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.