Magnum Hunter Resources Corp (MHR): What Its Transition Means to Investors

Others, like Chesapeake Energy Corporation (NASDAQ:GPOR), aren’t as aggressive and instead are looking to lighten up on the play. The company is planning to unload some acreage and its spending a greater portion of its capital budget on the Eagle Ford. With Magnum Hunter Resources Corp (NYSE:MHR) exiting the Eagle Ford, it certainly bears watching how its Utica wells turn out.

The bottom line
Even after selling its Eagle Ford acreage Magnum Hunter Resources Corp (NYSE:MHR) expects to hit its production guidance for the year. It believes that the $300 million in planned capital spending will easily offset the 3,200 barrels of oil equivalent per day of production that it’s losing. As long as natural gas prices stay elevated, this move should pay off; however, if we see another sustained drop in gas prices, the sale of the Eagle Ford could end up backfiring on the company.

The article What Magnum Hunter Resources Transition Means to Investors originally appeared on Fool.com.

Motley 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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