Out Fox The $treet

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...

With the recent run-up in Carrizo Oil & Gas ( NASDAQ: CRZO     ), you are probably wondering if the stock has any room for future gains. Balancing long-term potential and the risk of losing 100% in gains can be a difficult task. The company is a small exploration firm focused on the production of oil in the Eagle Ford Shale, Niobrara Shale, and natural gas in the Marcellus Shale. In addition, it recently completed the first well in the Utica Shale. Read the full article here . Disclosure: Long CRZO. Please review the disclaimer page for more details.