HK - Halcon Resources: Complete Hedge Protection Below $50 Oil
Although oil prices have continued to drop further below $50, Halcon Resources (HK) is not affected due to its hedges. Its oil hedges consist of three-way collars with a floor of around $50 for Q4 2018 and around $53 for the first half of 2019. It is also close to 100% hedged on its estimated oil production during that time, so $45 or $50 oil ends up with the same results after hedges for Halcon.
Despite the lack of impact from lower oil prices beyond a certain point, Halcon's stock has dropped over