Out Fox The $treet

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. Read the full article on Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details.

Halcon Resources recently refinanced and exchanged debt to reduce leverage and interest expenses. The company no longer focuses on the TMS after making a big financing deal only a year ago. The $1 stock still faces an uphill battle to consider an investment at this point. Probably no other stock in the energy exploration and production sector of its size garnered so much attention as Halcon Resources (NYSE: HK ) . Ironically though, the company has struggled mightily despite well-respected CEO Floyd Wilson. Halcon Resources has long been a lightning rod in the investor community due to the high debt position and late entry into shale drilling. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Summary Goodrich has prime acreage close to the Gulf Coast. Recent well results from TMS provide a mixed picture. The recent stock declines make the stock very intriguing now. A growing theme in the markets is likely to develop surrounding the building demand for energy supplies around the Gulf Coast. Companies with production and infrastructure in and around the area should benefit greatly. In that manner, Goodrich Petroleum Corp (NYSE: GDP ) is ideally situated following the recent developments in the Tuscaloosa Marine Shale, or TMS, and the holding of prime acres in the Haynesville Shale and Eagle Ford Shale. All of these shale plays have the major benefit of being located close to the refineries, chemical plants, and export facilities located or being built around the Texas and Louisiana coasts. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer p...

 Back in April I argued that   Comstock Resources ( NYSE: CRK     ) was a hidden play on LNG exports from the Gulf Coast due to sizable reserves in the Haynesville shale with close proximity to the coast. The company, though, appears to have much more than natural gas resources based on the recent results of its first well in the East Eagle Ford shale.  Comstock Resources continues shifting toward oily production with added positions in the Eagle Ford and Tuscaloosa Marine Shale, or TMS. While total production isn't increasing that much due to a 30% year-over-year drop in natural gas produced during the first quarter, the higher realized prices along with more oil production dramatically improved results.  Read the full article here .  Disclosure: No positions mentioned. Please read the disclaimer page for more details.

Is it possible that after a volatile move higher in shares of Goodrich Petroleum Corp ( NYSE: GDP     ) since February that it could head even higher and potentially significantly so? The oil exploration and production company has recently announced drilling results in the Tuscaloosa Marine Shale, or TMS, that had gotten progressively better until the last well after some initially disappointing outcomes. In reality, the recent decline from $30 only has the stock back to levels barely above the highs of 2013 while the production results suggest the company could sit on some very oily acres. Comparing the recent valuation to some other players in liquids-rich areas such as  Gulfport Energy Corp ( NASDAQ: GPOR     ) and  Halcon Resources ( NYSE: HK     ) makes the stock worth a longer look. Read the full article here . Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

The recent surge in natural gas prices isn't benefiting investors in natural gas producer  Chesapeake Energy ( NYSE: CHK     ). The stock actually declined during the polar-vortex winter. Even though natural gas inventory levels have fallen below the lows of the last five years, the futures price for the fuel source used to generate electricity hasn't moved much. In essence, the market still isn't convinced that a long-term structural change has occurred in the natural gas market. Chesapeake Energy remains one of the largest natural gas producers despite a move to focus on greater oil production. The company projects approximately $5.4 billion in capital expenditures during 2014, which will be nearly completely funded via operating cash flow. Other energy producers including Halcon Resources ( NYSE: HK     ) and SandRidge Energy ( NYSE: SD     ) are encountering the same issues of capital efficiency not leading to stock gains. Read...

As Halcon Resources ( NYSE: HK     ) gets prepared to report earnings on Feb. 26, a few key points will pique investor interest. The oil exploration and production company holds plenty of promise due to the experienced management team that sold Petrohawk Energy to BHP Billiton for $12.1 billion, yet the balance sheet, loaded with $3.3 billion of debt, has constrained its growth prospects. While debt can be used to grow a company faster if it can produce more cash than the interest costs, in many cases a large debt load can reduce growth rates below maximum potential. With Halcon Resources, the growth rate has constantly been scaled back due to the divestiture of non-core assets. Unfortunately, the sell-off of assets often creates a downward spiral in production, even though the proceeds from the sales can be utilized to fund core asset growth. Read the full article here . Disclosure: No position mentioned. Please review the disclaimer page for more detail...

Last week,  Halcon Resources (NASDAQ: RAM ) announced a secondary offering of up to 43.7 million shares that caused the stock to crash. The stock traded at $6 for a few days prior to offering announcement, though typical of any “surprise” secondary, the plunge provides an opportunity to scoop up shares of a good company. The company is a growing oil exploration and production firm heavily indebted from an asset more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

As the Federal Reserve hints at tapering the bond buying program over the next year, cyclical stocks including energy exploration and production firms should become interesting buys. These stocks have underperformed the market rally over the last year as investors have piled into high yielding stocks as bond yields hit extremely low levels. Now that money should flood out of those stocks and bonds into growth stocks. The main reason more » Disclosure: No positions mentioned. Read the disclosure page for more details. 

After reporting earnings back on November 6th, Carrizo Oil & Gas, Inc (CRZO) plunged over the next week. While the company beat earnings estimates, the market was clearly disappointed with some of the reduced production estimates even if it was due to previously announced joint ventures. The company is an oil and natural gas exploration and production company focused on the shale plays: Eagle Ford, Niobrara, Marcellus, and now the Utica. One has to wonder if Carrizo isn't running into some of the investor's frustrations as with Halcon Resources (HK) and SandRidge Energy (SD) . The numerous joint ventures along with previous sales of Barnett Shale assets make the company difficult to value. With Wall Street focused specifically on quarterly production growth numbers, the constant shifting of assets leads to confusion. Read the full article at Seeking Alpha. Disclosure: Long CRZO. Please review the disclaimer page for more details. 

Ever since the old Petrohawk management team purchased Ram Energy and invested millions of dollars last December, analysts have suggested buying the new Halcon Resources Corporation (HK) . Unfortunately, unless investors bought during the first two days, anybody holding now is under water. In essence, any investors buying the stock this year have lost money. The domestic land E&P firm is building positions in leading unconventional shale plays, such as the Eagle Ford, Bakken, Utica, and the Tuscaloosa Marine. Investors now though get the option of following those insiders who made significant purchases in the $5 area last week. Oddly though, after a strong surge Tuesday on the news of the insider purchases, the stock has started sinking again. Should investors jump in with the insiders or dump the stock? Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Prior to the open on Tuesday, Heckmann (HEK) announced a merger agreement for Power Fuels owned by Badlands Energy, LLC. The deal creates a leading environmental services company focused on energy and industrial end-markets. The company is an environmental services provider dedicated to the movement, treatment and disposal of water generated by energy companies involved in the discovery and production of oil, natural gas liquids and natural gas. The stock surged nearly 40% on Tuesday as the deal creates a potential game changer for the handling of fracking fluids. The deal is also highly accretive causing investors to take notice of a stock that had been crushed this year. Read the full article at Seeking Alpha. Disclosure: Long HEK. Please review the disclaimer page for more details.