Business Context and Reporting Period
This Form 8-K was filed by Halcon Resources Corporation on September 19, 2017. The report details a material definitive agreement entered into on the same date regarding the sale of specific assets.
Key Financial Metrics and Transaction Details
- Transaction Value: Approximately $104 million total purchase price.
- Assets Sold: Non-operated properties and related assets in the Williston Basin (North Dakota and Montana), referred to as the "Non-Operated Bakken Assets."
- Effective Date: April 1, 2017.
- Expected Closing: Mid-November 2017.
- Debt Impact: Upon closing, the borrowing base on the Company's revolving credit facility will be reduced to $100 million.
The filing does not provide specific revenue, profit, cash flow, or margin figures for the reporting period.
Material Changes and Adjustments
The purchase price is subject to adjustments for:
- Operating expenses, capital expenditures, and revenues between the effective date and the closing date.
- Title and environmental defects.
- Other customary purchase price adjustments in oil and gas agreements.
Outlook, Risks, and Management Commentary
The transaction is expected to close in mid-November 2017, subject to the satisfaction of customary closing conditions. The primary financial implication noted is the reduction of the revolving credit facility's borrowing base to $100 million following the asset sale. The filing does not contain forward-looking guidance, risk factors, or management commentary beyond the transaction specifics.
Key Facts for Investor Verification
- Confirmation of the final closing date in mid-November 2017.
- Final adjusted purchase price after accounting for operating expenses, capital expenditures, and revenues between April 1, 2017, and the closing date.
- Impact of the $100 million borrowing base reduction on the Company's liquidity and debt capacity.
- Verification that the assets sold were non-operated properties in the Williston Basin.