Denver, Colorado, Dec. 20, 2018 (GLOBE NEWSWIRE) -- Halcón Resources Corporation (NYSE:HK) (“Halcón” or the “Company”) today announced it has closed on the previously announced divestiture of all of its water infrastructure assets across the Delaware Basin to a subsidiary of WaterBridge Resources LLC for $200 million in cash.
In addition to the $200 million received today, the Company has an opportunity to earn potential incentive payments of up to $25.0 million per year for each of the next five years ($125 million total) subject to Halcón’s ability to meet certain annual incentive thresholds which will be driven by, among other things, the Company’s development program.
Upon closing of this sale, Halcón’s senior secured revolving borrowing base was increased to $275 million. As of September 30, 2018, pro forma for the $200 million in sale proceeds and undrawn revolver capacity, the Company had liquidity of $418 million.
Floyd C. Wilson, Halcón’s Chairman and CEO commented “The proceeds from this transaction as well as the increase in our borrowing base provide us plenty of liquidity to fund our capital program in 2019 and beyond. Given the recent decline in commodity prices we are dropping a rig early in the first quarter of 2019 and plan on running two rigs for the remainder of 2019. We will update the market formally with our 2019 plans and guidance in the first quarter of 2019.”
Scotiabank and BMO Capital Markets advised Halcón on the divestiture of its water infrastructure assets.
About Halcón Resources
Halcón Resources Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.
For more information contact Quentin Hicks, Executive Vice President of Finance, Capital Markets & Investor Relations, at 303.802.5541 or firstname.lastname@example.org.
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