Got Halcon?

More to follow. In pre-market trading, HK is up over 3% today.

Revenues for the second quarter of 2013 increased to $214.3 million, compared to $23.3 million for the three months ended June 30, 2012. Net production for the period increased 646% year-over-year to an average of 29,165 barrels of oil equivalent per day (Boe/d). Second quarter 2013 production was comprised of 83% oil, 5% natural gas liquids (NGLs) and 12% natural gas.

This is really quite remarkable:

Halcon reported net income available to common stockholders, after assumed conversions, of $37.3 million, or $0.08 per diluted share for the quarter. After adjusting for selected items (primarily related to the non-cash impact of derivatives), the Company reported net income for the three months ended June 30, 2013 of $16.8 million, or $0.04 per diluted share, compared to net income of $2.8 million, or $0.02 per diluted share in the comparable quarter of 2012 (see Selected Item Review and Reconciliation table for additional information).

Halcon reported cash flow from operations before changes in working capital of $122.7 million, or $0.28 per diluted share for the three months ended June 30, 2013 (see Condensed Consolidated Statements of Cash Flows for a reconciliation to net cash provided by operating activities). After adjusting for selected items (see Condensed Consolidated Statements of Cash Flows and Selected Item Review and Reconciliation table for additional information), cash flow from operations before changes in working capital was $122.7 million for the quarter, or $0.28 per diluted share, compared to $0.2 million, or $0.00 per diluted share for the same period of 2012.

Compare these numbers to the numbers KOG was reporting in its early days in the boom. KOG pales in comparison, at least as far as I recall.

Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read here or what you think you may have read here. I have no formal (or informal) training (or education) in the oil and gas industry or in business. I make a lot of typographical errors, and I often come to the wrong conclusions. I post about the Bakken because I enjoy the story. I don't post about the Bakken for investment purposes. I post articles about earnings because it helps me understand the Bakken. I don't trade. I am a long term investor. I won't be buying, selling, or trading anything in the next 72 hours, though I did write to my wife to tell her to give our outside electric grill away. I will never being using that grill again, now that I am a regular "subscriber" to Omaha Steaks and can grill in our new apartment complex.

Additional information regarding Halcon:

On July 15, 2013, the Company closed on the acquisition of 18,569 net acres from a non-operated working interest partner on its operated acreage in the New Home II area in Williams County, North Dakota for approximately $76 million, including closing adjustments. The acquired interests are currently producing approximately 900 Boe/d (90% oil). This transaction had an effective date of March 1, 2013.

Operations:

The ongoing implementation of drilling and completion modifications continues to yield positive results. The performance of wells that have been completed with modified completion techniques is currently above previously published type curve estimates.

Halcon's average initial production (IP) rate for the two most recently completed Bakken wells put online in the Fort Berthold area is greater than 3,000 Boe/d. A new Company record was recently set with a 3,317 Boe/d IP on a Bakken well in this area.

Halcon currently has approximately 150,000 net acres in the Williston Basin and expects to operate an average of six rigs in the basin for the remainder of 2013. The company averaged 7 operated rigs in 2Q13.

That 150,000 net acres is up from 130,000 net acres in June, 2013.

Halcon also has position in Woodbine (Texas).

But even more exciting, for other reasons, is Halcon's success in the Utica:

It is important to note that the Kibler 1H (100% WI), located in Trumbull County, Ohio, tested at a rate of 2,233 Boe/d (75% liquids), assuming full ethane recovery, which compares favorably to the other highly productive wells in the play. This discovery well for the Utica/Point Pleasant play in Trumbull County tested at 860 barrels of condensate per day and 4.5 million cubic feet of natural gas per day (1,350 BTU).

Based on composition analysis and assuming 27% gas shrink, Halcon estimates the well would produce an additional 821 barrels of NGLs per day. The Kibler 1H was drilled to a total measured depth of 14,257 feet, had an effective lateral length of 6,734 feet and was completed with 26 frac stages. The Company has significant holdings in Trumbull and Mahoning Counties, Ohio and believes there is potential to drill hundreds of wells on its acreage in the area over time.

 Kibler should not be confused with Keebler, which are cookies. Compare the Kibler well with a typical Bakken well. In the Bakken, now: total measure depth of around 20,000 feet; an effective lateral length of 9,000 feet; and 36+ stages.

Again, Halcon in the Utica:

The process of delineating Halcon's Utica/Point Pleasant acreage position is essentially complete. The Company has finished drilling its first nine wells and is evaluating results. There is currently one Utica/Point Pleasant well producing, four wells that have been tested and are shut-in awaiting infrastructure, two wells being tested and two wells resting. Halcon expects to operate a minimum of one rig in the play throughout the remainder of 2013 and anticipates seven of the nine wells drilled to be flowing into sales pipelines by the end of the year.

More rail:

The Company's midstream subsidiary, Halcon Field Services (HFS), has entered into an exclusive arrangement with the Ohio Commerce Center (OCC), a 516 acre mixed used industrial site located in Lordstown, Ohio, to develop an oil storage and rail-loading facility. HFS and the OCC have obtained a variance from the Village of Lordstown to permit the planned facility.

OCC has over 12,000 feet of recently installed loop track and direct access to Class 1 rail service, making it an ideal location for low cost rail services to support the rapid production growth expected in the northern tier of the Utica/Point Pleasant play. HFS plans to build the terminal at the OCC in phases, the first of which is expected to go into service by the end of 2013. At scale, HFS anticipates the facility would accommodate unit train loads at the rate of 140,000 barrels of oil or condensate per day.