Magnum Hunter Resources Corp (MHR): This Company Cashes Out of the Eagle Ford

The bottom line here is that this deal gives Magnum Hunter a little more financial flexibility to fund the opportunities it sees in both the Bakken and the Uitca. The company remains an interesting growth story, with production expected to leap this year from just over 14,000 barrels of oil equivalent per day to a range of 18,500-20,000 barrels of oil equivalent per day. Even better, an increasing mix of this production will be oil and natural gas liquids, which has been an important shift for the company over the past few years.

The company still has a heavy debt load which has short sellers piling in. Unloading the Eagle Ford, even at a great price, just provides some temporary relief. The company still needs to continue to maximize the value of its assets if it wants to send those shorts running for the hills.

The article Magnum Hunter Cashes Out of the Eagle Ford originally appeared on Fool.com is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy.

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