HOUSTON, TX--(Marketwire - December 9, 2009) - Magnum Hunter Resources Corporation (
NYSE Amex:
MHR) (the "Company" or "Magnum Hunter") announced today the pricing of
approximately 215,000 shares of its 10.25% Series C Cumulative Perpetual
Preferred Stock (non-convertible) at $25.00 per share, for a total offering
amount of approximately $5.37 million. Dividends will accrue on the Series
C Preferred Stock at a fixed rate of 10.25% per annum of the $25.00 per
share liquidation preference. This offering was an underwritten offering
pursuant to the Company's October 15, 2009 effective shelf registration
statement on Form S-3 as filed with the Securities and Exchange Commission.
Magnum Hunter has granted an option to the underwriter to purchase up to an
additional 32,242 shares of the Series C Cumulative Perpetual Preferred
Stock for thirty (30) days. Wunderlich Securities, Inc. acted as the
underwriter.
The Series C Cumulative Perpetual Preferred Stock cannot be converted into
Magnum Hunter common stock, but may be redeemed by Magnum Hunter, at Magnum
Hunter's option, after two years for $25.00 per share. In the event of a
change of control for Magnum Hunter, the Series C Cumulative Perpetual
Preferred Stock will be redeemable at $26.00 per share in the first twelve
(12) months after closing, $25.50 in the second twelve (12) months after
closing, and $25.00 thereafter, except in certain circumstances when the
acquirer is considered a qualifying public company. The Series C Cumulative
Perpetual Preferred Stock will be listed for trading on the NYSE Amex under
the ticker symbol "MHR.PR.C."
The transaction is expected to close on December 14, 2009. Magnum Hunter
intends to use net proceeds from the offering to repay current borrowings
under its revolving credit facility, to fund a portion of our proposed
acquisition of assets from Triad Energy Corporation (see Press Release
dated October 28, 2009), to drill new wells, and for general corporate
purposes.
This press release does not constitute an offer, solicitation, or sale of
any security in any jurisdiction in which such offer, solicitation, or sale
would be unlawful. Copies of the preliminary prospectus supplement and
final prospectus supplement (when available) can be obtained at the
Securities and Exchange Commission's website
http://www.sec.gov or via
written request to Magnum Hunter Resources Corporation at 777 Post Oak
Blvd., Suite 910, Houston, TX 77056, Attention: Investor Relations.
About Magnum Hunter Resources Corporation
Magnum Hunter Resources Corporation and subsidiaries are a Houston, Texas
based independent exploration and production company engaged in the
acquisition of exploratory leases and producing properties, secondary
enhanced oil recovery projects, exploratory drilling, and production of oil
and natural gas in the United States.
For more information, please view our website at
http://www.magnumhunterresources.com/
Forward-looking Statements
The statements contained in this press release that are not historical are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), and Section 21E
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
including statements, without limitation, regarding the Company's
expectations, beliefs, intentions or strategies regarding the future. Such
forward-looking statements may relate to, among other things: (1) the
Company's proposed exploration and drilling operations on its various
properties, (2) the expected production and revenue from its various
properties, (3) the Company's proposed redirection as an operator of
certain properties and (4) estimates regarding the reserve potential of its
various properties. These statements are qualified by important factors
that could cause the Company's actual results to differ materially from
those reflected by the forward-looking statements. Such factors include
but are not limited to: (1) the Company's ability to finance the continued
exploration, drilling and operation of its various properties, (2)
positive confirmation of the reserves, production and operating expenses
associated with its various properties; and (3) the general risks
associated with oil and gas exploration, development and operation,
including those risks and factors described from time to time in the
Company's reports and registration statements filed with the Securities and
Exchange Commission, including but not limited to the Company's Annual
Report on Form 10-K, Form 10-K/A and Form 10-K/A for the year ended
December 31, 2008 filed with the Securities and Exchange Commission on
March 31, 2009, April 29, 2009 and September 11, 2009, respectively, and
the Company's Quarterly Reports on Form 10-Q for the quarters ending March
31, 2009, June 30, 2009 and September 30, 2009, filed on May 11, 2009,
August 14, 2009 and November 16, 2009, respectively. The Company cautions
readers not to place undue reliance on any forward-looking statements. The
Company does not undertake, and specifically disclaims any obligation, to
update or revise such statements to reflect new circumstances or
unanticipated events as they occur.
Contact Information: Contact:
M. Bradley Davis
Senior Vice President of Capital Markets
bdavis@magnumhunterresources.com
(832) 203-4545