HOUSTON, TX--(Marketwired - Jul 29, 2013) - Magnum Hunter Resources Corporation (
The Declared Accumulated Dividend represents (i) all accumulated accrued and unpaid dividends on the Company's preferred stock for the months of April, May, June and July 2013, (ii) the to-be-accrued dividends on the preferred stock for the remainder of July 2013, and (iii) the to-be-accrued dividends on the preferred stock for August 2013. Magnum Hunter was unable to pay its preferred stock dividends for the months of April, May, June and July 2013 on the Company's normal end-of-the-month dividend payment dates due to the delay in the filing of its Annual Report on Form 10-K for the year ended December 31, 2012, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2013. The Company has now filed these reports with the Securities and Exchange Commission (June 14, 2013 and July 8, 2013, respectively).
The Declared Accumulated Dividend on the Series C Preferred Stock is payable on September 3, 2013, to holders of record at the close of business on August 15, 2013. The payment will be an annualized 10.25% per share, which is equivalent to approximately $0.2135 per share, based on the $25.00 per share liquidation preference of the Series C Preferred Stock, for each of the months of April, May, June, July and August 2013. This represents a total amount payable of approximately $1.0675 per share for the five-month period ending August 31, 2013. The Series C Preferred Stock is currently listed on the NYSE MKT and trades under the ticker symbol "MHR.PRC".
The Declared Accumulated Dividend on the Series D Preferred Stock is payable on September 3, 2013, to holders of record at the close of business on August 15, 2013. The payment will be an annualized 8.0% per share, which is equivalent to approximately $0.3333 per share, based on the $50.00 per share liquidation preference of the Series D Preferred Stock, for each of the months of April, May, June, July and August 2013. This represents a total amount payable of approximately $1.6665 per share for the five-month period ending August 31, 2013. The Series D Preferred Stock is currently listed on the NYSE MKT and trades under the ticker symbol "MHR.PRD".
The Declared Accumulated Dividend on the Series E Preferred Stock is payable on September 3, 2013, to holders of record at the close of business on August 15, 2013. The payment will be an annualized 8.0% per share of Series E Preferred Stock, which is equivalent to approximately $166.6667 per share, based on the $25,000.00 per share liquidation preference of the Series E Preferred Stock (equivalent to approximately $0.1667 per Depositary Share, based on the $25.00 per Depositary Share liquidation preference), for each of the months of April, May, June, July and August 2013. This represents a total amount payable of approximately $0.8335 per Depositary Share for the five-month period ended August 31, 2013. The Depositary Shares are currently listed on the NYSE MKT and trade under the ticker symbol "MHR.PRE". The payment of dividends to holders of the Depositary Shares will be made in accordance with the terms of the Deposit Agreement which governs the Depositary Shares.
Following the payment of the Declared Accumulated Dividend on September 3, 2013, the Company expects to resume the monthly payment of cash dividends on all series of its preferred stock, beginning with the dividend payable for the month of September 2013. The payment by the Company of accrued cash dividends on its preferred stock is subject to the requirements of applicable law and compliance by the Company with its debt agreements.
About Magnum Hunter Resources Corporation
Magnum Hunter Resources Corporation and subsidiaries are a Houston, Texas based independent exploration and production company engaged in the acquisition, development and production of crude oil, natural gas and natural gas liquids, primarily in the states of West Virginia, Ohio, Kentucky and North Dakota. The Company is presently active in three of the most prolific unconventional shale resource plays in North America, namely the Marcellus Shale, Utica Shale and Williston Basin/Bakken Shale.
For more information, please view our website at www.magnumhunterresources.com.
The statements and information contained in this press release that are not statements of historical fact, including any estimates and assumptions contained herein, are "forward looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, referred to as the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, referred to as the Exchange Act. These forward-looking statements include, among others, statements, estimates and assumptions relating to our business and growth strategies, our oil and gas reserve estimates, our ability to successfully and economically explore for and develop oil and gas resources, our exploration and development prospects, future inventories, projects and programs, expectations relating to availability and costs of drilling rigs and field services, anticipated trends in our business or industry, our future results of operations, our liquidity and ability to finance our exploration and development activities and our midstream activities, market conditions in the oil and gas industry and the impact of environmental and other governmental regulation. In addition, with respect to any pending transactions described herein, forward-looking statements include, but are not limited to, statements regarding the expected timing of the completion of proposed transactions; the ability to complete proposed transactions considering various closing conditions; the benefits of any such transactions and their impact on the Company's business; and any statements of assumptions underlying any of the foregoing. In addition, if and when any proposed transaction is consummated, there will be risks and uncertainties related to the Company's ability to successfully integrate the operations and employees of the Company and the acquired business. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "could," "should," "expect," "intend," "estimate," "anticipate," "believe," "project," "pursue," "plan" or "continue" or the negative thereof or variations thereon or similar terminology.
These forward-looking statements are subject to numerous assumptions, risks, and uncertainties. Factors that may cause our actual results, performance, or achievements to be materially different from those anticipated in forward-looking statements include, among others, the following: adverse economic conditions in the United States, Canada and globally; difficult and adverse conditions in the domestic and global capital and credit markets; changes in domestic and global demand for oil and natural gas; volatility in the prices we receive for our oil, natural gas and natural gas liquids; the effects of government regulation, permitting and other legal requirements; future developments with respect to the quality of our properties, including, among other things, the existence of reserves in economic quantities; uncertainties about the estimates of our oil and natural gas reserves; our ability to increase our production and therefore our oil and natural gas income through exploration and development; our ability to successfully apply horizontal drilling techniques; the effects of increased federal and state regulation, including regulation of the environmental aspects, of hydraulic fracturing; the number of well locations to be drilled, the cost to drill and the time frame within which they will be drilled; drilling and operating risks; the availability of equipment, such as drilling rigs and transportation pipelines; changes in our drilling plans and related budgets; regulatory, environmental and land management issues, and demand for gas gathering services, relating to our midstream operations; and the adequacy of our capital resources and liquidity including, but not limited to, access to additional borrowing capacity.
These factors are in addition to the risks described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2012 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, filed with the Securities and Exchange Commission, which we refer to as the SEC. Most of these factors are difficult to anticipate and beyond our control. Because forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such statements. You are cautioned not to place undue reliance on forward-looking statements contained herein, which speak only as of the date of this document. Other unknown or unpredictable factors may cause actual results to differ materially from those projected by the forward-looking statements. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We urge readers to review and consider disclosures we make in our reports that discuss factors germane to our business. See in particular our reports on Forms 10-K, 10-Q and 8-K subsequently filed from time to time with the SEC. All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements.