Halcon Resources Suspends Dividend Payments for Preferred Stock
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). In November 2013 Halcon's colorful CEO, Floyd Wilson, said he wouldn't drill any more, ahem, crappy wells in the Utica (see Halcon CEO Says No More S***** Wells in Northern OH Utica). On an analyst call in early 2015 Wilson quipped "What's the Utica?" in response to a question from an analyst (see Halcon CEO Floyd Wilson: “What’s the Utica?”). In August 2015 the New York Stock Exchange sent a letter threatening to de-list the stock (see Halcon Resources Put on Notice by NYSE; Refi Debt at Higher Rate). A company must maintain at least a $1/share price in order to continue trading on the NYSE. Yesterday Halcon's common stock traded at 43.3 cents/share. Oops. So it will be no surprise that Halcon, like several other northeast drillers, has decided to suspend paying dividends on their preferred stock...
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