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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (188264)	1/21/2015 8:41:09 PM
From: E_K_S	2 Recommendations Recommended By CommanderCricket Paul Smith Read Replies (3) \| Respond to of 206326

Re: MHR Midstream Asset I think they are only at 60% of capacity if at that. This asset is worth much more to Antero Resources Corporation (AR) as they own much of the acreage adjacent to MHR's parcels. However, it looks like MHR poison pill is still in-place so I see no possible Buy out w/o the consent of MHR's Board and/or Evans. .Section 203 of the Delaware General Corporation Law provides that a stockholder acquiring more than 15% of the outstanding voting shares of the corporation (an "Interested Stockholder") but less than 85% of such shares may not engage in certain Business Combinations with the corporation for a period of three years subsequent to the date on which the stockholder became an Interested Stockholder unless prior to such date, the board of directors of the corporation approves either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder or the business combination is approved by the board of directors and by the affirmative vote of at least 66 2/3% of the outstanding voting stock that is not owned by the interested stockholder. The company has not opted out of this provision - See more at: alacrastore.com At best current valuations may cover the outstanding debt obligations (I have not done the calculations but just their senior debt is $600mln), preferreds (C+D+E) maybe another $400Mln and credit revolver $$245Mn. It looks like the company has the liquidity to make all debt payments for 2015 but I am not sure drilling Capx can be maintained even on a limited schedule but this is what they need to build out the capacity in their Midstream asset. A possible 'exit' plan would be a merger/acquisition by AR but Evans will not do it at $3.00/share and w/ that poison pill in place, the only other plan is to just hang on until NG prices recover to the mean around $4.50/MMBtu. (Disclosure, long the common, MHRpC's and MHRpD's w/ total exposure about 2% of the portfolio. Avg cost still quite good at about 10% higher than current prices) EKS