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Magnum Hunter Resources Corp. Message Board

lexpress56 11 posts  |  Last Activity: Jan 29, 2015 1:46 PM Member since: May 9, 2007
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  • Reply to

    I hope MHR doesnt need to do this

    by lexpress56 Jan 29, 2015 10:03 AM
    lexpress56 lexpress56 Jan 29, 2015 1:46 PM Flag

    Lurking around and, unfortunately, averaging down a few times. Should be an interesting 12 months ahead of us as GE hunkers down and tries to ride out his debt and liquidity situation. I think he is wise to turn off the cash burn and focus on the Ohio joint venture. Interested to see how the pipeline situation plays out. GLTA

  • PDC announcement came out and PDC is taking an impairment charge on its acreage by Farley. I hope MHR does not have to do this also. It does not appear the write down is related to abandonment of development plans, just prices....

    Utica Non-Cash Impairment
    The Company expects in its fourth quarter 2014 financial reporting to incur a non-cash impairment of between $150 and $170 million related to its Utica shale assets in southeast Ohio. This impairment is due to low commodity prices and large natural gas differentials in Appalachian Basin and includes both PUD reclassifications to probable related to a change in the Utica development plan and a write down of a portion of its leasehold. The Company remains committed to its Utica Shale resource in the condensate and wet gas windows.

  • Reply to

    total value of assets

    by cannon32383 Jan 21, 2015 9:14 AM
    lexpress56 lexpress56 Jan 21, 2015 11:22 AM Flag

    Good point about JV drilling -- they need it big time. Both because they have limited liquidity to drill and they have a LOT of undeveloped acreage that needs to be HBP in order to sell at a decent value.

  • Reply to

    total value of assets

    by cannon32383 Jan 21, 2015 9:14 AM
    lexpress56 lexpress56 Jan 21, 2015 11:20 AM Flag

    I think the debt with preferred stock is a bit higher than $1b and they only have 200m shares right? I think the math probably works out around the same either way.

    At least the 8k filed yesterday indicated no changes in borrowing facilities. Much better than them being lowered at a bad time. But they really needed an increase and it does not appear they got. Will be interesting to see the PR when it comes out later today. Reserves way up but value of reserves about the same due to commodity price decreases?

  • Reply to

    Isn't the pipeline alone worth

    by henrynicholas63 Jan 13, 2015 3:41 PM
    lexpress56 lexpress56 Jan 14, 2015 8:27 PM Flag

    it is the general partner of the master limited partnership and it is a MHR affiliate giving GE a miniscule (sp?) yet incredibly significant, ownership interest in the pipeline to control its development. He may have given up control over the prospective sale of the pipeline, but he has maintained the important development control. The problem is, in the big picture, GE has nothing left to leverage. He has cut his control interest to the nub.....

  • lexpress56 lexpress56 Dec 22, 2014 3:31 PM Flag

    Meant to say "need to hold acreage by production"....

  • lexpress56 lexpress56 Dec 22, 2014 3:29 PM Flag

    Ben: Don't mean to be overly critical, but your comment about hedged companies will pump as much as possible doesn't make sense if the inference is only hedged companies will do this. Hedged companies will certainly make sure they pump enough to satisfy their hedge volumes, but after that hedging is a non factor in the decision to produce so your comment seems out of place.

    That said, I agree that supply will drop after companies start pulling back capex, which will come as soon as wells already drilled or committed to are drilled. My guess is only those with bullet proof liquidity and/or a NEED to drill to hold production are the only ones that will be pumping as much as possible next year, period.

  • Reply to

    Eureka 8K

    by cuda68300 Dec 22, 2014 9:38 AM
    lexpress56 lexpress56 Dec 22, 2014 2:45 PM Flag

    "over 50%" is what I meant to say: 48.6 + 1.56 = 50.16%

  • Reply to

    Eureka 8K

    by cuda68300 Dec 22, 2014 9:38 AM
    lexpress56 lexpress56 Dec 22, 2014 2:44 PM Flag

    Cuda: Can you remind me what entity owns the rest of EH Holdings LLC? it appears that MS now owns slightly more of the pipeline than MHR, but there is 1.56% ownership not stated in this release, which I trust still gives GE and MHR 50% control of decision making. What MHR affiliate owns that interest, if any?
    TIA Lex

  • Reply to

    Jim Denny Spoke this morning

    by cuda68300 Dec 18, 2014 10:47 AM
    lexpress56 lexpress56 Dec 19, 2014 3:54 PM Flag

    JMS: I hope you are right, but the Ohio regulatory rep has said there will be a "full investigation" and who knows how long that will take.

    That said, am I correct in thinking the reason they were bringing this well back on to production is they are done with the other three wells and all four will be brought on soon?

  • Reply to

    Free E & P Oil Company!

    by mikeinwestsac Nov 12, 2014 9:12 PM
    lexpress56 lexpress56 Nov 13, 2014 3:04 PM Flag

    I would like to think you are right, but the estimates of Rockpile and Calber value were based on day rates and transportation charges folks were willing to pay with higher price oil. Now the demand for both service company offerings -- particularly the fourth and fifth Rockpile spreads -- has fallen and the former projected values will need to be adjusted downward (and I am afraid the adjustment might be significant). That said, TPLM has two big things going for it -- low debt and the ability to use nearly all of Rockpile and Caliber to reduce its own drilling costs. Lex

MHR
1.94-0.05(-2.51%)Jan 30 4:06 PMEST

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