No. 19 Halcon: Investors optimistic over steady long-term outlook [Tulsa World, Okla.]By Kyle Arnold, Tulsa World, Okla.McClatchy-Tribune Information Services
Sept. 16-- Floyd Wilson's rebuilding project at Halcon Resources has investors optimistic for big returns in 2013 and a steady, long-term outlook for a company that struggled in 2010 and 2011.
Halcon, formerly known as RAM Energy before Wilson announced the recapitalization at the end of 2011, has soared since the former Petrohawk leader took over. The stock price for the oil and gas exploration company has more than doubled in the eight months since the announcement was made.
Now based in Houston, Halcon still has 30 employees in Tulsa including much of its crucial operating personnel.
Jake Dollarhide, CEO of Longbow Asset Management Co., had Halcon as his top pick for 2012, saying the stock could easily double in price during 2013. "I do believe that oil and gas prices will surge in the next two years," Dollarhide said. "And at some point the end point for Halcon is that they will get bought out."
The company continues to revamp after an annual loss of $1.4 million in 2011 and $25 million in losses during the first half of 2012. It has purchased assets in Ohio to add to its oil portfolio in Oklahoma, Louisiana and Texas. An impending $1 billion merger with GeoResources Inc. could give the combined company more assets in Texas and a new market in North Dakota.
While RAM Energy struggled with a low stock price, Bruce DeShazo of American Heritage Investments said the company has good financials that could bode well.
"While they've struggled with earnings for a long time, they have a low debt-to-equity ratio," DeShazo said. "The new leadership has a good track record, they are starting to show some positive results."
Address: 1000 Louisiana St., Suite 6700, Houston, Texas, 77002
Chairman/President/CEO: Floyd C. Wilson
CFO: Mark J. Mize
Symbol (Exchange): HK (NYSE)
Operation: Explores for oil and natural gas.
Kyle Arnold 918-581-8380
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