NEW YORK (TheStreet) -- Shares of Halcon Resources Corp. (HK) are down by 7.31% to $1.21 in mid-morning trading on Thursday, as some energy and related stocks take a hit due to the slump in the price of oil.
The commodity is being driven lower ahead of Friday's Organization of the Petroleum Exporting Countries meeting and investors are expecting that OPEC will decide to maintain its current production levels despite concerns over a global supply glut, Reuters reports.
Crude oil (WTI) is slipping by 2.28% to $58.28 per barrel and Brent crude is retreating by 2.29% to $62.34 per barrel this morning, according to the CNBC.com index.
"Although surprises from OPEC can never be ruled out, prospects for a policy reversal at this time range from slim to non-existent. Saudi Arabia and its Gulf allies, which last November instigated the policy of defending market share instead of prices, appear resolved to persist with it," Bhushan Bahree, senior director at IHS Energy, told Reuters.
Halcon Resources is a Houston, TX.-based independent energy company that is focused on acquiring, producing, exploring for and developing onshore liquids-rich oil and natural gas assets in the U.S.
Separately, TheStreet Ratings team rates HALCON RESOURCES CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate HALCON RESOURCES CORP (HK) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."