Magnum Hunter’s #1 Stockholder Continues to Divest
Last month MDN told you about one of Magnum Hunter Resources’ (MHR) major investors dumping 6.3 million shares of MHR stock (see Magnum Hunter Investor Dumps 6.3 Million Shares of MHR Stock). We have new information and a much better understanding about that investor–Relational Investors. Relational is the hedge fund for a “kinder, gentler” corporate raider by the name of Ralph Witworth. In June Witworth and Relational owned 27.5 million shares of MHR stock. Today? 17.7 million shares–a 36% reduction in the past month. According to reports, Relational is not done yet. Relational is on the way to divesting ALL of their MHR stock holdings. But that’s not as ominous as it sounds. The reason Relational is divesting all MHR stock is because they are divesting all of their holdings in all stocks. Witworth has health issues (throat cancer) and Relational is divesting so it can relaunch under new management and, presumably, re-buy stocks in many of the positions they previously held. Will that include a re-purchase of MHR stock? Who knows. One thing is for sure, as we noted in our previous story in June, Relational is taking a bath by selling MHR at these super low prices. Another observation: with this much MHR stock coming on the market, prices for the stock will likely remain low for the foreseeable future…
Read More “Magnum Hunter’s #1 Stockholder Continues to Divest”
While all eyes have been on the possible hostile takeover of midstream giant Williams by another midstream giant, Energy Transfer Equity (see 
There was a rupture of a gas pipeline at a Jay-Bee Oil and Gas drill pad in the Big Run area of Tyler County, WV early Friday morning. There was no explosion, and no one was injured–but there was a fire and the fire could be seen for miles in the dark early morning. The fire from the ruptured pipe (cause still being investigated) burned for an hour before it was extinguished. The wells on the pad are currently shut-in while the WV Dept. of Environmental Protection investigates. This is not the first Jay-Bee accident in the Big Run area…
Coal company Alpha Natural Resources is expanding their operation in the Marcellus Shale natural gas business. Yesterday Alpha announced its wholly-owned subsidiary, Pennsylvania Services Corporation (PSC), has purchased back a 50% interest in its natural gas exploration and production joint venture, Pennsylvania Land Resources Holding Company (PLR) from joint venture partner EDF Trading Resources (EDFTR) for $126 million. Alpha’s PSC subsidiary now becomes the the sole owner and operator of the PLR joint venture (which is no longer joint). Lots of acronyms of subsidiaries owning subsidiaries! Bottom line: Alpha can now control and expand a highly economic natural gas development program with 25,000+ net acres AND associated infrastructure–in the Marcellus Shale. Alpha’s EVP Brian Sullivan says they plan to begin drilling in their Marcellus acreage position (in Greene County, PA) in the next 30 days…
Time, once again, to haul out the tea leaves to see if there’s anything we can divine from an announcement yesterday by Shell that they’ve made a “final investment decision” (or FID) to move forward with a multi-billion dollar project to build a new deep-water offshore drilling platform in the Gulf of Mexico. What in the world does that have to do with the Marcellus/Utica? Good question! Let us read the tea leaves and connect some dots for you…
Yesterday Gastar Exploration announced production rates for their second Utica well–drilled in Marshall County, WV. The Blake U-7H well production initially spiked at a high of 36.8 million cubic feet per day (MMcf/d) early in its first 30 days of being online. The overall average production rate during the first 30 days of going online was 20.2 MMcf/d. Following the first 30 days, the average production over the most recent 5 days was 14.8 MMcf/d. Which kind of gives you an idea of just how quickly well production tappers off…