Exhibit 99.1
News Release |
| News Release |
Magnum Hunter Resources Announces Definitive Agreement to Sell
Certain Non-Core Assets Located in Divide County, North Dakota
Transaction Sales Price of $84.7 Million in Cash
Final Closing Scheduled for October 15, 2014
Houston, TX — (Marketwire) — October 9, 2014 — Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC; MHR.PRD; and MHR.PRE) (the “Company” or “Magnum Hunter”) announced today that Bakken Hunter, LLC, a wholly-owned subsidiary of the Company, has entered into a definitive agreement to sell certain non-core, non-operated working interests in specific oil and gas properties located in Divide County, North Dakota (the “Properties”) to an independent exploration and production company for a total sales price of $84.7 million in cash (before customary sales price adjustments). The purchaser has today made a $4.25 million purchase deposit for the benefit of Bakken Hunter, LLC. The effective date of the sale is August 1, 2014. The Properties to be sold currently account for approximately 720 BOE of average daily production, net to the ownership interest to be sold, and consist of a non-operated working interest in approximately 105,661 gross (12,500 net) leasehold acres.
The final sale is scheduled to close on October 15, 2014, and is subject to customary closing conditions.
Management Comments
Mr. Gary C. Evans, Chairman of the Board and Chief Executive Officer of Magnum Hunter, commented, “We are pleased to report the execution of a definitive agreement on another sale of non-core assets located in North Dakota, which, upon final closing next week, will bring our total divestitures completed this year to approximately $210 million. Our remaining portfolio of assets located in North Dakota consists of 151 gross producing wells covering approximately 159,916 gross (73,690 net) acres. Total net production to the Company from these remaining assets is currently approximately 2,577 BOE per day at present with another ~800 BOE per day anticipated to be put on production prior to year-end from this region.”
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 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, 2013, 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:
Cham King
AVP, Investor Relations
ir@magnumhunterresources.com
(832) 203-4560