Halcon Resources Corp. dropped to the lowest in the U.S. shale oil producer’s 11-year history as collapsing crude prices eroded cash needed to finance drilling and pay debts.
Halcon fell 5.6 percent to 90.01 cents in New York trading, the lowest closing price since the Houston-based company’s May 2004 debut. The stock was the worst performer in the Bloomberg Intelligence index of North American independent oil explorers on Thursday and has given up 87 percent of its value in the past year.
U.S. crude declined 1.5 percent to $48.45 a barrel on the New York Mercantile Exchange, the lowest intraday level since April 2. Prices sank back into a bear market, dropping more than 20 percent since June on speculation a global oversupply will linger.
Oil lost about half its value during the past year as a worldwide glut ran head-on into weakening demand in some of the world’s largest economies.