Magnum Hunter About to Close 2 Deals Worth $1 Billion Cash
Last Friday Magnum Hunter Resources CEO Gary Evans along with other top MHR executives held a quarterly earnings call. On that call we learned some very important information. According to Evans, MHR is very close to raking in around $1 billion in cash from two initiatives: a joint venture on their Utica Shale acreage, and the sale of MHR’s ownership in their midstream subsidiary Eureka Hunter. Here is what Evans said about the two initiatives, their timing, and potential partners/buyers…
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On Friday Baker Hughes, which is being forced into a merger with Halliburton by the end of this year/early next year, issued a summary of rig counts last Friday. At first blush it appears to be good news, but when you dig under the surface, it’s not–at least for the Marcellus/Utica. The international rig count was 1,118, down 28 from the 1,146 counted in June 2015. However, the average U.S. rig count for July 2015 was 866, up 5 from the 861 counted in June 2015. It appears we’ve turned the corner on how low rig counts will go–we’ve bottomed and are either holding steady (in the U.S.), or perhaps every so slightly gaining ground again. But then we ran the numbers for the Marcellus/Utica and found rig counts continue to decline month over month…
Some more details about the brilliant move by some average farmers in Tioga County, NY who plan to use propane to frack a Utica Shale well, bypassing the existing ban on fracking in New York because the existing ban only disallows high volume water-based fracking…