even with the audit not being done yet, its probably safe to say this company is being looked at very hard by companies looking for acreage in these plays in specific areas. i was worried about the sale closing but now that that has closed and the money is in, focus should shift. strategically there is a rotation going on out of oil and into natural gas based projects. MHR should have sold EF assets last year; that was the sweet spot. but the next year or so should be very good for natural gas plays, espcially the ones they are in where liquids are present and the cost to move is relatively contained. they even make money through the pipeline assets.
agnum Hunter Resources (NYSE: MHR )
Topping the list with a five-year compound annual growth rate of 220% is Magnum Hunter Resources. First, I will point out that the company started at a very low base as its market cap was just $10 million as its share price bottomed out at $0.37 in 2009, when its current management team assumed leadership. However, that team has led the company to phenomenal growth in cash from operations since taking over.
The company has been in the news a lot lately with its announcement of the the sale of its Eagle Ford assets while also dismissing its auditor. The good news is that the Eagle Ford deal delivered a nice return and a major cash infusion, which will be reinvested to grow production at its liquids-rich acreage in the Bakken and Marcellus. Because of that, cash flow growth will slow down in the short term but the long-term story remains very compelling despite the concerns surrounding the auditor transition.