HK - Halcon Resources: Considering Fir Tree's Proposal
Fir Tree Partners is pushing Halcon Resources (HK) to explore a sale of the company and reduce its G&A expenses. I largely agree with Fir Tree's points as Halcon is not receiving credit from the market for the value of its acreage and has a high level of fixed costs for its current and projected near-term production levels. It also has a very high amount of drilling inventory given its decision to go down to two operated rigs after oil prices declined in late 2018.
While Halcon has plenty of liquidity after its