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...

 

Views: 41733

▶ Reply to This

Replies to This Discussion

Permalink Reply by Ralph cramdon on November 2, 2015 at 3:51am

I was s bullish as they come on MHR until about a year ago . I have lost faith in Evans and his broken promises . 

Permalink Reply by Tim Tarr on November 2, 2015 at 5:24pm
Searchone nice article!! Just happens I loaded up on March $25 calls for RRC last week. That 20% pop in the stock is my exact target.
RRC was upgraded to buy this AM (Nov 2) by Guggenheim Securities. I'm wating for the Me too crowd to join in now.
By year end RRC expects an asset sale in their non Marcellus/Utica holdings! Might just buy some fire sale acrage with the proceeds rather than debt reduction.
Permalink Reply by searcherone on November 8, 2015 at 10:23am

Check out this latest news.  This is from Marcellus Drilling News found during a Google search.

Magnum Hunter Resources (MHR) issued an interesting press release yesterday to notify investors that they dodged a bullet–for the moment–by refinancing certain loans and getting a new $60 million loan which will let them make their $29 million bond payment on Nov. 15 (see Magnum Hunter’s Latest Woes: More Investor Unrest, $29M Payment Due). The statement also said in light of “ongoing discussions regarding its capital structure” they won’t issue a press release on third quarter financials, and they won’t hold a conference call with investors. Not a good sign. One analyst we read rhetorically asks, Does this mean they avoid bankruptcy? “The short answer is NO,” was his reply. He maintains “working on capital structure” means they are headed for a prepackaged bankruptcy. The only question is, when will it happen? Here’s the latest MHR statement in what (sadly) feels like a death watch…

Speaking of death watch, not to pile on, but perhaps uncoincidentally MHR was at the top of David Fessler’s “Oil Company Death List” back in February of this year because their outstanding debt was 52 times their earnings (see 19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica).

Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (NYSE MKT: MHR.PRE) (the “Company” or “Magnum Hunter”) announced today that it has refinanced its existing senior secured revolving credit facility with certain banks and obtained additional liquidity through a new senior secured term loan. The refinancing and additional liquidity are being provided, in equal amounts, by holders of more than a majority of the Company’s second lien term loan agreement, and holders of more than a majority of the Company’s 9.75% Senior Notes due 2020. These new lenders have also agreed to forbear from the exercise of certain rights and remedies with respect to certain events of default (including the failure to pay interest when due under the Company’s 9.75% Senior Notes due 2020 and second lien term loan agreement) and work, in good faith, on negotiating the terms of a consensual restructuring with the Company.

The new term loan credit facility consists of a single tranche term loan in the aggregate principal amount of $60 million, which funded on November 5, 2015. Approximately $44 million of proceeds from the new term loan credit facility were used to refinance existing loans outstanding and cash collateralize letters of credit outstanding under the prior revolving credit facility with certain banks. The remaining approximately $16 million of proceeds will be used for general corporate purposes of the Company and to pay certain transaction fees and expenses related to the new term loan credit facility. Furthermore, the new term loan facility includes an uncommitted incremental credit facility for up to an additional $10 million aggregate principal amount of term loans. The maturity date of the new term loan credit facility is December 30, 2015.

The new term loan credit facility provides Magnum Hunter with near-term liquidity as the Company continues to work towards a comprehensive strategic alternative to enhance liquidity and address the Company’s current capital structure. As previously announced by the Company on October 9, 2015, the Company has hired PJT Partners LP (NYSE: PJT) (the combination of Blackstone’s advisory businesses and PJT Capital LP, a global financial advisory firm), as financial advisor, and Kirkland & Ellis LLP, as special legal advisor, to advise the Company’s management and Board of Directors. In light of the Company’s ongoing discussions regarding its capital structure, the Company will not issue a separate press release to report its third quarter financial and operating results or host a conference call to discuss its third quarter financial and operating results. The Company intends to file its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015 with the Securities and Exchange Commission on or before November 9, 2015.

Also as previously announced by the Company on October 9, 2015, the Company has suspended the monthly dividends on its 10.25% Series C Cumulative Perpetual Preferred Stock, 8.0% Series D Cumulative Preferred Stock and 8.0% Series E Cumulative Convertible Preferred Stock. This suspension commenced with the monthly cash dividend that would otherwise have been declared and paid for the month ended October 31, 2015 and will continue indefinitely.

Permalink Reply by Ralph cramdon on November 8, 2015 at 11:15am

How the 'mighty ' MHR has fallen . Not too long ago MHR was going to buy large lots of land in Australia 

Permalink Reply by searcherone on November 9, 2015 at 5:01am

Here is link to Seeking Alpha long article on MHR financial state.   Thought this slide on Eureka Hunter was interesting.

http://seekingalpha.com/article/3665656-magnum-hunter-teetering-on-...

Permalink Reply by searcherone on November 9, 2015 at 3:09pm

Now the bondholders have hired advisers.  Lots of action in the MHR world.

Magnum Hunter Bondholders Hire Advisers on Eve of $29M Interest Payment

Magnum Hunter Resources' (MHR - Get Report) bondholders have hired legal and financial advisers as the oil and gas company nears a $29 million interest payment on its unsecured bonds, sources said.

A source familiar with the situation and an industry source said a bondholder group has hired Akin Gump Strauss Hauer & Feld as legal counsel, and The Deal has learned that the law firm's Arik Preis has the assignment. The industry source said the bondholders' financial adviser is Centerview Partners LLC.

The clock is ticking for Irving, Tex.-based Magnum Hunter to work out a plan with its bondholders and preferred stockholders and make progress on a hoped-for asset sale and joint venture as it approaches a Nov. 15 payment on its $600 million in 9.75% senior unsecured bonds due May 15, 2020

Those bonds last traded at 39.96 on Oct. 29, down from around 49 on Oct. 5 when the company hired advisers, according to data from Bloomberg Finance.

Franklin Resources (BEN - Get Report) held 11.3% of the bonds outstanding as of June 30, while Legg Mason (LM - Get Report) held 7.43% as of Sept. 30 and Jackson National Life Insurance Co. held 6.09% as of June 30, according to Bloomberg Finance data.

"I am aware that the company is actively putting together a [restructuring] package for bondholders and preferred holders," Dallas Salazar, CEO of energy consulting firm Atlas Consulting, said in a phone interview Monday.

Salazar, who holds just under 5% of Magnum Hunter's equity, has launched an activist campaign that aims to replace the company's board and management. He and an unnamed strategic investor he works with would be interested in investing further in the company and potentially participating in a takeover offer, but he noted that he is waiting for potential rights offerings and other strategic initiatives to take shape.

Meanwhile, an individual investor with stakes in the bonds, preferred shares and equity sent a letter dated Oct. 28 to Magnum Hunter's management, attempting to open a dialogue.

The Deal obtained the letter from investor Kevin McGrath, who claims in his communique to have a $2.5 million position in the 9.75% bonds, a holding of about 5% of Magnum's liquidation preference series C shares (about $5 million in face value), a position of about 2% ($4 million face value) of the liquidation preference D shares, a holding of about 0.5% of the liquidation preference series E shares, and an equity position under 1%.

As McGrath sees it, energy companies such as EQT (EQT - Get Report) , Antero Resources (AR - Get Report) , Gulfport Energy (GPOR) , and private equity firm Lime Rock Partners would be interested in acquiring the company for its acreage and gathering system.

STOCKS TO BUY: TheStreet's Stocks Under $10 has identified a handful of stocks with serious upside potential. See them FREE for 14-days.

1 of 2

Permalink Reply by searcherone on November 10, 2015 at 7:46am

This info is from Seeking Alpha.

Permalink Reply by searcherone on March 14, 2016 at 2:38pm

Well this discussion is over three years old, but such an interesting current comment I found in a Seeking Alpha article about Gastar. . . anyway here it is and it isn't very complimentary to Gary Evans.

Which brings me to Gary Evans, CEO of Magnum Hunter Resources and GreenHunter Resources (NYSEMKT:GRH). Unlike Mr. Porter, Mr. Evans played loose with the truth on several occasions during his company conference calls. Sad to say both Magnum Hunter and GRH are now in bankruptcy; although, in all honesty, the momentous fall of oil, NGLs, and gas prices were primarily the cause and in no way can or should be laid at the feet of Mr. Evans.

However, my complaint stems from the way Mr. Evans led his investors to believe falsehoods and promises, which held us spellbound. He wove a tale of the seven suitors champing at the bit for an opportunity to purchase his Eureka Hunter pipeline subsidiary, suggesting a price of about $600-$700 million. When asked who, he refused to disclose their names because of the sensitivity of the negotiations, which we had no option but to accept. Although I can't really claim there were not seven suitors bidding for Eureka Hunter, in retrospect, one can safely assume that the best price any of them offered, if they made an offer at all, was far below the figures he proposed. Had they been even close, he, as a prudent businessman, would have accepted their offer and possibly saved his company.

Promising the same during GRH conference calls, Mr. Evans wove a wonderful story about the wonders of water treatment and the company infrastructure, trucking, pipeline, barging, etc., he had built. Actually, it was, and probably still is quite impressive. However, he continually promised GRH would be barging waste-water down the river, and that Coast Guard approval was just around the corner, which it never was, ultimately costing investors additional losses.

Permalink Reply by luke s on March 15, 2016 at 1:45am

with the state of their current business, how is triad hunter, an arm of magnum hunter preparing a drill pad in ohio township in Monroe county ohio? where is the money for this pad coming from?

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service