Another One Bites the Dust: Halcon Resources Filing for Bankruptcy

Halcon ResourcesFloyd Wilson, CEO of driller Halcon Resources, is a plainspoken kind of guy. Halcon “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. Their less-than-stellar acreage led Wilson to comment, in colorful language, that the company would no longer drill any “substandard” (our word) Utica wells (see Halcon CEO Says No More S***** Wells in Northern OH Utica). In early 2015 when asked by an analyst about the company’s plans for the Utica, Wilson quipped “What’s the Utica?” (see Halcon CEO Floyd Wilson: “What’s the Utica?”). So we found it interesting that Wilson, so outspoken, was uncharacteristically silent when the company announced it would “take one prepackaged bankruptcy to go.” On Wednesday Halcon announced that like Seventy Seven Energy, they’ve worked out a deal with current debtholders into stockholders, shafting current stockholders in the process. In the announcement we read a lot about restructuring–but the word “bankruptcy” appears just once…

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