Magnum Hunter Resources Corp (OTCMKTS:MHRC) Recovery Attempt Snuffed Out

The aftershocks of Magnum Hunter Resources Corp (OTCMKTS:MHRC)’s latest quarterly report appear to still have some sway over the company’s share price. After a single big green session on Friday, yesterday MHRC receded back down the chart, wiping Friday’s progress almost in full.

Magnum Hunter was only recently a NYSE-listed stock. The company’s 30-day average share price slipped under $1.00 – the required level for continued listing on the exchange. This led to MHRC moving onto the OTCBB marketplace, with a six-month period given by the NYSE to remedy the share price situation and resume trading on the higher tier market.

MHRC was struggling on the charts even before it was first informed of dropping below the price requirement on August 31. A combination of a bogged down oil market and the company’s own problems made for a disappointing 52-week chart. The Q3 report MHRC put up on Nov 9 further exacerbated the price slide. Here is a brief version of the balance sheet contained in the report:

  • $6.4 million in cash
  • $1.0 billion in current liabilities
  • $33.6 million in Q3 revenues
  • $113 million in Q3 net loss

The market’s reaction to the filing was unambiguous, with MHRC dropping from $0.26 to $0.019, over 90% down within the span of three sessions. The one-day price pop back to $0.026 did little to remedy the situation and MHRC was down another 21% yesterday.

The company put up an 8-K detailing an amendment to a credit agreement with Bank of Montreal. The full details can be found in the official filing.

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