Magnum Hunter finds a way to pay back debt by July 10
Wednesday, July 1, 2015
Magnum Hunter Resources Corp. owes a total of $65 million to its lenders by July 10, and as of June 23, the company needed $9 million to reach that amount. Now, Columbus Business First reports that Magnum Hunter is planning to sell its gas pipeline subsidiary in Ohio and West Virginia.
If Magnum Hunter divests 45.53 percent in Eureka Hunter, between $600 million and $700 million can be raised. Between $300 million and $400 million of that would be used to pay down debt and allow the company to continue drilling.
The company’s long-term debt totals $941 million and $13.7 million in cash and equivalents as of the end of the first quarter of 2015.
Via: Columbus Business First > UPDATE: Magnum Hunter has a plan to pay its lenders — and then some
Related:
- Magnum Hunter needs to raise $9 million by July 10 June 27, 2015
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.