Dallas, Texas 09/27/2013 (Financialstrend) – Magnum Hunter Resources Corp (NYSE:MHR) on September 30 filed a Form 8-K with SEC informing that its subsidiary Eureka Hunter Pipeline Operations is facing disruption since the gas processing facilities at Mobely, West Virginia has been shut down temporarily. The processing plant is owned and operated by MarkWest Energy Partners, L.P.
This temporary suspension of operations has occurred due to a leakage that has developed in the MarkWest’s pipeline due to landslides. The affected pipeline is used by Eureka Hunter to transports natural gas liquids to the processing plant at Mobely.
MHR disclosed that on September 27, the pipeline operator MarkWest had informed them that due to a landslide which occurred following heavy rainfall on August 27, one of its pipelines which transport natural gas liquids had experienced a “line break”. MarkWest has also indicated that the repair works on the pipeline might extend up to mid October and till then the processing facility will remain closed. MHR expects gas output volumes from Eureka Hunter operations to drop by close to 75% due to this disruption.
Shares of the MHR stock lost close to 2.53% of its valuation on September 30 trading post this announcement. The share price as of end of business on September 30 was $6.17 per share and represented a 3.44% dip from its 52 week high valuation. Close to 5.5 million shares of the firm changed hands over the counters yesterday as against a daily average of 3.52 million.
The oil and gas firm has a market capitalization of $1.05 billion with sales of $309 million over a trailing 12 month period. The stock has seen an extended bull run on the browsers. It has appreciated by over 42% in the past 12 months and by close to 63% in the past 90 days. In the previous week’s trading it posted gains of more than 12% which was well over the gains recorded by the oil and gas index last week.