what if eagle ford produces low, page-21

"The only promblem with halcon ... is high level of debt"
And that is how money is lost in investments (right Shelcomm)

Floyd had tremendous success with Petrohawk - no argument. He is a Texas oil man thru and thru.

So Halcon jumps out of the gate with large debt load and everyone celebrating Floyd's return so the EV is juiced at the time the company was created. Those investors paid $12-$13 bucks a year ago.

Debt can be used to leverage company to fast growth. But a large debt load can also reduce growth rates below maximum potential when constant divestitures of non-core assets creates downward pressure in production. Possible even though asset sales proceeds applied to fund core asset growth.

That is happening to Halcon at present IMO and has been expressed by many.

My point in posting was it is something to pay attention to - HK specifics for El Halcon - as good result there will derisk your JV.