We will know more after the conference call. but it seems to me that, when you take into account the increase in the PV-10 value of proven reserves that will come through from these capital expenditures, plus the incremental value added from the Eureka Hunter Pipeline venture, shareholders who buy around $4.20 should expect to earn 25 percent/year returns. The returns might turn out to be a lot better than 25 percent/year.
Gary's statement about no shareholder dilution for the next 16 months should help. The company should have positive cash flow well before then, even without a JV.
"The additional expansion of our Senior Credit Facilities allows us to continue to execute our 2011 and 2012 capital expenditure program with our own internal sources. Therefore, we are not dependent on any additional form of external capital resource in order to meet our growth objectives for the next sixteen months. Our future capital budget and production growth forecasts can now be accomplished without any form of dilution to our existing shareholders."
"...without any form of dilution to our existing shareholders." You don't suppose...It'd be too much to expect, I suppose...That that includes boucoup "free" and "cheap" shares for "management"? EVERYONE should be tuned into that conference call at 1;30cst today.
HOUSTON, TX -- (MARKET WIRE) -- 09/06/11 -- Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE Amex: MHR-PrC) (NYSE Amex: MHR-PrD) ("Magnum Hunter" or the "Company") will host a conference call at 1:30 PM (Central Time) today Tuesday, September 6, 2011 to discuss the 2012 fully funded capital budget and expanded senior bank credit facilities. The call will be hosted by Mr. Gary C. Evans, Chairman and Chief Executive Officer. To access the conference call, please go to http://us.meeting-stream.com/magnumhunterresources_090611 for a live web cast or dial 866-348-0480 (international dial-in use 706-643-5340) and provide the access code #97409386 when prompted.