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Insiders Are Buying Halcón Resources

August 12, 2013 | About:
maarnio

maarnio

2 followers
The Energy Select Sector SPDR ETF (XLE) was trading as low as $37.40 in March 2009. The index is currently trading at $82.59 or 120.8% above the low made in March 2009.



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In this article, I will feature one energy stock that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

The stock is purchased by three or more insiders within one month.

The stock is sold by no insiders in the month of intensive purchasing.

At least two purchasers increase their holdings by more than 10%.Halcón Resources Corporation (HK) is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the U.S.

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Insider Buying by Insider (Last 30 Days)

  • Floyd Wilson purchased 100,000 shares on Aug. 8 pursuant to a public offering. Floyd Wilson currently holds 3,588,150 shares or 1.0% of the company. Floyd Wilson serves as chairman and chief executive officer.
  • Stephen Herod purchased 25,000 shares on Aug. 8 pursuant to a public offering. Stephen Herod currently holds 234,196 shares or less than 0.1% of the company. Stephen Herod serves as president of the company.
  • Mark Mize purchased 50,000 shares on Aug. 8 pursuant to a public offering. Mark Mize currently holds 546,573 shares or 0.1% of the company. Mark Mize serves as executive vice president, chief financial officer and treasurer.
  • David Elkouri purchased 20,000 shares on Aug. 8 pursuant to a public offering. David Elkouri currently holds 234,993 shares or less than 0.1% of the company. David Elkouri serves as executive vice president, general counsel of the company.
  • Larry Helm purchased 20,000 shares on Aug. 8 pursuant to a public offering. Larry Helm currently holds 155,327 shares or less than 0.1% of the company. Larry Helm serves as executive vice president corporate affairs.
  • Charles Cusack purchased 20,000 shares on Aug. 8 pursuant to a public offering. Charles Cusack currently holds 391,993 shares or 0.1% of the company. Charles Cusack serves as chief operating officer.
  • Joseph Rinando purchased 10,000 shares on Aug. 8 pursuant to a public offering. Joseph Rinando currently holds 86,770 shares or less than 0.1% of the company. Joseph Rinando serves as vice president and chief accounting officer of the company.
  • Leah Kasparek purchased 20,000 shares on Aug. 8 pursuant to a public offering. Leah Kasparek currently holds 91,310 shares or less than 0.1% of the company. Leah Kasparek serves as vice president human resources.
  • James Christmas purchased 100,000 shares on Aug. 8 pursuant to a public offering. James Christmas currently holds 716,166 shares or 0.2% of the company. James Christmas serves as a director of the company.
  • Thomas Fuller purchased 40,000 shares on Aug. 8 pursuant to a public offering. Thomas Fuller currently holds 240,133 shares or less than 0.1% of the company. Thomas Fuller serves as a director of the company.
  • David Hunt purchased 200,000 shares on Aug. 8 pursuant to a public offering. David Hunt currently holds 236,800 shares or less than 0.1% of the company. David Hunt serves as a director of the company.
  • Tina Obut purchased 10,000 shares on Aug. 8 pursuant to a public offering. Tina Obut currently holds 174,010 shares or less than 0.1% of the company. Tina Obut serves as vice president reserves.
Insider Buying by Calendar Month

Here is a table of Halcón Resources' insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
August 2013615,0000
July 201300
June 20132,013,1250
May 201300
April 201300
March 201300
February 201300
January 201300
There have been 2,628,125 shares purchased and there have been zero shares sold by the insiders this year.

Financials

The company reported the second quarter financial results on Aug. 1 with the following highlights:

Revenue$214.3 million
Net income$36.4 million
Cash$3.1 million
Debt$2.7 billion
Production29,165 boe/d


Outlook


Halcón's production guidance for the third quarter and the full year is as follows:

Production (Boe/d)3Q13FY13
Low34,00030,000
High36,00034,000


Conclusion


There have been 12 different insiders buying the shares and there have not been any insiders selling the shares during the last 30 days. Seven out of these 12 insiders increased their holding by more than 10%. The company has an insider ownership of 1.90%. There are 15 analyst buy ratings, three neutral ratings and one sell rating with an average target price of $8.25. The company's total proved reserves are 108.8 MMboe with a net present value of $2.3 billion. The stock is trading at a P/E ratio of 112.50 and a forward P/E ratio of 12.00. The company has a book value of $6.71 per share. I believe the stock could be a good pick below the book value.

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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

About the author:

maarnio
I have 15 years of investing experience. I have traded stocks, commodities and Forex markets.

Rating: 1.0/5 (1 vote)

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