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 Halcon Resources Announces Fourth Quarter and Full Year 2015 Results
   Thursday, February 25, 2016 4:15:14 PM ET

Halcon Resources Corporation (HK ) ("Halcon" or the "Company") today announced its fourth quarter and full year 2015 results.

Production for the three months and full year ended December 31, 2015 averaged 41,087 barrels of oil equivalent per day (Boe/d) and 41,542 Boe/d, respectively. Production was comprised of 77% oil, 11% natural gas liquids (NGLs) and 12% natural gas for the quarter and 79% oil, 10% NGLs and 11% natural gas for the year.

Halcon generated total revenues of $116.1 million for the fourth quarter of 2015. Revenues for the full year 2015 totaled $550.3 million.

Excluding the impact of hedges, Halcon realized 88% of the average NYMEX oil price, 18% of the average NYMEX oil price for NGLs and 88% of the average NYMEX natural gas price during the fourth quarter 2015. For the full year 2015, excluding the impact of hedges, the Company realized 87% of the average NYMEX oil price, 19% of the average NYMEX oil price for NGLs and 85% of the average NYMEX natural gas price. Realized hedge proceeds totaled $129 million in the fourth quarter and $440 million for the full year 2015.

Total operating costs per unit, after adjusting for selected items (see Selected Operating Data table for additional information), decreased by 16% to $17.80 per Boe during the three months ended December 31, 2015, compared to the same period of 2014. Total operating costs per unit for the full year, after adjusting for selected items (see Selected Operating Data table for additional information), were $18.00 per Boe, representing a decrease of 25% versus 2014.

After adjusting for selected items primarily related to a non-cash, pre-tax full cost ceiling impairment charge and a non-cash, pre-tax gain on the extinguishment of debt (see Selected Item Review and Reconciliation table for additional information), net income was $59.3 million, or $0.41 per diluted share, and $128.4 million, or $0.97 per diluted share, for the fourth quarter and full year 2015, respectively. Halcon reported a net loss available to common stockholders of $424.7 million, or $3.56 per diluted share for the fourth quarter and $2.0 billion, or $18.66 per diluted share for the year.

Liquidity and Capital Spending

As of December 31, 2015 Halcon’s liquidity was approximately $789 million, which consisted of cash on hand plus undrawn capacity on the Company’s senior secured revolving credit facility with a $827 million borrowing base. The Company is currently working with its senior revolver lenders on its spring 2016 redetermination and expects the borrowing base to be revised to between $650 million and $700 million.

During the fourth quarter of 2015, the Company incurred capital costs of $58 million on drilling and completions, and less than $2 million on infrastructure, seismic and leasehold acquisitions. In addition, Halcon incurred $42 million for capitalized interest, G&A and other.

The Company incurred capital costs of $322 million on drilling and completions, $11 million on infrastructure/seismic and $12 million on leasehold acquisitions in 2015. In addition, Halcon incurred $142 million for capitalized interest, G&A and other.

Hedging Update

Halcon has 25,497 barrels per day of oil hedged for 2016 at an average price of $80.59 per barrel. For 2017, the Company has 3,750 barrels per day of oil hedged at an average price of $65.75 per barrel. Halcon estimates the pre-tax mark-to-market value of its hedge portfolio to be approximately $381 million as of February 24, 2016.

2015 Proved Reserves

The Company’s estimated proved reserves as of December 31, 2015 were approximately 146.8 million barrels of oil equivalent (MMBoe). Year-end 2015 estimated proved reserves were 82% oil, 9% NGLs and 9% natural gas on an equivalent basis. Of total estimated proved reserves, 83% were in the Williston Basin, 15% were in the East Texas Eagle Ford ("El Halcon") and 2% were in other areas. Year-end 2015 estimated proved reserves were approximately 95% Company-operated and 56% proved developed.

Halcon’s estimated proved reserves at December 31, 2015 were prepared by the independent reserve engineering firm Netherland, Sewell and Associates, Inc. in accordance with Securities and Exchange Commission guidelines using NYMEX prices of $50.28 per barrel for oil and $2.59 per million British Thermal Unit for natural gas, before adjustments for energy content, quality, midstream fees and basis differentials.

Operations Update

The Company is currently running 2 operated rigs in the Fort Berthold area of the Williston Basin but will scale down to 1 rig operating in the Fort Berthold area by the end of March 2016. Although Halcon currently has 1 operated rig running in its El Halcon area, the Company does not plan to run any rigs in this area after March of 2016 until oil prices improve. The Company currently has 13 wells in the Bakken and 2 wells in the East Texas Eagle Ford being completed or waiting on completion.

Bakken/Three Forks

The Company operated an average of 2 rigs and 2.2 rigs in the Williston Basin during the fourth quarter and full year 2015, respectively.

Halcon spudded 10 wells and put 5 wells online in the Williston Basin during the three months ended December 31, 2015. The Company also participated in 27 non-operated wells during the quarter with an average working interest of approximately 1.4%. Production averaged 29,721 Boe/d during the fourth quarter of 2015 in the Williston Basin.

For the full year 2015, Halcon spudded 39 wells and put 39 wells online in the Williston Basin. The Company also participated in 100 non-operated wells during the year with an average working interest of approximately 1.7%.

Halcon plans to concentrate its efforts in its highest return area (Fort Berthold Indian Reservation, or FBIR) in 2016 and anticipates spending approximately 80% to 85% of its total drilling and completions budget in the FBIR area of the Williston Basin.

During 2015, the Company put 33 operated wells online in the FBIR with an average EUR of 800 MBoe (25 Middle Bakken, 8 Three Forks). In 2016, Halcon expects wells put online to have an average EUR of approximately 900 MBoe as it focuses drilling on the best parts of its acreage position.

In 2015, the Company put 6 operated Middle Bakken wells online in Williams County with an average EUR of 553 MBoe. Although Halcon does not plan to drill in Williams County in 2016, any wells drilled in this area would generate a positive return at current strip prices based on 2015 EURs.

The Company continues to improve on well costs with current FBIR AFEs at $6.2 million and Williams County AFEs at $5.7 million.

Halcon currently has working interests in approximately 123,000 net acres prospective for the Bakken and Three Forks formations in the Williston Basin, substantially all of which are held by production (HBP). The Company plans to operate an average of 1 rig and spud 15 to 20 gross operated wells in 2016 with an average working interest of approximately 60%. Halcon also expects to participate in 50 to 65 gross non-operated wells in 2016 with an average working interest of approximately 1.5%.

The Company is currently the operator of 204 producing Bakken wells and 65 Three Forks wells. Halcon currently has 12 Bakken wells and 5 Three Forks wells being completed or waiting on completion on its operated acreage.

"El Halcon" - East Texas Eagle Ford

The Company operated an average of 1 rig in El Halcon during the fourth quarter and full year 2015. Halcon spudded 4 wells and put 4 wells online in the play during the three months ended December 31, 2015. For the full year 2015, the Company spudded 16 wells and put 19 wells online. Production averaged 7,278 Boe/d during the fourth quarter of 2015 in El Halcon.

Halcon currently has working interests in approximately 92,000 net acres prospective for the Eagle Ford formation in East Texas, approximately 72% of which is HBP. The Company plans to operate 1 rig through the first quarter of 2016 and spud 2 gross operated wells with an average working interest of approximately 98%. Halcon anticipates spending approximately 15% to 20% of its total drilling and completions budget in the play in 2016.

There are currently 110 Company-operated El Halcon wells producing and 1 Halcon-operated well currently drilling along with 2 Halcon-operated wells being completed or waiting on completion.

Conference Call and Webcast Information

Halcon Resources Corporation (HK ) has scheduled a conference call for Friday February 26, 2016, at 10:00 a.m. EST (9:00 a.m. CST). To participate in the conference call, dial (877) 810-3368 for domestic callers, and (914) 495-8561 for international callers a few minutes before the call begins and reference Halcon Resources conference ID 34260487. The conference call will also be webcast live over the Internet on Halcon Resources’ website at http://www.halconresources.com in the Investor Relations section under Events & Presentations. A telephonic replay of the call will be available approximately two hours after the live broadcast ends and will be accessible until March 4, 2016. To access the replay, dial (855) 859-2056 for domestic callers or (404) 537-3406 for international callers, in both cases referencing conference ID 34260487.

About Halcon Resources

Halcon 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, Senior Vice President of Finance & Investor Relations, at 832-538-0557 or qhicks@halconresources.com.

Forward-Looking Statements

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as "expects", "believes", "intends", "anticipates", "plans", "estimates", "potential", "possible", or "probable" or statements that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and other filings submitted by the Company to the U.S. Securities and Exchange Commission (SEC), copies of which may be obtained from the SEC’s website at www.sec.gov or through the Company’s website at www.halconresources.com. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. The Company has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company’s expectations.

HALC?"N RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)
                                                                                                           Three Months Ended December 31,         Years Ended December 31,
                                                                                                                2015                2014               2015                2014
Operating revenues:
               Oil, natural gas and natural gas liquids sales:
                                 Oil                                                                       $    107,978        $    223,215        $   512,346         $   1,071,319
                                 Natural gas                                                                    4,914               9,136              22,509              37,101
                                 Natural gas liquids                                                            3,052               9,064              13,624              37,460
                                                     Total oil, natural gas and natural gas liquids sales       115,944             241,415            548,479             1,145,880
               Other                                                                                            177                 (1,956   )         1,799               2,381
                                                     Total operating revenues                                   116,121             239,459            550,278             1,148,261
Operating expenses:
               Production:
                                 Lease operating                                                                22,324              34,539             103,590             130,239
                                 Workover and other                                                             9,248               3,643              20,862              16,193
                                 Taxes other than income                                                        11,644              23,329             48,890              106,331
               Gathering and other                                                                              9,698               8,600              40,281              26,719
               Restructuring                                                                                    222                 -                  2,886               987
               General and administrative                                                                       19,668              26,422             87,766              116,532
               Depletion, depreciation and accretion                                                            66,795              145,465            364,204             534,421
               Full cost ceiling impairment                                                                     611,787             178,503            2,626,305           239,668
               Other operating property and equipment impairment                                                -                   31,769             -                   35,558
                                                     Total operating expenses                                   751,386             452,270            3,294,784           1,206,648
Income (loss) from operations                                                                                   (635,265 )          (212,811 )         (2,744,506 )        (58,387   )
Other income (expenses):
               Net gain (loss) on derivative contracts                                                          93,459              510,367            310,264             518,956
               Interest expense and other, net                                                                  (52,672  )          (38,575  )         (232,878   )        (145,689  )
               Gain (loss) on extinguishment of debt                                                            203,897             -                  761,804             -
               Gain (loss) on extinguishment of Convertible Note and
                                 modification of February 2012 Warrants                                         -                   -                  (8,219     )        -
               Total other income (expenses)                                                                    244,684             471,792            830,971             373,267
Income (loss) before income taxes                                                                               (390,581 )          258,981            (1,913,535 )        314,880
Income tax benefit (provision)                                                                                  (2,862   )          (219     )         (9,086     )        1,076
Net income (loss)                                                                                               (393,443 )          258,762            (1,922,621 )        315,956
Series A preferred dividends                                                                                    (3,518   )          (4,960   )         (17,517    )        (19,838   )
Preferred dividends and accretion on redeemable noncontrolling interest                                         (27,751  )          (6,457   )         (66,820    )        (13,176   )
Net income (loss) available to common stockholders                                                         $    (424,712 )     $    247,345        $   (2,006,958 )    $   282,942
Net income (loss) per share of common stock:
                                 Basic                                                                     $    (3.56    )     $    2.96           $   (18.66     )    $   3.40
                                 Diluted                                                                   $    (3.56    )     $    2.38           $   (18.66     )    $   2.93
Weighted average common shares outstanding:
                                 Basic                                                                          119,420             83,457             107,531             83,155
                                 Diluted                                                                        119,420             107,844            107,531             108,481
HALC?"N RESOURCES CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands, except share and per share amounts)
                                                                                                         December 31,
                                                                                                              2015                  2014
Current assets:
                 Cash                                                                                    $    8,026            $    43,713
                 Accounts receivable                                                                          173,624               276,559
                 Receivables from derivative contracts                                                        348,861               352,530
                 Restricted cash                                                                              16,812                16,131
                 Inventory                                                                                    4,635                 4,693
                 Prepaids and other                                                                           4,635                 9,079
                 Total current assets                                                                         556,593               702,705
Oil and natural gas properties (full cost method):
                 Evaluated                                                                                    7,060,721             6,390,820
                 Unevaluated                                                                                  1,641,356             1,829,786
                 Gross oil and natural gas properties                                                         8,702,077             8,220,606
                 Less - accumulated depletion                                                                 (5,933,688 )          (2,953,038 )
                 Net oil and natural gas properties                                                           2,768,389             5,267,568
Other operating property and equipment:
                 Gas gathering and other operating assets                                                     130,090               126,804
                 Less - accumulated depreciation                                                              (22,435    )          (14,798    )
                 Net other operating property and equipment                                                   107,655               112,006
Other noncurrent assets:
                 Receivables from derivative contracts                                                        16,614                151,324
                 Debt issuance costs, net                                                                     7,633                 4,656
                 Deferred income taxes                                                                        -                     136,826
                 Equity in oil and natural gas partnership                                                    209                   4,309
                 Funds in escrow and other                                                                    1,599                 3,833
Total assets                                                                                             $    3,458,692        $    6,383,227
Current liabilities:
                 Accounts payable and accrued liabilities                                                $    295,085          $    607,750
                 Asset retirement obligations                                                                 163                   106
                 Current portion of deferred income taxes                                                     -                     136,826
                 Total current liabilities                                                                    295,248               744,682
Long-term debt, net                                                                                           2,873,637             3,695,488
Other noncurrent liabilities:
                 Liabilities from derivative contracts                                                        290                   9,387
                 Asset retirement obligations                                                                 46,853                38,371
                 Other                                                                                        6,264                 5,964
Commitments and contingencies
Mezzanine equity:
                 Redeemable noncontrolling interest                                                           183,986               117,166
Stockholders’ equity:
                 Preferred stock: 1,000,000 shares of $0.0001 par value authorized; 244,724 and 345,000
                 shares of 5.75% Cumulative Perpetual Convertible Series A, issued and outstanding
                 at December 31, 2015 and 2014, respectively                                                  -                     -
                 Common stock: 1,340,000,000 shares of $0.0001 par value authorized;
                 122,523,559 and 85,561,662 shares issued and outstanding
                 at December 31, 2015 and 2014, respectively                                                  12                    8
                 Additional paid-in capital                                                                   3,283,097             2,995,436
                 Accumulated deficit                                                                          (3,230,695 )          (1,223,275 )
                 Total stockholders’ equity                                                                   52,414                1,772,169
Total liabilities and stockholders’ equity                                                               $    3,458,692        $    6,383,227
HALC?"N RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
                                                                                          Three Months Ended December 31,         Years Ended December 31,
                                                                                               2015                2014               2015                2014
Cash flows from operating activities:
Net income (loss)                                                                         $    (393,443 )     $    258,762        $   (1,922,621 )    $   315,956
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
                    Depletion, depreciation and accretion                                      66,795              145,465            364,204             534,421
                    Full cost ceiling impairment                                               611,787             178,503            2,626,305           239,668
                    Other operating property and equipment impairment                          -                   31,769             -                   35,558
                    Share-based compensation, net                                              3,284               4,896              14,529              18,733
                    Unrealized loss (gain) on derivative contracts                             35,310              (469,625 )         129,282             (508,285   )
                    Amortization and write-off of deferred loan costs                          1,355               1,117              7,357               4,315
                    Non-cash interest and amortization of discount and premium                 480                 804                2,509               2,780
                    Loss (gain) on extinguishment of debt                                      (203,897 )          -                  (761,804   )        -
                    Loss (gain) on extinguishment of Convertible Note and
                                                  modification of February 2012 Warrants       -                   -                  8,219               -
                    Accrued settlements on derivative contracts                                (9,208   )          (25,868  )         (47,011    )        (25,868    )
                    Other expense (income)                                                     3,129               (1,841   )         8,934               (2,435     )
Cash flow from operations before changes in working capital                                    115,592             123,982            429,903             614,843
Changes in working capital, net of acquisitions                                                19,213              (37,938  )         37,096              53,091
Net cash provided by (used in) operating activities                                            134,805             86,044             466,999             667,934
Cash flows from investing activities:
                    Oil and natural gas capital expenditures                                   (127,678 )          (345,692 )         (659,419   )        (1,524,341 )
                    Proceeds received from sales of oil and natural gas assets                 111                 4,210              1,222               484,184
                    Advance on carried interest                                                -                   -                  -                   (189,442   )
                    Other operating property and equipment capital expenditures                (925     )          (2,727   )         (10,838    )        (43,083    )
                    Funds held in escrow and other                                             26                  368                1,903               1,589
Net cash provided by (used in) investing activities                                            (128,466 )          (343,841 )         (667,132   )        (1,271,093 )
Cash flows from financing activities:
                    Proceeds from borrowings                                                   255,000             532,000            1,834,000           2,276,000
                    Repayments of borrowings                                                   (251,804 )          (320,000 )         (1,643,804 )        (1,719,000 )
                    Debt issuance costs                                                        (3,865   )          (62      )         (29,568    )        (819       )
                    Series A preferred dividends                                               (3,521   )          (4,960   )         (8,177     )        (4,960     )
                    Common stock issued                                                        2                   -                  15,356              -
                    HK TMS, LLC preferred stock issued                                         -                   -                  -                   110,051
                    HK TMS, LLC tranche rights                                                 -                   -                  -                   4,516
                    Preferred dividends on redeemable noncontrolling interest                  -                   -                  -                   (3,518     )
                    Restricted cash                                                            (133     )          (147     )         (543       )        (16,131    )
                    Offering costs and other                                                   (246     )          (9       )         (2,818     )        (2,101     )
Net cash provided by (used in) financing activities                                            (4,567   )          206,822            164,446             644,038
Net increase (decrease) in cash                                                                1,772               (50,975  )         (35,687    )        40,879
Cash at beginning of period                                                                    6,254               94,688             43,713              2,834
Cash at end of period                                                                     $    8,026          $    43,713         $   8,026           $   43,713
HALC?"N RESOURCES CORPORATION
SELECTED OPERATING DATA
(Unaudited)
                                                                                 Three Months Ended December 31,                Years Ended December 31,
                                                                                              2015              2014                         2015              2014
Production volumes:
Crude oil (MBbls)                                                                             2,923             3,444                        12,019            12,787
Natural gas (MMcf)                                                                            2,679             2,620                        10,123            8,812
Natural gas liquids (MBbls)                                                                   411               358                          1,457             1,113
Total (MBoe)                                                                                  3,780             4,239                        15,163            15,369
Average daily production (Boe)                                                                41,087            46,076                       41,542            42,107
Average prices:
Crude oil (per Bbl)                                                              $            36.94           $ 64.81           $            42.63           $ 83.78
Natural gas (per Mcf)                                                                         1.83              3.49                         2.22              4.21
Natural gas liquids (per Bbl)                                                                 7.43              25.32                        9.35              33.66
Total per Boe                                                                                 30.67             56.95                        36.17             74.56
Cash effect of derivative contracts:
Crude oil (per Bbl)                                                              $            43.11           $ 11.79           $            35.87           $ 0.94
Natural gas (per Mcf)                                                                         1.03              0.05                         0.84              (0.15        )
Natural gas liquids (per Bbl)                                                                 -                 -                            -                 -
Total per Boe                                                                                 34.07             9.61                         28.99             0.69
Average prices computed after cash effect of settlement of derivative contracts:
Crude oil (per Bbl)                                                              $            80.05           $ 76.60           $            78.50           $ 84.72
Natural gas (per Mcf)                                                                         2.86              3.54                         3.06              4.06
Natural gas liquids (per Bbl)                                                                 7.43              25.32                        9.35              33.66
Total per Boe                                                                                 64.74             66.56                        65.16             75.25
Average cost per Boe:
Production:
Lease operating                                                                  $            5.91            $ 8.15            $            6.83            $ 8.47
Workover and other                                                                            2.45              0.86                         1.38              1.05
Taxes other than income                                                                       3.08              5.50                         3.22              6.92
Gathering and other                                                                           2.21              1.96                         2.00              1.72
Restructuring                                                                                 0.06              -                            0.19              0.06
General and administrative, as adjusted                                                       4.15              4.80                         4.57              5.98
Depletion                                                                                     17.03             33.66                        23.37             34.09
(1) Represents gathering and other and general and administrative costs per Boe, adjusted for items noted in the reconciliation below:
General and administrative:
General and administrative, as reported                                          $            5.20            $ 6.23            $            5.79            $ 7.58
Share-based compensation:
Non-cash                                                                                      (0.87        )    (1.15        )               (0.96        )    (1.22        )
Acquisition and merger transaction costs:
Cash                                                                                          (0.18        )    (0.28        )               (0.26        )    (0.38        )
General and administrative, as adjusted                                          $            4.15            $ 4.80            $            4.57            $ 5.98
Gathering and other, as reported                                                 $            2.57            $ 2.03            $            2.66            $ 1.74
Total adjusting items                                                                         (0.36        )    (0.07        )               (0.66        )    (0.02        )
Gathering and other, as adjusted                                                 $            2.21            $ 1.96            $            2.00            $ 1.72
Total operating costs, as reported                                               $            19.21           $ 22.77           $            19.88           $ 25.76
Total adjusting items                                                                         (1.41        )    (1.50        )               (1.88        )    (1.62        )
Total operating costs, as adjusted                                               $            17.80           $ 21.27           $            18.00           $ 24.14
(2) Represents lease operating, workover and other expense, taxes other than income, gathering and other expense and general and administrative costs per Boe, adjusted for items noted in reconciliation above.
HALC?"N RESOURCES CORPORATION
SELECTED ITEM REVIEW AND RECONCILIATION (Unaudited)
(In thousands, except per share amounts)
                                                                                                        Three Months Ended December 31,                                                  Years Ended December 31,
                                                                                                                                                               2015          2014                                                               2015            2014
As Reported:
Net income (loss) available to common stockholders, as reported                                         $                                                      (424,712 )  $ 247,345     $                                                      (2,006,958 )  $ 282,942
Series A preferred dividends                                                                                                                                   3,518         4,960                                                              17,517          19,838
Preferred dividends and accretion on redeemable noncontrolling interest                                                                                        27,751        6,457                                                              66,820          13,176
Net income (loss)                                                                                       $                                                      (393,443 )  $ 258,762     $                                                      (1,922,621 )  $ 315,956
Impact of Selected Items:
Unrealized loss (gain) on derivatives contracts:
Crude oil                                                                                               $                                                      33,291      $ (464,055 )  $                                                      123,441       $ (499,882 )
Natural gas                                                                                                                                                    2,019         (5,571   )                                                         5,841           (6,644   )
Total mark-to-market non-cash charge                                                                                                                           35,310        (469,626 )                                                         129,282         (506,526 )
Full cost ceiling impairment                                                                                                                                   611,787       178,503                                                            2,626,305       239,668
Other operating property and equipment impairment                                                                                                              -             31,769                                                             -               35,558
Loss (gain) on extinguishment of debt                                                                                                                          (203,897 )    -                                                                  (761,804   )    -
Loss (gain) on extinguishment of Convertible Note and modification of February 2012 Warrants                                                                   -             -                                                                  8,219           -
Deferred financing costs expensed, net                                                                                                                         128           -                                                                  1,331           499
Restructuring                                                                                                                                                  222           -                                                                  2,886           987
Rig termination / stacking charges and other                                                                                                                   4,915         (725     )                                                         24,998          4,052
Selected items, before income taxes                                                                                                                            448,465       (260,079 )                                                         2,031,217       (225,762 )
Income tax effect of selected items                                                                                                                            -             21,926                                                             -               (18,447  )
Selected items, net of tax                                                                              $                                                      448,465     $ (238,153 )  $                                                      2,031,217     $ (244,209 )
As Adjusted:
Net income (loss) available to common stockholders, excluding selected items                            $                                                      55,022      $ 20,609      $                                                      108,596       $ 71,747
Net income (loss) from assumed conversions                                                                                                                     4,245         -                                                                  19,799          -
Net income (loss) available to common stockholders after assumed conversions, excluding selected items  $                                                      59,267      $ 20,609      $                                                      128,395       $ 71,747
Basic net income (loss) per common share, as reported                                                   $                                                      (3.56    )  $ 2.96        $                                                      (18.66     )  $ 3.40
Impact of selected items                                                                                                                                       4.02          (2.71    )                                                         19.67           (2.54    )
Basic net income (loss) per common share, excluding selected items                                      $                                                      0.46        $ 0.25        $                                                      1.01          $ 0.86
Diluted net income (loss) per common share, as reported                                                 $                                                      (3.56    )  $ 2.38        $                                                      (18.66     )  $ 2.93
Impact of selected items                                                                                                                                       3.97          (2.13    )                                                         19.63           (2.08    )
Diluted net income (loss) per common share, excluding selected items                                    $                                                      0.41        $ 0.25        $                                                      0.97          $ 0.85
Net cash provided by (used in) operating activities                                                     $                                                      134,805     $ 86,044      $                                                      466,999       $ 667,934
Changes in working capital, net of acquisitions                                                                                                                (19,213  )    37,938                                                             (37,096    )    (53,091  )
Cash flow from operations before changes in working capital                                                                                                    115,592       123,982                                                            429,903         614,843
Cash components of selected items                                                                                                                              11,467        1,506                                                              66,316          6,931
Income tax effect of selected items                                                                                                                            -             (558     )                                                         -               (2,567   )
Cash flow from operations before changes in working capital, adjusted for selected items                $                                                      127,059     $ 124,930     $                                                      496,219       $ 619,207
(1) Represents charges related to the write-off of debt issuance costs associated with decreases in the Company’s borrowing base under its senior revolving credit facility.
(2) For the 2015 columns, this represents the tax impact using an estimated tax rate of 0.0% due to the Company maintaining a full valuation allowance.  For the 2014 columns, this represents tax impact using an estimated tax rate of 37.04%. These columns include a $(74.4) million (quarter-to-date) and $(102.1) million (year-to-date) adjustment for the change in valuation allowance.
(3) Net income (loss) and earnings per share excluding selected items and cash flow from operations before changes in working capital adjusted for selected items are non-GAAP measures. These financial measures are presented based on management’s belief that they will enable a user of the financial information to understand the impact of these items on reported results. Additionally, this presentation provides a beneficial comparison to similarly adjusted measurements of prior periods.  These financial measures are not measures of financial performance under GAAP and should not be considered as an alternative to net income, earnings per share and cash flow from operations, as defined by GAAP.  These financial measures may not be comparable to similarly named non-GAAP financial measures that other companies may use and may not be useful in comparing the performance of those companies to Halcon’s performance.
(4) The impact of selected items for the three months ended and year ended December 31, 2015 was calculated based upon weighted average diluted shares of 144.8 million and 131.8 million, respectively, due to the net income available to common stockholders, excluding selected items.
Quentin Hicks
SVP, Finance & Investor Relations
(832) 538-0557

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