Wunderlich Securities Reacts To Halcon Resources Cutting 2015 CapEx Again

In a report published Friday, Wunderlich Securities analyst Jason A. Wangler reiterated a Buy rating and $3.00 price target on

. In the report, Wunderlich Securities noted, “Halcon Resources (HK) last night announced that it is cutting 2015 CapEx again due to the continued fall in oil prices in order to allow services costs to decline, spend near its cash flows, and frankly hunker down in the bad times. This cut, this time basically halving CapEx, should help to ease investor fears about Halcon's sustainability in the current market, especially given the still solid expected production levels that are nearly entirely protected by hedges at significantly higher levels than current commodity prices. While these moves do not lower the debt level they certainly do help ensure it doesn't rise further and Halcon is able to maintain solid production from its core positions as it awaits a better day to exploit its properties. Our rating on HK shares remains Buy.” Halcon Resources closed on Thursday at $1.59.