Magnum Hunter Resources Announces Increase in Borrowing Base Under Revolving Credit Facility
HOUSTON, TX--(Marketwired - May 7, 2014) - Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (NYSE MKT: MHR.PRE) (the "Company" or "Magnum Hunter") announced today that the lenders under its Senior Revolving Credit Facility ("Credit Facility") completed their regular semi-annual redetermination of the Company's borrowing base under the Credit Facility, resulting in an increase to the borrowing base from $232.5 million to $325.0 million, or an increase of $92.5 million. The Credit Facility is governed by a semi-annual borrowing base redetermination derived from the Company's proved crude oil and natural gas reserves. The Company was successful at increasing the borrowing base notwithstanding several previously reported non-core asset divestitures made by the Company in late 2013 and earlier this year. In addition, the lenders have increased the Company's letter of credit sublimit under the Credit Facility from $10 million to $50 million, and made certain other modifications to the terms of the Credit Facility, including modifications to the financial ratio requirements under the Credit Facility that will provide the Company greater financial flexibility regarding its ongoing operations.
The next redetermination of the borrowing base is scheduled for November 1, 2014. Based on such redeterminations, the borrowing base may be decreased or increased up to a maximum commitment level of $750 million. The terms of the Credit Facility also include provisions that automatically reduce the borrowing base by certain specified amounts from additional non-core divestitures anticipated by the Company as well as for the proceeds of certain issuances of equity.
The foregoing summary description of the modifications to the Credit Facility does not purport to be complete and is qualified in its entirety by reference to the terms of the related amendment to the Credit Facility, a copy of which amendment will be filed by the Company with the Securities and Exchange Commission as part of a periodic report filed in accordance with the rules of the Securities and Exchange Commission.
Magnum Hunter Management Comments
Mr. Gary C. Evans, Chairman of the Board and Chief Executive Officer of Magnum Hunter, commented, "We have a strong group of senior commercial banks who have agreed to provide us additional credit support necessary to fund our drilling activities in our various resource plays as well as our midstream subsidiary. Like management, they too see the significant production growth being added to the Company's existing production base this year. At the same time, we have been strategically selling certain non-core assets that are generating returns below our minimum thresholds in order that we can better concentrate on our core."
About Magnum Hunter Resources Corporation
Magnum Hunter Resources Corporation and subsidiaries are a Houston, Texas-based independent exploration and production company engaged in the acquisition, development and production of crude oil, natural gas and natural gas liquids, primarily in the States of West Virginia, Ohio, and North Dakota. The Company is presently active in three of the most prolific unconventional shale resource plays in North America, namely the Marcellus Shale, Utica Shale, and Williston Basin/Bakken Shale.
Availability of Information on the Company's Website
Magnum Hunter is providing a reminder that it makes available on its website (at www.magnumhunterresources.com) a variety of information for investors, analysts and the media, including the following:
- annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports as soon as reasonably practicable after the material is electronically filed with or furnished to the Securities and Exchange Commission;
- the most recent version of the Company's Investor Presentation slide deck;
- announcements of conference calls, webcasts, investor conferences, speeches and other events at which Company executives may discuss the Company and its business and archives or transcripts of such events;
- press releases regarding annual and quarterly earnings, operational developments, legal developments and other matters; and
- corporate governance information, including the Company's corporate governance guidelines, committee charters, code of conduct and other governance-related matters.
Magnum Hunter's goal is to maintain its website as the authoritative portal through which visitors can easily access current information about the Company. Over time, the Company intends for its website to become a primary channel for public dissemination of important information about the Company. Investors, analysts, media and other interested persons are encouraged to visit the Company's website frequently.
Certain information included on the Company's website constitutes forward-looking statements and is subject to the qualifications under the heading "Forward-Looking Statements" below and in the Company's Investor Presentation slide deck.
This press release includes "forward-looking statements." All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. Although Magnum Hunter believes that the expectations reflected in the forward-looking statements are reasonable, Magnum Hunter can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings made by Magnum Hunter with the Securities and Exchange Commission . Among the factors that could cause results to differ materially are those risks discussed in the periodic reports filed by Magnum Hunter with the Securities and Exchange Commission, including Magnum Hunter's Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and its Quarterly Reports on Form 10-Q for the fiscal quarters ended after such fiscal year. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading "Risk Factors." Forward-looking statements speak only as of the date of the document in which they are contained, and Magnum Hunter does not undertake any duty to update any forward-looking statements except as may be required by law.
Source: Marketwired (Canada)
(May 7, 2014 - 7:00 AM EDT)
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