Past year: ▼ 99%(1.00c – 1.87 USD)
Each one in plain English, with the numbers worked through for a shareholder.
14 May 2014drilling progress report▲ Good
Magnum Hunter reported encouraging early results from its first Utica Shale well in West Virginia (Stewart Winland pad, Tyler County), with wireline logs showing hydrocarbon-bearing rock consistent with its earlier Stalder Utica discovery in Ohio - the Appalachian Utica/Marcellus push it was now funding was starting to show technical results.
13 May 2014asset acquisition disposition▲ Good
Magnum Hunter closed the sale of Williston Hunter Canada (the former NuLoch Saskatchewan assets) to Steppe Resources for CAD $75 million cash, completing its exit from Canada three years after the NuLoch acquisition first brought it there.
24 Apr 2014material agreement▲ Good
Magnum Hunter agreed to sell its Canadian subsidiary Williston Hunter Canada - the Tableland Field oil properties in Saskatchewan it had gained through the 2011 NuLoch acquisition - to Steppe Resources for about CAD $75 million (about US $68 million) cash, another step in exiting non-core assets to focus on its Appalachian core.
3 Apr 2014debt financing▲ Good
Eureka Hunter Pipeline refinanced into a new $117 million ABN AMRO-led revolving facility (extendable to $150 million only with lender consent), non-recourse to Magnum Hunter, using it to repay and cancel the $50 million PennantPark second-lien term loan that had needed covenant relief in 2012 and again in 2013, and to close out the undrawn SunTrust first lien. The same filing disclosed the sale of Magnum Hunter's Alberta properties - about 110 boe/day from three Kiskatinaw wells - to BDJ Energy for CAD $9.5 million.
21 Mar 2014capital raising announcement● Neutral
Magnum Hunter raised $30.1 million in a private placement of 4.3 million common shares to institutional investors, earmarked for its Marcellus/Utica Ohio and West Virginia leasehold buildout and related gas-transportation letters of credit - funding the Appalachian growth even as it kept selling off North Dakota, Eagle Ford and Canadian assets.
What it means for a shareholder
4.3m new shares at about $7.00 to raise about $30.1m. That's 2.4% dilution: every existing holder's slice gets 2.4% smaller. If you held $1,000 of shares (143 at the issue price), your slice goes from 0.0000833% to 0.0000813% of the company. To keep it you'd need 4 more shares - about $28 at the issue price.
Create a free account to see this worked out for your own holding.
23 Jan 2014material agreement▲ Good
New Standard Energy's Texas subsidiary exercised its option and signed to buy Magnum Hunter's remaining Eagle Ford Shale properties for $15 million cash plus NSE shares, completing Magnum Hunter's full exit from the Eagle Ford play first entered years earlier.
14 Jan 2014material agreement● NeutralMajor
Magnum Hunter settled a tangle of lawsuits and an arbitration with Seminole Energy Services over a jointly-owned Tennessee gas processing plant and related contracts - the same counterparty whose gas-gathering fee agreements Magnum Hunter had negotiated cooperatively back in 2011 as a condition of the NGAS merger had since escalated into multi-state litigation, now resolved by settlement.
6 Jan 2014asset acquisition disposition▲ Good
Magnum Hunter closed the sale of its Burke/Renville/Bottineau/McHenry County, North Dakota properties to Enduro Operating for about $39.6 million net of the earlier deposit, and its credit facility borrowing base automatically dropped by $22.5 million as a result - continuing the wind-down of the North Dakota position built up through 2012's big acquisitions.
18 Dec 2013debt financing● Neutral
Magnum Hunter replaced its long-running, many-times-amended bank facility with a fresh Third Amended and Restated Credit Agreement, still with Bank of Montreal, on largely similar terms and a $265 million starting borrowing base - a clean reset after eighteen amendments piled onto the old agreement since 2011.
11 Dec 2013material agreement▲ Good
Magnum Hunter granted Australia's Pathfinder Onshore Energy (a New Standard Energy subsidiary) an option to buy its remaining Eagle Ford Shale properties in Atascosa County, Texas for $15 million cash plus New Standard Energy shares - completing Magnum Hunter's exit from the Eagle Ford play it had entered years earlier and now sold off entirely following the larger Penn Virginia sale.
22 Nov 2013debt financing▲ Good
Magnum Hunter agreed to sell more North Dakota oil and gas properties - about 30,000 acres and 180 wells across four counties - to Enduro Operating for $45 million cash, continuing to shed North Dakota acreage acquired just eighteen months earlier in the big Baytex deal.
21 Oct 2013material agreement● Neutral
Magnum Hunter finalized the terms of the warrants issued as the August 2013 dividend - exercisable at $8.50/share from September 2014 (or once a registration statement is effective) through April 2016 - formalizing the arrangement announced weeks earlier.
4 Sept 2013material agreement▲ Good
Magnum Hunter's Williston Hunter subsidiary agreed to sell a small non-operated North Dakota working interest (about 14,500 net acres, 120 boe/d) to Oasis Petroleum for $32.5 million cash - continued portfolio pruning of North Dakota assets even as it kept a larger Bakken/Williston core.
29 Aug 2013dividend declaration▲ Good
Magnum Hunter declared another warrant dividend to common shareholders - one warrant per ten shares, exercisable at $8.50 through April 2016 - its second such warrant dividend after the 2011 one, again a shareholder sweetener rather than a cash payout.
13 Aug 2013debt financing▼ Bad
Magnum Hunter's bank lenders eased its credit-agreement leverage covenants - deferring the total-debt-to-EBITDAX test to mid-2014 and softening interest-coverage requirements - while also allowing further cash investment in the Eureka Hunter midstream subsidiary, a sign the company needed covenant relief to keep its debt load in compliance.
12 Aug 2013material agreement▲ Good
Triad Hunter agreed to acquire up to 32,000 net mineral acres in Monroe, Noble and Washington Counties, Ohio from a landowner association (MNW Energy) through a phased, multi-closing structure over roughly the next 10 months - continued Appalachian leasehold growth even as the company was also divesting Eagle Ford and North Dakota assets.
26 July 2013listing compliance notice▼ Bad
MAGNUM HUNTER RESOURCES CORP withdrew a registration statement, abandoning the offering it covered.
12 July 2013asset acquisition disposition▲ Good
Magnum Hunter filed the pro forma financials for the Penn Virginia Eagle Ford sale, confirming the deal actually closed at $422.1 million (better than the originally announced $401 million) once adjustments were finalized - $379.8 million cash and 10 million Penn Virginia shares worth about $42.3 million. The filing had waited on the delayed 2012 10-K and Q1 2013 10-Q, both now filed (June 14 and July 9, 2013).
7 June 2013material agreement● Neutral
Magnum Hunter's board approved standard indemnification agreements for all its directors and executive officers, contractually guaranteeing legal-expense advancement and indemnification - adopted just as the company faced elevated legal exposure from its accounting and auditor problems.
21 May 2013debt financing▼ Bad
The audit delay also hit Magnum Hunter's Eureka Hunter Pipeline subsidiary: both its SunTrust-led first-lien lenders and PennantPark's second-lien loan had to formally consent that a late first-quarter 2013 financial statement delivery wouldn't trigger default, tying the new deadline to completion of the delayed parent-company audit.
17 May 2013listing compliance notice▼ BadMajor
With its 2012 10-K and Q1 2013 10-Q still unfiled while new auditor BDO USA worked through the audit, Magnum Hunter received a non-compliance letter from NYSE MKT regarding its listed Series C, D and E preferred stock (its common stock listing on the NYSE proper was unaffected) and had until late May 2013 to submit a compliance plan targeting an August 2013 fix - the accounting crisis now directly threatening a listing.
30 Apr 2013asset acquisition disposition▲ Good
When the Eagle Ford sale to Penn Virginia closed, Magnum Hunter took part of the consideration as 10 million shares of Penn Virginia stock and signed a registration-rights and standstill agreement governing that stake - registration rights to eventually sell the shares, plus a standstill barring Magnum Hunter from seeking control of Penn Virginia.
26 Apr 2013debt financing▼ BadMajor
As the stalled 2012 audit dragged on, Magnum Hunter's lenders cut its credit facility borrowing base to $265 million (from $350 million) to reflect the pending Eagle Ford sale, and again extended the deadline to deliver audited 2012 financials, tying the new deadline to the senior notes indenture's own compliance clock.
16 Apr 2013auditor change▼ BadMajor
Magnum Hunter fired PricewaterhouseCoopers mid-audit, before PwC could finish or issue an opinion on the 2012 financial statements: PwC had flagged unresolved matters that could materially affect the reliability of the accounts and material weaknesses in internal controls serious enough that PwC doubted the company could produce reliable financials, and wanted to expand its audit scope. Magnum Hunter said it believed no restatement was needed and was fixing its accounting department with Big Four advisory help.
8 Apr 2013debt financing● Neutral
Magnum Hunter detailed the Stock Purchase Agreement for the Eagle Ford sale to Penn Virginia's Penn Virginia Oil & Gas subsidiary, structured as a sale of Eagle Ford Hunter's stock for the same $361 million cash (plus up to $40 million in cash or Penn Virginia stock), expected to close in May 2013.
3 Apr 2013drilling progress report▲ GoodMajor
Magnum Hunter agreed to sell its entire Eagle Ford Shale position in Gonzales and Lavaca Counties, Texas (19,000 net acres, 49 producing wells) to Penn Virginia for $361 million cash plus up to $40 million more - a major retreat from one of its four core operating areas just as its accounting problems were surfacing.
22 Mar 2013debt financing▼ BadMajor
Magnum Hunter had to get its bank lenders to extend the deadline for delivering audited 2012 financial statements to May or June 2013 and waive any default that would otherwise be triggered by a late 10-K - the auditor transition and Q2 2012 restatement had delayed the annual audit, and now that delay threatened to put the company in technical default on its debt.
1 Mar 2013debt financing▲ Good
Magnum Hunter's lenders raised the credit facility's borrowing base again, to $350 million (now fully "conforming"), and increased the ceiling on senior notes the company could issue to $800 million from $650 million - continued room to add debt even as the balance sheet had grown very large very fast.
25 Jan 2013material agreement● Neutral
Magnum Hunter set up an at-the-market program to sell depositary shares representing its new Series E convertible preferred stock through MLV & Co. - yet another ongoing equity-funding channel alongside the Series C and D preferred ATMs.
31 Dec 2012listing compliance notice▼ Bad
Magnum Hunter had to get an NYSE waiver after repeatedly postponing its 2012 annual shareholder meeting, which put it at risk of violating the exchange's rule requiring an annual meeting each fiscal year; the NYSE agreed to the extension provided the meeting was held by January 17, 2013.
