HOUSTON, Nov. 12, 2019 (GLOBE NEWSWIRE) -- Halcón Resources Corporation (“Halcón” or the “Company”) today announced its third quarter 2019 results.
Average daily net production for the quarter ended September 30, 2019 was 16,489 Boe/d, of which 57% was oil. The Company earned $50.8 million of total revenue for the third quarter of 2019, of which 91% was from oil sales. Excluding the realized gain on derivative contracts of $1.9 million, the Company realized 95% of NYMEX WTI during the third quarter of 2019.
The Company reported a net loss to common stockholders of $63.3 million or net loss per basic and diluted share of $0.40 for the third quarter of 2019 and reported adjusted EBITDA of $18.8 million (see EBITDA Reconciliation table for additional information).
During the third quarter of 2019, the Company incurred capital expenditures of $36.8 million on drilling and completions, $12.1 million on infrastructure and $3.8 million in other costs.
The Company’s prepackaged plan of reorganization under chapter 11 of the Bankruptcy Code was confirmed and the Company emerged from bankruptcy on September 24, 2019 and October 8, 2019, respectively. At emergence, the Company had $147 million in liquidity.
Richard Little, the Company’s Chief Executive Officer commented, “I’m pleased with what we have accomplished in bringing on a new board, new management team and new vision for the Company post emergence. The changes implemented to build a culture of capital discipline are already demonstrating efficiencies and cost savings throughout the organization. I am proud of the team’s focus, execution and performance through the third quarter.”
Mr. Little further commented, “We are in the process of listing our shares on a national exchange and expect to resume hosting recurring earnings calls soon. I am excited about re-engaging with the investor community and providing deeper insight into our operations and performance.”
Forward Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not strictly historical statements constitute forward-looking statements. Forward-looking statements include, among others, statements about anticipated production, liquidity, capital spending, drilling and completion plans, and forward guidance. Forward-looking statements may often, but not always, be identified by the use of such words such as "expects", "believes", "intends", "anticipates", "plans", "estimates", “projects”, "potential", "possible", or "probable" or statements that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and other filings submitted by the Company to the U.S. Securities and Exchange Commission (SEC), copies of which may be obtained from the SEC's website at www.sec.gov or through the Company's website at www.halconresources.com. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. The Company has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company's expectations.
About Halcón Resources
Halcón Resources Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.
Contact
John-Davis Rutkauskas
Director, Finance & Investor Relations
(832) 538-0551
HALCÓN RESOURCES CORPORATION (DEBTOR-IN-POSSESSION) | ||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Operating revenues: | ||||||||||||||||||
Oil, natural gas and natural gas liquids sales: | ||||||||||||||||||
Oil | $ | 46,275 | $ | 53,918 | $ | 145,024 | $ | 145,743 | ||||||||||
Natural gas | 301 | 1,407 | 107 | 5,286 | ||||||||||||||
Natural gas liquids | 3,987 | 5,920 | 13,229 | 14,623 | ||||||||||||||
Total oil, natural gas and natural gas liquids sales | 50,563 | 61,245 | 158,360 | 165,652 | ||||||||||||||
Other | 246 | 350 | 743 | 613 | ||||||||||||||
Total operating revenues | 50,809 | 61,595 | 159,103 | 166,265 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Production: | ||||||||||||||||||
Lease operating | 11,958 | 5,275 | 39,617 | 15,504 | ||||||||||||||
Workover and other | 1,566 | 1,478 | 5,580 | 4,795 | ||||||||||||||
Taxes other than income | 3,012 | 3,557 | 9,213 | 9,812 | ||||||||||||||
Gathering and other | 10,147 | 18,404 | 36,057 | 30,782 | ||||||||||||||
Restructuring | 3,223 | - | 15,148 | 128 | ||||||||||||||
General and administrative | 19,423 | 19,731 | 36,550 | 49,196 | ||||||||||||||
Depletion, depreciation and accretion | 20,512 | 20,310 | 90,912 | 52,397 | ||||||||||||||
Full cost ceiling impairment | 45,568 | - | 985,190 | - | ||||||||||||||
(Gain) loss on sale of oil and natural gas properties | - | 1,331 | - | 7,235 | ||||||||||||||
(Gain) loss on sale of Water Assets | (164 | ) | - | 3,618 | - | |||||||||||||
Total operating expenses | 115,245 | 70,086 | 1,221,885 | 169,849 | ||||||||||||||
Income (loss) from operations | (64,436 | ) | (8,491 | ) | (1,062,782 | ) | (3,584 | ) | ||||||||||
Other income (expenses): | ||||||||||||||||||
Net gain (loss) on derivative contracts | 13,457 | (60,406 | ) | (34,332 | ) | (66,603 | ) | |||||||||||
Interest expense and other | (10,547 | ) | (12,940 | ) | (37,606 | ) | (30,522 | ) | ||||||||||
Reorganization items | (1,758 | ) | - | (1,758 | ) | - | ||||||||||||
Total other income (expenses) | 1,152 | (73,346 | ) | (73,696 | ) | (97,125 | ) | |||||||||||
Income (loss) before income taxes | (63,284 | ) | (81,837 | ) | (1,136,478 | ) | (100,709 | ) | ||||||||||
Income tax benefit (provision) | - | - | 95,791 | - | ||||||||||||||
Net income (loss) | $ | (63,284 | ) | $ | (81,837 | ) | $ | (1,040,687 | ) | $ | (100,709 | ) | ||||||
Net income (loss) per share of common stock: | ||||||||||||||||||
Basic | $ | (0.40 | ) | $ | (0.52 | ) | $ | (6.55 | ) | $ | (0.64 | ) | ||||||
Diluted | $ | (0.40 | ) | $ | (0.52 | ) | $ | (6.55 | ) | $ | (0.64 | ) | ||||||
Weighted average common shares outstanding: | ||||||||||||||||||
Basic | 159,143 | 158,011 | 158,916 | 156,628 | ||||||||||||||
Diluted | 159,143 | 158,011 | 158,916 | 156,628 | ||||||||||||||
HALCÓN RESOURCES CORPORATION (DEBTOR-IN-POSSESSION) | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||||
(In thousands, except share and per share amounts) | |||||||||
September 30, 2019 | December 31, 2018 | ||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 17,009 | $ | 46,866 | |||||
Accounts receivable | 37,826 | 35,718 | |||||||
Receivables from derivative contracts | 15,310 | 57,280 | |||||||
Prepaids and other | 14,642 | 4,788 | |||||||
Total current assets | 84,787 | 144,652 | |||||||
Oil and natural gas properties (full cost method): | |||||||||
Evaluated | 2,155,288 | 1,470,509 | |||||||
Unevaluated | 438,365 | 971,918 | |||||||
Gross oil and natural gas properties | 2,593,653 | 2,442,427 | |||||||
Less - accumulated depletion | (1,709,719 | ) | (639,951 | ) | |||||
Net oil and natural gas properties | 883,934 | 1,802,476 | |||||||
Other operating property and equipment: | |||||||||
Other operating property and equipment | 203,373 | 130,251 | |||||||
Less - accumulated depreciation | (14,416 | ) | (8,388 | ) | |||||
Net other operating property and equipment | 188,957 | 121,863 | |||||||
Other noncurrent assets: | |||||||||
Receivables from derivative contracts | 4,120 | 12,437 | |||||||
Operating lease right of use assets | 3,694 | - | |||||||
Funds in escrow and other | 1,138 | 2,181 | |||||||
Total assets | $ | 1,166,630 | $ | 2,083,609 | |||||
Current liabilities: | |||||||||
Accounts payable and accrued liabilities | $ | 112,578 | $ | 157,848 | |||||
Liabilities from derivative contracts | 6,829 | 3,768 | |||||||
Current portion of long-term debt | 258,234 | - | |||||||
Operating lease liabilities | 1,337 | - | |||||||
Asset retirement obligations | - | 126 | |||||||
Total current liabilities | 378,978 | 161,742 | |||||||
Long-term debt, net | - | 613,105 | |||||||
Liabilities subject to compromise | 625,005 | - | |||||||
Other noncurrent liabilities: | |||||||||
Liabilities from derivative contracts | 1,625 | 9,139 | |||||||
Asset retirement obligations | 10,153 | 6,788 | |||||||
Operating lease liabilities | 2,438 | - | |||||||
Deferred income taxes | - | 95,791 | |||||||
Commitments and contingencies | |||||||||
Stockholders' equity: | |||||||||
Common stock: 1,000,000,000 shares of $0.0001 par value authorized; | |||||||||
162,217,095 and 160,612,852 shares issued and outstanding as of | |||||||||
September 30, 2019 and December 31, 2018, respectively | 16 | 16 | |||||||
Additional paid-in capital | 1,087,441 | 1,095,367 | |||||||
Retained earnings (accumulated deficit) | (939,026 | ) | 101,661 | ||||||
Total stockholders' equity | 148,431 | 1,197,044 | |||||||
Total liabilities and stockholders' equity | $ | 1,166,630 | $ | 2,083,609 | |||||
HALCÓN RESOURCES CORPORATION (DEBTOR-IN-POSSESSION) | ||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||
Net income (loss) | $ | (63,284 | ) | $ | (81,837 | ) | $ | (1,040,687 | ) | $ | (100,709 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash | ||||||||||||||||||
provided by (used in) operating activities: | ||||||||||||||||||
Depletion, depreciation and accretion | 20,512 | 20,310 | 90,912 | 52,397 | ||||||||||||||
Full cost ceiling impairment | 45,568 | - | 985,190 | - | ||||||||||||||
(Gain) loss on sale of oil and natural gas properties | - | 1,331 | - | 7,235 | ||||||||||||||
(Gain) loss on sale of Water Assets | (164 | ) | - | 3,618 | - | |||||||||||||
Deferred income tax provision (benefit) | - | - | (95,791 | ) | - | |||||||||||||
Stock-based compensation, net | (2,278 | ) | 4,423 | (8,035 | ) | 12,241 | ||||||||||||
Unrealized loss (gain) on derivative contracts | (11,571 | ) | 50,763 | 45,834 | 77,524 | |||||||||||||
Amortization and write-off of deferred loan costs | 882 | 371 | 1,859 | 1,022 | ||||||||||||||
Amortization of discount and premium | 23 | 52 | 134 | 235 | ||||||||||||||
Reorganization items | (283 | ) | - | (283 | ) | - | ||||||||||||
Other income (expense) | 570 | 1,205 | 535 | 1,314 | ||||||||||||||
Cash flows from operations before changes in working capital | (10,025 | ) | (3,382 | ) | (16,714 | ) | 51,259 | |||||||||||
Changes in working capital | 3,690 | (3,487 | ) | (16,519 | ) | (14,550 | ) | |||||||||||
Net cash provided by (used in) operating activities | (6,335 | ) | (6,869 | ) | (33,233 | ) | 36,709 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||
Oil and natural gas capital expenditures | (28,075 | ) | (117,343 | ) | (167,235 | ) | (369,304 | ) | ||||||||||
Proceeds received from sale of oil and natural gas properties | - | (132 | ) | 1,247 | 1,647 | |||||||||||||
Acquisition of oil and natural gas properties | - | (569 | ) | (2,809 | ) | (333,470 | ) | |||||||||||
Other operating property and equipment capital expenditures | (21,037 | ) | (26,147 | ) | (85,613 | ) | (79,389 | ) | ||||||||||
Proceeds received from sale of other operating property and equipment | - | 337 | - | 2,236 | ||||||||||||||
Funds held in escrow and other | (2 | ) | (2 | ) | (7 | ) | 153 | |||||||||||
Net cash provided by (used in) investing activities | (49,114 | ) | (143,856 | ) | (254,417 | ) | (778,127 | ) | ||||||||||
Cash flows from financing activities: | ||||||||||||||||||
Proceeds from borrowings | 71,234 | 87,000 | 315,234 | 293,000 | ||||||||||||||
Repayments of borrowings | (1,000 | ) | (32,000 | ) | (57,000 | ) | (32,000 | ) | ||||||||||
Debt issuance costs | - | (8 | ) | - | (4,013 | ) | ||||||||||||
Common stock issued | - | - | - | 63,480 | ||||||||||||||
Offering costs and other | (14 | ) | - | (441 | ) | (2,983 | ) | |||||||||||
Net cash provided by (used in) financing activities | 70,220 | 54,992 | 257,793 | 317,484 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 14,771 | (95,733 | ) | (29,857 | ) | (423,934 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 2,238 | 95,870 | 46,866 | 424,071 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 17,009 | $ | 137 | $ | 17,009 | $ | 137 | ||||||||||
HALCÓN RESOURCES CORPORATION | ||||||||||||||||
SELECTED OPERATING DATA | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Production volumes: | ||||||||||||||||
Crude oil (MBbls) | 863 | 980 | 2,723 | 2,468 | ||||||||||||
Natural gas (MMcf) | 1,924 | 1,040 | 6,381 | 3,009 | ||||||||||||
Natural gas liquids (MBbls) | 333 | 190 | 911 | 523 | ||||||||||||
Total (MBoe) | 1,517 | 1,344 | 4,698 | 3,493 | ||||||||||||
Average daily production (Boe/d) | 16,489 | 14,609 | 17,209 | 12,795 | ||||||||||||
Average prices: | ||||||||||||||||
Crude oil (per Bbl) | $ | 53.62 | $ | 55.02 | $ | 53.26 | $ | 59.05 | ||||||||
Natural gas (per Mcf), as adjusted (1) | 0.16 | 1.35 | 0.03 | 1.76 | ||||||||||||
Natural gas liquids (per Bbl) | 11.97 | 31.16 | 14.52 | 27.96 | ||||||||||||
Total per Boe | 33.33 | 45.57 | 33.71 | 47.42 | ||||||||||||
Cash effect of derivative contracts: | ||||||||||||||||
Crude oil (per Bbl) | $ | (3.04 | ) | $ | (10.05 | ) | $ | (0.93 | ) | $ | 4.25 | |||||
Natural gas (per Mcf) | 0.78 | 0.20 | 0.94 | 0.14 | ||||||||||||
Natural gas liquids (per Bbl) | 10.48 | - | 9.38 | - | ||||||||||||
Total per Boe | 1.56 | (7.17 | ) | 2.55 | 3.13 | |||||||||||
Average prices computed after cash effect of settlement of derivative contracts: | ||||||||||||||||
Crude oil (per Bbl) | $ | 50.58 | $ | 44.97 | $ | 52.33 | $ | 63.30 | ||||||||
Natural gas (per Mcf) | 0.94 | 1.55 | 0.97 | 1.90 | ||||||||||||
Natural gas liquids (per Bbl) | 22.45 | 31.16 | 23.90 | 27.96 | ||||||||||||
Total per Boe | 34.89 | 38.40 | 36.26 | 50.55 | ||||||||||||
Average cost per Boe: | ||||||||||||||||
Production: | ||||||||||||||||
Lease operating | $ | 7.88 | $ | 3.92 | $ | 8.43 | $ | 4.44 | ||||||||
Workover and other | 1.03 | 1.10 | 1.19 | 1.37 | ||||||||||||
Taxes other than income | 1.99 | 2.65 | 1.96 | 2.81 | ||||||||||||
Gathering and other, as adjusted (1) | 6.58 | 3.77 | 4.97 | 4.59 | ||||||||||||
Restructuring | 2.12 | - | 3.22 | 0.04 | ||||||||||||
General and administrative, as adjusted (1) | 4.92 | 6.76 | 5.29 | 8.70 | ||||||||||||
Depletion | 11.89 | 13.52 | 18.00 | 13.43 | ||||||||||||
(1) Represents natural gas average prices per Mcf, gathering and other and general and administrative costs per Boe, adjusted for items noted in the reconciliation below: | ||||||||||||||||
Natural gas, as reported | $ | 0.16 | $ | 1.35 | $ | 0.02 | $ | 1.76 | ||||||||
Gas treating fees | - | - | 0.01 | - | ||||||||||||
Natural gas, as adjusted(2) | $ | 0.16 | $ | 1.35 | $ | 0.03 | $ | 1.76 | ||||||||
General and administrative: | ||||||||||||||||
General and administrative, as reported | $ | 12.81 | $ | 14.68 | $ | 7.78 | $ | 14.08 | ||||||||
Stock-based compensation: | ||||||||||||||||
Non-cash | 1.50 | (3.29 | ) | 1.71 | (3.50 | ) | ||||||||||
Transaction costs and other: | ||||||||||||||||
Cash | (9.39 | ) | (4.63 | ) | (4.20 | ) | (1.88 | ) | ||||||||
General and administrative, as adjusted(3) | $ | 4.92 | $ | 6.76 | $ | 5.29 | $ | 8.70 | ||||||||
Gathering and other, as reported | $ | 6.69 | $ | 13.69 | $ | 7.67 | $ | 8.81 | ||||||||
Gas treating fees, rig stacking charges, and other | (0.11 | ) | (9.92 | ) | (2.70 | ) | (4.22 | ) | ||||||||
Gathering and other, as adjusted(4) | $ | 6.58 | $ | 3.77 | $ | 4.97 | $ | 4.59 | ||||||||
Total operating costs, as reported | $ | 30.40 | $ | 36.04 | $ | 27.03 | $ | 31.51 | ||||||||
Total adjusting items | (8.00 | ) | (17.84 | ) | (5.19 | ) | (9.60 | ) | ||||||||
Total operating costs, as adjusted(5) | $ | 22.40 | $ | 18.20 | $ | 21.84 | $ | 21.91 | ||||||||
(2) Natural gas, as adjusted, is a non-GAAP measure that excludes gas treating fees to remove hydrogen sulfide from natural gas produced from our Monument Draw properties. | ||||||||||||||||
The Company believes that it is useful to understand the effects that these charges have on natural gas sales and that exclusion of such charges is useful for comparison to prior periods. | ||||||||||||||||
(3) General and administrative, as adjusted, is a non-GAAP measure that excludes non-cash stock-based compensation charges relating to equity awards under our incentive stock plans, | ||||||||||||||||
as well as other cash charges associated with certain transactions. The Company believes that it is useful to understand the effects that these charges have on general and administrative | ||||||||||||||||
expenses and total operating costs and that exclusion of such charges is useful for comparison to prior periods. | ||||||||||||||||
(4) Gathering and other, as adjusted, is a non-GAAP measure that excludes rig stacking charges, certain gas treating fees to remove hydrogen sulfide from natural gas produced from our | ||||||||||||||||
Monument Draw properties and other costs. The Company believes that it is useful to understand the effects that these charges have on gathering and other expense and total operating | ||||||||||||||||
costs and that exclusion of such charges is useful for comparison to prior periods. | ||||||||||||||||
(5) Represents lease operating, workover and other expense, taxes other than income, gathering and other expense and general and administrative costs per Boe, adjusted for items noted | ||||||||||||||||
in the reconciliation above. |
HALCÓN RESOURCES CORPORATION | ||||||||||||||||
SELECTED ITEM REVIEW AND RECONCILIATION (Unaudited) | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
As Reported: | ||||||||||||||||
Net income (loss), as reported | $ | (63,284 | ) | $ | (81,837 | ) | $ | (1,040,687 | ) | $ | (100,709 | ) | ||||
Impact of Selected Items: | ||||||||||||||||
Unrealized loss (gain) on derivatives contracts: | ||||||||||||||||
Crude oil | $ | (14,873 | ) | $ | 39,426 | $ | 35,967 | $ | 67,136 | |||||||
Natural gas | 1,269 | 883 | 3,753 | (669 | ) | |||||||||||
Natural gas liquids | 2,033 | 10,454 | 6,114 | 11,057 | ||||||||||||
Total mark-to-market non-cash charge | (11,571 | ) | 50,763 | 45,834 | 77,524 | |||||||||||
Full cost ceiling impairment | 45,568 | - | 985,190 | - | ||||||||||||
(Gain) loss on sale of oil and natural gas properties | - | 1,331 | - | 7,235 | ||||||||||||
(Gain) loss on sale of Water Assets | (164 | ) | - | 3,618 | - | |||||||||||
Reorganization items | 1,758 | - | 1,758 | - | ||||||||||||
Restructuring | 3,223 | - | 15,148 | 128 | ||||||||||||
Gas treating fees, rig stacking charges, transaction costs and non-recurring prepetition professional fees related to reorganization | 15,105 | 20,778 | 33,612 | 22,384 | ||||||||||||
Selected items, before income taxes | 53,919 | 72,872 | 1,085,160 | 107,271 | ||||||||||||
Income tax effect of selected items (1) | - | - | (94,054 | ) | - | |||||||||||
Selected items, net of tax | 53,919 | 72,872 | 991,106 | 107,271 | ||||||||||||
As Adjusted: | ||||||||||||||||
Net income (loss), excluding selected items (2)(3) | $ | (9,365 | ) | $ | (8,965 | ) | $ | (49,581 | ) | $ | 6,562 | |||||
Basic net income (loss) per common share, as reported | $ | (0.40 | ) | $ | (0.52 | ) | $ | (6.55 | ) | $ | (0.64 | ) | ||||
Impact of selected items | 0.34 | 0.46 | 6.24 | 0.68 | ||||||||||||
Basic net income (loss) per common share, excluding selected items (2) | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.31 | ) | $ | 0.04 | |||||
Diluted net income (loss) per common share, as reported | $ | (0.40 | ) | $ | (0.52 | ) | $ | (6.55 | ) | $ | (0.64 | ) | ||||
Impact of selected items | 0.34 | 0.46 | 6.24 | 0.68 | ||||||||||||
Diluted net income (loss) per common share, excluding selected items (2)(4) | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.31 | ) | $ | 0.04 | |||||
Net cash provided by (used in) operating activities | $ | (6,335 | ) | $ | (6,869 | ) | $ | (33,233 | ) | $ | 36,709 | |||||
Changes in working capital | (3,690 | ) | 3,487 | 16,519 | 14,550 | |||||||||||
Cash flows from operations before changes in working capital | (10,025 | ) | (3,382 | ) | (16,714 | ) | 51,259 | |||||||||
Cash components of selected items | 19,795 | 19,074 | 50,541 | 19,368 | ||||||||||||
Income tax effect of selected items (1) | - | - | (10,614 | ) | - | |||||||||||
Cash flows from operations before changes in working capital, adjusted for selected items (2)(3) | $ | 9,770 | $ | 15,692 | $ | 23,213 | $ | 70,627 | ||||||||
(1) For the nine months ended September 30, 2019, this represents the tax impact using an estimated tax rate of 21.0% and includes a $133.8 million adjustment | ||||||||||||||||
for the net change in valuation allowance. | ||||||||||||||||
(2) Net income (loss) and earnings per share excluding selected items and cash flows from operations before changes in working capital adjusted for selected items are non-GAAP measures | ||||||||||||||||
presented based on management's belief that they will enable a user of the financial information to understand the impact of these items on reported results. Additionally, this | ||||||||||||||||
presentation provides a beneficial comparison to similarly adjusted measurements of prior periods. These financial measures are not measures of financial performance under GAAP | ||||||||||||||||
and should not be considered as an alternative to net income, earnings per share and cash flows from operations, as defined by GAAP. These financial measures may not be comparable | ||||||||||||||||
to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Halcón's performance. | ||||||||||||||||
(3) For the nine months ended September 30, 2019, net income (loss) and earnings per share excluding selected items and cash flows from operations before changes in working | ||||||||||||||||
capital include approximately $7.8 million, respectively, of proceeds related to hedge monetizations that occurred in 2019. | ||||||||||||||||
For the nine months ended Septemer 30, 2018, net income (loss) and earnings per share excluding selected items and cash flows from operations before changes in working capital | ||||||||||||||||
include approximately $30.8 million of proceeds related to a monetization of MidCush hedges that occurred in the second quarter of 2018. | ||||||||||||||||
(4) The impact of selected items for the three months ended September 30, 2019 and 2018 was calculated based upon weighted average diluted shares of 159.1 million and 158.0 million, | ||||||||||||||||
respectively, due to the net income (loss) available to common stockholders, excluding selected items. | ||||||||||||||||
The impact of selected items for the nine months ended September 30, 2019 and 2018 was calculated based upon weighted average diluted shares of 158.9 million and 156.9 million, | ||||||||||||||||
respectively, due to the net income (loss) available to common stockholders, excluding selected items. |
HALCÓN RESOURCES CORPORATION | ||||||||||||||||
ADJUSTED EBITDA RECONCILIATION (Unaudited) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income (loss), as reported | $ | (63,284 | ) | $ | (81,837 | ) | $ | (1,040,687 | ) | $ | (100,709 | ) | ||||
Impact of adjusting items: | ||||||||||||||||
Interest expense | 9,911 | 11,759 | 36,265 | 32,595 | ||||||||||||
Depletion, depreciation and accretion | 20,512 | 20,310 | 90,912 | 52,397 | ||||||||||||
Full cost ceiling impairment | 45,568 | - | 985,190 | - | ||||||||||||
Income tax provision (benefit) | - | - | (95,791 | ) | - | |||||||||||
Stock-based compensation | (2,278 | ) | 4,423 | (8,035 | ) | 12,241 | ||||||||||
Interest income | (13 | ) | (142 | ) | (91 | ) | (1,914 | ) | ||||||||
Reorganization items | 1,758 | - | 1,758 | - | ||||||||||||
Restructuring | 3,223 | - | 15,148 | 128 | ||||||||||||
(Gain) loss on sale of other assets | 2 | 103 | 418 | (1,231 | ) | |||||||||||
(Gain) loss on sale of oil and natural gas properties | - | 1,331 | - | 7,235 | ||||||||||||
(Gain) loss on sale of Water Assets | (164 | ) | - | 3,618 | - | |||||||||||
Unrealized loss (gain) on derivatives contracts | (11,571 | ) | 50,763 | 45,834 | 77,524 | |||||||||||
Gas treating fees, rig stacking charges, transaction costs and non-recurring prepetition professional fees related to reorganization | 15,105 | 20,778 | 33,612 | 22,384 | ||||||||||||
Adjusted EBITDA(1)(2)(3) | $ | 18,769 | $ | 27,488 | $ | 68,151 | $ | 100,650 | ||||||||
(1) Adjusted EBITDA is a non-GAAP measure, which is presented based on management's belief that it will enable a user of the financial information to understand the impact of these items | ||||||||||||||||
on reported results. Additionally, this presentation provides a beneficial comparison to similarly adjusted measurements of prior periods. This financial measure is not a measure of financial | ||||||||||||||||
performance under GAAP and should not be considered as an alternative to GAAP. This financial measure may not be comparable to similarly named non-GAAP financial measures that | ||||||||||||||||
other companies may use and may not be useful in comparing the performance of those companies to Halcón's performance. | ||||||||||||||||
(2) Adjusted EBITDA for the nine months ended September 30, 2019 includes approximately $7.8 million, respectively, of proceeds related to hedge monetizations that occurred in 2019. | ||||||||||||||||
Adjusted EBITDA for the nine months ended September 30, 2018 includes approximately $30.8 million of proceeds related to a monetization of MidCush hedges that occurred in | ||||||||||||||||
the second quarter of 2018. | ||||||||||||||||
(3) Adjusted EBITDA for the nine months ended September 30, 2019 excludes approximately $10.9 million, respectively, of costs to remove hydrogen sulfide | ||||||||||||||||
from natural gas produced from the Company's Monument Draw properties. | ||||||||||||||||
Adjusted EBITDA for the three and nine months ended September 30, 2018 excludes approximately $13.7 million and $14.0 million, respectively, of costs to remove hydrogen sulfide | ||||||||||||||||
from natural gas produced from the Company's Monument Draw properties. |