Magnum Hunter Resources Corp (NYSE:MHR) Launches $600 M Notes Exchange Offer


Dallas, Texas 10/16/2013 (Financialstrend) – Magnum Hunter Resources Corp (NYSE:MHR) is an oil and gas firm engaged in drilling and exploration activities.  On October 9, the oil mining firm announced that it has commenced an offer to trade $600 million of senior notes it had issued in 2012 with senior notes of same principal amount of $600 million it had issued on October 8. The new notes are due in 2020. Both set of notes were offering same interest of 9.75%. The offer will be open till November 7.

In related news share holders of series C preferred stock can look forward to the payout of monthly dividend of $0.21 per share. This will be paid out on October 31. This translates to an annualized yield of 10.14% per share which is significantly higher than payouts offered by its peers.

Investors of the stock would be hoping that the oil producer would be able to sustain the growth trajectory it has traced over the past couple of quarters. In 2Q for which results were declared in August, it had recorded quarter on quarter sales jump of close to 97%. Its earnings per share had gone up by 42% in the same time period. Its gross margins had shot up 76% over a trailing 12 months period basis.

One big concern watchers of this stock would be tracking is possible impact of the recent temporary shutdown of gas processing facilities due to landslides in the vicinity of its Mobley processing facility. At close of business on October 15, the stock was trading $7.24 per share which was 0.55% lower than its previous day close. The small cap oil firm had managed to post sales of $309 million on a trailing 12 month period basis. Over all it had registered net income loss of $222 million in the same time period.