Exhibit 10.1

Execution Version

SECOND AMENDMENT

TO

SENIOR REVOLVING CREDIT AGREEMENT

DATED AS OF JANUARY 25, 2013

AMONG

HALCÓN RESOURCES CORPORATION,

AS BORROWER,

THE GUARANTORS,

JPMORGAN CHASE BANK, N.A.,

AS ADMINISTRATIVE AGENT,

WELLS FARGO BANK, N.A.

AS SYNDICATION AGENT,

BANK OF MONTREAL,

AS DOCUMENTATION AGENT,

AND

THE LENDERS PARTY HERETO

SOLE LEAD ARRANGER

J. P. MORGAN SECURITIES LLC

JOINT BOOKRUNNERS

J. P. MORGAN SECURITIES LLC AND WELLS FARGO SECURITIES, LLC

 

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SECOND AMENDMENT

TO SENIOR REVOLVING CREDIT AGREEMENT

THIS SECOND AMENDMENT TO SENIOR REVOLVING CREDIT AGREEMENT (this “Second
Amendment”) dated as of January 25, 2013 is among HALCÓN RESOURCES CORPORATION,
a corporation duly formed and existing under the laws of the State of Delaware
(the “Borrower”), each of the undersigned guarantors (the “Guarantors”, and
together with the Borrower, the “Obligors”), each of the lenders party to the
Credit Agreement referred to below (collectively, the “Lenders”), JPMORGAN CHASE
BANK, N.A., as administrative agent for the Lenders (in such capacity, together
with its successors in such capacity, the “Administrative Agent”), Wells Fargo
Bank, N.A., as syndication agent for the Lenders and Bank of Montreal, as
documentation agent for the Lenders.

R E C I T A L S

A. The Borrower, the Administrative Agent, the Lenders and the other Agents
party thereto, are parties to that certain Senior Revolving Credit Agreement
dated as of February 8, 2012 as amended by the First Amendment dated July 31,
2012 (as amended, restated, modified or supplemented, the “Credit Agreement”),
pursuant to which the Lenders have made certain credit and other financial
accommodations available to and on behalf of the Borrower and its Subsidiaries.

B. The Borrower has requested and the Administrative Agent and the Majority
Lenders have agreed to amend certain provisions of the Credit Agreement.

C. NOW, THEREFORE, to induce the Administrative Agent and the Lenders to enter
into this Second Amendment and in consideration of the premises and the mutual
covenants herein contained, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

Section 1. Defined Terms. Each capitalized term used herein but not otherwise
defined herein has the meaning given such term in the Credit Agreement, as
amended by this Second Amendment. Unless otherwise indicated, all section
references in this Second Amendment refer to sections of the Credit Agreement.

Section 2. Amendments to Credit Agreement.

2.1 Amendments to Section 1.02. Section 1.02 is hereby amended by:

(a) Deleting the definitions of “Agreement” in its entirety and replacing each
with the following:

“Agreement” means this Senior Revolving Credit Agreement, as amended by the
First Amendment dated July 31, 2012 and the Second Amendment dated January 25,
2013, as the same may be amended or supplemented from time to time.

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(b) Adding the following defined terms in the appropriate alphabetical order:

“Projected Production” means, as of any date of determination, the internally
forecasted production of each of crude oil, natural gas liquids and natural gas,
calculated on a barrel of oil equivalent basis, of the Borrower and its
Restricted Subsidiaries, or in the case of a Proposed Acquisition, from the Oil
and Gas Properties subject of such Proposed Acquisition, for each month for the
period of the next 24 months commencing on the first day of the calendar month
immediately following such date of determination.

“Proposed Acquisition” has the meaning assigned such term in Section 9.19(c).

(c) Deleting the defined term “Current Production”.

2.2 Amendments to Section 9.19. Section 9.19 is hereby amended by deleting such
Section in its entirety and replacing it with the following:

“Section 9.19 Swap Agreements. The Borrower will not, and will not permit any
Restricted Subsidiary to, enter into any Swap Agreements with any Person other
than:

(a) Swap Agreements in respect of commodities (i) with an Approved Counterparty
and (ii) the notional volumes for which (when aggregated with other commodity
Swap Agreements then in effect, other than puts, floors and basis differential
swaps on volumes already hedged pursuant to other Swap Agreements) do not
exceed, as of the date such Swap Agreement is executed, (A) 85% of the Projected
Production for each month during the period during which such Swap Agreement is
in effect for crude oil, natural gas liquids and natural gas, for the period of
24 months following the date such Swap Agreement is executed and (B) 85% of the
reasonably anticipated Hydrocarbon production from the total Proved Reserves of
the Borrower and its Restricted Subsidiaries (as forecast based upon the most
recently delivered Reserve Report), each month during the period during which
such Swap Agreement is in effect for crude oil, natural gas liquids and natural
gas, calculated on a barrel of oil equivalent basis, for the period of 25 to 66
months following the date such Swap Agreement is executed.

(b) Swap Agreements in respect of interest rates with an Approved Counterparty,
as follows: (i) Swap Agreements effectively converting interest rates from fixed
to floating, the notional amounts of which (when aggregated and netted with all
other Swap Agreements of the Borrower and its Restricted Subsidiaries then in
effect effectively converting interest rates from fixed to floating) do not
exceed 50% of the then outstanding principal amount of the Borrower’s Debt for
borrowed money which bears interest at a fixed rate and (ii) Swap Agreements

 

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effectively converting interest rates from floating to fixed, the notional
amounts of which (when aggregated and netted with all other Swap Agreements of
the Borrower and its Restricted Subsidiaries then in effect effectively
converting interest rates from floating to fixed) do not exceed 75% of the then
outstanding principal amount of the Borrower’s Debt for borrowed money which
bears interest at a floating rate. In no event shall any Swap Agreement contain
any requirement, agreement or covenant for the Borrower or any Restricted
Subsidiary to post collateral or margin to secure their obligations under such
Swap Agreement or to cover market exposures except to the extent permitted by
Section 9.03(d).

(c) In addition to Swap Agreements under Section 9.19(a) and without further
limitation, in connection with a proposed acquisition of Oil and Gas Properties
or Equity Interests of a Person owning Oil and Gas Properties (a “Proposed
Acquisition”), the Borrower or any Restricted Subsidiary may also enter into
incremental Swap Agreements with respect to the reasonably anticipated projected
production from the Oil and Gas Properties subject of the Proposed Acquisition
so long as (i) the Borrower or a Restricted Subsidiary has signed a definitive
acquisition agreement in connection with a Proposed Acquisition and (ii) the
aggregate notional volumes associated with such incremental Swap Agreements do
not exceed (A) 85% of the Projected Production associated with the Oil and Gas
Properties subject of such Proposed Acquisition for each month during the period
during which each such Swap Agreement is in effect, for each of crude oil,
natural gas liquids and natural gas, calculated on a barrel of oil equivalent
basis, for the period of 24 months following the date such incremental Swap
Agreement is executed and (B) 85% of the reasonably anticipated Hydrocarbon
production from the total Proved Reserves associated with the Oil and Gas
Properties subject of such Proposed Acquisition (as forecast based upon the
reserve report for the Oil and Gas Properties subject of such Proposed
Acquisition which has been delivered to the Lenders) for each month during the
period during which each such Swap Agreement is in effect, for each of crude
oil, natural gas liquids and natural gas, calculated on a barrel of oil
equivalent basis, for the period of 25 to 48 months following the date such
incremental Swap Agreement is executed. The Borrower may permit such incremental
Swap Agreements to remain in place so long as none of the following has
occurred: (1) undrawn availability during the period prior to the completion or
termination of such acquisition has been reduced to less than 10% of the then
effective Borrowing Base, (2) the thirtieth (30th) day after such acquisition
has terminated has passed or (3) the 120th day after such definitive acquisition
agreement was executed has passed and the acquisition has not been consummated.
If such incremental Swap Agreements are not permitted to remain in place
pursuant to the preceding sentence, the Borrower shall promptly terminate or
unwind such Swap Agreements.

 

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Section 3. Conditions Precedent. The provisions of this Second Amendment shall
become effective on the date when each of the following conditions is satisfied
(or waived in accordance with Section 12.02 of the Credit Agreement) (such date,
the “Second Amendment Effective Date”):

3.1 The Administrative Agent shall have received a counterpart of this Second
Amendment signed by the Borrower, the Guarantors and the Lenders constituting
the Majority Lenders.

3.2 The Administrative Agent shall have received (a) all fees and other amounts
due and payable on or prior to the Second Amendment Effective Date and (b) to
the extent invoiced, reimbursement or payment of all out-of-pocket expenses
required to be reimbursed or paid by the Borrower under the Credit Agreement.

3.3 No Default or Event of Default shall have occurred and be continuing as of
the date hereof, after giving effect to the terms of this Second Amendment.

The Administrative Agent is hereby authorized and directed to declare this
Second Amendment to be effective when it has received documents confirming or
certifying, to the satisfaction of the Administrative Agent, compliance with the
conditions set forth in this Section 3 or the waiver of such conditions as
permitted in Section 12.02 of the Credit Agreement. Such declaration shall be
final, conclusive and binding upon all parties to the Credit Agreement for all
purposes.

Section 4. Miscellaneous.

4.1 Confirmation. The provisions of the Credit Agreement, as amended by this
Second Amendment, shall remain in full force and effect following the
effectiveness of this Second Amendment.

4.2 Ratification and Affirmation; Representations and Warranties. Each Obligor
hereby (a) acknowledges the terms of this Second Amendment; (b) ratifies and
affirms its obligations under, and acknowledges, renews and extends its
continued liability under, each Loan Document to which it is a party and agrees
that each Loan Document to which it is a party remains in full force and effect,
except as expressly amended hereby, and (c) represents and warrants to the
Lenders that as of the date hereof, after giving effect to the terms of this
Second Amendment: (i) all of the representations and warranties contained in
each Loan Document to which it is a party are true and correct in all material
respects (except those which have a materiality qualifier, which shall be true
and correct as so qualified), except to the extent any such representations and
warranties are expressly limited to an earlier date, in which case, such
representations and warranties shall continue to be true and correct as of such
specified earlier date; (ii) no Default or Event of Default has occurred and is
continuing and (iii) no event or events have occurred which individually or in
the aggregate could reasonably be expected to have a Material Adverse Effect.

4.3 Loan Document. This Second Amendment is a Loan Document.

 

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4.4 Counterparts. This Second Amendment may be executed by one or more of the
parties hereto in any number of separate counterparts, and all of such
counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of this Second Amendment by facsimile or electronic
transmission in portable document format (.pdf) shall be effective as delivery
of a manually executed counterpart hereof.

4.5 NO ORAL AGREEMENT. THIS SECOND AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER
LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO ORAL
AGREEMENTS BETWEEN THE PARTIES.

4.6 GOVERNING LAW. THIS SECOND AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

4.7 Payment of Expenses. In accordance with Section 12.03, the Borrower agrees
to pay or reimburse the Administrative Agent for all of its reasonable out-of-
pocket costs and reasonable expenses incurred in connection with this Second
Amendment, any other documents prepared in connection herewith and the
transactions contemplated hereby, including, without limitation, the reasonable
fees and disbursements of counsel to the Administrative Agent

4.8 Severability. Any provision of this Second Amendment which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

4.9 Successors and Assigns. This Second Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.

[SIGNATURES BEGIN NEXT PAGE]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be
duly executed as of the date first written above.

 

BORROWER:   HALCÓN RESOURCES CORPORATION   By:  

/s/ Mark J. Mize

    Name:   Mark J. Mize     Title:   Executive Vice President, Chief Financial
Officer and Treasurer GUARANTORS:   HALCÓN HOLDINGS, INC.   HALCÓN RESOURCES
OPERATING, INC.   HALCÓN ENERGY PROPERTIES, INC.   HLP GULF STATES, LLC   GREAT
PLAINS PIPELINE COMPANY   HALCÓN OPERATING CO., INC.   HRC ENERGY RESOURCES
(WV), INC.   HRC ENERGY HOLDINGS (LA), INC.  

HRC ENERGY LOUISIANA, LLC

HALCON GEO HOLDINGS, LLC

  PONTOTOC PRODUCTION COMPANY, INC.   HRC ENERGY RESOURCES (LAFOURCHE), INC.  
HALCÓN FIELD SERVICES, LLC  

HALCÓN LOUISIANA OPERATING, L.P.

G3 ENERGY, LLC

G3 OPERATING, LLC

WESTERN STAR DRILLING COMPANY

SOUTHERN BAY ENERGY, LLC

SOUTHERN BAY OPERATING, L.L.C.

SOUTHERN BAY LOUISIANA, L.L.C.

CATENA OIL & GAS, LLC

AROC (TEXAS), INC.

HALCON WILLISTON I, LLC

HALCON WILLISTON II, LLC

  By:  

/s/ Mark J. Mize

    Name:   Mark J. Mize     Title:   Executive Vice President, Chief Financial
Officer and Treasurer, for and on behalf of each of the foregoing Guarantors

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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ADMINISTRATIVE AGENT

AND LENDER:

  

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent and Lender

   By:   

/s/ Ronald Dierker

      Name:   Ronald Dierker       Title:   Managing Director

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:   

WELLS FARGO BANK, N.A.,

as Lender

   By:   

/s/ Todd C. Fogle

      Name:   Todd C. Fogle       Title:   Vice President

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:   

BMO HARRIS FINANCING, INC.,

as Lender

   By:   

/s/ James V. Ducote

      Name:   James V. Ducote       Title:   Director

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:   

BARCLAYS BANK PLC,

as Lender

   By:   

/s/ Sreedhar R. Kona

      Name:   Sreedhar R. Kona       Title:   Assistant Vice President

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:   

SUNTRUST BANK,

as Lender

   By:   

/s/ Yann Pirio

      Name:   Yann Pirio       Title:   Director

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:  

CAPITAL ONE, N.A.,

as Lender

  By:   

/s/ Matthew Molero

     Name: Matthew Molero      Title: Vice President

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:  

GOLDMAN SACHS BANK USA,

as Lender

  By:   

/s/ Michelle Latzoni

     Name: Michelle Latzoni      Title: Authorized Signatory

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:  

ROYAL BANK OF CANADA,

as Lender

  By:   

/s/ Jay T. Sartain

     Name: Jay T. Sartain      Title: Authorized Signatory

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:  

BANK OF AMERICA, N.A.,

as Lender

  By:   

/s/ Adam H. Fey

     Name: Adam H. Fey      Title: Director

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:  

THE ROYAL BANK OF SCOTLAND PLC,

as Lender

  By:   

/s/ Sanjay Remond

     Name: Sanjay Remond      Title: Director

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:  

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK,

as Lender

  By:   

/s/ Ting Lee

     Name: Ting Lee      Title: Director   By:   

/s/ Sharada Manne

     Name: Sharada Manne      Title: Managing Director

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:    

NATIXIS,

as Lender

    By:   /s/ Louis P. Laville       Name: Louis P. Laville       Title:
Managing Director     By:   /s/ Timothy L. Polvado       Name: Timothy L.
Polvado       Title: Senior Managing Director

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:    

ING CAPITAL LLC,

as Lender

    By:   /s/ Charles Hall       Name: Charles Hall       Title: Managing
Director

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:    

COMERICA BANK,

as Lender

    By:   /s/ Justin Crawford       Name: Justin Crawford       Title: Senior
Vice President

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:    

DEUTSCHE BANK TRUST COMPANY OF AMERICAS,

as Lender

    By:   /s/ Kevin Chichester       Name: Kevin Chichester       Title:
Director     By:   /s/ Eric Pratt       Name: Eric Pratt       Title: Director

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:    

AMEGY BANK N.A.,

as Lender

    By:   /s/ Charles Patterson       Name: Charles Patterson       Title:
Senior Vice President

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:  

THE BANK OF NOVA SCOTIA,

as Lender

  By:   /s/ Terry Donovan    

Name: Terry Donovan

Title: Managing Director

 

[SIGNATURE PAGE – 2ND AMENDMENT]

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LENDER:    

KEYBANK NATIONAL ASSOCIATION

as Lender

    By:   /s/ Chulley Bogle       Name: Chulley Bogle       Title: Vice
President

 

[SIGNATURE PAGE – 2ND AMENDMENT]