Halcon Resources Slashes Drilling Rigs on Oil Price

Reuters

Nov 10 (Reuters) - Oil and gas producer Halcon Resources Corp said on Monday it is cutting nearly half the rigs it originally planned to operate next year due to the more than 25 percent slide in crude oil prices.

Shares of Halcon, which operates in the Bakken in North Dakota and the Eagle Ford in Texas, fell nearly 10 percent to $2.94 after the close of regular trading.

"In response to lower oil prices, the company expects to operate six rigs in 2015, five rigs less than originally planned," the Houston company said in its third quarter earnings release.

Companies have so far had a varied response to the slide in oil prices. Earlier on Monday, Bakken operator Hess Corp boosted its five-year oil and gas production forecast, underscoring its optimism about oil prices.

Crude has fallen sharply in recent weeks, hit by slowing global demand and growing supplies. On Monday, crude oil traded in New York slid nearly 2 percent to $77.29.

Halcon posted a third-quarter profit of $187 million, or 36 cents per share, compared with year-ago loss of $860 million, or $2.19 per share.

(Reporting by Anna Driver in Houston and Ernes Scheyder in Williston; Editing by Richard Chang)

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Equipment Operator - San Antonio
Expertise: Coil Tubing|Driller|Production Operator
Location: San Antonio, TX
 
Frac Supervisor - TX, ND, WY & OK
Expertise: WellSite Supervisor
Location: El Reno, 
 
United States Bossier City: Service Supervisor I - Frac/Acid
Expertise: Field Service Tech|WellSite Supervisor
Location: Bossier City, LA
 
search for more jobs

Brent Crude Oil : $51.46/BBL 4.63%
Light Crude Oil : $48.9/BBL 4.78%
Natural Gas : $3.18/MMBtu 0.90%
Updated in last 24 hours