- Halton Resources cut capital spending levels again, marking dramatic reductions from the original 2015 levels.
- The oil producer remains in a distressed position, requiring a reverse stock split.
- The recommendation is to avoid the stock, but investors should watch oil production from the company for key indications on price stability.
The initial headline that Halcon Resources (NYSE:HK) was cutting 2016 capital spending in half yet maintaining flat production levels was very troubling. If the distressed oil producer can maintain production levels while undergoing a reverse split, the oil market is in big trouble next year.
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