March 31, 2014 - 7:00 AM EDT
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Eureka Hunter Announces Closing of a New $117 Million Senior Secured Revolving Credit Facility

HOUSTON, TX--(Marketwired - Mar 31, 2014) - Eureka Hunter Pipeline, LLC ("Eureka Hunter"), a majority-owned subsidiary of Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (NYSE MKT: MHR.PRE) ("Magnum Hunter" or the "Company"), announced today that Eureka Hunter has closed on a new $117 million Senior Secured Revolving Credit Facility ("Revolving Credit Facility"). The aggregate commitment may be increased in the future to a principal amount of up to $150 million, subject to the consent of the lenders and the satisfaction of certain conditions. The Revolving Credit Facility is secured by a first lien on substantially all the assets of Eureka Hunter and its subsidiaries. The Revolving Credit Facility is non-recourse to Magnum Hunter.

The initial borrowings under the Revolving Credit Facility were used to pay in full the outstanding $50 million term loan. The primary purpose of the new Credit Facility is to finance future expansion activities related to Eureka Hunter's pipeline gathering system located in West Virginia and Ohio. Generally, borrowings under the Revolving Credit Facility will bear interest at LIBOR plus a margin ranging from 2.00% to 3.50% per annum. The Revolving Credit Facility has a maturity date of March 28, 2018. The Revolving Credit Facility contains other terms and conditions customary for financings of this type.

ABN AMRO Capital USA, LLC serves as "Sole Lead Arranger" and "Administrative Agent" under the Revolving Credit Facility, with CIT Bank serving as "Syndication Agent." Participating banks include Hillcrest Bank (a division of NBH Bank, N.A.), OneWest Bank, N.A. and Royal Bank of Canada.

Magnum Hunter Management Comments

Mr. Gary C. Evans, Chairman of the Board and Chief Executive Officer of Eureka Hunter, commented, "Our midstream assets have now been providing sufficient cash flow to support a traditional bank credit facility. With the lower cost of capital and greater financial flexibility offered under this new revolving credit facility, our ability to grow this asset without further significant capital contributions from the parent company has improved. Throughput volumes on Eureka Hunter continue to hit records. The system has been strategically built in one the most active regions in the country as a significant number of new wells are being drilled for both the Marcellus and Utica Shales."

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, Kentucky, 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 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.

Forward-Looking Statements

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, 2013, as amended, 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.

Cham King
AVP, Investor Relations
[email protected]

Source: Marketwired (March 31, 2014 - 7:00 AM EDT)

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