MLV & Co Sees Transition To Appalachian Pure-Play Officially Underway For Magnum Hunter Resources

In a report published Monday, MLV & Co analyst Chad Mabry reiterated a Buy rating and $11.00 price target on

. In the report, MVL & Co noted, “MHR reported Q2'14 adj. EPS of ($0.09), beating our estimate of ($0.12) and the consensus of ($0.17). The driver was stronger-than-expected commodity price realizations, complemented by lower unit lifting costs. CFPS of $0.07 also topped our $0.04 estimate, but missed the $0.09 consensus. Q2'14 production of 15.9 MBoe/d (28% oil, 15% NGLs) was 5% shy of our forecast and below consensus on lower gas volumes as the company had more shut-ins than anticipated during the quarter. Refer to Exhibit 1 for additional detail on the quarter. We are very much encouraged by MHR's Q2'14 earnings print as strong price realizations highlight the importance of the company's control of its processing (i.e., Eureka) and support our investment thesis on the name. We reiterate our Buy rating and $11 price target.” Magnum Hunter Resources closed on Friday at $6.38.