Magnum Hunter Resources Announces Execution of Definitive Agreement to Sell Its Eagle Ford Shale Properties for $401 Million

Magnum Hunter Resources Announces Execution of Definitive Agreement to Sell Its 
Eagle Ford Shale Properties for $401 Million 
HOUSTON, TX -- (Marketwired) -- 04/03/13 --   Magnum Hunter Resources
Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (NYSE
MKT: MHR.PRE) (the "Company" or "Magnum Hunter"), today announced
that it has entered into a definitive agreement to sell all of its
ownership interests in the Company's Eagle Ford Shale oil and gas
properties in Gonzales and Lavaca Counties of South Texas to a
wholly-owned subsidiary of Penn Virginia Corporation (NYSE: PVA)
("Penn Virginia") for a total purchase price of $401 million. The
effective date of the sale will be January 1, 2013.  
The transaction has been structured as a sale by Magnum Hunter of its
100% stock ownership interest in a wholly-owned subsidiary, Eagle
Ford Hunter, Inc. Of the properties to be sold to Penn Virginia,
there exists approximately 19,000 net mineral acres in this entity
along with 49 producing wells, 7 wells drilled and in the completion
stage and 4 wells currently drilling. For the month of March 2013,
the average daily production for the properties was approximately
3,000 Boepd. The total consideration for this transaction will be
paid approximately 90% ($361 million) in cash and, at the option of
Penn Virginia, the remaining approximately 10% ($40 million) either
in cash or shares of common stock of Penn Virginia, valued at $4.00
per share. Upon closing, Magnum Hunter plans to use the net proceeds
from the transaction to reduce overall indebtedness, including
borrowings under its Revolving Credit Facility and for other general
corporate purposes. The transaction is expected to close in early to
mid-May 2013, and is subject to customary closing conditions and
purchase price adjustments. 
Following the consummation of this transaction, the Company will
continue to own approximately 7,000 net mineral acres located in
Fayette, Lee, and Atascosa Counties in South Texas. Magnum Hunter is
participating in a new horizontal Pearsall Shale well with Marathon
Oil Corporation that is currently drilling in Atascosa County. 
Management Comments 
Mr. Gary C. Evans, Chairman of the Board and Chief Executive Officer
of Magnum Hunter Resources
, commented, "The announcement of the sale
of this property today is 'bitter sweet' for our Management and
Board. Our Company's entry into the Eagle Ford Shale initially began
when we acquired Sharon Resources, Inc. back in September 2009 for
$2.35 million, which was an all-stock transaction that resulted in
5.6% dilution of the Company at that time. Since the acquisition of
Sharon, now known as Eagle Ford Hunter, the Company has deployed
approximately $263 million of new capital for development in the
Eagle Ford and has generated approximately $80 million of net cash
flow from this region as of the beginning of this year. Based on the
$401 million purchase price announced today and the net investment
to-date, this implies over a two times return on capital invested
over the past three years and an IRR in excess of 80%. We believe
this sale to Penn Virginia fits their existing asset base which is
located adjacent to these properties and future drilling plans in the
Eagle Ford Shale very well. It has always been our belief that as the
various shale plays mature, building scale is extremely important for
achieving long term economic value and that is what is being
accomplished today. We wish Penn Virginia success in this
transaction."  
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,
Kentucky, Ohio, Texas and North Dakota and Saskatchewan, Canada. The
Company is presently active in five of the most prolific
unconventional shale resource plays in North America, namely the
Marcellus Shale, Utica Shale, Eagle Ford Shale, Pearsall Shale and
Williston Basin/Bakken Shale.  
For more information, please view our website at
www.magnumhunterresources.com. 
Forward-Looking Statements 
The statements and information contained in this press release that
are not statements of historical fact, including any estimates and
assumptions contained herein, are "forward looking statements" as
defined in Section 27A of the Securities Act of 1933, as amended,
referred to as the Securities Act, and Section 21E of the Securities
Exchange Act of 1934, as amended, referred to as the Exchange Act.
These forward-looking statements include, among others, statements,
estimates and assumptions relating to our business and growth
strategies, our oil and gas reserve estimates, our ability to
successfully and economically explore for and develop oil and gas
resources, our exploration and development prospects, future
inventories, projects and programs, expectations relating to
availability and costs of drilling rigs and field services,
anticipated trends in our business or industry, our future results of
operations, our liquidity and ability to finance our exploration and
development activities and our midstream activities, market
conditions in the oil and gas industry and the impact of
environmental and other governmental regulation. In addition, with
respect to any pending transactions described herein, forward-looking
statements include, but are not limited to, statements regarding the
expected timing of the completion of proposed transactions; the
ability to complete proposed transactions considering various closing
conditions; the benefits of any such transactions and their impact on
the Company's business; and any statements of assumptions underlying
any of the foregoing. In addition, if and when any proposed
transaction is consummated, there will be risks and uncertainties
related to the Company's ability to successfully integrate the
operations and employees of the Company and the acquired business.
Forward-looking statements generally can be identified by the use of
forward-looking terminology such as "may," "will," "could," "should,"
"expect," "intend," "estimate," "anticipate," "believe," "project,"
"pursue," "plan" or "continue" or the negative thereof or variations
thereon or similar terminology. 
These forward-looking statements are subject to numerous assumptions,
risks, and uncertainties. Factors that may cause our actual results,
performance, or achievements to be materially different from those
anticipated in forward-looking statements include, among others, the
following: adverse economic conditions in the United States, Canada
and globally; difficult and adverse conditions in the domestic and
global capital and credit markets; changes in domestic and global
demand for oil and natural gas; volatility in the prices we receive
for our oil, natural gas and natural gas liquids; the effects of
government regulation, permitting and other legal requirements;
future developments with respect to the quality of our properties,
including, among other things, the existence of reserves in economic
quantities; uncertainties about the estimates of our oil and natural
gas reserves; our ability to increase our production and therefore
our oil and natural gas income through exploration and development;
our ability to successfully apply horizontal drilling techniques; the
effects of increased federal and state regulation, including
regulation of the e
nvironmental aspects, of hydraulic fracturing; the
number of well locations to be drilled, the cost to drill and the
time frame within which they will be drilled; drilling and operating
risks; the availability of equipment, such as drilling rigs and
transportation pipelines; changes in our drilling plans and related
budgets; regulatory, environmental and land management issues, and
demand for gas gathering services, relating to our midstream
operations; and the adequacy of our capital resources and liquidity
including, but not limited to, access to additional borrowing
capacity. 
These factors are in addition to the risks described in the "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" sections of the Company's 2011
annual report on Form 10-K, as amended, filed with the Securities and
Exchange Commission, which we refer to as the SEC. Most of these
factors are difficult to anticipate and beyond our control. Because
forward-looking statements are subject to risks and uncertainties,
actual results may differ materially from those expressed or implied
by such statements. You are cautioned not to place undue reliance on
forward-looking statements contained herein, which speak only as of
the date of this document. Other unknown or unpredictable factors may
cause actual results to differ materially from those projected by the
forward-looking statements. Unless otherwise required by law, we
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. We urge readers to review and consider
disclosures we make in our reports that discuss factors germane to
our business. See in particular our reports on Forms 10-K, 10-Q and
8-K subsequently filed from time to time with the SEC. All
forward-looking statements attributable to us are expressly qualified
in their entirety by these cautionary statements. 
Contact:
Investor Relations
ir@magnumhunterresources.com
(832) 203-4539 
 
 
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