IRVING, Texas, March 4 /PRNewswire-FirstCall/ -- Magnum Hunter Resources,
Inc. (Amex: MHR) will be making a presentation at the Raymond James &
Associates 23rd Annual Institutional Investors Conference in Orlando, Florida
tomorrow, March 5, 2002 at 10:30 a.m. EST. On March 7, 2002, Magnum Hunter
will make another presentation at the Lehman Brothers 2002 High Yield Bond and
Leveraged Loan Conference also to be held in Orlando, Florida.
Magnum Hunter has emerged as 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 86% since December 1995, when Magnum
Petroleum and Hunter Resources merged to create Magnum Hunter Resources, Inc.
Since that time and pro forma with the acquisition of Prize Energy scheduled
to close on March 15, 2002, reserves have increased 24 times from 38 to
921 billion cubic feet equivalent (Bcfe), daily production has increased
23 times from 10 to 233 million cubic feet equivalent of gas per day (MMcfed),
while shares outstanding have only increased 5.7 times from 12 to 69 million
shares.
The objective of all energy companies engaged in the production of oil and
gas is to expand their reserve base and productive capacity at an economically
attractive cost in order to build cash flows, earnings and returns to
shareholders. Magnum Hunter's management team has consistently and
successfully pursued a disciplined business strategy that targets the
acquisition and exploitation of long-lived reserves when commodity prices are
low while maintaining an ongoing active exploration and development drilling
program. This proven strategy of successfully adding reserves has allowed for
a reserve replacement ratio of 502% since 1996 and an all sources finding and
development cost of $0.81 per Mcfe.
Magnum Hunter has become one of the most active and successful companies
in the shallow waters of the Gulf of Mexico (GOM). Since initiating an
exploration program in the GOM in May 1999, the Company has developed a large
inventory of 81 OCS Blocks (400,000 gross acres) and has had an 86% drilling
success rate with 31 out of 36 GOM wells drilled to-date. Discoveries are
currently producing 127 MMcfd gross, 45 MMcfed net to Magnum Hunter. Recent
discoveries with production pending are expected to add an incremental
25 MMcfed net to Magnum Hunter in 2002. The Company is taking on higher
reserve potential prospects in its 2002 GOM exploration program.
Seven prospects (two of which are currently drilling) have potential reserves
of 800 Bcfe gross, 200 Bcfe net to Magnum Hunter.
Magnum Hunter's Balance Sheet has steadily improved from a debt-to-
capitalization ratio of 82% at December 31, 1999 to 59% pro forma
September 30, 2001. The Company's goal is to reduce debt-to-capitalization to
50% by year-end 2002, through a combination of reducing debt with
non-strategic asset sales and surplus cash flow, and increasing stockholders'
equity with earnings from operations.
For the full investor presentation, access the Magnum Hunter Resources web
site at http://www.magnumhunter.com , click on PowerPoint presentation. The web site
is consistently updated to comply with the SEC Regulation FD (Fair
Disclosure).
FOR FURTHER INFORMATION CONTACT: MICHAEL P. MCINERNEY,
INVESTOR RELATIONS (972) 401-0752
SOURCE Magnum Hunter Resources, Inc.
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Related links:
http://www.magnumhunter.com
http://www.rjcapitalmarkets.com/conferences_events_900_main.asp
Company News On-Call:
http://www.prnewswire.com/comp/525296.html
CONTACT:
Michael P. McInerney, Investor Relations of
Magnum Hunter Resources, Inc., +1-972-401-0752
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