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Monday, May 2, 2016

Magnum Hunter CEO Ready to Ride Again After Bankruptcy as Investors Are Left Angry

From Reuters:
At first Magnum Hunter focused on oil fields in Texas and North Dakota, and then switched to bet big on the Utica and Marcellus gas fields in Ohio, West Virginia and Pennsylvania. 
But gas prices just like crude later went into a tailspin and by early 2015 Magnum Hunter halted virtually all drilling and fracking to preserve cash. 
Evans has reassured investors a solution to its cash woes was in sight, with the planned sale of its 45 percent stake in a pipeline company that carried Magnum Hunter's gas. 
Evans' frequent media appearances and unwavering optimism attracted many retail investors, but the deal never materialized as the energy rout worsened and spread to pipeline companies. 
Court records showed that many bought Magnum Hunter shares shortly after Evans told analysts on Aug. 7 the pipeline deal was just a week or so away, sending its shares 70 percent higher. Many of those shareholders wrote letters to the bankruptcy judge and used social media to vent their anger. 
“I thought it would be a good shot,” said Axel Pantin, a 49-year-old former banker from Delray Beach, Florida. “You are taking the word of the CEO." He said he invested around $200,000 in Magnum Hunter stock, most of it around early August.

What irked many was a 55-page presentation the company posted in October - just weeks before its Dec. 15 bankruptcy filing - that valued Magnum Hunter's assets at between $8.77 and $13.77 a share when the stock was trading for less than a $1.
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