Halcon Expects Q1 Charge Of Up To $650 Mln, Plans Senior Notes Offering

(RTTNews) - Halcon Resources Corp. (HK) said it expects to report production for the three months ended March 31, 2015 of 42,500 to 43,500 barrels of oil equivalent per day or Boe/d. First quarter production is estimated to be about 81 percent oil, 8 percent NGLs and 11 percent natural gas.

The company also said it expects to record a non-cash pre-tax full cost ceiling impairment charge of $450 million to $650 million in the first quarter of 2015.

Halcon is currently operating three rigs across its holdings and currently has 23 wells being completed or waiting on completion. The company said it continues to be focused on reducing costs in the current commodity price environment.

In a separate statement, Halcon said that subject to market conditions, it plans to offer $500 million in aggregate principal amount of senior secured notes due 2020. The notes will be secured by second-priority liens on substantially all of Halcón's and its subsidiary guarantors' assets that secure the company's senior secured revolving credit facility.

Halcón intends to use the net proceeds from the offering to repay a portion of the outstanding borrowings under its senior secured revolving credit facility and for general corporate purposes.