IRVING, TX--(Marketwired - Jun 19, 2015) - 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 it has received an extension from the Company's existing lending group under its senior secured revolving credit facility with respect to the Company's previously disclosed minimum capital raising obligation. The timeline for satisfying the capital raising obligation has now been extended from June 19, 2015 to July 10, 2015. The capital raising obligation, which requires the Company to raise $65 million of aggregate net cash proceeds from certain specified transactions, arose pursuant to a previous amendment to the Company's senior secured revolving credit facility.
Yesterday, Magnum Hunter announced that Triad Hunter, LLC, a wholly owned subsidiary of the Company, had closed on the previously announced definitive agreement to sell certain non-core undeveloped and unproven leasehold acreage located in Tyler County, West Virginia. At that closing, the Company received consideration of approximately $33.6 million in cash. The ultimate consideration to be received is subject to post-closing adjustments for any title defects and for remediation of asserted title defects, which adjustments are anticipated to increase the ultimate cash sales price to $35.0 to $40.0 million on or before July 15, 2015. Additionally, Magnum Hunter has already completed approximately $22.0 million of other capital transactions. Therefore, to date, a total of $55.6 million has already been raised. Magnum Hunter continues to work on other potential liquidity enhancing transactions in order to satisfy these capital raising obligations and to increase the Company's overall liquidity position. The Company refers investors to its recent public filings with the Securities and Exchange Commission for a more complete description of these potential liquidity enhancing transactions that total in excess of $200 million.
About Magnum Hunter Resources Corporation
Magnum Hunter Resources Corporation and subsidiaries are a Dallas, 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 and Ohio. The Company is presently active in two of the most prolific unconventional shale resource plays in North America, the Marcellus Shale and Utica Shale located in Northwest West Virginia and Southeast Ohio.
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 (SEC). Among the factors that could cause results to differ materially are those risks discussed in the periodic reports filed by Magnum Hunter with the SEC, including Magnum Hunter's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, 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. Furthermore, as described in this press release, pursuant to an amendment to the Company's senior secured revolving credit facility, the Company is obligated to raise a specified amount of net cash proceeds from certain specified transactions by July 10, 2015. The failure by the Company to satisfy this capital raising obligation by the close of business on July 10, 2015, absent a further extension of this date, will constitute an event of default under the Company's senior secured credit facility. You are urged to review the Current Reports on Form 8-K filed by the Company with the SEC on April 20, 2015 and May 29, 2015 for a description of this capital raising obligation. No assurance can be given regarding whether the Company will be able to satisfy this obligation.
Source: Marketwired (Canada)
(June 19, 2015 - 7:30 AM EDT)
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