Magnum Hunter (MHR) Up on Record Production, Short Interest Decline
Shares of Magnum Hunter Resources Corp. (MHR) were up +0.99 or +18.13 percent to $6.45 per share in Thursday's premarket, after the company announced record production results for its newest well in the Utica shale of West Virginia. In addition, the company's stock saw a large drop in short interest in August. Magnum Hunter Resources closed $5.46, up +0.06 or +1.11 percent in Wednesday's regular trading session.
Magnum Hunter announced late yesterday record production results for its latest well in West Virginia's Utica shale. Throughput volumes for the company's Eureka Hunter gas gathering pipeline system in Ohio and West Virginia increased to about 316,500 MMBtu per day. The company's wholly owned subsidiary, Triad Hunter, LLC is producing about 35 percent of volumes flowing through the Eureka Hunter Pipeline System. Magnum Hunter is expecting a flow of approximately 400,000 MMBtu per day of natural gas throughput volumes by the end of the year.
Chris Akers, Chief Operating Officer of Eureka Hunter Pipeline, LLC, said in a press release that, "Our commitment to our customers through quality service and increased capacity has resulted in a record day of approximately 316,500 MMBtu of natural gas per day. The Eureka Hunter Pipeline presently covers over 105 miles of both 20" and 16" pipe. We have three to four construction crews working at any given time supporting our aggressive expansion efforts. We are well positioned for continued significant growth throughout the Utica and Marcellus regions of West Virginia and Ohio.
In addition to the pipeline news, Magnum Hunter Resources Corp. stock saw a large decline in short interest in August. From August 15th to August 29th, the shares short interest dropped from 28,093,020 short shares to 26,036,310 short shares, a decline of -7.3%. The company's short interest is currently 13.8 percent of total shares based on daily volume figures of 3,249,495 shares. The short interest ratio is currently 8.0 days.
Magnum Hunter stock is currently trading on the low end of its yearly range, which saw the company make a high of $9.27 per share and a low of $5.19 per share. With the news of its record production and decline in short interest just released, as well as some brokerages' buy recommendations, the stock could test its yearly highs in the not too distant future.
Other News About Magnum Hunter
Magnum Hunter planning more 'stacked pay' drilling from same well pad
Company expects to have 5 wells in production by the end of the year.
Morgan Stanley Arm Acquires Stakes in Gas Pipeline Company
Morgan Stanley Infrastructure to buy co-control ownership of Eureka Hunter Holdings LLC.
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