The Conversation (0)
Magnum Hunter Resources Corporation (NYSE:MHR, NYSE:MHR.PRC, NYSE:MHR.PRD, NYSE:MHR.PRE) announced that they have sold their interests in the Eagle Ford Shale properties in South Texas for $401 million.
Magnum Hunter Resources Corporation (NYSE:MHR, NYSE:MHR.PRC, NYSE:MHR.PRD, NYSE:MHR.PRE) announced that they have sold their interests in the Eagle Ford Shale properties in South Texas for $401 million.
As quoted in the press release:
The Company intends to use the net proceeds from the sale to completely pay-off all outstanding borrowings under its Senior Revolving Credit Facility and for general corporate purposes. As a result of the sale, the Company’s borrowing base under its Senior Revolving Credit Facility has now been reduced from $350 million to $265 million, a decrease of approximately 24%. With this closing today, the Company will have $375 million of cash liquidity available. As previously disclosed, the Company intends to allocate its $300 million upstream capital expenditure budget for calendar 2013 evenly between its Williston and Appalachian Basin Divisions, a large portion of which will be funded from existing cash flow.
Magnum Hunter’s Chairman and CEO, Gary Evans, said:
We are very pleased with this first step in our monetization plan that we were successful in closing ahead of schedule today. We are working to ensure that all of our assets are being utilized in the best possible way to enhance shareholder value. Magnum Hunter has an impressive portfolio of remaining assets and a strong management and technical team in place to make informed decisions regarding proper capital allocation for future growth.
To view the whole press release, click here.Â
