Magnum Hunter Resources Reports Fourth Quarter and Full Year 2013 Financial and Operating Results
finance.yahoo.com
Mr. Gary C. Evans, Chairman of the Board and Chief Executive Officer of Magnum Hunter, commented, "Calendar year 2013 was a pivotal year for Magnum Hunter. We made the decision to sell our Eagle Ford assets, producing approximately 3,000 barrels of oil equivalent per day, for a contracted price of $401 million and redeploy those proceeds to our two remaining core areas, Appalachia and the Williston Basin. Revenues were still up over 72% and EBITDAX increased 48%. We drilled 21 gross wells (12.5 net) in the Marcellus and Utica resource plays and drilled 72 gross (24.6 net) in the Bakken and Three Forks Sanish plays of the Williston Basin. All 93 gross wells were deemed commercially successful. We also completed 23 miles of new pipeline in our midstream division, Eureka Hunter, where throughput increased 390%. Our lease acreage position has grown to 957,953 gross acres and 642,643 net acres, most of which is held by existing production which give us a tremendous amount of future inventory. In 2014, we will continue our divestiture efforts with respect to non-core assets which could bring in approximately $400 million of proceeds, an amount much greater than our current capital expenditure funding gap. The high grading of our portfolio is being reflected in our proved reserve additions, higher EUR's per well and higher production rates on new drills. Management's goal will be to continue improving our internal rates of return on every single dollar deployed and drill predominately in the core areas of the shale plays where we operate." |
