NEW YORK (TheStreet) -- Shares of Magnum Hunter Resources (MHR) were gaining 6.5% to $1.97 on Friday, continuing gains from Thursday when the oil company announced it will divest its stake in Eureka Hunter.
Magnum Hunter expects to raise between $600 million and $700 million in gross proceeds by divesting its 45.53% equity in Eureka Hunter. The company said the transaction will allow it to "restructure its balance sheet and dramatically improve its current liquidity position."
The oil company has to raise about $9.4 million by July 10 to pay back its lenders, according to Columbus Business First. Magnum Hunter Resources already raised $55.6 million of the $65 million is owes its lenders.
Magnum Hunter Resources, based in Houston, is primarily engaged in exploitation, acquisition, development, and production of natural gas and natural gas liquids resources in the U.S.
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 unimpressive growth in net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."