The firm said it raised its rating on the independent oil and gas company based on its belief the private placement the company announced last week will remove any financial overhang.
Last week Magnum announced it entered into an agreement with Relational Investors LLC to sell, in a private offering, an aggregate of 21,428,580 shares of common stock.
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Separately, TheStreet Ratings team rates MAGNUM HUNTER RESOURCES CORP as a Hold with a ratings score of C-. TheStreet Ratings 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 growth in earnings per share. 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."