Halcon Resources is a driller that “guessed wrong” by leasing 140,000 Utica Shale acres in the northern part of the play (in Ohio) and currently doesn’t drill in any of that acreage. In January the company suspended paying dividends (see Halcon Resources Suspends Dividend Payments for Preferred Stock). In February the company issued an “everything is OK, honest” statement, to calm investors’ fears (see Halcon Tries to Calm Jittery Investors with “Everything is OK” Statement). At that time the stock was trading for 42 cents per share. Perhaps it worked. Halcon’s stock, as of this morning, was trading at $1.08 per share. Is it enough? Yesterday Halcon announced they’ve hired PJT Partners as financial advisors and Weil, Gotshal & Manges, LLP as legal advisors “to assist the Company as it charts a course through this downturn.” Both firms have been added to the board of directors. We checked, and the law firm claims it is “the go-to bankruptcy firm.” Hmmm. Is that an indication of things to come?…
