The New Franklin Resources Inc Holding in Halcon Resources Corp
Franklin Resources Inc filed with the SEC SC 13D form for Halcon Resources Corp. The form can be accessed here: 000003877716000578. As reported in Franklin Resources Inc’s form, the filler as of late owns 37.9% or 34,261,436 shares of the Energy–company.
Halcon Resources Corp stake is a new one for the for this institutional investor and it was filed because of activity on September 9, 2016. We feel this shows Franklin Resources Inc’s positive view for the stock.
Reasons Why Franklin Resources Inc Bought – Halcon Resources Corp Stock
Item 4. Purpose of Transaction
Before the Effective Date, the Investment Management Subsidiaries held certain of the Issuer’s Third Lien Notes and Unsecured Notes (each as defined in the Plan). As of the Effective Date under the Restructuring Support Agreement, the Investment Management Subsidiaries received shares of Common Stock and cash in exchange for their Third Lien Notes and Warrants, shares of Common Stock and cash in exchange for their Unsecured Notes. On the Effective Date, the Third Lien Notes and the Unsecured Notes were cancelled. Also pursuant to the Plan and the Restructuring Support Agreement, FAV received the right to appoint three members to the Issuer’s nine-member board of directors (the “Board”) and the right to consent to one of the three directors appointed by Ares Management LLC and certain of its affiliates (collectively, “Ares”) that also received Common Stock and Warrants under the Plan and were parties to the Restructuring Support Agreement. As of the Effective Date, FAV appointed Eric G. Takaha, James W. Christmas and William J. Campbell to the Board and consented to Ares’ appointment of Ronald Scott. Mr. Takaha and Mr. Christmas are also members of the Issuer’s Audit Committee. Mr. Campbell is also a member of the Issuer’s Compensation and Corporate Governance Committees. FAV does not have any rights to appoint future directors to the Board of the Issuer.
Mr. Takaha was an employee of FRI until his retirement in June 2016. Before his retirement, Mr. Takaha was a Portfolio Manager, Senior Vice President and Director of the Corporate and High Yield Group at Franklin Templeton Investments. He also served as a member of the firm’s Fixed Income Policy Committee, which helped guide investment strategies for multi-sector fixed income accounts. He managed multiple fixed income portfolios, with a focus on those with corporate credit investments, as well as overseeing and directing the firm’s group of high yield and investment grade credit analysts as they formulated investment recommendations. He originally joined Franklin Templeton Investments in 1989.
None of the directors appointed by FAV, including Mr. Takaha, is affiliated with the Investment Management Subsidiaries, FRI or their affiliates, and no such director is a representative of, reports to, or provides information to, any of such persons. FAV’s decision as to whether to vote for any such director when such director next stands for election will be based on the same factors as it considers for any director that was not originally designated to serve on the board by FAV.
Additionally on the Effective Date, the Issuer entered into a registration rights agreement (the “Registration Rights Agreement”) with FAV, among others, under which it agreed to file with the SEC within 30 days following the earlier to occur of (i) the Issuer filing with the SEC its Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and (ii) the Issuer meeting the eligibility requirements to file a registration statement on Form S-3, and thereafter to use its commercially reasonable efforts to cause to be declared effective as promptly as practicable, a shelf registration statement for the offer and resale of the Common Stock. The Registration Rights Agreement contains other customary terms and conditions, including blackout periods and indemnification provisions.
Except as described above, none of the Investment Management Subsidiaries and none of any of the other reporting persons covered by this Schedule 13D currently has any plans or proposals that relate to or would result in any of the actions described in paragraphs (a) through (j) of the instructions to Item 4 of Schedule 13D, or any present plans or intentions to acquire or dispose of any securities of the Issuer other than on behalf of the various investment companies registered under Section 8 of the Investment Company Act of 1940 and other accounts to which the Investment Management Subsidiaries are the investment advisers (collectively, the “Clients”).
CUSIP NO. 40537Q506Page 7 of 14
The Investment Management Subsidiaries may, however, on behalf of the Clients, in the future acquire additional shares of Common Stock, Warrants or other securities of the Issuer, in the open market, in privately
negotiated purchases or otherwise, and may also, depending on then current circumstances, dispose of all or part of the Common Stock or Warrants in one or more transactions. Additionally, the Investment Management
Subsidiaries may on behalf of the Clients, exercise any and all rights as a stockholder of the Issuer in a manner consistent with such equity interests and reserves the right from time to time to formulate plans or
proposals regarding the Issuer or any of its securities, including without limitation to carry out any of the actions or transactions described in paragraphs (a) through (j) of the instructions to Item 4 of Schedule
13D, to the extent the Investment Management Subsidiaries deem advisable.
Halcon Resources Corp Institutional Sentiment
Latest Security and Exchange filings show 150 investors own Halcon Resources Corp. The institutional ownership in Q3 2015 is high, at 7,835.26% of the outstanding shares. This is decreased by 1616036 the total institutional shares. 282852996 were the shares owned by these institutional investors. In total 16 funds opened new Halcon Resources Corp stakes, 44 increased stakes. There were 24 that closed positions and 48 reduced them.
Cortland Associates Inc is an institutional investor bullish on Halcon Resources Corp, owning 35000 shares as of Q3 2015 for less than 0.01% of its portfolio. Biltmore Wealth Management Llc owns 12800 shares or 0.01% of its portfolio. TX Mcdaniel Terry & Co have 0.04% of their stock portfolio for 262222 shares. Further, Vaughan David Investments Inc reported stake worth less than 0.01% of its US stock portfolio. The VA Greylin Investment Mangement Inc owns 297550 shares. Halcon Resources Corp is 0.04% of the manager’s US portfolio.
Halcon Resources Corporation is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The Company’s estimated total proved oil and natural gas reserves are approximately 146.8 million barrels of oil equivalent (MMBoe), consisting of over 120.7 million barrels of oil (MMBbls), approximately 13.0 MMBbls of natural gas liquids and over 78.4 billion cubic feet (Bcf) of natural gas. The Company’s oil and natural gas assets consist of undeveloped acreage positions in unconventional liquids-rich basins/fields. The Company has reserves in its core resource plays of approximately 143.6 MMBoe, of which over 92% are oil and natural gas liquids, and approximately 55% are proved developed. The Company has working interests in approximately 123,000 net acres prospective in the Bakken/Three Forks formations in North Dakota.
SEC Form 13D is filed within 10 days, by anyone who acquires beneficial ownership of 5%+ of any public firm. Activist investors and practices such as: company breakups, hostile takeovers, and change of control events, are permitted for this form filers. A filer must promptly update its 13D filing in case of acquisition or disposition of 1% or more of the securities that are the subject of the filing.
Insitutional Activity: The institutional sentiment increased to 3 in Q2 2016. Its up 3.00, from 0 in 2016Q1. The ratio improved, as 0 funds sold all Halcon Resources Corp shares owned while 1 reduced positions. 3 funds bought stakes while 0 increased positions. They now own 1.35 million shares or 947.18% more from 128,696 shares in 2016Q1.
Thornburg Investment Mgmt last reported 24,540 shares in the company. The Washington-based Columbia Pacific Advsrs Limited Liability Corporation has invested 0.32% in Halcon Resources Corp (NYSE:HK). Mcdaniel Terry And Company holds 52,445 shares or 0.01% of its portfolio. Texan Cap Mngmt holds 0% of its portfolio in Halcon Resources Corp (NYSE:HK) for 15,699 shares. Lmr Prtn Limited Liability Partnership has 0.01% invested in the company for 91,501 shares. D L Carlson Grp Inc last reported 10,000 shares in the company. Staley Cap Advisers accumulated 0% or 36,000 shares.
Analysts await Halcon Resources Corp (NYSE:HK) to report earnings on November, 3. They expect $0.14 EPS, down 30.00% or $0.06 from last year’s $0.2 per share. HK’s profit will be $505,714 for 17.50 P/E if the $0.14 EPS becomes a reality. After $0.26 actual EPS reported by Halcon Resources Corp for the previous quarter, Wall Street now forecasts -46.15% negative EPS growth.
About 77,915 shares traded hands. Halcon Resources Corp (NYSE:HK) has declined 53.10% since February 29, 2016 and is downtrending. It has underperformed by 65.32% the S&P500.
Halcon Resources Corporation is an independent energy firm focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The company has a market cap of $35.40 million. The Company’s estimated total proved oil and natural gas reserves are approximately 146.8 million barrels of oil equivalent , consisting of over 120.7 million barrels of oil (MMBbls), approximately 13.0 MMBbls of natural gas liquids and over 78.4 billion cubic feet (Bcf) of natural gas. It currently has negative earnings. The Company’s oil and natural gas assets consist of undeveloped acreage positions in unconventional liquids-rich basins/fields.
Halcon Resources Corp (NYSE:HK) Ratings Coverage
Out of 6 analysts covering Halcon Resources Corp (NYSE:HK), 3 rate it a “Buy”, 1 “Sell”, while 2 “Hold”. This means 50% are positive. $12 is the highest target while $1.05 is the lowest. The $4.64 average target is -52.65% below today’s ($9.8) stock price. Halcon Resources Corp has been the topic of 9 analyst reports since August 28, 2015 according to StockzIntelligence Inc. The stock of Halcon Resources Corp (NYSE:HK) earned “Buy” rating by Vetr on Tuesday, September 8. The firm has “Hold” rating given on Thursday, January 28 by Wunderlich. Vetr downgraded the stock to “Strong-Buy” rating in Friday, August 28 report. The stock of Halcon Resources Corp (NYSE:HK) earned “Sell” rating by Stifel Nicolaus on Wednesday, March 9. TH Capital maintained the shares of HK in a report on Monday, August 31 with “Buy” rating. The firm earned “Hold” rating on Tuesday, September 13 by Wunderlich. Roth Capital maintained the stock with “Buy” rating in Monday, August 31 report. The stock of Halcon Resources Corp (NYSE:HK) earned “Hold” rating by Johnson Rice on Monday, April 18. The stock of Halcon Resources Corp (NYSE:HK) earned “Strong-Buy” rating by Vetr on Monday, September 21.
More recent Halcon Resources Corp (NYSE:HK) news were published by: Bloomberg.com which released: “Halcon Resources, U.S. Oil Explorer, Files for Bankruptcy” on July 28, 2016. Also Fool.com published the news titled: “3 Reasons Halcon Resources Corp Sank 12.9% in November” on December 08, 2015. Seekingalpha.com‘s news article titled: “A Look At Halcon Resources’ Warrants” with publication date: September 29, 2016 was also an interesting one.
According to Zacks Investment Research, “Halcon Resources Corporation is an energy company engaged in the acquisition, exploration and development of onshore oil and natural gas properties in the United States. The Company operates in Wichita, Wilbarger and Starr Counties in Texas, Pontotoc and Seminole Counties, Oklahoma, and Louisiana. Halcon Resources Corporation, formerly known as RAM Energy Resources, Inc., is based in Louisiana, USA.”
HK Company Profile
Halcon Resources Corporation, incorporated on February 5, 2004, is an independent energy firm focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The Company’s estimated total proved oil and natural gas reserves are approximately 146.8 million barrels of oil equivalent (MMBoe), consisting of over 120.7 million barrels of oil (MMBbls), approximately 13.0 MMBbls of natural gas liquids and over 78.4 billion cubic feet (Bcf) of natural gas. The Company’s oil and natural gas assets consist of undeveloped acreage positions in unconventional liquids-rich basins/fields.
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