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Well oil prices getting closer to 100 dollars -- natural gas prices are rebounding sharply off of their mid June lows the rally has helped drive shares of AMP companies like Magnum hunter resources Ohio but the question is can the rally continue while.
Joining me now Gary Evans chairman and CEO of Magnum hunter resources to talk about that very.
Gary is just looking at your company's most recent report very impressive it seems like you're making -- Across a broad spectrum of the business.
How you doing that.
Well our company is enough fast growth mode predominately in the shale plays which are really revolutionize stolen -- industry here in the United States and and think in the next maybe ten years we could be energy independent so.
Companies like mine or drilling.
Horizontally in two shale formations it's creating tremendous growth so.
Our production -- actually more than double this year where you drilling.
We're predominately in the Marcellus and Utica shale which is up and West Virginia and Ohio and then we have a very large operation up in the Wilson -- up in the -- -- North Dakota.
-- at this time -- -- so much in January.
Natural gas prices have rebounded nicely do you expect back -- can you would.
Continue with just saying that you also affected by mother nature -- -- yes natural gas prices are dictated by the weather more than any other commodity.
Especially here in the United States because we can't yet export the product.
Overseas were open have LNG facilities.
Approved we've got to now that the Obama administration is finally approved we have more coming.
-- but today it's really a captive commodity in the lower 48 US.
-- United States so.
We're hoping that because we had low gas prices for so long effect a year ago this time.
Yes you have dollar ninety Credo we've more than doubled in a year and has huge impact on companies like ourselves -- us all profit driven.
You saw it about exploding -- you know this talk about exporting natural gas to Asia and Europe and in particular Japan.
How would that what kind of opportunity with that present for you.
Will countries like Japan and other Asian countries are paying twelve to fourteen dollars a thousand cubic feet -- more profitably sell it for four so.
It does it take a rocket -- -- figure out the do you expect that to happen -- so -- got to happen and out.
Why would that happen.
To be able to drive.
All the employment United States to be able to drill the shale plays right -- 200 year supply.
In April of this year you sold one address -- the eagle Ford -- above 400 million dollars -- believe what did you do with the money why is that a good move for you.
Well that's the primary reason for cell and it is we truly believe to be successful in the old business in the shale plays.
-- what have what's called -- scale.
We didn't have enough acreage we only had 191000 acres not enough up and appellation we have 400000.
-- a base -- 180000 so.
It was the most mature assets we wanted to be -- pay down our debt and so would that 401 million dollars we paid off all over Baghdad were sitting on -- but a hundred million cash very could have gotten into oil much -- -- you see oil prices -- and we saved to leading into this it's.
Nudging towards a hundred dollars a barrel of the WT it's actually amazing how well -- has done -- I think that's a testimony to.
The other countries around the world to have such a first you know United States.
Is using less and less oil because we're.
To -- you know so we're doing it ourselves specially in the eagle for in the Barca -- which roll play so.
Hopefully -- prices stay up I will say that is.
Are protected our company by hedging almost all over Oprah -- the next couple years the incumbent like area -- -- CEO.
Chairman Magnum hunter resources thanks so much for the thank you for -- hit.
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