Halcon Resources Corp (NYSE:HK) Stages A Smart Rally


Dallas, Texas 10/15/2013 (Financialstrend) – Halcon Resources Corp (NYSE:HK) is an oil and gas exploration major with a market cap of $1.84 billion.  On September 12, the company announced that it has managed to raise $302 million by disposing of close to $302 million of assets which it has categorized as non-core. The proceeds were put together through three separate deals spread across North America. Post the completion of the deal Halcon will be handing over properties which in total had a potential to produce close to 21.2 million barrels of oil equivalent.

In a follow up announcement on September 27, Halcon Resources Corporation let SEC know about the change in holding pattern of its stock. As per the changes being notified, HK has filed a Form S-3 to cover common stock held by consortium of investors which include “Petro-Hunt Holdings, LLC, Pillar Holdings, LLC, Canada Pension Plan Investment Board and CPP Investment Board PMI-2 Inc”. These investors have already indicated to HK that they do not intend to dilute their stake in the immediate future. With this change of holding pattern a total of 26% of the 366 million common shares outstanding will be held by institutional investors. The stock has also recorded a staggering 258% increase in insider ownership. Insiders now own 3.1% of the total stock.

On the back of this positive news, the stock has executed a remarkable recovery, posting a 6.58% appreciation in value over the past 30 days. In the past week, the stock has appreciated by 5.24%. At close of business on October 14, the stock has shown a 2.87% increase in value in comparison to previous day close. It had settled at $5.02 per share. At current valuations, the share price indicates a 39% dip in valuations in comparison to 52 week high pricing. Analysts expect the share price to appreciate to $7.18 over the next 6 months time period.