Most energy companies provide investors with a reserve report at the end of each year. But Magnum Hunter Resources (NYSE: MHR ) isn't like most energy companies, which is why its investors are getting a midyear reserve report this year as well. It's a report that shows one thing, Magnum Hunter Resources is beginning to prove that there is real value in its Utica Shale position.
Drilling down into the report
Magnum Hunter Resources' midyear report shows that the company's proved reserves grew to 79.8 million barrels of oil equivalent or BOE. That represents an addition of 7.7 million BOE or a 10.7% increase in the company's proved oil and gas reserves. Further, this increase represents a tangible increase in the company's value. The PV-10 value of the company's reserves now stands at $916.3 million. That's $84.9 million higher than the company's year-end reserves or an increase of 10.2%.
There are two important factors that affected the change in reserves. The company sold oil and gas properties in both Texas and Canada, which had a negative impact on these reserves. But the impact of those divestments was more than offset by additions from the company's Marcellus and Utica Shale operations.You can click here to read the whole article.
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