Dallas, Texas 10/10/2013 (Financialstrend) – As previously announced, on October 10 the “Series C” Cumulative Perpetual Preferred Stock of oil and gas drilling company Magnum Hunter Resources Corp (NYSE:MHR) will become ex dividend. Share holders of this preferred stock will be eligible for $0.213 dividend payout as of October 10. The dividend payout yield for the quarter will translate to 0.84%. On a trailing 12 month period, the oil and gas company stock has recorded yield of 10.14% which compares well in terms of 8.18% paid out on average by oil and gas stock category as per a report put together by Preferred Stock Channel.
The dividend payout for preferred stock is happening in spite of a temporary shutdown of the company’s gas gathering system in West Virginia. The impacted unit of the company is Eureka Hunter Pipeline, LLC. This is a 100% owned entity of MHR. It manages and operates a gas gathering process spread across West Virginia and Ohio. The operation consists of two components. The first is collecting natural gas from company owned Triad Hunter, LLC, and other natural gas producers in the area. The second component consists of transporting the same to Mobley Processing Facilities which has a built in capacity to process up to 200 mmcfe per day. Hunter pipeline depends on the pipeline system owned by MarkWest Energy Partners, L.P. to transport the gas. On September 27, due to major landslides the pipeline which carried bulk of Hunter pipeline produce suffered a rupture leading to a immediate stoppage of transport and processing activities at the Mobley plant.
The stock of $1.15 billion market cap has taken the disruption news in its stride. It has appreciated by close to 22% in the past one month and by a impressive 70 percent over the past 90 days.