Magnum Hunter (MHR 5.75) target raised to $10 from $9 at Wunderlich following production update. Firm notes co also recapped test results from three of its operating areas, which they feel, all are going strong and resulted in a very steep growth ramp. They revised estimates to reflect the higher-than-expected production growth
Magnum Hunter provides Q4 update Magnum Hunter Resources announced an operational update on each of the Company's three upstream unconventional resource plays for the fourth quarter of 2011 which include (i) the Eagle Ford Shale, (ii) the Williston Basin, and (iii) the Appalachia/Marcellus/Utica Shale. Additionally, the Company also provided an operational update for the Company's midstream division, Eureka Hunter Pipeline. Magnum Hunter achieved an average production rate of 9,166 barrels of oil equivalent per day ("Boepd") during the fourth quarter of 2011. This production rate represents a 455% increase from the fourth quarter 2010 production and a 74% increase from the prior quarter (third quarter 2011) average production number. This significant production increase is due primarily to the drilling and completion success achieved in each of the Company's operating regions. The Company had a year-end 2011 exit rate above 12,500 Boepd and is currently producing over 13,000 Boepd (45% oil/liquids).
I suspect the 45% gas/oil mix is something the casual observers don't see past...and is holding the price down to a certain degree. The bottom line is how much dough can they make? ....And we'll shortly see those results.
its up to 48% oil 52% gas as per the latest presentation
question is when do they shift the budget.. Gary needs to clarify..make an announcement... think he WILL do that when he announces that new acquisition that he talked about previously. The hedges for 2012 on the gas are nice.. he just needs to sell less gas and try to hold acreage....thats the other thing he needs to stress.. that most is HBP... and how much does he need to drill to hold.. think that would put lots of fears to bed. Earnings have been around the 8th of FEB in the past, so i think we are a week away from knowing. He needs to prepare for that earnings call like a presidential debate--know ALL the answers.
the production mix doesnt matter that much right now because they are over half hedged for the next 2 years on current nat gas production. They will only drill dry nat gas from now to hold leases (while gas is low of course). Whisperings of cap-ex shift to ef bakken and oily greasy utica. :)