Magnum Hunter Resources Corp (DE) 10.25% Cumulativ MHR.P.Q

profiled on Jim Cramer's Mad Money

[carlos6]

just gushed about MHR going forward.
----Selling non-core assets ($300. million this year)
----in all the right shale gas plays
----activist shareholder Relational Investors holds 15% ($150.million infusion)
----selling assets around Bakken (35% IR) & maybe all of it eventually because of better netbacks elsewhere (80-90% IR).
----Rice Energy announced the largest Utica shale well ever recently, but MHR says that they may have a well in Tyler county in W. Virginia that could exceed that & they will know in 30-45  days.
----several MLPs possible in 2015 that could net $600-700 million each to MHR.
----production is 18,000-19,000 bbls/day to day & projected to be at 32,000 bbls/day by the end of the year.

carlos

[perdikaoilgas]

Relational just made a huge mistake by buying shares in MHR a couple of months ago.

[Deadcow]

Hi Perdikaoilgas, nice to to see you on a different board than PTA :) you really MHR is a bad investment at these levels ?? they do have a lot of debt but Nat Gas is holding well and they have stellar wells in the Utica & they're reducing debt and selling non core assets Cheers

[Deadcow]

Perdikaoilgas, It looks like they are sitting on the sweet spot of the Utica in the south at West Virginia. Gary Evans said their rates of return in the Marcellus & Utica are amazing and with their latest Stewart well producing a bit less than 8k boepd !! They also have Eureka hunter & they are reducing debt by selling their Bakken assets & focusing on their Utica& Marcellus. I

[perdikaoilgas]

Deadcow, MHR is a nat gas weighted stock. Thanks to the recent drop of many nat gas weighted companies, I have better nat gas weighted companies in my portfolio. MHR might rise from the current levels, but nat gas is nat gas. So do not expect to see a big rise of the nat gas price by the end of 2016. And again, I have much better, cheaper with much lower debt nat gas weighted stocks in my list.

[Deadcow]

Yes Epsilon is a good company and definitely has good value here, but don't you think that Nat gas companies could be a good place to be over the winter period in general. Nat gas rebounded in the last couple of weeks nicely. From a low of 3.54 to $4.10 today !! That's while Oil has continued to plummet. 

[perdikaoilgas]

Basically, you tell me that the tide lifts all boats. OK, this is likely. MHR might rise but I prefer the safe bets. To me, EPS is a way safer play than MHR because it is fundamentally way stronger and cheaper than MHR. EPS is also an acquisition target while MHR is not.

[Deadcow]

Thanks for your input and your tecomendation on EPS honestly now I just wish to hear any positive news from PTA. That's where most of my portfolio is concentrated. And watching it trade at 0.26 again is painful. good luck to all of us

[perdikaoilgas]

I added PTA yesterday and I believe things will be much better over the next weeks.

[Deadcow]

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