Magnum Hunter Resources Announces 2014 Capital Expenditure Budget of $400 Million
December 12 2013 - 7:00AM
Marketwired
Magnum Hunter Resources Announces 2014 Capital Expenditure Budget
of $400 Million
HOUSTON, TX--(Marketwired - Dec 12, 2013) - Magnum Hunter
Resources Corporation (NYSE: MHR) (NYSEMKT: MHR.PRC) (NYSEMKT:
MHR.PRD) (NYSEMKT: MHR.PRE) ("Magnum Hunter" or the "Company")
announced today that its Board of Directors has approved a $400
million capital expenditure budget for fiscal year 2014, excluding
acquisitions. The Company intends to allocate approximately
$260 million in the Utica Shale and Marcellus Shale plays,
approximately $50 million in the Williston Basin and approximately
$90 million for midstream activities at Eureka Hunter Pipeline
("Eureka Hunter"). The contemplated capital budget includes the
acquisition of mineral leases in both the Utica Shale and Marcellus
Shale plays. This Appalachian-focused capital program is expected
to further drive the Company's production volumes and enable it to
achieve its 2014 projected exit production rate of 35,000
BOEPD.
The 2014 capital budget of $400 million is expected to be funded
from a combination of internally-generated cash flow, borrowings
under the Company's existing senior secured credit facility, a new
Eureka Hunter senior secured credit facility in the process of
negotiation, and proceeds from non-core asset sales of
approximately $200 - $400 million. The Company's drilling capital
in 2014 will be primarily concentrated on the delineation and
development of its combined 180,000 net mineral acres located in
the Utica and Marcellus Shale plays of Ohio and West Virginia.
Specifically, the Company' development plan will be to further
delineate its acreage position located in Monroe, Noble, and
Washington Counties, Ohio and in Tyler and Richie Counties, West
Virginia. Magnum Hunter expects to operate two to three drilling
rigs in Appalachia during 2014, and anticipates drilling
approximately 23-25 gross horizontal wells. The Company also
expects to participate predominantly as a non-operated partner in
the Williston Basin and drill approximately 15-20 gross wells
located primarily in the Ambrose Field in Divide County, North
Dakota.
Management Comments
Mr. Gary C. Evans, Chairman of the Board and Chief Executive
Officer of Magnum Hunter, commented, "Our ability to grow both
production and reserves at the highest internal rate of return
within our existing asset base, undoubtedly lies in our acreage
position located in the Utica and Marcellus Shale resource plays.
Therefore, this region will be allocated the largest portion of our
2014 capital expenditure budget. Also, due to our majority
ownership position in our midstream subsidiary, Eureka Hunter, we
anticipate additional benefit from the new production volumes that
will be gathered on behalf of our Company owned gas, as well as
third party volumes gathered by this system in both West Virginia
and Ohio."
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 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.
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, 2012 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.
Contact: Chris Benton AVP, Finance and Capital Markets
ir@magnumhunterresources.com 832-203-4539