Mon, Mar. 2, 7:04 AM| 8 Comments
Sun, Mar. 1, 5:30 PM
Mon, Feb. 23, 2:58 PM
- Magnum Hunter Resources (MHR +4.2%) trades higher after reporting production from four new WVDNR pad wells in West Virginia after several weeks of testing; together with three previously shut-in wells, the 100%-owned WVDNR pad is averaging 35M cf/day of natural gas.
- CNBC's Jim Cramer said Friday after the close that he expects MHR CEO Gary Evans will lay out a plan of the assets he plans to sell, and foresees a $2 jump in the stock.
Mon, Feb. 23, 1:00 PM
- Shale oil producers are cutting output so quickly that U.S. crude production could fall sooner than expected, according to several CEOs who told Reuters they were taken aback by the scale and speed of the cutbacks and that the current oil price downturn is different from previous episodes in their careers.
- Just a few weeks ago, the prevailing view among industry insiders and analysts was that U.S. oil production would keep rising for several months despite falling rig numbers because of rising productivity of active wells and drilling inertia.
- Many companies have announced 25%-70% reductions in drilling and a total of at least $25B in spending cuts; Magnum Hunter (NYSE:MHR) is one that went even further, halting all drilling and telling services firms it will not resume work unless its costs fall 40%, and CEO Gary Evans predicts such cuts foreshadow falling U.S. production within the next two months.
- After years of breakneck growth, top shale companies Apache (NYSE:APA) and EOG Resources (NYSE:EOG) have said their oil and gas output this year will be flat.
- Continental Resources' (NYSE:CLR) President Jack Stark calls the precipitous decline in the number of active U.S. land rigs to roughly the level EIA had forecast would be reached in October as "probably faster than I've ever seen."
- ETFs: USO, OIL, UCO, SCO, BNO, DTO, DBO, UWTI, USL, DWTI, DNO, SZO, OLO, TWTI, OLEM
Mon, Feb. 23, 9:14 AM
Tue, Feb. 17, 2:27 PM
- Magnum Hunter Resources (MHR +3.8%) is higher after announcing a $100M capex budget for 2015, down from its $400M plan for last year, that it expects will enable it to maintain its projected 2015 average daily production volumes of 29K-33K boe/day.
- Rice Energy (RICE +1.8%) also is higher after revealing a 2015 capital budget of $890M, down from $1.1B, while projecting a 64%-72% Y/Y net production increase to 450M-470M cfe/day, an expected increase of 64%-72% over 2014 net production.
Fri, Feb. 6, 9:12 AM
Tue, Jan. 27, 12:58 PM
- Marathon Oil (MRO -1.3%), Cobalt International Energy (CIE -0.3%) and RSP Permian (RSPP +0.8%) are downgraded to Neutral from Buy at UBS, as the firm cuts its 2015 Brent/WTI crude forecasts to a respective $52.50/bbl and $49/bbl, and lowers 2016 Brent/WTI crude estimates to $67.50 and $62.50.
- UBS also is cautious on several energy names with large free cash flow deficits, slowing growth profiles and rich relative valuations: COP, DVN, MUR, UPL, RRC, DNR, MHR.
- The firm's top Buys are APC, CHK and EOG.
Fri, Jan. 23, 2:34 PM
- Magnum Hunter (MHR +17.2%) continues strong gains sparked by favorable comments this morning from CEO Gary Evans, who sought to assure investors that the company's borrowing base will not shrink as it has taken measures to improve the balance sheet.
- Evans says the company will stop spending on drilling or fracking until oilfield service costs come down, saying MHR is shooting for 40% discounts but that it will take time to reach the target.
- MHR has not yet announced its 2015 budget, but Evans guesses it may total ~$100M, down from its $400M plan for last year.
- Evans adds that he is not worried about falling oil prices because MHR has transformed itself from an oil company to a natural gas company, with 90% of its output coming from natural gas and natural gas liquids.
Fri, Jan. 23, 12:46 PM
Fri, Jan. 23, 11:34 AM
- Magnum Hunter Resources (MHR +22.7%) bounces off multiyear lows following positive comments during a conference call this morning, which included CEO Gary Evans saying the company is not seeing liquidity issues.
- Evans expects production to double this year even if 2015 capital spending totaled zero.
- MHR also discloses that it recently completed two new 100% owned Marcellus Shale wells.
Thu, Jan. 22, 2:25 PM
- Magnum Hunter Resources (MHR -11.6%) slumps to six-year lows after Stifel Nicolaus downgraded shares to Hold from Buy and removed its $4 price target, seeing few likely positive near-term catalysts and that natural gas price risk could outweigh any potentially positive operational or divestiture news.
- Stifel believes MHR must complete divestitures in 2015 to fund its late 2015 and 2016 Appalachian drilling program.
- Separately, MHR earlier reported a 25% Y/Y increase in its proved reserves to 83.3M boe as of Dec. 31, with the 10% discounted value of the reserves at the end of 2014 estimated at $909M, up 22%.
Thu, Jan. 22, 12:45 PM
Tue, Jan. 20, 3:58 PM
- Magnum Hunter Resources (MHR -15.5%) plunges to new 52-week lows as shares are downgraded to Neutral from Buy at Sun Trust Robinson Humphrey, which also lowered MHR's price target to $2.50 from $7.
- The firm believes MHR will lower 2015 capex to improve its liquidity situation as commodity prices weigh on potential Bakken sales and the Eureka Hunter Midstream IPO.
- MHR has been declining steadily during the past two months, falling 61% since Nov. 21.
Tue, Jan. 20, 12:45 PM
Tue, Jan. 20, 9:16 AM
MHR vs. ETF Alternatives
Magnum Hunter Resources Corporation is an exploration and production company. The Company is engaged in exploration, acquisition, development and production of crude oil, natural gas and NGLs resources in the United States and Canada.
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