Those should keep creeping up each quarter following the drilling and production news. No one mentions it, but I don't think MHR has had a dry hole anywhere in a long while, not bad as far as execution goes.
That was one of the reasons I sold my PBR and moved those monies to Canada in SU and COSWF. Canada is not w/o their currency problems especially if the $US gets stronger. They recently issued "Yankee Bonds" that were financed in $CAN but must be payed back in $US. If their currency falls in value to the $US, they could be screwed too.
Maybe when the dust settles, holding those U.S. domestic shale oil companies might be the net beneficiaries of all the QE in US & Europe.
"...Magnum Hunter ( MHR) reported fourth quarter earnings. Expectations were high as its earlier production update was much better than expected. Operations saw production increase in the Bakken, Eagle Ford and Marcellus. These numbers started a run in this stock, as investors believed Magnum would beat earnings. It reported revenues of $49.1 million with a loss of 5 cents/share. Estimates were for revenues of $45.99 million and a loss of 4 cents/share. Magnum missed on the bottom line but beat on the top line. The stock was down 7% on the news. This pullback was a bit extreme but considering the stock is up $1.50/share since January 26, it may be taking a short breather. Magnum's fourth quarter net loss widened to 46 cents/share.
This company has made some significant asset purchases in a short period of time. Because of this, as with any quick expansion, Magnum is having some growing pains. Non-cash and non-recurring charges were:
Impairment of proved of oil and gas properties of 17 cents/share.
Unrealized loss of derivatives of 16 cents/share
Non-cash compensation expense of 5 cents/share
acquisition related non-cash, non-recurring expense of 3 cents/share.
I would be careful with this company as it has gas dominated production. Magnum stated it will not be developing many of its natural gas liquids dominated projects until mid-2012. This is a bit worrisome as Magnum needs to increase liquids production significantly in a very short time. In the last three months of 2011 it had an average sales price of $48.50 Boe. In summary, I believe Magnum has a bright future if it executes based on short term increases in liquids production.