A section of the call I found very interesting. I may paraphrase slightly due to transcribing slower than people speak. Question from an analyst, "In regards to the auditors, what was the final straw that broke the camel's back?" Answer, "For us, they could not deliver an audit." Question - then with Magnum Hunter Resources, they did not have issues? Answer: "They will tell you they had issues - but if you hire a new accounting firm and in 60 days they can give you an audit as we expect, that is kind of the proof of the pudding". I welcome any corrections, additions.
I listened to the conference call several times. Mr. Evans exact words were "we could approach net debt zero by year end". Later, he was asked to expand on that subject. Some of his reply, "If we have the success that we anticipate in the Marcellus and Utica, it would be crazy not to use debt to expand, right?". Later he said, "we want to be - have a much lower leverage - 25% peak leverage is a goal for us". He also said "If I can get 90% IRR on money that cost 3%, we'll be doing that all day long". In summary, my view is MHR will continue to use debt in the future to grow the company but at a lower rate than in the past. I hope this info is helpful and I welcome corrections.