In the three months to December, the Houston-based oiler reported a net loss of 14 cents a share. Analysts surveyed by Thomson Reuters had anticipated a per-share loss of 20 cents.
Oil and gas revenues increased 64% over the quarter to $59.4 million from $36.1 million a year earlier. The jump was due to an increase in oil and gas production resulting from prior acquisitions and higher average realized commodity prices over the period.
Midstream and marketing sales spiked 595% to $18.2 million, primarily due to increased throughput volumes on the Eureka Hunter Pipeline Systems and increased third-party gas marketing volumes.
Despite the improvement, shares plunged over the trading session. By late afternoon, shares had dumped 5.4% to $8.45.
TheStreet Ratings team rates MAGNUM HUNTER RESOURCES CORP as a Hold with a ratings score of C-. The team has this to say about their recommendation:
"We rate MAGNUM HUNTER RESOURCES CORP (MHR) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."
- You can view the full analysis from the report here: MHR Ratings Report