NEW YORK (TheStreet) --Shares of Magnum Hunter Resources Corp. (MHR) are down by 8.55% to $3.10 in mid-afternoon trading on Thursday, as energy stocks start to reverse yesterday's gains due to the decline in oil prices.
Crude oil for January delivery is down by 3.35% to $54.58 per barrel this afternoon on the NYMEX. Oil prices began the day on the plus side, helped in part by yesterday's data release from the Energy Information Administration, which showed a decline in crude inventories by 800,000 barrels.
The oil rally came after it a five year low of $58.50 per barrel earlier this week, Reuters reports.
Oil prices are down almost 50% since June, the Wall Street Journal reports, due to a global oversupply and weak demand.
Separately, TheStreet Ratings team rates MAGNUM HUNTER RESOURCES CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate MAGNUM HUNTER RESOURCES CORP (MHR) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself."