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Magnum Hunter Resources Corp. Message Board

  • davidmorse42 davidmorse42 Nov 14, 2013 6:11 AM Flag

    Abstracting Recent Articles About MHR

    1. From the open letter: Gary made 27 separate mergers or cash purchases during a frenetic 4 years (2009-2013) to assemble this amazing company.

    2. From the Mahar article: "MHR should be able to expect rates of 20-30mmcu/ft pd (3-5,000 Boepd) per well in the Utica".

    3. From the Mahar article: "EurekaHunter midstream system is likely going to need to get upgraded pretty substantially in terms of capacity very soon!"

    4. From the Mahar article:
    a. I think a 2014 exit rate of 40,000 Boepd is very doable.
    b. There is an outside chance MHR shows actual profitability in Q4.
    c. The above thesis should "light a fire" under the shares!

    5. From the Mahar article: "A year from today -------production approaching 50,000 Boepd
    a profitable company
    a share price approaching $20!"

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    • Patients, time will tell. We have waited this long, one more year shouldn't be that hard to do. IMHO, if we get anywhere close to $20 per share, we will be bought and for allot more than $20.

      Sentiment: Strong Buy

      • 1 Reply to upton1free
      • I'm not sure how the second author thinks MHR could realistically approach 50Mboe/d in a year without the boatload of cash that a Eureka sale would provide. If they exit this year at 25Mboe/d, a year from now the well's producing that figure will decline at least to 18Mboe/d. So they would have to bring on 32Mboe/d. At the present production rate that's roughly 64 wells at an average of $8mil a well for over $500mil on drilling capex alone. This was the point that the open letter author was making. Sell the pipeline (if there is an offer) and plow the cash back into E&P. The speed to $30/per share is a lot faster going that route.

 
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