Halcon Resources Corp., the oil and gas explorer founded by wildcatter Floyd Wilson, filed for bankruptcy as part of a restructuring agreement reached with key lenders in May.
The agreement would eliminate $1.8 billion in debt and $222 million in preferred stock, the Houston-based company said at the time. On June 10, Halcon said a majority of holders had accepted the restructuring, which will be implemented through a Chapter 11 bankruptcy.
The filing Wednesday in Delaware federal bankruptcy court listed $3.12 billion in debt and $2.85 billion in assets.
Wilson became a legend in the U.S. shale industry after selling Petrohawk Energy Corp. for $15.1 billion in 2011. In the four years since, Halcon’s debt ballooned to $2.9 billion as Wilson bought up acreage in North Dakota, Texas, Mississippi and Pennsylvania, only to see several of the company’s prospects fail to pan out and oil prices collapse.
Halcon focuses on onshore oil assets in the U.S. and averaged 41,087 barrels of oil or equivalent a day in 2015, according to past financial statements. Around 79 percent of its production was oil, 10 percent was natural gas liquids and the rest was natural gas, the company said.
In February, the company said it planned to stop running its operating rig in the El Halcon area of Texas and scale back from two to one rigs in the Fort Berthold area of North Dakota after March due to the oil price slump. Halcon said it would concentrate efforts in the highest return area, the Fort Berthold Indian Reservation, and spend 80 percent to 85 percent of its drilling budget there.
According to the restructuring support agreement announced in May, all stakeholders, including common shareholders, will get cash or new stock in a reorganized company. As of June 9, holders of 80 percent of Halcon’s third-lien notes, 57 percent of its unsecured notes, all its convertible notes and 63 percent of its preferred stock had signed on.
The case is In Re Halcon Resources Corp, 16-11724, U.S. Bankruptcy Court, District of Delaware.
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