Halcon Resources Announces 1-for-5 Stock Split to Avoid De-Listing

Halcon Resources is a driller that “guessed wrong” by leasing 140,000 Utica Shale acres in the northern part of the play and currently doesn’t drill in any of that acreage. Halcon is one of the one of eight Marcellus/Utica companies on David Fessler’s “Oil Company Death List” (see 19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica). As an interesting aside, the “Death List” also includes Marcellus/Utica driller Magnum Hunter, a company filing for bankruptcy earlier this week (see Sad Day: Magnum Hunter Files for Chapter 11 Bankruptcy). In August Halcon refinanced $1 billion worth of outstanding IOUs with a third lien, paying a 13% interest rate on debts that had been 8.875% to 9.75%, and in November Halcon offered second liens for certain other IOUs, offering a new interest rate of 12% for debts that previously had rates of 8.875% to 9.75%. Halcon’s latest move came yesterday when the company announced a reverse stock split in which they will combine five shares into one share effective Jan. 5. What’s a reverse split and what does it mean?…

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