A press release from Magnum Hunter Resources:
Suspends Monthly Preferred Dividend Payments
IRVING, TX--(Marketwired - Oct 9, 2015) - Magnum Hunter Resources Corporation (
NYSE: MHR) ( NYSE MKT: MHR.PRC) ( NYSE MKT: MHR.PRD) ( NYSE MKT: MHR.PRE) (the "Company" or "Magnum Hunter") announced today that it has hired PJT Partners LP ( NYSE: PJT) (the combination of Blackstone's advisory businesses and PJT Capital LP, a global financial advisory firm founded by Paul J. Taubman), as financial advisor, and Kirkland & Ellis LLP, as special legal advisor, to advise management and the Company's Board of Directors regarding potential strategic alternatives to enhance liquidity and address the Company's current capital structure. As previously disclosed, the Company has actively worked to manage its balance sheet, including potential consummation of certain asset sales. With the addition of these advisors, the Company will continue to develop and explore all potential strategic alternatives.
To preserve liquidity as the Company considers these strategic alternatives, the Board of Directors of the Company has suspended the monthly dividends on its 10.25% Series C Cumulative Perpetual Preferred Stock ("Series C Preferred Stock"), 8.0% Series D Cumulative Preferred Stock ("Series D Preferred Stock") and 8.0% Series E Cumulative Convertible Preferred Stock ("Series E Preferred Stock"). This suspension commences with the monthly cash dividend that would otherwise have been declared and paid for the month ending October 31, 2015 and will continue indefinitely. The outstanding shares of Series E Preferred Stock are represented by depositary shares (the "Depositary Shares"), each representing a 1/1,000th interest of a share of Series E Preferred Stock. Under the terms of the Series C, Series D and Series E Preferred Stock, any unpaid dividends, including the unpaid dividends for the month ending October 31, 2015 and any future unpaid dividends, will accumulate.
The Series C Preferred Stock is currently listed on the NYSE MKT and trades under the ticker symbol "MHR.PRC". The Series D Preferred Stock is currently listed on the NYSE MKT and trades under the ticker symbol "MHR.PRD". The Depositary Shares are currently listed on the NYSE MKT and trade under the ticker symbol "MHR.PRE".
The suspension of the monthly dividends does not affect the listing on the NYSE MKT of the Company's Series C and Series D Preferred Stock and the Depositary Shares, and each such series of preferred stock and the Depositary Shares will continue to be listed and traded on the NYSE MKT, subject to the Company's continued compliance with the NYSE MKT's listing standards. The suspension of monthly dividends also does not conflict with the Company's revolving credit facility or other debt agreements.
About Magnum Hunter Resources Corporation
Magnum Hunter Resources Corporation and subsidiaries are an Irving, Texas based independent exploration and production company engaged in the acquisition, development and production of natural gas, natural gas liquids and crude oil, primarily in the States of West Virginia and Ohio. The Company is presently active in two of the most prolific unconventional shale resource plays in North America, the Marcellus Shale and Utica Shale located in Northwest West Virginia and Southeast Ohio.
Availability of Information on the Company's Website
Magnum Hunter is providing a reminder that it makes available on its website (atwww.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.
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, 2014, 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.
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