UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
December 19, 2000
Date of Report (Date of earliest event reported)________________________________
MAGNUM HUNTER RESOURCES, INC.
________________________________________________________________________________
(Exact name of registrant as specified in its charter)
Nevada 1-12508 87-0462881
________________________________________________________________________________
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
600 East Las Colinas Boulevard, Suite 1100, Irving, Texas 75039
________________________________________________________________________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (972) 401-0752
_____________________________
________________________________________________________________________________
(Former name or former address, if changed since last report)
<PAGE>
Item 9. Regulation FD Disclosure.
In accordance with General Instruction B.2. of Form 8-K, the following
information shall not be deemed "filed" for purposes of Section 18 of the
Securities Act of 1934, nor shall it be deemed incorporated by reference in any
filing under the Securities Act of 1933, except as shall be expressly set forth
by specific reference in such a filing.
MAGNUM HUNTER RESOURCES, INC.
DISCLOSURE OF YEAR 2001 ESTIMATES
The table following this narrative sets forth our current estimates of our
operating statistics for the year ended December 31, 2001. We are not predicting
what actual oil and gas prices will be during the year 2001. While oil and gas
prices have been at or near multi-year highs this year, there is no assurance
that current price levels will continue. Oil and gas prices have fluctuated
significantly in recent years in response to numerous economic, political and
environmental factors, and we expect that commodity prices will continue to
fluctuate significantly in the future. Changes in commodity prices could
significantly affect our expected operating results. In addition to directly
affecting revenues, price changes can affect expected production because
production estimates necessarily assume that oil and gas can profitably be
produced at the assumed pricing levels. In addition to the pricing assumptions,
the 2001 estimates were prepared assuming that demand by the general public,
curtailment, producibility and overall market conditions for oil and gas
produced in the U.S. during the year 2001 will be substantially similar to those
for 2000. No material assumptions concerning acquisitions or divestments
activities are included.
All of the estimates and assumptions set forth in this document constitute
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private
Securities Litigation Reform Act of 1995. Although we believe that these
forward-looking statements are based upon reasonable assumptions, we can give no
assurance that our expectations will in fact occur and we caution that actual
results may differ materially from those in the forward-looking statements. A
number of factors could affect our future results or the energy industry
generally and could cause our results to differ materially from those expressed
in this release. These factors include, among other things:
o volatility of oil and gas prices,
o the need to develop and replace reserves,
o the substantial capital expenditures required to fund our operations,
o changes in drilling success rates,
o environmental risks,
o drilling, completion and operating risks,
o risks related to exploration and development drilling,
o uncertainties about estimates of reserves,
o competition,
o government regulation, and
o the risks factors and other conditions described in our report on Form
10-K for the period ended December 31, 1999 and in our reports on Form
10-Q filed subsequent thereto, the most recent of which is for the
period ended September 30, 2000.
We caution that the year 2001 estimates set forth below are given as of the
date hereof only and are based on currently available information. While we
anticipate updating these estimates on a periodic basis, we are not undertaking
any obligation to update these estimates as conditions change or other
information becomes available.
<PAGE>
Magnum Hunter Resources, Inc. and Subsidiaries
Consolidated Financial Projection
For the Year Ended December 31, 2001
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year
----- ----- ----- ----- ----
Oil Sales Volume (MBbl/d) 4.1 4.4 4.6 4.6 4.4
Gas Sales Volume (MMcf/d) 78.0 86.0 90.0 90.0 86.0
Gas Equivalents Sales Volume (Mmcfe/d) 102.6 112.4 117.6 117.6 112.4
Oil Price Realized ($/Bbl) 25.25 24.26 23.23 21.91 23.66
Gas Price Realized ($/Mcf) 7.06 5.10 4.97 5.04 5.50
Oil and Gas Revenues ($ Millions) 59.4 49.6 51.0 51.0 211.0
Production Costs ($/Mcfe) 0.90 0.73 0.69 0.69 0.74
Other Revenue-Net ($ Millions) 0.8 0.8 0.7 0.7 3.0
General and Administrative ($ Millions) -1.5 -1.5 -1.5 -1.5 -6.0
Depreciation and Depletion ($ Millions) 8.2 9.0 9.6 9.5 36.3
Interest Expense and Dividends ($ Millions) -5.7 -5.4 -5.1 -4.5 -20.7
Income Taxes ($ Millions) -14.0 -10.4 -10.8 -11.1 -46.3
Net Income to Common Shares ($ Millions) 22.4 16.6 17.2 17.7 73.9
Net Income per Share-Diluted ($) 0.61 0.45 0.47 0.48 2.01
EBITDA ($ Millions) 50.3 41.4 42.8 42.7 177.2
Net Cash Flow ($ Millions) 39.3 32.1 33.5 34.1 139.0
Capital Expenditures ($ Millions) 25.0 20.0 20.0 20.0 85.0
</TABLE>
The accompanying notes are an integral part of this projection
<PAGE>
Magnum Hunter Resources, Inc. and Subsidiaries
Notes to Consolidated Financial Projection
For the Year Ended December 31, 2001
NOTE 1 - OIL AND GAS SALES VOLUME
These estimates are based on our historical operating performance and
trends, estimates of oil and gas reserves as of September 30, 2000 and the
risk-adjusted results of our planned capital expenditure and operating budget
for 2001.
NOTE 2 - OIL AND GAS PRICES
For purposes of the 2001 estimates, we assumed a NYMEX WTI Index oil price
of $25.77 per barrel and a NYMEX WTI Index gas price of $5.63 per Mcf. These
prices were based on NYMEX 12 month strip prices as of a recent date in December
2000. The oil and gas prices realized give effect to hedges and normal basis
differentials for our production. The projections include commodity hedges
currently in place, which include 10 Mmcf per day of natural gas hedged through
costless collars with a floor price of $4.50 per Mcf and a ceiling price of
$6.15 per Mcf and 2,500 barrels per day of crude oil for the first six months of
2001 through costless collars with a weighted average floor price of $25.00 per
barrel and a weighted average ceiling price of $34.56 per barrel. Depending upon
various circumstances, we may periodically enter into additional hedges of
expected crude oil and natural gas production.
NOTE 3 - PRODUCTION COSTS
Production costs include lifting costs, production taxes, severance taxes,
ad valorem taxes and other production costs.
NOTE 4 - OTHER REVENUE-NET
Other revenue-net reflect revenues from gathering, processing and marketing
of natural gas and from oilfield services, net of projected costs of operations
for these activities.
NOTE 5 - DEPRECIATION AND DEPLETION
Depreciation and depletion related to oil and gas properties was calculated
using a rate of $0.85 per Mcfe sold.
NOTE 6 - INTEREST EXPENSE AND DIVIDENDS
We assumed that free cash flow available after capital expenditure items
was used to reduce our senior bank debt.
NOTE 7 - INCOME TAXES
Income taxes were calculated using an effective rate of 38%. At this time
we anticipate that approximately 40% of the income taxes would be due currently
and 60% would be deferred.
NOTE 8 - NET INCOME PER SHARE-DILUTED
Net income per share-diluted assumes diluted shares of approximately 37.9
million. Diluted shares were calculated on the basis of an assumed average
market price for our stock of $12 per share throughout the year.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MAGNUM HUNTER RESOURCES, INC.
/s/ Chris Tong
BY:____________________________
Chris Tong
Sr. Vice President and CFO
Dated: December 19, 2000
