Magnum Hunter Resources Spike 5% After Selling Shale Gas Properties For $401 Mln
Magnum Hunter Resources ( MHR ) shares have spiked almost 5% after the company announced late Tuesday that it has agreed to sell its Eagle Ford shale oil and gas properties in Gonzales and Lavaca counties in Texas for $401 million.
The buyer was a unit of Penn Virginia Corp ( PVA ), which will pay 90% of the total in cash, with the option of paying for the remaining 10% either in cash or stock.
Magnum Hunter said it will use the proceeds to reduce debt and for general corporate purposes.
The shares are trading up $0.22 at $4.03, within a 52-week range of $3.29 to $6.45. Penn Virginia is down 0.3% at $3.89.