All Officers of HK should take a HUGE pay cut, until the company is better off.
"Muckerman: I'm fine with the CEO remaining, but not with increased share structure. And it's just a bad incentive structure, when they can make even more money than they're being given. Floyd Wilson -- $24.1 million in annual comp coming out of [Halcon Resources'] bankruptcy restructuring. Up from an average of the previous few years of $3.4 million. So almost 8x."
HK worth 5 bucks
Houston oilman Floyd Wilson struck it rich with the blockbuster sale of Petrohawk Energy, making billions for investors and earning a reputation as a farseeing wildcatter. His next venture, Halcón Resources Corp., fell prey to the oil bust. The company slashed more than a third of its workforce, wrote down billions in assets and filed for bankruptcy, almost completely wiping out shareholders.
But when the Houston company finished a six-week trek through bankruptcy court in September, Wilson emerged enriched again, with new shares in the reorganized company that would push the value of his annual compensation package up to $24.1 million, a figure that dwarfed his pay packages in previous years, worth $3.4 million on average, according to regulatory filings. In the teeth of a merciless downturn that lasted two years, oil companies laid off thousands of workers and investors lost billions as scores of drillers and service firms went bankrupt. But in recent months, several of these same firms are emerging from bankruptcy as reorganized companies and carving out hefty pools of restricted stock and options for executives and top employees who were in charge when things went south. The practice, ostensibly aimed at keeping experienced management teams in place during turbulent times, appears to reward executives who take companies into bankruptcy rather than disciplining them - even as shareholders lose their investments, corporate governance experts said. There's a fine line, they said, between keeping executives involved in the company and over-enriching them. Related
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Four Houston oil companies lifted CEO pay in 2016 "You've had some deals struck where the company goes bankrupt and the executives do very well, and that's wrong," said Dennis McCuistion, executive director of the Institute for Excellence in Corporate Governance at the University of Texas at Dallas. "That doesn't pass the smell test at all." Halcón and Wilson declined to comment. In bankruptcy proceedings, shareholders typically lose their investments when the company's original shares are canceled, and creditors become major stock owners when the company emerges from bankruptcy and issues new shares. Several U.S. oil producers and service companies have negotiated with creditors incentive plans that set aside between 5 percent and 10 percent of a reorganized company's new shares, with some of it doled out to executives and top employees soon after bankruptcy, and other shares held in reserve for the future for employee awards. Bankruptcy courts typically must approve incentive plans that reward executives once a company emerges from bankruptcy. More Information Management incentive plans Reorganized company, shares or units reserved for executives and employees after bankruptcy Basic Energy Services, 10 percent C&J Energy Services, 10 percent Goodrich Petroleum, 8 percent Memorial Production Partners, 8.5 percent Midstates Petroleum, 10 percent Sabine Oil & Gas Corp., 10 percent Samson Resources, 10 percent SandRidge Energy, 10 percent Stone Energy, 10 percent Vanguard Natural Resources, 10 percent Source: Court records and documents filed with the U.S. Securities and Exchange Commission By the numbers $24.1 million Annual compensation package for Halcón's CEO post-bankruptcy 10 Companies reserving 5-10% of new equity for top execs after bankruptcy Chief executives inevitably get the lion's shares of the new stock awards, often ending up with lofty pay packages that, to some extent, replace the original shares they had accumulated for years and lost overnight in bankruptcy. Their base salaries, however, may stay flat or even decline. Golden handcuffs A review of regulatory and bankruptcy filings by the Houston Chronicle Companies identified at least 10 companies with management incentive plans that have promised to reserve 5 percent to 10 percent of new equity to reward top executives, including Basic Energy Services, C&J Energy Services, Goodrich Petroleum, Memorial Production Partners, Midstates Petroleum, Sabine Oil & Gas Corp., Samson Resources, SandRidge Energy, Stone Energy Corp. and Vanguard Natural Resources. Some of these companies are still in Chapter 11 bankruptcy proceedings, and some have already emerged. These plans are usually set up as part of an effort by creditors to retain top brass with so-called golden handcuffs, so they don't leave during troubled times and don't get snatched up with promises of more cash. "They're betting on management to recoup their investment and see it grow," said James D'Agostino, who had served as a member of the board of directors at Basic Energy Services of Fort Worth before the company filed for bankruptcy in October. "It is important that management be incentivized to stay with the company to manage it through a very difficult period." But corporate governance experts said the practice removes incentives for oil industry executives to avoid the risky, debt-fueled drilling strategies that pulled the companies into bankruptcy when oil prices crashed. Handing out large stock awards, they argued, insulates executives from the consequences of their decisions and the financial fallout that costs shareholders dearly. "The people who came out ahead were the ones who drove them toward bankruptcy," said Praveen Kumar, executive director of the Gutierrez Energy Management Institute at the University of Houston and a corporate governance specialist. "What have they learned? Not much." Emerging on top Last year, Wilson, Halcón's CEO, received a $3.3 million cash bonus, $8.6 million in restricted shares that vest over time and $11.5 million in options that are currently underwater, meaning the options are worthless at the company's share price of $7.01 on Friday. Ultimately, Wilson's eventual payout could be higher or lower than $24.1 million, depending on how the company's stock performs in coming months and years. With the newly awarded shares, Wilson's stake in the company was 1.2 percent in March, regulatory filings show.
Still, Wilson has worked to earn his pay in the six months since the company emerged from bankruptcy. Halcón has raised $400 million in new equity, a sign stock market investors are optimistic about the company's prospects. It also has acquired about 35,000 net acres in the Delaware Basin in West Texas, sold off assets in the Eagle Ford Shale to the south for $500 million and refinanced $700 million in debt. With its recent acquisitions, its workforce has begun to grow again.
My guess is that HK is due for a pullback in the short-run. Im not sure about you guys but aawesomestocks has provided me with some pretty good trade ideas. I messed up executing some of them but thats on me.
Dilute, dilute, dilute. Seems to be the strategy for HK. No confidence in these clowns.
Make sure you exercise your voting power and vote AGAINST the greedy self serving maggot Floyd Wilson. This maggot has run HK into massive debt and cause the huge reverse split that wiped shareholders out and is now diluting HK so that he can continue to spend money like a bi-polar teenager, providing himself with huge salary and bonuses, Floyd lives the good life off the shareholders backs and cares nothing about shareholder value.. He should be IN JAIL.
MAY-2016 Halcon Resources Corp NYSE : HK Correlation Histogram
X axis : Stocks Price Correlation Coefficient Y axis : Quantity of stocks May-2016 1,000 Day Parameter 4,338 NYSE Stocks Price Analysis This stock mode of correlation coefficient is 0.7 In other words, the correlation coefficient of the other stocks
HK just closed final deal on selling property in Eagle Ford which should give them $500 Mil. in cash. However a few days ago they filed to sell additional 55 million shares. But heck, I'll take 1/2 Billion $s any day.
I own 100 shares @ $8.65 for laughs & giggles. Maybe this is the final good nite for HK.
so day plus days of nothing but share price tank and about 50 million more shares to dilute. does this thing go to a buck or what
just lower and lower each and every day. obviously no bottom in sight anytime soon.
These crooks have the nerve to decimate shareholders to almost zero value and then turn around and do a share offering to raise hundreds of millions of NEW MONEY so they can #$%$ that away just like they did before all the while give themselves raises and bonuses. REALLY? They make Enron crooks look like saints. FRED and Co. should all be in jail. These people are greedy self serving pigs that care nothing bout shareholder value.
PGNPQ - Check it out ASAP, if you want to get it before it takes off.. Shareholders Seek Representation in Paragon Bankruptcy Hearing on shareholders’ request set for March 27 as oil and gas driller pushes on with new reorganization plan
I feel this is one stock that has things turned around but you would never guess by he way its been trading lately. Just have to believe this is getting close to a bottom but who knows. Beat on earnings with carry over charges but over all I think the worst is behind this stock. pretty much swings from 8-10 bucks but this is as low as its been in a while. kind of odd especially after an earnings beat and their hedge of oil at at least $55 bucks a barrel going forward. Oh well I think this is a buy at this level but I M tapped for now
Can any one tell me how hk write down that big money in the earning report? Is that for acquiring for new field Or redeeming the notes? Thanks
Got a great report from http://monstastocks.com/?s=HK about $HK. I did have to subscribe but it was worth the time. Thank you guys for the tip! So much of what we call management consists of making it difficultfor people to work. Trading stocks day trading.
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seems the overall earnings were agove except for the write downs and guidance is ok with hedged Oil at over $55 bucks a barrel. seems to be pretty positive over all