UMH Snaps Up More PA/OH Trailer Parks, Targeting M-U Workers

You don’t often hear about a company that owns trailer parks as being a publicly-held company (trading shares of stock on the New York Stock Exchange). But such is the case with New Jersey-based real estate investment company, UMH Properties, Inc. We’ve written about UMH a number of times before (see our UMH stories here). Why? Because they keep buying trailer parks in the Marcellus/Utica with the express hope that drilling activity in the region will lead to high occupancy rates. They’ve just done it again. Last week UMH closed on two more trailer parks in Ohio, and yesterday they closed on purchasing another park in Pennsylvania. Their target seems to be workers in the shale industry. Their strategy is working…
Continue reading

UMH Pays $5.3M for 2 Trailer Parks in W PA for Marcellus/Utica

We’ve talked about a New Jersey-based real estate investment company, UMH Properties, Inc., a couple of times before. Why? Because they keep buying trailer parks in the Marcellus/Utica with the express hope that drilling activity in the region will lead to high occupancy rates. In July 2014 UMH bought four “manufactured homes communities” in the Pittsburgh area (see More Housing for Marcellus/Utica on the Way in Pittsburgh Region). In January of this year, UMH bought another trailer park–this one in Erie, PA (see Quirky Friday: What’s the Main Selling Point of Erie, PA Trailer Park?). UMH is back–they’ve just purchased two more trailer parks in western PA for $5.3 million…
Continue reading

Marcellus/Utica is “Winning Strategy” for Trailer Park Company

UMH Properties logoA company we’ve written about for the past few years is UMH Properties–a New Jersey-based real estate company that keeps snapping up trailer parks in the Marcellus/Utica region (see our UMH Properties stories here). Although the drilling industry in the Marcellus/Utica has been in a slump, you wouldn’t know it from the performance of UMH. The company specifically credits the Marcellus/Utica with its stellar performance in the second quarter of 2016. Highlights of 2Q16 for UMH include: rental and related income up 25 percent; community net operating income up 33 percent; and home sales up 72.4 percent. The company’s decision to focus its expansion in areas where energy development has created high demand for affordable housing, like the northeast, is paying off big-time…
Continue reading

Marcellus/Utica Keeps Trailer Park Operator Busy AND Profitable

UMH Properties logoWe occasionally write about a New Jersey-based real estate investment company, UMH Properties, Inc., because they keep buying trailer parks in the Marcellus/Utica with the express hope that drilling activity in the region will lead to high occupancy rates (see our UMH stories here). You might think with the rapid slowdown in drilling UMH’s strategy is in peril. But you would be wrong. Net income for the company was up 165%–from $718,517 in the first quarter of 2015 to $1,906,469 in 1Q16. How can that be? Samuel Landy, president and CEO of UMH, says that the abundance of cheap shale gas has improved the economic lives of people living in their trailer parks. He also said even though there’s less drilling, there’s more pipeline work going on and in those areas UMH’s trailer parks have strong demand. The future looks bright for UMH–thanks to hitching its wagon to the Marcellus/Utica…
Continue reading

Trailer Park Company Credits Marcellus/Utica for Record Profits

A company we’ve written about for the past few years is UMH Properties–a real estate company that keeps snapping up trailer parks in the Marcellus/Utica region (see our UMH Properties stories here). UMH is a public company with shares of stock. Therefore, it files quarterly and annual reports, and hosts analyst conference calls. MDN picked through the latest from UMH to find some interesting quotes. In essence, UMH still loves the Marcellus/Utica and will continue to look for new acquisitions in our neck of the woods. The company made $14 million last year (in the black). So you see, not everyone in the Marcellus/Utica is going through tough times. Here’s a few select quotes from the annual report and from the UMH earnings phone call with analysts…
Continue reading

Extra Couple $ Million? Buy a Trailer Park in the Marcellus/Utica

From time to time MDN highlights the investments made by the publicly traded company UMH Properties, a New Jersey-based real estate investment company that buys up trailer parks (see our list of stories here). They’ve paid millions of dollars to buy trailer parks in the northeast. Why? Because those parks are located in the Marcellus/Utica Shale region. That is their stated reason. UMH says in their quarterly earnings call with investors and analysts that the Marcellus and Utica continue to drive their development decisions. We don’t know why, but we find this fascinating. Here are excerpts from the UMH conference call with analysts last week…
Continue reading

Another Marcellus-Area Trailer Park Sold – For $3.5M

Seems like every now and again UMH Properties, a New Jersey-based real estate investment company, snaps up yet another trailer park. The company has added a number of them in Pennsylvania (see More Housing for Marcellus/Utica on the Way in Pittsburgh Region; Quirky Friday: What’s the Main Selling Point of Erie, PA Trailer Park?; and UMH Pays $5.3M for 2 Trailer Parks in W PA for Marcellus/Utica). UMH buys these properties specifically because they are located in active Marcellus/Utica drilling areas. Until now, all of the properties they’ve purchased close to shale activity have been located in western PA. UMH has just purchased another trailer park for $3.5 million–this one in northeastern PA…
Continue reading

Quirky Friday: What’s the Main Selling Point of Erie, PA Trailer Park?

It’s Friday and sometimes the impending weekend puts us in a quirky mood. And then we notice something that strikes us as quirky or interesting–and we pass it along. Such is the case with this story. UMH Properties, Inc. is a real estate investment trust (REIT) that owns and operates manufactured home communities in seven states throughout the northeast–trailer parks and modular home communities. UMH issued a press release yesterday to crow about buying yet another trailer park in Erie, PA for $3.8 million. Stick with us, there is a point. The main advantage/reason that UMH purchased this particular trailer park to add to their growing portfolio? It’s located in the Marcellus/Utica region, and because it’s located in prime shale country, they figure occupancy rates will remain high…
Continue reading

More Housing for Marcellus/Utica on the Way in Pittsburgh Region

A New Jersey-based real estate investment company, UMH Properties, Inc., announced yesterday they’ve purchased four manufactured home communities in the Pittsburgh, PA area for $12.2 million. The reason? To expand in the Marcellus/Utica region. The company plans to build homes for sale and for rent to those who work in the Marcellus and Utica Shale…
Continue reading

Energy Stories of Interest: Mon, May 6, 2019

MARCELLUS/UTICA REGION: Southwestern Energy helps restore West Virginia’s Cheat River; PA Auditor General DePasquale to hold May 13 climate hearing at Widener University; Pennsylvania youth join global student strike to demand action on climate change; ODNR issues 10 permits in Utica Shale; OTHER U.S. REGIONS: Piedmont Natural Gas picks builder for North Carolina LNG facility; Energy Transfer, Shell issue EPC invite for Lake Charles LNG project; NATIONAL: ‘I believe in suing everybody:’ Activists double down on climate litigation; The number of drilled but uncompleted wells in the United States continues to climb; Top 20 oil companies improved cash flow by $34 billion; Only six TSA staffers are overseeing US oil & gas pipeline security; INTERNATIONAL: Occidental inks $8.8 billion deal to sell Anadarko’s African oil and gas assets to Total; OPEC is ‘likely to collapse,’ warns Iran’s oil minister.
Continue reading

Magnum Hunter Emerges from Bankruptcy with CEO Gary Evans Gone

Gary Evans
Gary Evans

UPDATE 5/11/16 – See additional details below from SNL.

Magnum Hunter Resources Corporation (MHR), a driller focused almost entirely on the Marcellus/Utica, announced yesterday the company has emerged from bankruptcy–less than five months after filing (see Sad Day: Magnum Hunter Files for Chapter 11 Bankruptcy). We suppose we should have seen this coming, but we were nonetheless surprised to read that MHR CEO Gary Evans is gone from the company. Currently two of Evans’ lieutenants will serve as co-CEOs while the new board of directors looks for a permanent replacement for Evans. Interestingly (to us), Evans’ name isn’t even mentioned in the press release–as if he never existed. That’s cold. MHR achieved their restructuring by converting what was $1 billion worth of debt into shares of stock, thereby screwing the old shareholders in favor of debtholders (see Magnum Hunter Investors Burned in Bankruptcy Restructuring Plan). Just wave the magic wand and turn debt into equity. Quite a feat. Here’s the announcement from the new bosses (i.e. the new board)…
Continue reading

Dela. Court Approves Magnum Hunter Bankruptcy Restructuring Plan

mhrThe long, slow process of “reorganizing” and emerging from bankruptcy just sped up for Magnum Hunter Resources (MHR). The Marcellus/Utica driller filed for bankruptcy protection in December (see Sad Day: Magnum Hunter Files for Chapter 11 Bankruptcy). Two weeks later the Delaware court, where MHR filed, approved MHR’s initial plan (see Court Approves Magnum Hunter’s “First Day” Bankruptcy Motions). Now, four months later, that same court has given its full approval for the restructuring plan. What is the plan? Essentially MHR will convert outstanding debt held by lenders in a series of “notes” or what we call IOUs, into ownership equity. Noteholders will not be reimbursed the money they invested–instead they will be given shares of stock that they can later cash in to recoup their investments. What about existing common stockholders? MHR doesn’t say, but going by our story yesterday about Seventy Seven Energy’s plans to do the same thing, the value of common stockholders’ shares become essentially worthless (see Seventy Seven Energy Filing for Bankruptcy, Converting Debt into Stock). Here’s the MHR announcement about the court approving their plan…
Continue reading

Court Approves Magnum Hunter’s “First Day” Bankruptcy Motions

Two weeks ago MDN brought you the sad news that Marcellus/Utica driller Magnum Hunter Resources (MHR) has filed for Chapter 11 bankruptcy protection (see Sad Day: Magnum Hunter Files for Chapter 11 Bankruptcy). A few days after filing, MHR reported (see below) that the courts have already approved all “first day” motions related to the bankruptcy. The upshot is this: the courts have approved MHR’s plans that allow the company to continue to make payroll, pay royalty payments to landowners, and continue to work on getting a $200 million bridge loan to keep it all going. Here’s the details…
Continue reading

Sad Day: Magnum Hunter Files for Chapter 11 Bankruptcy

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…
Continue reading