Business Context and Reporting Period
This Form 8-K is filed by Halcón Resources Corporation (not Battalion Oil Corp as indicated in metadata) on March 5, 2012. The report announces the issuance of a press release detailing the Company's financial results for the fourth quarter and full year ended December 31, 2011.
Key Financial Metrics
The filing text serves as a notification of results and does not contain specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. These figures are contained within the press release furnished as Exhibit 99.1.
The Company discloses the following non-GAAP financial measures in the referenced exhibit:
- Cash flow from operations before changes in working capital.
- Cash flow from operations per diluted share.
Management states these measures are used to assess the ability to fund exploration, pay dividends, and service debt, particularly for companies using the full cost method of accounting.
Material Changes
The filing text does not provide specific data regarding material changes versus prior periods. It only confirms that the fourth quarter and full year 2011 results have been released.
Guidance, Outlook, and Risks
Management Commentary: Management believes the disclosed non-GAAP cash flow measures are useful for investors comparing the Company to peers with different financing structures or tax rates. However, the filing explicitly states these measures are not GAAP alternatives and should not be considered a measure of liquidity or a substitute for net income.
Regulatory Note: Exhibit 99.1 is furnished but not "filed" for purposes of Section 18 of the Exchange Act and will not be incorporated by reference into registration statements unless specifically identified.
Investor Verification Checklist
- Verify the specific revenue, net income, and cash flow figures in Exhibit 99.1 (Press Release dated March 5, 2012).
- Review the reconciliation tables in Exhibit 99.1 to understand the difference between GAAP and non-GAAP cash flow measures.
- Confirm the Company's debt service capacity and dividend payout details as described in the press release.
- Note that the registrant is Halcón Resources Corporation, formerly RAM Energy Resources, Inc.