GLP just paid 301.9MM for 24K acres to Paloma at $12,579 an acre for “NON-PRODUCING acres in the core of the dry gas window of the Utica Shale, located in Belmont and Jefferson Counties, Ohio.”
Barry, Does this mean MHR and not recall/restructure the bond before May 2016?
Thx, I see the column heading as "Next Call Date". Maybe Barry will see this post and clarify.
Gary said MHR can make a profit on gas at $3.00. He also predicted gas will remain low in 2016. In the meantime, he is making money on derivative plays until the pipeline sale and JV are culminated. .
Are you saying they cannot be called before May '16? I thought any time a bond is callable it can be recalled any time prior to maturity.
with $19,161 more buying on uptick, indicating more large block trades are being bought than are being sold. PPS should begin to turn up if big buyers stay active.
Sentiment: Strong Buy
I’ll take the accuracy of your reference on Finra. Thx! I don’t know why the conflicting reports. Quicktake at Morningstar indicated not callable. Disguised web address: goo DOT gl SLASH huKAwM
Barry, MHR’s 600.0 million bond maturing in 2020 is not callable.
Gary is replacing Mark Wolf, prior VP of Finance hired in 2011, who decided to not move with the company to Dallas from Houston.
Scaremongering is defined as the process of saying or doing something in order to make people feel worried or frightened, especially so that you gain an advantage.
There has been no announcement of a liquidation or BK. Are you aware MHR recently hired a new CEO? I don't think Gary would have done so if he was planning a liquidation or BK. Nor do I think Keith Yankowsky would have left Chesapeake to come to MHR without believing in the success of MHR. I noticed this is your first post on MHR, and I'm wondering why you are posting about a BK?
Perhaps someone should call PR for clarification. Maybe they will issue an updated press release.
In the presentation and Q&A follow up there is discussion about cost savings and planned drilling. Also, since the end of last year MHR has had an increase in reserves without drilling due to the geology of the area and new engineering. Gary stated, “We are positioning MHR to prosper for the future. Our goal is to be a lean mean machine.” There is no mention of issuing more stock.
There are “a number of financial engineering opportunities available due to depressed trading multiples in our sector.” Previously Gary has been active in pursuing some financial transactions, e.g., costless collars, price swaps. In May, MHR received $11.8 million in cash proceeds for termination of in-the-money commodity positions, as recorded in the Q&A following the conference call. We’ll find out in the next conference call the results of subsequent hedging.
Effective September 15, 2015. Mr. Hewitt, age 45, will report directly to Gary C. Evans, Chairman and CEO. Mr. Evans commented, "The appointment of Chris Hewitt fills a void that has existed throughout this year within our organization due to our corporate move to Dallas. He will be assisting me and our financial team as we continue to navigate during these trying times within the energy industry. We believe there currently exists a number of "financial engineering" opportunities available to us due to depressed trading multiples in our sector across the board. Chris Hewitt and his substantial financial experience will be instrumental in assisting us in reviewing these possible restructuring scenarios."
Mr. Hewitt brings more than 14 years of investment banking experience, including 12 yrs providing equity and debt capital markets and mergers and acquisition advisory services for large independent oil and gas exploration and production companies. Mr. Hewitt has extensive experience in executing capital market transactions, including initial public and follow-on equity offerings as well as investment grade and high yield debt offerings. Prior to his appointment at MHRr, Mr. Hewitt served as Director of energy investment banking at Wells Fargo Securities since 2010. During his 9 year tenure at Wells Fargo he also served as VP of energy investment banking. Prior to joining Wells Fargo, Mr. Hewitt served in various investment banking roles at both Lehman Brothers and Bear Stearns. Mr. Hewitt earned a Bachelor of Arts degree in Int’l Relations from the Uni of Notre Dame. In addition, Mr. Hewitt holds a Juris Doctorate from the Uni of Texas School of Law and a Masters of Business Administration from the Fuqua School of Business at Duke University.
Sentiment: Strong Buy
Gary said, “We are telling all parties this is a strategic asset, and that’s why it is taking more time because we are having to sit down and show interested parties what the Utica JV does for the Eureka and what these new contracts that we just won do for the Eureka.”
The int’l company contracts are supposed to provide sustained growth for the next couple of years
Perhaps Gary meant he did not want to sell EH to another company operating in the area that they are competing with. An article in the Columbus Biz Journal titled, “Top Utica Shale Wells from All 22 Ohio Drillers” does not list EQT as operating in the Utica.
Why wouldn’t MHR want to sell Eureka Hunter to any competitors? Would EQT be considered a competitor? Gary said there has been a lot of interest in the pipeline and they have been very selective on who they will show it to. He said, “We have chosen not to show the pipeline to any competitors, only to those who can add value and enhance the true asset we have worked hard to build over the last 5 yrs.”