Can Magnum Hunter Resources Outperform The Energy Sector In 2015?
Value Digger • 47 Comments
Value Digger • 47 Comments
Magnum Hunter: Divesting The Bakken Is A Critical Path Item
Richard Zeits • 16 Comments
Richard Zeits • 16 Comments
Mon, May 9, 5:55 PM
- Magnum Hunter Resources (OTCPK:MHRCQ) today emerged from bankruptcy, less than five months after voluntarily filing for Chapter 11 protection.
- MHR says that while the new board searches for a permanent CEO, CFO Joseph Daches and senior VP of business development/land Rick Farrell will serve as interim co-CEOs.
- Bankruptcy lawyers say that by eliminating its entire $1B debt load, cutting costs and moving quickly, MHR has provided a template for other cash-strapped drillers, but now it must decide whether to hunker down and minimize spending and borrowing while waiting for markets to recover, or to ramp up drilling to get the company growing again, widening losses until oil and gas prices rise.
Tue, Mar. 8, 5:17 PM
- A U.S. bankruptcy judge says Sabine Oil & Gas (OTCPK:SOGCQ) can reject contracts with midstream companies it made before oil and gas prices plunged.
- But the judge says her ruling is not binding, potentially setting the stage for another legal battle over the pipeline operators' argument that the agreements cannot be broken because they are inextricably tied to the land on which Sabine operates.
- The ruling covers agreements with two companies, including an affiliate of Cheniere Energy (NYSEMKT:LNG), that gather natural gas for Sabine in specific geographic locations; Sabine has said that rejecting the contracts could save as much as $115M for the bankruptcy estate.
- Restructuring and energy experts have warned that a loss for Sabine's pipeline operators could inspire other bankrupt oil and gas producers to seek similar relief, spreading the distress that has plagued them to the midstream companies that process and transport oil and natural gas.
- Similar requests are pending in the chapter 11 cases of companies including Quicksilver Resources (OTCPK:KWKAQ) and Magnum Hunter Resources (OTCPK:MHRCQ); a Delaware judge is expected to rule on KWK's request by the end of the month.
- Pipeline stocks include: KMI, ENB, EEP, SE, SEP, WMB, ETE, ETP, OKS, PAA, PBA, MMP, CQP, BWP, BPL, WES, SXL, NS, NSH, TCP, NGL, DPM, GEL, HEP, APL, SEMG, TLLP, MMLP, TLP, SGU, BKEP
Tue, Mar. 1, 12:49 PM
- Magnum Hunter (OTCPK:MHRCQ) wins court approval to put its bankruptcy exit plan, which incorporates a recent settlement with a key creditor body, to a vote.
- The key to the plan is a pledge by many of MHR's lenders and bondholders to swap ~$1B in debt for most, if not all, of the new common stock in the restructured company; MHR sought chapter 11 protection in December after striking the deal with top creditors.
- Current shares would be canceled under the plan, leaving shareholders empty-handed.
Dec. 15, 2015, 11:22 AM
- Magnum Hunter Resources (OTCPK:MHRC -37.2%) files for Chapter 11 bankruptcy, becoming the latest U.S. energy company to face financial reckoning as credit lines run out amid plummeting crude oil prices.
- MHR will enter into a restructuring support agreement with lenders that provides for debtor-in-possession financing in the form of a $200M senior secured multi-draw term loan; it expects to emerge from bankruptcy in April 2016.
- The company lists assets of $1.5B and debts of $1.1B.
Nov. 10, 2015, 12:58 PM
- Magnum Hunter (MHR -41.8%) has remained in a trading halt since the opening half-hour of trade after warning in its latest 10-Q that a Chapter 11 bankruptcy filing "may be unavoidable."
- The NYSE now says it has commenced delisting procedures for MHR stock, saying it is no longer suitable for listing based on “abnormally low” price levels.
- "We continue to incur significant losses from continuing operations," MHR says, as oil and gas revenues in the quarter fell 55% Y/Y to $27.9M from $62.5M in the year-ago period.
- The majority owner of the Eureka Hunter pipeline, owned in part by MHR, is demanding $20.8M for past-due gas gathering fees and wants payment assurance by today; if not, it says it will suspend its gas-gathering agreement with MHR and kill the deal altogether without assurance by Nov. 20.
Oct. 9, 2015, 10:18 PM
- Magnum Hunter Resources (NYSE:MHR) says it is suspending its dividends on a range of preferred stock and hires a financial adviser to explore strategic alternatives.
- MHR says it hired PJT Partners, a financial adviser known for restructuring work, and the Kirkland & Ellis as legal adviser.
- Cash-strapped MHR operates in the Marcellus and Utica shale fields of Ohio and West Virginia.
Sep. 4, 2015, 5:27 PM
- Magnum Hunter Resources (NYSE:MHR) says it received a notice from the NYSE for non-compliance with the exchange's minimum $1 bid price rule.
- MHR says it intends to cure the price deficiency with the NYSE's continued listing standards prior to the expiration of the six-month compliance period.
Aug. 24, 2015, 12:44 PM
- Energy Transfer Equity (ETE -0.5%) is bidding for Magnum Hunter Resources' (MHR +6.9%) 46% stake in the Eureka Hunter Pipeline, a deal that could be valued at as much as $600M, Bloomberg reports.
- MHR, which announced in June its plan to sell its Eureka stake, also is said to have reached out to Crestwood Midstream Partners and Summit Midstream Partners to gauge their interest in the pipeline, which carries natural gas between Ohio and West Virginia.
- ETE also is chasing a potential deal with Williams Cos.
Aug. 11, 2015, 2:32 PM
- Magnum Hunter Resources (MHR -13.1%) discloses it has agreed to a joint venture worth up to $430M to farm out 9,500 acres of its undeveloped acreage in the Utica shale play to an unnamed P-E fund.
- MHR will receive a small cash injection, and the P-E firm will retain the rights to drill up to $400M worth of wells on that acreage; once the P-E company generates a 12% internal rate of return, the wells would be returned and any residual production would go to MHR.
- MHR has 200K acres under lease in the Marcellus and Utica shale region, but has not drilled a well since January in order to preserve capital.
Aug. 11, 2015, 9:16 AM
Aug. 7, 2015, 7:05 AM
- Magnum Hunter Resources (NYSE:MHR): Q2 EPS of -$0.23 beats by $0.14.
- Revenue of $33.42M (-60.1% Y/Y) misses by $31.56M.
Aug. 6, 2015, 5:30 PM
Jul. 15, 2015, 12:45 PM
Jul. 14, 2015, 12:45 PM
Jul. 7, 2015, 12:46 PM
Jul. 6, 2015, 11:33 AM
- Magnum Hunter Resources (MHR +1.9%) says throughput volumes on its Eureka Hunter gas gathering pipeline system located in West Virginia and Ohio have reached a new record high of more than 700K MMBtu/day.
- MHR also says it believes a sale of all its equity ownership in Eureka Hunter could generate up to $600M-$700M in gross cash proceeds.
Petro Resources is an independent exploration and production company focused on domestic lease acquisitions, exploration, and oil and gas production in Texas, Louisiana, Colorado, Utah and the Gulf of Mexico.
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Country: United States
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