You Don't Often See This; A Bakken Operator -- Halcon -- Surges

Later:

I'll refer readers back to my post yesterday: trying to get a handle on Halcon.

This will be lots of fun. Let's see why The Street says Halcon is up today. This is the lede:

For the first quarter Halcon reported earnings of 3 cents a share, beating the Capital IQ Consensus Estimate of 2 cents a share by 1 cent. 

You know, call me a fool, but if every company that beat expectations by a penny went up 10% we'd all be gazillionaires. Yes, I know in this case one cent out of two cents is 50 percent or one cent out of three cents is 33 percent, so it's not just the penny, it's two things: a) a "beat"; and, b) a pretty good beat.

But after a reader caught my error yesterday (see first linked post above), it would be fun to re-do the "per acre" calculations:

• Bakken/Three Forks: 142,000 net acres
• El Halcon/Eagle Ford: 100,000 net acres
• Tuscaloosa Marine Shale: 307,000 net acres
• Enterprise value: $5.4 billion

So, $5.5 billion / 550,000 net acres = $10,000 / acre. Pricey?

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.

Go to The Street link to see how much their analysts dislike Halcon. I don't think they could find one thing they liked about the company.

By the way, what about that Tuscaloosa Marine Shale? I track it once in awhile at a link on the sidebar at the right.

Most recently, the transcript for earnings, 1Q14, Goodrich, at SeekingAlpha:

The level of activity in the TMS is an all-time high, with 6 to 7 rigs running currently and more to come. We feel that our recent Blades well result in Tangipahoa Parish, Louisiana at 1,250 barrels of oil per day was an inflection point for the play, in that the well was drilled in record time without issues and we saw very consistent result to the best well in the field, which is our Crosby well, approximately 50 miles away.

As we previously stated, we tweaked our completion methodology on the Blades, which was a 5,000-foot lateral, by reducing the frac interval and slightly increasing the profit amount per stage, which yielded a higher production rate per linear for the lateral. The Blades well also opened up an area that previously had not had a well drilled, which expands our core position.

The Blades well also supports our thesis for other acreage acquisition last summer, that when you analyze core and other subsurface data, we only see minor differences in the rock quality across our entire block and the difference in well results are primarily been driven by landing target and completion recipe.

As we've stated before, you can't deny the resource potential of the TMS when you look at the wells that have been drilled and stimulated effectively. We continue to update production from the key wells and plot against our 600,000 and 800,000-barrel type curves.