Halcon Resources Corporation (NYSE: HK) and Breitburn Energy Partners (NASDAQ:BBEP) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Profitability

This table compares Halcon Resources Corporation and Breitburn Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Halcon Resources Corporation -65.92% 16.78% 4.27%
Breitburn Energy Partners -46.62% N/A -6.63%

Analyst Recommendations

This is a summary of current ratings and target prices for Halcon Resources Corporation and Breitburn Energy Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Halcon Resources Corporation 0 3 6 0 2.67
Breitburn Energy Partners 0 0 0 0 N/A

Halcon Resources Corporation presently has a consensus target price of $9.43, suggesting a potential upside of 37.24%. Given Halcon Resources Corporation’s higher probable upside, equities research analysts clearly believe Halcon Resources Corporation is more favorable than Breitburn Energy Partners.

Valuation and Earnings

This table compares Halcon Resources Corporation and Breitburn Energy Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Halcon Resources Corporation $488.44 million 2.02 $223.78 million ($3.77) -1.82
Breitburn Energy Partners N/A N/A N/A N/A N/A

Halcon Resources Corporation has higher revenue and earnings than Breitburn Energy Partners.

Insider & Institutional Ownership

91.6% of Halcon Resources Corporation shares are owned by institutional investors. 53.9% of Halcon Resources Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Halcon Resources Corporation beats Breitburn Energy Partners on 7 of the 8 factors compared between the two stocks.

Halcon Resources Corporation Company Profile

Halcon Resources Corporation is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The Company’s estimated total proved oil and natural gas reserves are approximately 146.8 million barrels of oil equivalent (MMBoe), consisting of over 120.7 million barrels of oil (MMBbls), approximately 13.0 MMBbls of natural gas liquids and over 78.4 billion cubic feet (Bcf) of natural gas. The Company’s oil and natural gas assets consist of undeveloped acreage positions in unconventional liquids-rich basins/fields. The Company has reserves in its core resource plays of approximately 143.6 MMBoe, of which over 92% are oil and natural gas liquids, and approximately 55% are proved developed. The Company has working interests in approximately 123,000 net acres prospective in the Bakken/Three Forks formations in North Dakota.

Breitburn Energy Partners Company Profile

Breitburn Energy Partners LP is an independent oil and gas partnership focused on the acquisition, exploitation and development of oil, natural gas liquid (NGL) and natural gas properties in the United States. The Company’s assets consist primarily of producing and non-producing oil, NGL and natural gas reserves located in approximately seven producing areas, which include Midwest (Michigan, Indiana and Kentucky); Ark-La-Tex (Arkansas, Louisiana and East Texas); Permian Basin in Texas and New Mexico; Mid-Continent (Oklahoma, Kansas and the Texas Panhandle); Rockies (Wyoming and Colorado); Southeast (Florida and Alabama), and California. Its midstream assets include transmission and gathering pipelines, gas processing plants, NGL recovery plants, a controlling interest in a salt water disposal company and the 120-mile Transpetco Pipeline. Its total estimated proved reserves are approximately 239.3 million barrels of oil equivalent (MMBoe).

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