On the 8 of November they reported the following : "The Canadian stuff, we hope to have a definitive agreement executed here within days. It's going back and forth to lawyers. And we'll announce that, I'm sure, with an 8-K."
I hope we will see that 8-k form soon . Sell price would be between 80-95 Mil $ . I suppose the slight delay will not harm the price ,knowing them i think it wont ;-) .
Meanwhile gas is nearing the 4$ mark and soon they can start hedging the new production again .
"And then natural gas, every time it creeped over $4 over the last 6 months, we've hedged, $4.02, $4.05, $4.10, $4.12. So we're pretty well protected for '14.
Now as we bring on this new production, obviously, that's unhedged."
So i can safely sit back and wait for the market to realize that MHR is a good investment with very good prospects.
Thanks for your insight , interesting as always . My timing is not always good . I bought some 5$ aug calls and some 5$ jan calls in spring, the first ended worthless , the second are in the money and doing excellent ...as you said , timing is everything .
Taking advantage off a very flat share price the last days i sold jan5$ calls and bought some may 8$ , Feb 7$ calls and added 7.5 jan calls .
I am betting on a substantial rise by year end.
Some catalyse that could dope the share price by then :
- Announcing the sell of TX - KY - Canadian assets
- Reaching or even exceeding the production target
- Very good results from Stadler drilling.
I know most of you have also invested in pref Shares, but did you also invested in options or are you all loaded and can still afort to add shares :-)
I do hope with the grown interest from investors in MHR , the options trading will follow .
Thanks for the info ;-) . I guess that means that some shorters got out and swallowed their loses last month after the shareprice flirted with the 8$ mark. I do think however that some got back in November when we saw that huge drop . I think an asset sale for a decent price and or some good results in the Utica along with the reserve booking will eventually break a lot of resistance coming from the shorters.
Just got this in my mailbox from Seeking Alpha :
Magnum Hunter Resources EPS of -$0.17, misses on revenues • 7:06 AM
Magnum Hunter Resources (MHR): Q3 EPS of -$0.17.
Revenue of $54.01M (+80.2% Y/Y) misses by $28.92M. (PR)
Waiting to see some details
Mhr has always been a volatile stock , heck that was the reason i bought it several years ago in the first place ,but i decided to hold my position after investigating the stock.
I guess some people have decided to take advantage of some bad market sentiment to short some , others don't understand the silence about the Utica and got impatient . In my opinion they will only anounce some details/results about the Farley pad together with telling us they bought some more acreage down there.
So share short grew by nearly 1,000,000 . between 9/30 and 10/15
Meanwhile MHR share rose from 5.37 till 7.24 with a low of 5.23 and high of 7.35 .
Days to cover declined from 7.2 till 5.45 ...
So they 1,000,000 didn't stop the shareprice from rising .
With this figures in mind they will need to do much more to scare us :-) .
How to keep away treasure hunters ?
To be as silent as possible . This seems to be the strategy MHR is applying concerning their latest Utica drilling results.
It is not in their interest to inflate the price of possible acreages near their leases as they still want to make some interesting deals and acquisitions .
Like i stated months ago, the sale off their pipeline wouldn't be wise at this moment as it is a key to make good deals in the Utica. Pumping it up is one thing , getting
the gas and liquids is the most important to pay down your drilling costs asap.
Unlike GPOR ; who paid way to much for their latest acreage deals, MHR has opted for a more moderate approach. Off course you can argue that the making public of GPOR drilling results have been an enormous catalyst for the share price . It quadrupled in nearly one year. But it seems that there are some clouds on the horizon , the sun is not so shiny anymore.
Meanwhile we poor investors have to deal with some very encouraging words from the overenthusiastic CEO . It's message seems to be , hold on , we will get there , but just want to jeopardize any deals by screaming the value of the leases from the rooftop.
The most encouraging quote i noticed from the latest presentation were two things : They ordered a new Alpha Hunter rig three weeks ago and the pipeline disruption caused y a landslide Markwest suffered would not affect their third quarter output . ( should be repaired somewhere next week ) Just proving they are very confident for the future.
For all those reasons i stick with my shares .
Today someone bought 4460 Jan14 9$ at 0.30 $ ...interesting bed .
Huge deal ! I was desperately trying to by some Jan14 7.5$ this week at 0.50 $ but i only got 12 from the 100 i wanted to buy . :-( .no wonder most are not willing to sell me their shares in Januari for 7.5 $ with such a high future sentiment ;-).
It seems that the times that MHR was a bargan are far behind us.
Keep in mind that the PVA shares were part of the 404 million EF deal . So the asset sale for the shares is $50.6 - $40 = $10.6
Subtotal would be $40.6
This means lift in shareprice at the end of August was not lifted by shortcovering , so the upside is intact . In the long run shorts will have to cover anyway .