If you’ve read MDN for any length of time, you know since February of this year we’ve been hinting and warning that Magnum Hunter Resources (MHR) was heading for bankruptcy (see 19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica). Yesterday MHR, a driller totally focused on the Marcellus and Utica Shale, filed for bankruptcy. We consider it a sad day. Continuing low commodity prices coupled with more than $1.1 billion in outstanding debt (the biggest portion being unsecured IOUs or “notes” due in 2020–some $634.6 million worth), finally led the company to file for Chapter 11 bankruptcy protection. MHR says three-fourths of their debt-holders are on board with the bankruptcy filing and also on board with MHR seeking a new $200 million bridge loan to keep operating. Just about all of MHR’s various subsidiary companies are listed in the bankruptcy filing–except for Eureka Hunter, MHR’s midstream/pipeline business. Eureka Hunter is not part of the filing (for now) which likely explains the press release issued just a few days ago promoting Eureka Hunter’s latest stellar performance (see Magnum Hunter De-Listed from NYSE; Still Shopping Eureka Hunter). Here’s the sad news from MHR…
