Business Context and Reporting Period
This Form 8-K is a current report filed by Halcón Resources Corporation (not Battalion Oil Corp) on May 8, 2013. The filing addresses Item 8.01 (Other Events) regarding the adoption of new accounting standards effective January 1, 2013.
Key Financial Metrics
The filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. It provides unaudited retrospective data on derivative assets and liabilities to comply with new disclosure rules (ASU 2011-11 and ASU 2013-01).
| Category | Dec 31, 2012 (in thousands) | Dec 31, 2011 (in thousands) |
|---|---|---|
| Gross Derivative Assets | $7,799 | $3,900 |
| Gross Derivative Liabilities | $(12,890) | $(4,710) |
| Net Derivative Assets | $3,681 | $260 |
| Net Derivative Liabilities | $(8,991) | $(1,070) |
Material Changes
The filing details the retrospective application of ASU 2011-11 and ASU 2013-01, which require enhanced disclosures about offsetting assets and liabilities. The company states that the impact of retrospectively adjusting for the adoption of these pronouncements was immaterial to its historical consolidated financial statements.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future operations, or specific risk factors beyond the standard disclosure of derivative offsetting arrangements. The company notes it enters into International Swap Dealers Association (ISDA) Master Agreements with counterparties, which allow for the offsetting of amounts payable or receivable at the election of both parties for transactions occurring on the same date and in the same currency.
Investor Verification Checklist
- Verify the registrant name is Halcón Resources Corporation, not Battalion Oil Corp.
- Confirm the immateriality of the accounting change impact on historical financial statements.
- Review the gross vs. net presentation of derivative contracts to understand exposure to counterparty risk.
- Check subsequent filings for actual revenue and earnings data, as this 8-K contains only balance sheet reconciliations.