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Magnum Hunter Resources EPS of -$0.17, misses on revenues

  • Magnum Hunter Resources (MHR): Q3 EPS of -$0.17.
  • Revenue of $73.03M (+80.2% Y/Y) misses by $9.9M. (PR)
Comments (7)
  • apppro
    , contributor
    Comments (779) | Send Message
     
    I'm showing $73 Million in revenues
    8 Nov 2013, 07:13 AM Reply Like
  • Mike Maher
    , contributor
    Comments (2481) | Send Message
     
    Noisy quarter
    8 Nov 2013, 08:29 AM Reply Like
  • jolacious
    , contributor
    Comments (89) | Send Message
     
    @Mike Maher. What do you mean by noisy quarter?. Are you disappointed with the results?
    8 Nov 2013, 12:30 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2481) | Send Message
     
    The blowout of the Farley well, the temporary production issues from MarkWest having a pipe break, its just hard to get a handle on the ccash flows when it seems theres a different one or two "one time" events every couple of months. Its the nature of the beast drilling new areas, but still rather annoying.

     

    Basically what I meant was that the headline numbers of EPS and revenue don't really tell the whole story of whats going on here. Every call Ive listened to from all of MHR's competitors in both the Utica and Bakken say the same thing: IP rates are coming up, EURs are coming up, costs are coming down, and they are looking to lease new acreage. All these things point to a strong, and profitable future for MHR, which isnt really shown by just looking at the financial numbers.

     

    I'm disappointed the Farley well blew out, since it should not have happened. Evans has said it shouldnt have happened, basically that the drilling crew didnt react in a timely manor and thats why they almost lost the well. However, what this means is that pressure in that area is much, much higher than they anticipated. Higher pressure means higher flow rates means quicker payback times. So the bad news of the well being screwed up still has silver lining in that it confirms there is a lot of pressure in the basin.

     

    Overall, I'd just like to see one or two quarters of no issues, no delays, no MarkWest processing plant shutdowns (I've actually been surprised MarkWest keeps having issues) to see where cash flows are going, and start to value this company on a cash flow basis, rather than on a sum of the parts value. I still believe this should be closer to $10 than $7 right now, and by the middle/end of next year should be closer to $20 than $10.
    8 Nov 2013, 12:42 PM Reply Like
  • i_am_seeker_2
    , contributor
    Comments (417) | Send Message
     
    Great comment, Mike. Look forward to your next article on Magnum.
    8 Nov 2013, 11:24 PM Reply Like
  • jolacious
    , contributor
    Comments (89) | Send Message
     
    @Mike Maher. I agree with you absolutely. There is always one problem or another with MHR. It would be nice to have several trouble free quarters next year.
    9 Nov 2013, 08:04 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2481) | Send Message
     
    I mean the Mobley Plant and the Oneok system being delayed clearly aren't their fault. But the well blowout is basically inexcusable. At least they didn't have to kill and abandon it
    10 Nov 2013, 02:44 AM Reply Like
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