum (TPLM -21%), Emerald Oil (EOX -26.4%), Kodiak Oil & Gas (KOG -19.3%).
Nov. 28, 2014, 9:17 AM| 13 Comments
Nov. 14, 2014, 5:38 PM
Nov. 10, 2014, 5:59 PM
- Halcon Resources (NYSE:HK) -5.8% AH after reporting Q3 earnings and revenues that were short of analyst expectations, as it says it will cut nearly half the rigs it originally planned to operate next year due to sliding crude oil prices.
- HK says it expects to operate six rigs next year, five rigs less than originally planned, and reduces its 2015 capex budget to $750M-$800M from $950M in 2014.
- Despite the reduced capital budget, HK believes the Williston Basin and El Halcón assets should drive Y/Y production growth of 15%-20% in 2015.
- HK says it currently operates eight rigs across its holdings and expects to deliver annual production towards the high end of previously disclosed FY 2014 production guidance of 40K-42K boe/day.
Nov. 10, 2014, 4:02 PM| 1 Comment
Nov. 9, 2014, 5:35 PM
Nov. 4, 2014, 9:15 AM
Aug. 18, 2014, 10:43 AM
- Halcon Resources (HK -0.8%) is upgraded to Buy from Hold with an $8 price target at MLV & Co., which notes HK has suffered a rocky road to this point but believes its growth outlook has been enhanced by a focus on three core oil plays.
- MLV says it is encouraged by consecutive quarters of better than expected execution, highlighted by a 2014 production guidance raise.
- The firm says the market can't keep ignoring HK's continued execution, with the recent pullback in the stock unwarranted and representing a compelling entry point.
Jul. 30, 2014, 4:24 PM
Jul. 29, 2014, 5:35 PM
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Jun. 25, 2014, 2:55 PM
- Halcon Resources (HK +4.4%) is higher after Miller Tabak initiates coverage of the energy E&P company with a Buy rating and a $9 price target, believing HK will significantly outperform the E&P sector in 2014 as investors begin to realize the massive upside of the company's divisions.
- The firm says HK offers growth with a top-tier management team, and foresees multiple expansion in the stock price over the next 12 months as the company executes on its developmental drilling program and its balance sheet improves.
HK vs. ETF Alternatives
Halcon Resources Corp is an oil and natural gas company, which is engaged in the acquisition, production, exploration and development of onshoreliquids-rich oil and natural gas assets in the United States.
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