Tue, Jul 22, 2014, 8:45 PM EDT - U.S. Markets closed

Recent

% | $
Click the to save as a favorite.

Magnum Hunter Resources Corp. Message Board

  • nsleesman nsleesman Dec 13, 2012 10:12 AM Flag

    Zero profits, more and more debt..

    On the day MarkWest Energy begins operations of the Mobley facility in West Virginia, Magnum Hunter announces a private offering of an additional $150 million in principal amount of its 9.750% senior notes due 2020, as an add-on to the $450 million in principal amount of Senior Notes currently outstanding that the co originally sold in a private offering in May 2012.

    Magnum Hunter anticipates using the net proceeds from the Offering to pay off a portion of the outstanding debt under the Company's Senior Revolving Credit Facility. The Offering is intended to ensure that the co has more than sufficient liquidity in 2013 to continue its active drilling programs in its five shale plays, while simultaneously pursuing ongoing strategic initiatives across its asset base.

    ----------------
    The Mobley startup news is completely lost to the market news of MHR going further in debt. 9.75% is not cheap money.

    Even before we make the first penny of profit from MHR gas processed through Mobley, the company is on balance borrowing more money.

    Why sell Eagle Ford? We'll just pay down debt and borrow back a greater amount.

    I wonder if Gary Evans and Tom Ward are related???

    SortNewest  |  Oldest  |  Most Replied Expand all replies
 
MHR
7.05-0.09(-1.26%)Jul 22 4:02 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Puma Biotechnology, Inc.
NYSETue, Jul 22, 2014 4:01 PM EDT
Microsoft Corporation
NasdaqGSTue, Jul 22, 2014 4:00 PM EDT