Intrinsic value of Halcon Resources Corporation - HK

Previous Close

$0.17

  Intrinsic Value

$1.87

stock screener

  Rating & Target

str. buy

+999%

Previous close

$0.17

 
Intrinsic value

$1.87

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of HK stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  605
  934
  1,397
  2,028
  2,861
  3,933
  5,279
  6,931
  8,919
  11,266
  13,989
  17,103
  20,615
  24,528
  28,840
  33,548
  38,645
  44,122
  49,970
  56,181
  62,747
  69,661
  76,917
  84,512
  92,445
  100,718
  109,333
  118,296
  127,616
  137,303
Variable operating expenses, $m
  -107
  -165
  -247
  -359
  -506
  -696
  -934
  -1,227
  -1,579
  -1,994
  -2,476
  -3,027
  -3,649
  -4,341
  -5,105
  -5,938
  -6,840
  -7,810
  -8,845
  -9,944
  -11,106
  -12,330
  -13,614
  -14,959
  -16,363
  -17,827
  -19,352
  -20,938
  -22,588
  -24,303
Fixed operating expenses, $m
  -282
  -288
  -295
  -301
  -308
  -314
  -321
  -328
  -336
  -343
  -351
  -358
  -366
  -374
  -383
  -391
  -400
  -408
  -417
  -427
  -436
  -445
  -455
  -465
  -476
  -486
  -497
  -508
  -519
  -530
Total operating expenses, $m
  -389
  -453
  -542
  -660
  -814
  -1,010
  -1,255
  -1,555
  -1,915
  -2,337
  -2,827
  -3,385
  -4,015
  -4,715
  -5,488
  -6,329
  -7,240
  -8,218
  -9,262
  -10,371
  -11,542
  -12,775
  -14,069
  -15,424
  -16,839
  -18,313
  -19,849
  -21,446
  -23,107
  -24,833
Operating income, $m
  994
  1,388
  1,939
  2,688
  3,675
  4,943
  6,535
  8,487
  10,833
  13,603
  16,816
  20,489
  24,630
  29,244
  34,328
  39,877
  45,885
  52,340
  59,232
  66,552
  74,289
  82,436
  90,986
  99,936
  109,284
  119,031
  129,181
  139,742
  150,723
  162,135
EBITDA, $m
  1,171
  1,661
  2,348
  3,280
  4,511
  6,093
  8,078
  10,513
  13,441
  16,896
  20,906
  25,489
  30,657
  36,415
  42,759
  49,685
  57,183
  65,239
  73,842
  82,977
  92,634
  102,802
  113,473
  124,644
  136,311
  148,476
  161,145
  174,327
  188,032
  202,277
Interest expense (income), $m
  0
  85
  159
  267
  418
  624
  896
  1,246
  1,685
  2,224
  2,873
  3,639
  4,528
  5,544
  6,690
  7,967
  9,375
  10,912
  12,575
  14,363
  16,271
  18,299
  20,441
  22,698
  25,066
  27,545
  30,134
  32,834
  35,646
  38,572
  41,613
Earnings before tax, $m
  909
  1,229
  1,672
  2,269
  3,051
  4,048
  5,289
  6,802
  8,609
  10,730
  13,177
  15,961
  19,086
  22,553
  26,360
  30,502
  34,973
  39,765
  44,870
  50,281
  55,991
  61,995
  68,288
  74,870
  81,738
  88,896
  96,347
  104,096
  112,151
  120,522
Tax expense, $m
  245
  332
  452
  613
  824
  1,093
  1,428
  1,837
  2,324
  2,897
  3,558
  4,309
  5,153
  6,089
  7,117
  8,236
  9,443
  10,736
  12,115
  13,576
  15,118
  16,739
  18,438
  20,215
  22,069
  24,002
  26,014
  28,106
  30,281
  32,541
Net income, $m
  663
  897
  1,221
  1,657
  2,227
  2,955
  3,861
  4,965
  6,285
  7,833
  9,619
  11,652
  13,933
  16,464
  19,243
  22,267
  25,530
  29,028
  32,755
  36,705
  40,873
  45,256
  49,850
  54,655
  59,669
  64,894
  70,333
  75,990
  81,870
  87,981

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  3,341
  5,163
  7,721
  11,202
  15,805
  21,728
  29,165
  38,295
  49,277
  62,241
  77,289
  94,493
  113,896
  135,513
  159,340
  185,350
  213,508
  243,767
  276,079
  310,395
  346,670
  384,866
  424,954
  466,917
  510,747
  556,451
  604,048
  653,569
  705,060
  758,578
Adjusted assets (=assets-cash), $m
  3,341
  5,163
  7,721
  11,202
  15,805
  21,728
  29,165
  38,295
  49,277
  62,241
  77,289
  94,493
  113,896
  135,513
  159,340
  185,350
  213,508
  243,767
  276,079
  310,395
  346,670
  384,866
  424,954
  466,917
  510,747
  556,451
  604,048
  653,569
  705,060
  758,578
Revenue / Adjusted assets
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
  0.181
Average production assets, $m
  2,475
  3,825
  5,720
  8,299
  11,709
  16,097
  21,606
  28,370
  36,506
  46,110
  57,258
  70,003
  84,378
  100,393
  118,044
  137,313
  158,174
  180,591
  204,528
  229,951
  256,824
  285,121
  314,820
  345,907
  378,378
  412,237
  447,498
  484,185
  522,332
  561,979
Working capital, $m
  -102
  -158
  -236
  -343
  -483
  -665
  -892
  -1,171
  -1,507
  -1,904
  -2,364
  -2,890
  -3,484
  -4,145
  -4,874
  -5,670
  -6,531
  -7,457
  -8,445
  -9,495
  -10,604
  -11,773
  -12,999
  -14,283
  -15,623
  -17,021
  -18,477
  -19,992
  -21,567
  -23,204
Total debt, $m
  1,147
  1,921
  3,008
  4,487
  6,443
  8,961
  12,122
  16,002
  20,669
  26,179
  32,574
  39,886
  48,132
  57,320
  67,446
  78,500
  90,467
  103,328
  117,060
  131,644
  147,061
  163,295
  180,332
  198,166
  216,794
  236,218
  256,447
  277,493
  299,377
  322,122
Total liabilities, $m
  1,420
  2,194
  3,281
  4,761
  6,717
  9,234
  12,395
  16,276
  20,943
  26,452
  32,848
  40,159
  48,406
  57,593
  67,719
  78,774
  90,741
  103,601
  117,334
  131,918
  147,335
  163,568
  180,606
  198,440
  217,068
  236,492
  256,720
  277,767
  299,650
  322,396
Total equity, $m
  1,921
  2,968
  4,439
  6,441
  9,088
  12,493
  16,770
  22,020
  28,334
  35,788
  44,441
  54,333
  65,490
  77,920
  91,620
  106,576
  122,767
  140,166
  158,745
  178,477
  199,335
  221,298
  244,349
  268,477
  293,680
  319,959
  347,327
  375,802
  405,409
  436,182
Total liabilities and equity, $m
  3,341
  5,162
  7,720
  11,202
  15,805
  21,727
  29,165
  38,296
  49,277
  62,240
  77,289
  94,492
  113,896
  135,513
  159,339
  185,350
  213,508
  243,767
  276,079
  310,395
  346,670
  384,866
  424,955
  466,917
  510,748
  556,451
  604,047
  653,569
  705,059
  758,578
Debt-to-equity ratio
  0.600
  0.650
  0.680
  0.700
  0.710
  0.720
  0.720
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
Adjusted equity ratio
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575
  0.575

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  663
  897
  1,221
  1,657
  2,227
  2,955
  3,861
  4,965
  6,285
  7,833
  9,619
  11,652
  13,933
  16,464
  19,243
  22,267
  25,530
  29,028
  32,755
  36,705
  40,873
  45,256
  49,850
  54,655
  59,669
  64,894
  70,333
  75,990
  81,870
  87,981
Depreciation, amort., depletion, $m
  177
  273
  409
  593
  836
  1,150
  1,543
  2,026
  2,608
  3,294
  4,090
  5,000
  6,027
  7,171
  8,432
  9,808
  11,298
  12,899
  14,609
  16,425
  18,345
  20,366
  22,487
  24,708
  27,027
  29,446
  31,964
  34,585
  37,309
  40,141
Funds from operations, $m
  840
  1,170
  1,629
  2,250
  3,064
  4,105
  5,404
  6,992
  8,892
  11,126
  13,709
  16,652
  19,960
  23,635
  27,675
  32,075
  36,828
  41,928
  47,364
  53,130
  59,218
  65,622
  72,338
  79,363
  86,696
  94,340
  102,297
  110,575
  119,180
  128,122
Change in working capital, $m
  -38
  -56
  -78
  -106
  -141
  -181
  -227
  -279
  -336
  -397
  -460
  -526
  -594
  -661
  -729
  -796
  -861
  -926
  -988
  -1,050
  -1,110
  -1,168
  -1,226
  -1,284
  -1,341
  -1,398
  -1,456
  -1,515
  -1,575
  -1,637
Cash from operations, $m
  878
  1,226
  1,708
  2,356
  3,204
  4,286
  5,632
  7,271
  9,228
  11,523
  14,169
  17,178
  20,553
  24,296
  28,404
  32,871
  37,690
  42,853
  48,353
  54,180
  60,327
  66,790
  73,564
  80,646
  88,037
  95,738
  103,753
  112,089
  120,755
  129,759
Maintenance CAPEX, $m
  -111
  -177
  -273
  -409
  -593
  -836
  -1,150
  -1,543
  -2,026
  -2,608
  -3,294
  -4,090
  -5,000
  -6,027
  -7,171
  -8,432
  -9,808
  -11,298
  -12,899
  -14,609
  -16,425
  -18,345
  -20,366
  -22,487
  -24,708
  -27,027
  -29,446
  -31,964
  -34,585
  -37,309
New CAPEX, $m
  -928
  -1,349
  -1,895
  -2,579
  -3,410
  -4,388
  -5,510
  -6,764
  -8,135
  -9,604
  -11,148
  -12,745
  -14,374
  -16,015
  -17,651
  -19,270
  -20,860
  -22,417
  -23,938
  -25,422
  -26,874
  -28,297
  -29,699
  -31,087
  -32,471
  -33,859
  -35,261
  -36,687
  -38,146
  -39,648
Cash from investing activities, $m
  -1,039
  -1,526
  -2,168
  -2,988
  -4,003
  -5,224
  -6,660
  -8,307
  -10,161
  -12,212
  -14,442
  -16,835
  -19,374
  -22,042
  -24,822
  -27,702
  -30,668
  -33,715
  -36,837
  -40,031
  -43,299
  -46,642
  -50,065
  -53,574
  -57,179
  -60,886
  -64,707
  -68,651
  -72,731
  -76,957
Free cash flow, $m
  -160
  -300
  -461
  -632
  -798
  -939
  -1,028
  -1,036
  -934
  -689
  -272
  343
  1,179
  2,254
  3,581
  5,169
  7,022
  9,138
  11,516
  14,148
  17,029
  20,149
  23,499
  27,072
  30,858
  34,852
  39,047
  43,438
  48,024
  52,802
Issuance/(repayment) of debt, $m
  534
  774
  1,087
  1,480
  1,956
  2,517
  3,161
  3,880
  4,667
  5,510
  6,395
  7,312
  8,246
  9,188
  10,126
  11,055
  11,967
  12,860
  13,733
  14,584
  15,417
  16,233
  17,038
  17,834
  18,628
  19,424
  20,229
  21,047
  21,884
  22,745
Issuance/(repurchase) of shares, $m
  61
  150
  250
  345
  419
  451
  415
  285
  30
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  595
  924
  1,337
  1,825
  2,375
  2,968
  3,576
  4,165
  4,697
  5,510
  6,395
  7,312
  8,246
  9,188
  10,126
  11,055
  11,967
  12,860
  13,733
  14,584
  15,417
  16,233
  17,038
  17,834
  18,628
  19,424
  20,229
  21,047
  21,884
  22,745
Total cash flow (excl. dividends), $m
  434
  624
  877
  1,193
  1,577
  2,030
  2,549
  3,129
  3,763
  4,821
  6,123
  7,655
  9,425
  11,442
  13,708
  16,224
  18,989
  21,998
  25,248
  28,732
  32,446
  36,382
  40,537
  44,906
  49,486
  54,276
  59,275
  64,485
  69,908
  75,547
Retained Cash Flow (-), $m
  -724
  -1,047
  -1,471
  -2,002
  -2,646
  -3,406
  -4,276
  -5,250
  -6,314
  -7,454
  -8,653
  -9,892
  -11,157
  -12,430
  -13,700
  -14,956
  -16,191
  -17,399
  -18,579
  -19,732
  -20,858
  -21,963
  -23,051
  -24,129
  -25,202
  -26,280
  -27,368
  -28,475
  -29,607
  -30,773
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -290
  -423
  -594
  -809
  -1,069
  -1,376
  -1,728
  -2,121
  -2,551
  -2,633
  -2,529
  -2,238
  -1,732
  -989
  7
  1,268
  2,798
  4,599
  6,669
  9,001
  11,588
  14,419
  17,486
  20,777
  24,284
  27,996
  31,907
  36,010
  40,300
  44,774
Discount rate, %
  6.30
  6.62
  6.95
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.78
  11.31
  11.88
  12.47
  13.10
  13.75
  14.44
  15.16
  15.92
  16.72
  17.55
  18.43
  19.35
  20.32
  21.33
  22.40
  23.52
  24.70
  25.93
PV of cash for distribution, $m
  -273
  -372
  -486
  -610
  -739
  -865
  -980
  -1,075
  -1,145
  -1,036
  -864
  -655
  -430
  -205
  1
  177
  313
  406
  456
  469
  451
  411
  357
  298
  238
  183
  136
  97
  67
  44
Current shareholders' claim on cash, %
  93.2
  83.9
  74.9
  67.4
  61.6
  57.6
  54.9
  53.6
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5
  53.5

Halcón Resources Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas properties in the United States. The company primarily holds interests the Bakken/Three Forks Formations comprising approximately 123,000 net acres of area in North Dakota; and East Texas Eagle Ford Formations covering approximately 92,000 acres of area in Brazos, Burleson, and Robertson counties. As of December 31, 2014, it had estimated proved reserves of approximately 146.8 million barrels of oil equivalent comprising 120.7 million barrels of crude oil, 13.0 million barrels of natural gas liquids, and 78.4 billion cubic feet of natural gas. The company was formerly known as RAM Energy Resources, Inc. and changed its name to Halcón Resources Corporation in February 2012. Halcón Resources Corporation was founded in 1987 and is headquartered in Houston, Texas.

FINANCIAL RATIOS  of  Halcon Resources Corporation (HK)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 0%
Ret/ On Assets - 3 Yr. Avg. 0%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0%
Return On Equity 0%
Return On Equity - 3 Yr. Avg. 0%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

HK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the HK stock intrinsic value calculation we used $378 million for the last fiscal year's total revenue generated by Halcon Resources Corporation. The default revenue input number comes from 0001 income statement of Halcon Resources Corporation. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our HK stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6.3%, whose default value for HK is calculated based on our internal credit rating of Halcon Resources Corporation, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Halcon Resources Corporation.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of HK stock the variable cost ratio is equal to -17.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $-276 million in the base year in the intrinsic value calculation for HK stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 13.9% for Halcon Resources Corporation.

Corporate tax rate of 27% is the nominal tax rate for Halcon Resources Corporation. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the HK stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for HK are equal to 409.3%.

Life of production assets of 14 years is the average useful life of capital assets used in Halcon Resources Corporation operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for HK is equal to -16.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1197.044 million for Halcon Resources Corporation - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 160.261 million for Halcon Resources Corporation is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Halcon Resources Corporation at the current share price and the inputted number of shares is $0.0 billion.

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