Halcon cuts 2014 drilling budget

Staff report

HOUSTON

Houston-based Halcon Resources Corp. announced Monday that it is cutting its drilling and completions budget guidance for 2014 by 14 percent.

Halcon plans to spend $950 million on drilling and completions, a reduction that applies to all its active areas, according to a press release.

The company also announced a reduction to its capital spending program. It now expects to spend between $100 million and $125 million on leasehold, infrastructure and other areas, not including capitalized interest and general and administrative expenses.

“We expect to fund our entire 2014 capital budget with a combination of cash flow from operations, borrowings under our revolving credit facility and proceeds from additional noncore asset sales,” Floyd C. Wilson, Halcon chairman and CEO said in a statement.

Halcon is in the process of divesting noncore conventional assets in three separate transactions. Two of the deals have been closed, and the third is expected to close by the end of the month.

The company said the three transactions will total about $300 million in proceeds.