they are in place through 2017 ..... any fool knows with out debt companies are worth more and the reduction will make this fly. They are marked for cash flow positive and any move to remove debt may raise the stock two fold. COVER.
this is from the 4th quarter transcripts FEB 2016- . FEB 2016 report- As far as hedges, we did realize a gain on settled derivative contracts of $129 million during fourth quarter and $440 million for the full year and we expect hedge cash receipts to be significant in 2016, based on the robust hedge book that we still have in place for this year. FOR 2016 we have just under 26 million barrels of oil hedged at an average price of just under $81 a barrel, and we continue to monitor the strip in 2017. Halcón has 25,497 barrels per day of oil hedged for 2016 at an average price of $80.59 per barrel.
The hedges provide significant predictability to the company's discretionary cash flow, which I estimate in 2016 to be in the ~$275 million range
........I think you got the company wrong... They only averaged about 29 million b/day out of the ND basin... he thinks they will be cash flow positive and stated------------ We will spend less than $140 million on drilling and completion CapEx this year. This will result in only a modest decline in year-over-year production less than 10%. This capital program will allow us to be cash flow positive this year, resulting in strong liquidity throughout the year. ......... About a month ago he contacted a bank on reducing the debt that could be spurring some talk but at what price? He is sitting on a gold mine up there when oil climbs. He is not as motivated as you guys sound .
the stock only has 13% shorts. some could be shorts but like what you say volume isn't even double yet. I think its just a trend that been going on for two weeks as WTI has rallied. The company needed this rally as ,most small oil companies, they need cash and a higher PPS and market cap. Higher oil, MK Capp and reserves, brings more investors and an up trend. . these were priced for destruction and the market is coming around finding these that have not tripled yet. Its just AXAS' turn to rally like the service stocks in oil . KEG PACD WG and the like.
we should have a good ride now. Confirmation as we start to rally. Self fulfilling prophecy right now. The higher it goes the more people have to jump on. UP UP and away. I was getting scared as it has not rocketed yet. It looks good now.
maybe you don't get the term cash flow??? maybe you stand to loose 25% today and another 25% tomorrow before you cover, PACD went up 45% the other day. Most these with solid numbers are up 200% from the bottom and go up another 200%. its time to cover don't you think? Every rally the last two weeks have been followed by more buying and volume. What does it take to wake you up?
FOR ONE THING !!!! 81% of expected oil production is covered with NYMEX hedges at an average price of ~$81 per barrel. That is very clear and they are in the BAKKENS ... The pipeline through IOWA to Illinois is said to be built this fall. That's cheap oil and its a surprise to many the price of oil now they make money. Fort Berthold Indian Reservation, North Dakota, , or FBIR, where Halcon believes that its entire acreage is economical in the current price scenario.
Its at a low and you can see its a big supplier of services. The DUCs drilled and almost completed are just sitting and waiting for oil to pop to 50 plus... Many have hedges and will take a shot at oils recovery soon. I don't think it will stay down here long as most thought oil would stay down below 30. SHORTS were at a record industry wide up until a couple weeks ago and every time they have shorted the rallies they have been hit harder. I think this rally has legs and this is a shot to buy on the bottom if you missed the oil companies. PACD rallied 45% in a day.
They offer well service and platform rigs... coiling tubes, piping ect... They are huge and will go up like the others lately, PEOPLE left these guys for dead and the oil is at break even for most or near. These guys could be the next stocks to triple like some of the drillers. Its time as PACD went up 45% in a day. WG is rallying also.
RIGS WILL go back on line with the cycle- HUGE in the service industry, PACD and WG popped already as KEG IS NEXT-ITS going to pop.... Key Energy Services is the largest onshore, rig-based well servicing contractor based on the number of rigs owned. OIL is going up and services will be needed. Restructuring under its West Texas well servicing division, Yale E. Key, the company began an aggressive acquisition program that ultimately led to the creation of Key Energy Services, Inc.
In less than ten years Key grew from a company with fewer than fifty working rigs into the largest onshore well services company in the country.
Today, Key offers an entire suite of well servicing solutions, including: drilling and workover rigs, coiled tubing, frac stack and well testing, fluid services, onshore and deepwater fishing, and rental services.
We employ more than 8,500 people worldwide and service customers across the Americas, Russia and the Middle East. RENTALS and Fishing Rental equipment used in the drilling and completion of wellbores including drill pipe, blowout preventers, frac stacks and well-testing equipment and services + Rental equipment used in the maintenance and workover of producing wellbores including tubing and tubing handling tools, Key’s HydraWalk® units, and pressure control equipment + Onshore and offshore, including deepwater, fishing services used in the drilling or workover of a wellbore to recover lost or stuck downhole equipment RIG SERVISE- Rig Services deploys well service rigs that have been built to increase safety and reliability while reducing the chance of unplanned downtime + Services include: + Completion of newly-drilled horizontal and vertical wellbores + Recompletion of existing wellbores + Maintenance of producing wellbores to maintain production + Workover of existing wellbores to enhance production + Plugging and abandonment of wellbores at the end of their productive lives COIL TUBING - Key’s Coiled Tubing Services delivers value and time savings by minimizing downtime and reducing time to completion + Services include: + Completion of newly drilled horizontal wellbores pre and post hydraulic fracturing + Maintenance of producing wellbores + Plugging and abandonment of depleted wellbores at the end of their productive lives… customers like Shell ,CHK OXY,MRO Fluid Management - Transportation of fluids, including sourcing of brine and fresh water, used in the drilling and completion process + Transportation of frac flowback and produced water from completed or producing wellbores + Temporary on-site fluids storage via frac tank rentals + Disposal of flowback and produced water in saltwater disposal wells Customers like- Memorial, Carrizo, Cheveron OXY AERO
Even in a moderated oil price environment expected growth in the population of horizontal wellbores and the continued aging of the existing horizontal wellbore inventory provides for meaningful growth opportunities in Key’s core business Rigs will come back on line Counter-cyclical trends have emerged as operators look to “protect the base” of existing production; Key holds a market-leading position with assets most capable to respond to the demand for return-accretive activities in the horizontal wellbore Permian basin customers OXY, XTO, Concho, Chevron, PXD. Bakken customers Hess, MRO, HK, Energin Rockies customers HESS ,MRO,HK, Energin West and east coast –Eagle, Freeport FCM, OAS,CRC + Optimized organizational structure to take advantage of inherent operating leverage
+ Significant cost cuts to stem cash burn- Key holds a market-leading position with assets most capable to respond to the demand for return-accretive activities in the horizontal wellbore
+ Evidence of counter-cyclical demand growth in core business
+ Strong market share in growing market segment- WTI is going up now and the worse looks over
+ Well-positioned geographically to take advantage of market return- Rigs are in the major basins for the breakeven of WTI We are the leader in onshore, rig-based well services
+ We have a strong reputation as a production enhancement service provider
+ We are well-positioned to benefit from long-term secular trends switching to gas
+ We have developed a differentiated asset base
+ We believe that our assets, differentiated technology and market position provide the leverage to deliver value to shareholders
HEDGING - We now have about around 30% of our 2016 oil hedge at an average price of around 60. On the gas side, I think we have about 20 million Btus hedges that a little over $4. Remember, most of our gas has been Appalachia, so we've got a couple of gas hedges there really would address our current volumes. That will change when Amethyst comes on, but again we're in a 100% share at excite timing or the exact amount, so some of our hesitation on putting in gas hedges stems from the location of our volumes Using horizontal drilling and slickwater hydraulic fracturing techniques, the Marcellus Shale has now become one of the largest natural gas fields in the world Stone Energy drills six or more horizontal wells from a single drilling pad, thereby reducing the number of pad sites, access roads and pipelines required to develop these natural resources.
Stone Energy owns approximately 90,000 acres of Marcellus Shale leasehold rights in West Virginia and Pennsylvania and is actively looking to expand its operations in this play.
Gas-in-Place estimates vary widely, but the U.S. Energy Information Administration (EIA) estimates the United States to possess more than 2,500 trillion cubic feet of technically recoverable natural gas resources, of which 33 percent is held in various shale formations. About 400 trillion cubic feet of this total is estimated to come from the Marcellus Shale. Natural gas from shales has grown to over 20 percent of U.S. gas production from virtually nothing in just the last ten years and is predicted to be 50 percent of U.S. gas production within the next twenty years. Stone holds interests in over 100 lease blocks throughout the Gulf of Mexico. The ENSCO 8503 deep water drilling rig recently finished completion operations and a well test at the Amethyst well. The well is projected to start production by Jan 2016, with an expected initial production rate of about 40–60 million cubic feet of gas equivalent per day (Mmcfepd) after clean up. Stone also installed and mobilized an H&P platform drilling rig on its Pompano platform to commence a development drilling program comprising one workover project and three to four development wells during the fourth quarter. Drilling operations at the deep water Vernaccia exploration prospect were concluded in Nov 2015. STONE is betting most its 2016 CAPX on the platform. Numbers look good as the low-cost oil production should increase, the lease operating expenses in the Gulf are expected to fall from $6.35/boe to just $2.6/boe in 2016 on the back of efficiency gains by operating the Pompano platform. The Amethyst discovery could be very important as well, as the incremental LOE at the gas field is just $0.06/mmcfe. So the $140M spent on developing this zone in 2015 will start to pay off from Q1 2016, as that's when Amethyst should start producing.
BEEFING THE BAKKEN AREA! FOR the future . This area will have much cheaper oil with the pipeline and investments. HK has hedged 81% of its oil volumes at a weighted average price of $81/bbl, which will allow it to replicate hedging gains of $440 million seen last year. REDUCING COST with pipeline and the company is focused on improving the economics of its production. For instance, despite a cut of 73% in capital expenses to $322 million in 2015, Halcon's production declined only 1.3%.
This strong level of production despite a drop in capital expenses was a result of Halcon's focus on areas that generate stronger returns due to low costs and robust production in difficult times. Fort Berthold Indian Reservation, (or FBIR, where Halcon believes that its entire acreage is economical in the current price scenario.
As a result, this year, Halcon will concentrate 80%-85% of its entire capital spending in the FBIR area. This is not much of a surprise as Halcon has been able to achieve impressive cost reduction in the FBIR.
A new 1,100-mile-long pipeline could be carrying oil through the Midwest as soon as the end of 2016, according to an announcement by a Texas-based oil company. The Bakken pipeline is just one of the numerous projects besides Keystone XL that have been proposed and, in some cases, received approval in the U.S. in recent years. Last month, state regulators in North Dakota gave final approval to the Sandpiper Pipeline, a 616-mile project which will carry up to 225,000 barrels of Bakken oil each day from Tioga, North Dakota to Superior, Wisconsin. Especially in the booming Bakken region, more pipelines are likely on the way — North Dakota’s governor announced that the state plans to double its oil and gas pipeline capacity in just two years the next two years.
The Bakken Pipeline, (ETP contractor) which aims to ease the glut of oil in the booming Bakken region, will run from North Dakota to Pakota, Illinois, carrying 320,000 bar
JP Morgan opened a new short position this month. WELL HK was a buck and now its 1.37---- cover idiots ! This is hedged ! very good.. ! DDdaaaa IN NO WAY did they see oil spiking like this and the hedges. HK should be a great way to get your money back from the shorting thieves. Halcón Resources The company's principal resource plays include the Bakken/Three Forks Formations and within the Eagle Ford shale region. $$$ HEDGE_ It is important to note that Halcón's cash flows are well protected throughout 2016: ~81% of expected oil production is covered with NYMEX hedges at an average price of ~$81 per barrel. The company has big researves betting on the Bakken pipeline. (pure Play) The hedge protection falls off sharply in 2017. 3,750 bbl/d at about 61$ a barrel . . AFTER 2016 THE COMPANY , the stock remains at the mercy of oil prices and the pipeline magic. If oil goes up as its stating to and the pipeline is on track this stock could explode. A new 1,100-mile-long pipeline could be carrying oil through the Midwest as soon as the end of 2016, according to an announcement by a Texas-based oil company. The Bakken pipeline is just one of the numerous projects besides Keystone XL that have been proposed and, in some cases, received approval in the U.S. in recent years. Last month, state regulators in North Dakota gave final approval to the Sandpiper Pipeline, a 616-mile project which will carry up to 225,000 barrels of Bakken oil each day from Tioga, North Dakota to Superior, Wisconsin. Especially in the booming Bakken region, more pipelines are likely on the way — North Dakota’s governor announced that the state plans to double its oil and gas pipeline capacity in just two years the next two years.
The Bakken Pipeline, (ETP contractor) which aims to ease the glut of oil in the booming Bakken region, will run from North Dakota to Pakota, Illinois, carrying 320,000 barrels of crude oil per day
The hedges provide significant predictability to the company's discretionary cash flow, which I estimate in 2016 to be in the ~$275 million range.
You caught the break even right! THIS WILL BE A ROCKET!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! BEWARE OF THE LIFT OFF!!!!!!!!!! BURNING SHORTY
I also like MRO but they are not a pure play for the cheaper oil.... MRO - Marathon Oil Corporation While Marathon Oil Corp.’s (NYSE: MRO) 2016 budget is about half of what it was in 2015, the company plans to spend about $200 million to support 20 to 22 gross company-operated wells to sales. An average of two rigs in 2016 will focus primarily on lease retention in the Stack and delineation of the Meramec. The competitive (because of geography and branding more so than geology) Sooner Trend Anadarko Basin Canadian and Kingfisher Counties, or STACK play has started to get a lot of interest lately, also due to its potential for liquids. Devon Energy paid a very generous $23,750 per acre for the 80,000 acres it acquired in the STACK last December. . Across the SCOOP and STACK position, average WTI breakevens come to $45.06 per barrel (bbl) and $49/bbl, with some acreage in the SCOOP Core breaking even below $35/bbl, putting the package in the top quartile of Lower 48 assets. The area has also seen relatively resilient permitting activity throughout the recent market downturn, suggesting that capital will remain employed. Vanguard sold its position in the SCOOP and STACK to Dallas-based Titanium Exploration Partners for $280 million. The basin is getting attention.
In the Scoop/Springer, Marathon plans to complete its second company-operated well this year and drill another well later in 2016. - 80% break even at 50 dollar oil and break even is at 70$ barrel. Anadarko Petroleum APC , Pioneer Natural PXD Marathon Oil MRO were the three biggest hedgers in Q2. According Wayne Duggan , Benzinga . The three companies added a combined 21.2 million barrels of hedges in the quarter. MRO has 11.2 million barrels hedged.
The Company has three reportable operating segments, each of which is organized and managed based primarily upon geographic location and the nature of the products and services it offers. The three segments are as follows:
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