Same song, different verse as another oil and gas company succumbs to the oil slump.
Related: Magnum Hunter Sells Bakken Acreage - $84.7-Million
Magnum Hunter follows at least 18 other Texas companies this year who were forced to file for chapter 11. The company was significantly impacted by the recent and continued dramatic decline in both oil and natural gas prices and the general uncertainty in the overall energy market.
Magnum Hunter has been struggling for awhile, and sold a large chunk of its Bakken acreage in December of 2014. During the first quarter of 2015, the company suspended all drilling and said it didn’t expect to resume things had stabilized. The stability has been illusive and last month they warned the U.S. Securities and Exchange Commission that they might not be able to avoid seeking protection under Chapter 11 of the bankruptcy code.
“At a very challenging time for the entire energy industry, when many of our competitors have been forced to either file for bankruptcy without a plan to emerge in place or continue to attempt to restructure with creditors without an ‘end game,’ our global restructuring accomplishment is definitely an outlier. We expect the entire process to be efficient, cost effective, and quick. We also anticipate emerging from bankruptcy financially stronger than ever before.”
Magnum Hunter began existing the Eagle Ford assets in 2013, selling 19,000 acres in Gonzales and Lavaca counties for $401 million. The remaining acres in Lee, Fayette and Atascosa Counties were sold toNew Standard in early 2014.
Read more at magnumhunterresources.com