Resolute Energy to sell Williams County Bakken acreage to Halcon for $75M

Resolute Energy Corp. (NYSE: REN) plans to sell 22.9K net acres of non-operated Bakken shale acreage to a subsidiary of Halcon Resources for $75 million, according to a flash note by Sterne Agee this morning.

Halcon, the operator of the acreage in Williams County, acquires the acreage for a fair price, said the analysts, pointing out “limited number of operators interested in acquiring non-op acreage.”  According to the analysts, the sale price was 87% of the year-end 2012 PV-10 value. By acquiring the acreage, Halcon, “who allocated capital elsewhere in 2014, diminishing the value of the property,” said the analysts, the company is taking the property off Resolute's hands, a positive for Resolute in its deleveraging process.

Ongoing leverage concerns
While the sale aids in the deleveraging process—Resolute has raised over $175 million in the last two months—the analysts estimate net debt will be $639 million as of June 30 (including a May equity issuance of approximately $101.8 million and this sale), which assumes a FCF deficit of $26 million in 2Q13.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...