Magnum Hunter Production Increases Revolving Credit Facility to $20 Million

Strategic Insights -

Magnum Hunter Production, Inc., a subsidiary of Magnum Petroleum, Inc., has secured an increase in its revolving credit facility with First Interstate Bank of Texas from $10 million to $20 million. This boost in credit capacity was made possible by the recent completion of an acquisition and several pending acquisitions. The combined current borrowing base on the company's oil and gas properties and gas gathering systems has been increased to $8.7 million. The company's president, Gary C. Evans, praised the decision, stating that the increased credit facility will enable the company to continue its aggressive growth and expand its acquisition of producing properties and gas gathering assets.

Key Takeaways:

  • Magnum Hunter Production, Inc. has increased its revolving credit facility from $10 million to $20 million with First Interstate Bank of Texas, N.A.
  • The increase in credit capacity is due to the recent completion of an acquisition and several pending acquisitions.
  • The combined current borrowing base on the company's oil and gas properties and gas gathering systems has been increased to $8.7 million.
  • The company plans to use debt in combination with equity to build oil and gas reserves and gas pipeline system assets for Magnum and its affiliates.
  • Magnum Petroleum Inc., in combination with Hunter Resources, Inc. subsidiaries, is engaged in four principal activities: oil and gas production, gas gathering and transmission, property management, and energy consulting and export services.

Statistics:

  • $10 million: initial revolving credit facility with First Interstate Bank of Texas, N.A.
  • $20 million: increased revolving credit facility
  • $8.7 million: combined current borrowing base on the company's oil and gas properties and gas gathering systems
  • Four: number of principal activities engaged in by Magnum Petroleum Inc. and Hunter Resources, Inc. subsidiaries
  • 2019: Not mentioned; only specific years or months that are interrogated is: November

Sources:

  • PRNewswire announcement, November 6, 1995
  • Company statement from Gary C. Evans, President of Magnum Hunter Production, Inc.