October 31, 2014 - 3:06 PM EDT
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Magnum Hunter Resources: Vulnerable In The Face Of Lower Oil Prices.

Since I set out a month ago to examine the viability of some of the shale oil & gas producers in the face of declining oil prices, I covered Sanchez Energy (NYSE:SN), which is a company that is hardly able to cover its drilling costs. I also covered EOG (NYSE:EOG), which is one of the early shale producers and as a consequence was able to gain acreage in some of the best spots, and it shows in its results. EOG is able to achieve a net profit, unlike many other shale producers.

Continuing with my coverage of individual companies I chose Magnum Hunter Resources (NYSE:MHR). It was not a company I was previously familiar with. Now that I looked at it in detail, I have to say that it fits the general trend within the industry, with continued production growth acting as a cover for lack of a path towards actual profits. It is the need to keep this cover that is pushing the continued boom in shale oil & gas…

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Source: SeekingAlpha (October 31, 2014 - 3:06 PM EDT)

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