Current State of Magnum Hunter

Starting this thread to post info related to Magnum Hunter and its various business components.  First post is Triad Hunter opening office in Marietta, Ohio.  Definately Magnum Hunter is spending in Monroe, Noble and Washington counties in Ohio as well as Tyler and other WV counties.

http://www.mariettatimes.com/page/content.detail/id/549789/Triad-op...

 

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Permalink Reply by searcherone on May 6, 2014 at 2:31pm

Check this out, Gary Evans has oil and gas ties to Australia, don't forget to read the follow up comments.

http://www.investorvillage.com/mbThread.asp?mb=9810&showall=1&a...

Permalink Reply by searcherone on May 9, 2014 at 11:53am

Here is press release from MH on their first quarter of 2014 earnings.

http://seekingalpha.com/pr/9864433-magnum-hunter-resources-reports-...

Here is the earnings call transcript from MH.  I haven't read it yet, so no comments from me.

http://seekingalpha.com/article/2207843-magnum-hunter-resources-mhr...

Permalink Reply by searcherone on May 29, 2014 at 1:04am

Magnum Hunter getting a 150 million dollar infusion of capital by selling stock to Relational Investments.

Will use money to fund drilling in Utica and Marcellus.

http://www.businessweek.com/news/2014-05-28/relational-to-amass-mag...

Permalink Reply by searcherone on June 4, 2014 at 1:25am

Interesting article on MHR recent infusion of capital from Relational.   Contains comments from several analysts, essentially saying MHR has the acreage, but not the capital.

http://powersource.post-gazette.com/powersource/companies-powersour...

Permalink Reply by J.D on June 4, 2014 at 2:45am

great article, especially after the Evans interview on Mad Money. Evans called Magnum's acreage "primo" which should be good news for those of us in southeastern Monroe and northeastern Washington counties. However, if I was unleased and/or had an older Carlton, Virco, or JOB lease with an acreage limitation of 20 or 40 acres [more common than you might think] that was bought by Triad, I wouldn't lease or amend with Magnum now.

The stacked play in this area could eventually end up being some of the most valuable minerals in Ohio. Look at the bonus money being paid in other counties in comparison to Magnum offers in this area, why take 2 or 3 thousand an acre less than you may get from another company or even from Magnum once they need to clear up title issues on hbp leases they need to sell to raise more revenue. I've seen other posts referring to Anterro and Eclipse now paying bonus and increasing the royalty% on the hbp leases they purchased that needed amending, has anyone heard of Magnum/Triad making such an offer?

Permalink Reply by searcherone on June 5, 2014 at 1:41am

J.D,

Agree that the stacked play could end up being some of the most valuable minerals in Ohio.   I wasn't aware that Carlton Oil out of Newport sold to Triad/Magnum Hunter.  When did that happen?   MHR does brag in investor presentations about how cheap it buys acreage.   Evans said in the Mad Money interview that an MLP is next year for the Eureka  Hunter Pipeline, but he said that last year too.

IMHO a major will get interested in a buy out, especially if a few more wells prove to be big ones.   Exxon/XTO  and Statoil have acreage right next to lots of Magnum's and Eclipse appears to be doing a joint deal with Magnum with the acreage that they have in southeast Monroe. Any thoughts on this J.D?

Permalink Reply by J.D on June 5, 2014 at 3:55am

Carlton sold to Virco 7-15-2011, approx. 5,000 acres for around $1,000. an acre. Virco also purchased JOB around the same time [or maybe just before], and flipped everything to Triad about a year later, for approx. $2,000. an acre.

 You have to give Evans credit, getting Triad while in bankruptcy, and buying Virco's properties for about $2,000. an acre appears to be great foresight. Virco thought it would be able to do their own deep wells, but the economics and ownership dictated otherwise.

However, there was little to no due diligence on the lease purchases of Carlton [and maybe others] which resulted in at least one lawsuit that Triad lost, which I believe led to the way that Triad is/was purchasing the MNW properties on a staggered basis as titles cleared. I believe I read somewhere that a lawsuit has also resulted from this purchase. 

I have been told by neighbors that there are still many old Carlton and Virco leases that are 20 and 40 acre leases w/out pooling or unitization clauses. 

IMO our area won't see dramatic improvement in activity until a buyout of some type occurs. Magnum does control a significant amount of property and they have what, 2 rigs in Ohio? The proposed Eureka Hunter build out into Monroe & Washington county cuts into the heart of Magnum's hbp acreage and could offer a buyer a shorter timeline for ROI.

It just seems that Triad is doing more delineating of potential than developing the areas and resources. 

 

Permalink Reply by searcherone on June 23, 2014 at 1:19am

Although the article in the link is from March regarding GreenHunter there is some interesting info regarding who owns what at the site they want to barge frack water from in Wheeling.   Also there is a headline in today's Wheeling newspaper stating Greenhunter has revised their timeline.   Sorry I can't get to it as it needs a subscription and well after many years I no longer subscribe.  Anyone read that article today and supply the details?

Here is link to March article:

http://www.shaleplayohiovalley.com/page/content.detail/id/500827.html

Permalink Reply by searcherone on June 23, 2014 at 3:22pm

Magnum Hunter doing third joint venture, this time with Edgemarc  in Washington County.   If you look closely at the map you will see Monroe County written by the Washington County on the right hand side making me think this well will be in Grandview township.    Anyone know anything about this future well?   Looks like four Marcellus and three Utica.

http://www.powerengineeringint.com/marketwired/2014/06/23/magnum-hu...

Permalink Reply by searcherone on June 23, 2014 at 4:36pm

Checking the ODNR interactive map it appears that a Haynes owns property between N. Fork Road and Hutchinson Road in Grandview Township making that the likely area for the Magnum and Edgemarc  Haynes well which appears that the laterals will go to the Monroe County line.

Permalink Reply by J.D on June 24, 2014 at 11:43am
Did you happen to see the article on Magnum Hunter "Is Magnum Hunter Resources looking to get bought out" on the Motley Fool website yesterday? Sorry that I am unable to provide a link.
Permalink Reply by searcherone on June 24, 2014 at 12:47pm

J.D.

Thanks for the info on the Motley Fool article.  I had not read it.  For about six months I have seen a few references to MHR wanting to buy in Australia.    As a total uneducated guess I have thought all along that Evans is positioning the company to sell to a major.  My bets have been on  Exxon or Statoil as they are the majors with acreage close to Magnum's in SE Ohio.  

J.D.   What do you think about Evans statement that the Stewart Winland well in Tyler County will prove up some of the acreage in Monroe County?    I have been thinking that is certainly good for the riverfront townships of Monroe, especially Jackson which has no horizontal permits.

Here is link to Motley Fool article:

http://www.fool.com/investing/general/2014/06/23/is-magnum-hunter-r...

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