Business Context and Reporting Period
This Form 8-K is a current report filed by Halcón Resources Corporation on February 9, 2017. The filing provides estimated fourth-quarter 2016 operating data and year-end 2016 proved reserves information. The company operates oil and natural gas properties, primarily in the Williston Basin and the El Halcón area of East Texas.
Key Financial and Operational Metrics
- Q4 2016 Production: Estimated between 38,000 and 39,000 barrels of oil equivalent per day (Boe/d).
- Proved Reserves (as of Dec 31, 2016): 148.6 million Boe (MMBoe).
- Reserve Composition: 58% proved developed; 80% oil; 91% liquids.
- Divestiture Assets: Includes 35.1 MMBoe of proved reserves located in East Texas, comprising approximately 191 gross (135 net) wells that produced 7,600 Boe/d in 2016.
- SEC Pricing Assumptions: $42.75 per barrel for oil and $2.48 per MMBtu for natural gas.
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures.
Material Changes and Operational Impacts
Fourth-quarter production was negatively impacted by approximately 800 Boe/d due to inclement weather in the Williston Basin. The reported reserve data includes assets pending divestiture in East Texas, which represent a significant portion (35.1 MMBoe) of the total proved reserves.
Guidance, Outlook, and Risks
The company provided production estimates for the fourth quarter of 2016 but did not issue forward-looking guidance for 2017 in this report. The primary operational risk noted was weather-related production disruption. The pending divestiture of East Texas assets represents a material contingency affecting future reserve volumes and production capacity.
Key Facts for Investor Verification
- Verify the final status and timeline of the divestiture for the El Halcón area assets (35.1 MMBoe).
- Confirm the actual Q4 2016 production figures once the full quarterly report is released.
- Assess the impact of the 800 Boe/d weather-related production loss on full-year 2016 results.
- Review the specific terms of the divestiture to understand the cash proceeds or asset exchange involved.