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Halcon's Drilling, Spending, Rigs All Down YOY in Q1; May Drop Another Rig

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Halcón Resources Corp. reported its Q1 2019 results. Here are the highlights from its report and presentation.

Q1 Summary

Halcon's activity was pretty much down across the board for Q1 as the company is currently trying to increase company value through a strategic alternatives process.

At the beginning of June 2019, Halcon reported that it was out of NYSE compliance due to its low stock price.

- Well Activity (gross): TIL 4 wells in Q1 - down -71% YOY

- Rigs: 2 total rigs running (both at Monument Draw) - down -50% YOY

- Q1 D&C Spending: $72 million - down -38% YOY

- Q1 Production: Production averaged 17.1 MBOEPD (60% oil) - up +55% from Q1 2018

Ops Update - May Drop One Rig in Near-Term

The Company is currently running two operated rigs in Monument Draw. Halcón plans to continue to run two operated rigs in Monument Draw for the remainder of 2019 but may elect to drop to one rig focused on Monument Draw pending the outcome of its strategic and financial alternative process.

Halcón recently put online four new Wolfcamp wells in Monument Draw. Two of these wells were completed with lateral lengths around 5,000 feet while two were completed with lateral lengths of around 7,500 feet. The 30-day peak rates on the two 5,000 feet wells averaged approximately 1,002 Boe/d (84% oil). The two 7,500 feet wells have not yet reached peak rates but are currently producing in excess of 900 Boe/d (82% oil). Halcón also recently brought the previously shut-in Sealy Ranch 7506H well back online and this well is expected to continue to increase in production over the coming weeks.

The Company plans to put an additional eight to ten gross operated wells online in Monument Draw over the remainder of 2019 (assuming two rigs running).