IRVING, Texas, March 1 /PRNewswire-FirstCall/ -- Mr. Gary C. Evans,
Chairman, President and Chief Executive Officer of Magnum Hunter Resources,
Inc. (NYSE: MHR) will be making a presentation at the Raymond James' 25th
annual institutional investor conference in Orlando, Florida on Tuesday,
March 2, 2004 at 8:05 a.m. eastern time.
Magnum Hunter continues to grow its revenue and asset base and has become
one of the nation's fastest growing publicly traded independent oil and gas
producers having grown daily production at a compounded annual growth rate of
30% since 1998. Proved reserves have increased 121% during the last two years
to 838 Bcfe, of which 78% are proved developed. Magnum Hunter was recently
ranked by The Oil & Gas Journal as the number one fastest-growing U.S.
publicly traded oil and gas production company based on growth in stockholders
equity.
Magnum Hunter's management team has consistently pursued a disciplined
business strategy that targets the acquisition and exploitation of long-lived
reserves when commodity prices are low while maintaining an active
exploration, exploitation and development drilling program on its core
property base. Primary areas of operations include the Permian Basin (52% of
reserves and 42% of production), the Mid-Continent (29% of reserves and 22% of
production), the onshore Gulf Coast (9% of reserves and 8% of production), and
the shallow water Gulf of Mexico (10% of reserves and 28% of production). Key
growth areas include Southeastern New Mexico, where the Company has a 100%
success rate on 40 wells drilled, and the shallow water Gulf of Mexico where
70 wells are on production. Over 1 Tcf of risk adjusted Gulf of Mexico
drilling prospects have been identified by third parties for future
exploration activities through a recently completed third party study. Magnum
Hunter has a multi-year backlog of exploration, exploitation and development
projects in its current inventory covering 2,600 onshore locations and 174
Gulf of Mexico OCS blocks. Approximately 1,000 of the onshore locations
inventoried are located in the Company's new San Juan Basin New Mexico coal
bed methane play, announced in September of last year. The first phase of a
50 well drilling program is currently underway.
Recent drilling activities on behalf of the Company have been concentrated
in the Gulf of Mexico (offshore) and Southeastern New Mexico (onshore).
Drilling results through year-end 2003 include 124 new wells, of which 115
were completed as commercial producers for an overall 93% success rate. The
Company's offshore drilling success rate since entering the Gulf in 1999 is
82%, with 76 successful wells out of 93 new drills.
Magnum Hunter's balance sheet has steadily improved from a debt-to-
capitalization ratio of 82% at December 31, 1999 to 60% as of September 30,
2003, with a short-term goal of achieving a mid-50% range in 2004. Magnum
Hunter has redeemed all of its $140 million 10% Senior Notes due 2007,
replacing them with commercial bank debt at a substantially lower interest
rate. Also, the Company recently issued $125 million of 20-year Floating Rate
Convertible Notes that currently bear interest at 1.17% and have a conversion
feature over the principal value of $12.19 per share.
A live webcast of the presentation will be available by accessing Magnum
Hunter's website. Instructions are:
Go to http://www.magnumhunter.com
Go to Investor Relations
Go to Webcasts/Conference Calls
FOR FURTHER INFORMATION CONTACT: M. BRADLEY DAVIS
SENIOR VICE PRESIDENT - CAPITAL MARKETS (972) 401-0752
SOURCE Magnum Hunter Resources, Inc.
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Related links:
http://www.magnumhunter.com
http://www.rjcapitalmarkets.com/conference_detail_main.asp?content_id=39
CONTACT:
M. Bradley Davis, Senior Vice President -
Capital Markets of Magnum Hunter Resources, Inc., +1-972-401-0752
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