& the rest of article follows -
To be sure, Oxy has not considered North Dakota a core part of its portfolio for at least a year and had openly sought a buyer. Most of its acreage in the state is in Stark and Dunn counties, farther south from McKenzie and Williams counties where much of the Bakken development is occurring.
Developing that acreage would require a diversion of capital that executives did not seem willing to allocate. The company has been the 16th-largest oil producer in the state for some time, lagging even much-smaller companies including WPX Energy Inc (WPX.N) and Oasis Petroleum Inc (OAS.N).
Oxy executives had constantly bemoaned to Wall Street its high cost of drilling new wells in North Dakota, despite the fact that peers have consistently found ways to be more efficient.
While the high cost was partially a function of the company's geographic location, it also was born from a decision to spend more of the company's capital budget on operations in Texas, Oman and Colombia.
North Dakota "just can't compete with our Permian Basin (Texan) assets and we don't think it ever will, so we do want to monetize it," Vicki Hollub, Oxy's executive vice president and the named successor to Chief Executive Steve Chazen, told analysts three months ago.
Lime Rock, which holds acreage in other U.S. shale plays, is already moving fast to cut costs by requiring all of Oxy's North Dakota employees to re-apply for their jobs, according to one of the sources.
Lime Rock and Oxy, both of which are based in Houston, declined to comment.
The sale comes less than three years after Oxy spent $8.8 million on a gleaming blue and gray steel headquarters for operations in the state, which Chazen bragged at the time helped boost the company's oil production to an all-time high.
Today, with oil prices at levels not seen in six years, the regional office in Dickinson near the state's western edge holds far fewer employees than its size allows.
Oh Kelly, get the corncob.
Drilling and completion capital expenditures for 2015 are being trimmed by about 6% to $350 million-$400 million (from $375 million-$425 million as initiated last month) to reflect ongoing reductions in service costs.
In the Bakken [North Dakota, Montana, Canada] and Three Forks [underlying the Bakken], authorizations for expenditures in its core Fort Berthold area have declined by over 20% from its fourth-quarter average to $8.5 million with expectations of another 10% savings by mid-2015. In the East Texas Eagle Ford, Halcon has seen about 20% savings in well costs from the fourth quarter to about $8.0 million (three-string well design) with expectations of another 10% or more by mid-2015 and another 10%-15% into 2016; 2015 production guidance was reaffirmed at 40-45 thousand barrels of oil equivalent per day (mboe/d). We’re upping our forecast to 42.5 mboe/d from 42.0; consensus is 42.7.
-- Chad Mabry
Halcon Resources (HK: NYSE)
By MLV & Co. ($2.01, Feb. 26, 2015)
We reiterate Halcon Resources at Buy and raise the price target to $3 from $2.50 on an improving outlook.
Halcon (ticker: HK HK 0.746268656716418%Halcon Resources Corp.U.S.: NYSE USD2.025 0.0150.746268656716418% /Date(1424979178201-0600)/ Volume (Delayed 15m) : 2281740 P/E Ratio N/AMarket Cap 849100352.41663 Dividend Yield N/ARev. per Employee 2852630More quote details and news »HK inYour ValueYour Change Short position ) has been on the defensive ever since the oil-price downturn exposed balance-sheet and liquidity concerns. But positive surprises in the form of a very strong reserve report and the reaffirmation of its borrowing base are helping to prove such concerns overdone. We expect Halcon to get back on offense as oil prices continue to recover.
Investor focus has been firmly on the balance sheet and liquidity, so the recent reaffirmation of its borrowing base at $1.050 billion is a significant event. We had been forecasting a nearly 15% reduction (to about $900 million) upon its spring redetermination as reserve growth was expected to be overcome by a lower price deck. The company’s liquidity was greater than $550 million at year-end 2014, which is more than sufficient to handle a forecast outspend of less than $50 million for 2015.
Halcon’s liquidity position is protected by one of the strongest hedge books in the sector, including 90% of 2015 estimated oil volumes hedged at a weighted average floor price of about $87 per barrel and two-thirds of 2016 estimated oil hedged at a weighted average floor of about $84 per barrel. For perspective, we expect this to translate into realized gains of greater than $350 million this year, or about one-third of revenue.
The company’s 2015 capital-expenditure budget has already been cut to the bone, yet it is still finding ways to squeeze savings. Drilling and completion capital expenditures for 2015 are being trimmed by about 6% to $350 million-$40
Can someone flesh out exactly what this means -
The Company estimates that it will record non-cash pre-tax impairment charges totaling $150 - $250 million in the fourth quarter of 2014.
Wunderlich Securities Sees Even Better Things To Come For Halcon Resources
Read more: http://www.benzinga.com/analyst-ratings/analyst-color/14/08/4800958/wunderlich-securities-sees-even-better-things-to-come-fo#ixzz3BPK2xX6I
In a report published Monday, Wunderlich Securities analyst Jason A. Wangler reiterated a Buy rating and $9.00 price target on Halcon Resources (NYSE: HK).
In the report, Wunderlich Securities noted, “Halcon Resources (HK) last week announced that its second TMS well was on production and showed a solid initial production rate given the short lateral. This is certainly good news and shows that HK and many other operators in the region have shown solid progress in the play as well results improve as does the understanding. Outside of the TMS Halcon continues to generate strong results from the Williston and El Halcon plays that supports its solid growth expectations for 2014 and beyond. After the company's strong 2Q14 results and this recent news in the TMS we are surprised the stock has retraced some of the gains of late due to a weak energy tape. We feel these catalysts (as well as future ones) should lead the stock nicely higher.”
Read more: http://www.benzinga.com/analyst-ratings/analyst-color/14/08/4800958/wunderlich-securities-sees-even-better-things-to-come-fo#ixzz3BPJqX8ED
& now above. so what y ou think for the next 3 mins...up, down? how about that backside pirate value digger. no doubt you're lurking - give me another bait me switch me otc canadian penny stock. r u the same clown as the other pirate josh young? own what you pump & own up. tell me about petro river piree! i'll stick to this ship thinner or thicker; tell me i'm wrong now and is so later.