Saturday, September 12, 2015

Does Magnum Hunter Resources Have a Winning Bid - or Not?

Management of Magnum Hunter Resources ($0.67) said on the August 5 earnings call that a decision on the Eureka Hunter pipeline asset sale was "imminent."

Direct quote: "We've gotten three more bids now – or three total bids. We're expecting more over the weekend and this week. And so we will pick a horse probably by the end of the next week or at the latest the beginning of the following."

It's now September and no deal has been announced -- and the stock price continues to hit new lows. Whom should investors believe - Gary Evans, the CEO of this struggling Marcellus/Utica NG driller or selling shareholders?  At present, a sagging share price suggests "no deal."

Gary Evans, "come on down" and prove to Wall Street you do have a winning bid for your showcase.

... And on a related note: According to a recent SEC filing, as MHR struggles to maintain solvency it hands over the keys to a company-owned residence in Marietta, Ohio to employee, Jim Denny, a former MHR executive at Triad Hunter, an Appalachian subsidiary,

Editor David J Phillips holds a financial interest in the stock mentioned in this article. The 10Q Detective has a Full Disclosure Policy. 

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