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Halcon’s Wilson Shares Next Big Energy Move

Monday, 13 Feb 2012 | 2:18 PM ET

Energy rainmaker Floyd Wilson said Monday that he’s looking to grow Halcon Resources enough for an exit strategy within the next few years.

“We have an aggressive plan in mind, so it’s hard to put down an exact time frame but two, three, four years wouldn’t be a big surprise to me,” the CEO said in an exclusive “Fast Money” interview.

Halcon CEO's Next Big Energy Play
Discussing his future energy deals and an outlook on natural gas, with Floyd Wilson, Halcon Resources chairman, president/CEO.

If his track record is any indication, Wilson stands a good chance of hitting his target. Highlights of Wilson’s business ventures include:

  • Sold Hugoton Energy to Chesapeake Energy for $380 million in 1998
  • Sold 3TEC Energy to Plains Exploration & Production for $443 million in 2003
  • Created Petrohawk Energy in 2003 with $60 million
  • Sold Petrohawk to BHP Billiton for $12.1 billion in July 2011

Wilson’s outlook on crude oil was that the United States would continue to be an importer and could possibly become an exporter of natural gas.

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“Some of our success is going to keep weight on the natural gas prices,” he said.

In the fracking space, Wilson said prices needed to be north of $3 for it to be profitable, but he saw nat gas more as a supply-demand equation.

“You’re going to have to get supply and demand closer. Right now, the supply is far in excess of the demand, and that’s the reason for the lowest price,” he said.

Looking forward, Wilson said he was optimistic on exploration in Ohio, Pennsylvania, Texas and Louisiana.

“I would say the liquids-rich plays, the ones that are emerging, they’re all quite interesting to us,” he said. “We’re not finding a shortage of things to look at, nor a shortage of things where we think technology will be appropriate.”

Asked about what presidential candidate he would support, Wilson demurred.

“Politics doesn’t really seem to be any great friend to the oil and gas sector here in the U.S. very often,” he said. “We deal with it, and we’ll continue to deal with it. It’s OK.”

Trader Stephen Weiss, who owns Halcon stock and previously invested in Wilson’s companies, said he liked this play, too.

“I think this is a great way for the individual investor to invest in private equity, so to speak, because that’s what he is,” he said. “He’s a private equity company trading in the public markets. You can buy it, put it away and bet on him because he’s going to get you where you need to go.”

Steve Grasso of Stuart Frankel also liked the stock.

“I wouldn’t bet against him,” he said. “I’d be a buyer as well.”

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Trader disclosure: On Feb. 13, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian is long AAPL; Najarian is long GS; Najarian is long GOOG; Najarian is long HD; Najarian is long TEX; Najarian is long CME; Grasso is long NUAN; Grasso is long S; Grasso is long XLU; Weiss is long HK; Weiss is long EUO; Weiss is long WLP; Weiss is long UGL; Weiss is long BKU; Weiss is short MT; Weiss is short BTU; Weiss is short AAPL puts; Weiss is short AMZN puts;

For Steve Grasso
Stuart Frankel & Co and it’s partners own CSCO

Stuart Frankel & Co and it’s partners own HPQ

Stuart Frankel & Co and it’s partners own MU

Stuart Frankel & Co and it’s partners own P

Stuart Frankel & Co and it’s partners own ZNG

For Brian Kelly
Kelly is long SPY puts

For Colin Gillis
(AAPL) Investment banking (next 3 months): BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report.

Lead or Co-manager: BGC Financial LP and/or its affiliates, has not acted as lead or co-manager in a public offering of equity and/or debt securities for Apple within the last 12 months. BGC Financial LP and/or its affiliates has not received compensation for investment banking services in the last 12 months from Apple.

For Floyd Wilson
No disclosures

For Craig Berger
FBR has received compensation for non-investment banking securities related services from this issuer as a client in the past 12 months: MRVL

As a client of FBR, the issuer receives non-investment banking, securities related services: MRVL.

FBR acts as a market maker or liquidity provider for the company's securities: NVDA, AMD, ATML, BRCM, FCS, INTC, IRF, LLTC, LSI, MRVL, MSCC, MXIM, ONNN, QCOM and SLAB.

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