Halcon Resources Announces Big Cut to Capital Budget for 2015

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From The Motley Fool:
Halcon Resources (NYSE: HK ) is the latest shale driller to slash its capital budget by roughly 50% for 2015. The company announced this week it would reduce capital expenditures from an earlier forecast of $750 million-$800 million to $375 million-$425 million. Management is making the move to preserve liquidity as concerns grow that Halcon could be among the many overlevered oil companies to default on its bonds if the price of petroleum remains at, or below, current levels. 
A look at Halcon Resources' 2015 plan 
Halcon Resources' updated 2015 capital plan calls for the company to operate only two rigs in North Dakota's Bakken shale and just one in its El Halcon play in Texas. Those rigs should produce an average of 40,000 to 45,000 barrels of oil equivalent per day, or BOE/d, in 2015. That would keep production roughly flat from the 40,000 to 42,000 BOE/d the company expects as its 2014 exit rate. Overall, that would be a major reduction from the 15%-20% production growth the company projected for 2015 under its previous budget estimate. 
Before oil prices began to fall, Halcon had planned to operate 11 rigs in 2015. However, the company whittled down the 2015 spending plan as oil plunged, with its November guidance anticipating Halcon would run six rigs for the full year. Even that lower rig count has now been sliced in half.
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