OAS - Time To Put Halcon Out Of Its Misery
Halcón Resources Inc (NYSE: HK) emerged from Chapter 11 in 2016 with shareholders being all-but wiped out. Since then the company completed cash-hungry land acquisitions and set about growing production aggressively with the stated aim of reaching operating cash neutrality by the end of 2019. During the past year, the Permian boom has caused costs to escalate and Halcòn has had to abandon near-term budget and financial targets.
Ordinarily, Halcón may have sufficient liquidity to weather ongoing storms. However, the possible onset of a recession and lower oil prices during the next two years