IRVING, Texas, March 3 /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 &
Associates 24th Annual Institutional Investors Conference in Orlando, Florida
this morning at 10:35 a.m. EST.
Magnum Hunter is 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 45% since 1996. With the closing last year of
the Prize Energy acquisition, proved reserves increased 121% to 837 Bcfe, of
which 78% are proved developed. The Company's all sources 2002 finding and
development cost were $0.93 per Mcfe. Daily production in 2002 increased from
91 MMcfed to 195 MMcfed, or 114%. In 2002, Magnum Hunter increased total
proved reserves per share by 31.4% and increased production per share by
25.9%.
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. Core areas of
operations include the Permian Basin (48% of reserves and 39% of production),
the Mid-Continent (26% of reserves and 30% of production), Gulf Coast (12% of
reserves and 12% of production) and the shallow water Gulf of Mexico (10% of
reserves and 23% of production). A $100 million capital budget has been
initially set for 2003, which the company believes will allow for organic
growth of proved reserves and production from internally identified projects
in the 10% range. Magnum Hunter has over a five year backlog of exploration,
exploitation and development projects in its current inventory.
Magnum Hunter's Balance Sheet has steadily improved from a
debt-to-capitalization ratio of 82% at December 31, 1999 to 61% as of December
31, 2002, with a goal in 2003 of achieving a mid-50% range. This has been
accomplished through a combination of non-strategic asset sales (approximately
$100 million during 2002), applying excess cash flow beyond capital
expenditure requirements, and net earnings. Magnum Hunter's before-tax present
value discounted at 10% of its proved reserves at year-end was $1.2 billion.
After netting out year-end indebtedness, and giving no value to the company's
substantial undeveloped leasehold mineral acreage position nor the company's
natural gas transmission, marketing and processing assets, a net asset value
of $10.02 per share is implied. Magnum Hunter's 52-week share price range has
been between $4.40 to $8.05. Over the past year, Magnum Hunter has repurchased
approximately three million of its outstanding common shares reducing its
basic share count to 66.4 million shares.
A live webcast of today's 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
CONTACT:
M. Bradley Davis, Senior Vice President,
Capital Markets, +1-972-401-0752, for Magnum Hunter Resources,
Inc.
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