Magnum Hunter Resources Announces Execution of a Definitive Agreement to Sell Remaining Canadian Assets for $75 Million (Cana...
April 22 2014 - 7:00AM
Marketwired
Magnum Hunter Resources Announces Execution of a Definitive
Agreement to Sell Remaining Canadian Assets for $75 Million
(Canadian)
HOUSTON, TX--(Marketwired - Apr 22, 2014) - Magnum Hunter
Resources Corporation (NYSE: MHR) (NYSEMKT: MHR.PRC) (NYSEMKT:
MHR.PRD) (NYSEMKT: MHR.PRE) (the "Company" or "Magnum Hunter")
announced today that the Company has executed a definitive
agreement with a Canadian private company to sell 100% of its
ownership interest in the Company's Canadian subsidiary, whose
assets consist primarily of oil and gas properties located in the
Tableland Field in Saskatchewan, Canada, for a purchase price of
$75 million (Canadian -- or approximately $67.5 million (US) at the
current exchange rate), subject to customary purchase price
adjustments with an effective date of March 1, 2014. The
transaction is expected to close on or about May 12, 2014. The
closing is subject to the satisfaction of customary closing
conditions. As announced earlier, Magnum Hunter previously sold
primarily all its Alberta, Canada oil and gas properties in April
2014. The Company's sale of its Canadian subsidiary will complete
Magnum Hunter's goal of exiting and divesting all of the Company's
Canadian assets.
The assets sold include 52,520 gross (49,470 net) acres located
in Saskatchewan, Canada with 84 gross producing wells and
approximately 630 Boe per day of current net production. The
Company intends to use the net proceeds from this sale to pay down
outstanding borrowings under its Senior Revolving Credit Facility
and for general corporate purposes.
The closing of the sale of the Company's remaining Canadian
properties will represent a further step by the Company in its
strategy to identify and monetize non-core assets, and reallocate
its resources primarily to its existing (and anticipated future
additional) properties and operations (including its midstream
operations) in the Marcellus Shale and Utica Shale in West Virginia
and Ohio, which the Company believes offer the opportunity for more
attractive returns on invested capital. The Company continues to
evaluate its existing asset base and believes that a focus on core
assets, such as its Marcellus Shale and Utica Shale properties, is
essential for the success of its future business plans which should
provide for exceptional production and reserve growth. Today's
announcement is seen as an additional step in helping ensure that
the Company's asset mix will provide the Company with the best
possibilities for future value creation.
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, 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.
Availability of Information on the Company's Website
Magnum Hunter is providing a reminder that it makes available on
its website (at www.magnumhunterresources.com) a variety of
information for investors, analysts and the media, including the
following:
- annual reports on Form 10-K, quarterly reports on Form 10-Q,
current reports on Form 8-K and any amendments to those reports as
soon as reasonably practicable after the material is electronically
filed with or furnished to the Securities and Exchange
Commission;
- the most recent version of the Company's Investor Presentation
slide deck;
- announcements of conference calls, webcasts, investor
conferences, speeches and other events at which Company executives
may discuss the Company and its business and archives or
transcripts of such events;
- press releases regarding annual and quarterly earnings,
operational developments, legal developments and other matters;
and
- corporate governance information, including the Company's
corporate governance guidelines, committee charters, code of
conduct and other governance-related matters.
Magnum Hunter's goal is to maintain its website as the
authoritative portal through which visitors can easily access
current information about the Company. Over time, the Company
intends for its website to become a primary channel for public
dissemination of important information about the
Company. Investors, analysts, media and other interested
persons are encouraged to visit the Company's website
frequently.
Certain information included on the Company's website
constitutes forward-looking statements and is subject to the
qualifications under the heading "Forward-Looking Statements" below
and in the Company's Investor Presentation slide deck.
Forward-Looking Statements
This press release includes "forward-looking statements." All
statements other than statements of historical facts included or
incorporated herein may constitute forward-looking statements.
Actual results could vary significantly from those expressed or
implied in such statements and are subject to a number of risks and
uncertainties. Although Magnum Hunter believes that the
expectations reflected in the forward-looking statements are
reasonable, Magnum Hunter can give no assurance that such
expectations will prove to be correct. The forward-looking
statements involve risks and uncertainties that affect operations,
financial performance, and other factors as discussed in filings
made by Magnum Hunter with the Securities and Exchange Commission
(SEC). Among the factors that could cause results to differ
materially are those risks discussed in the periodic reports filed
by Magnum Hunter with the SEC, including Magnum Hunter's Annual
Report on Form 10-K for the fiscal year ended December 31, 2013 and
its Quarterly Reports on Form 10-Q for the fiscal quarters ended
after such fiscal year. You are urged to carefully review and
consider the cautionary statements and other disclosures made in
those filings, specifically those under the heading "Risk Factors."
Forward-looking statements speak only as of the date of the
document in which they are contained, and Magnum Hunter does not
undertake any duty to update any forward-looking statements except
as may be required by law.
Contact: Cham King AVP, Investor Relations
ir@magnumhunterresources.com 832-203-4560