Magnum Hunter Resources Earnings: Here’s Why Investors are Buying Shares Now

Magnum Hunter Resources Corporation (NYSE:MHR) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 5.13%.

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Magnum Hunter Resources Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.05 in the quarter versus EPS of $-0.06 in the year-earlier quarter.

Revenue: Rose 46.33% to $83.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Magnum Hunter Resources Corporation reported adjusted EPS income of $0.05 per share. By that measure, the company beat the mean analyst estimate of $-0.07. It beat the average revenue estimate of $82.63 million.

Quoting Management: Mr. Gary C. Evans, Chairman of the Board and Chief Executive Officer of Magnum Hunter Resources, commented, “Magnum Hunter significantly improved its financial results reported during fiscal year 2012 in all areas: revenues, production, cash flow, and proved reserves. At the same time, costs in the field as well as general and administrative costs continue to decline on a barrel of oil produced equivalent basis. While we are well into the new year, liquidity has subsequently improved with the sale of our Eagle Ford Shale properties which occurred in April. Current cash on hand and credit availability under our existing Senior Revolving Credit Facility is approximately $380 million, excluding non-core asset sales in the works. Even with the loss of approximately 3,500 barrels per day of production as a result of our Eagle Ford Shale properties sale, we remain confident with our prior production guidance of exiting this fiscal year between 23,000 – 25,000 barrels of oil equivalent per day, which is almost double the actual production of last year.”

Key Stats (on next page)…

Revenue increased 19.97% from $69.77 million in the previous quarter. EPS increased to $0.05 in the quarter versus EPS of $-0.08 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.07 and has not changed. For the current year, the average estimate has moved up from a loss of $0.25 to a loss of $0.24 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)