[Update : 07-23-19 Halcon shares delisted by NYSE due to ‘abnormally low’ trading price]
Quentin Hicks, the CFO at Halcon Resources, has told the company that he is resigning. He will depart the company at a future date to be agreed between Mr Hicks and the company.
Halcon is based in downtown Houston and is engaged in exploration and production in the Delaware Basin. It has been struggling to avoid bankruptcy again. Its share price is currently $0.21. The company has a market cap of $33 million but has debt of $725 million.
Halcon originally filed for a pre-packaged bankruptcy agreement in 2016 where creditors wrote off $1.8 billion in debt in return for 96% of the common stock post-reorganization.
Mr Hicks became CFO on February 21, following the mass departure of CEO Floyd Wilson, CFO Mark Mize and VP Corporate Development Stephen Herod. He had joined the company in August 2012 as Director of Financial Planning.
CEO Wilson stepped down two weeks after activist shareholder, Fir Tree Capital Management, criticized Mr Wilson’s excessive compensation and use of a private jet for business travel ($0.9 million in 2018). Mr Wilson has since gone on to form a new E&P company, Falconer Oil & Gas.
After their departures, Mr Wilson received a cash severance payment of $4.8 million. Mr Mize $2 million while Mr Herod got $2.25 million. The sale of substantially all of the company’s assets during 2017 was treated as a change in control under their employment contracts.
Last month, the company hired Richard Little as its new CEO. He was previously the CEO of Ajax Resources before that company was acquired by Diamondback Energy in October 2018.