Magnum Hunter Resources Corp said it will sell a stake in its natural gas gathering subsidiary in the Marcellus and Utica shale fields, to a unit of Morgan Stanley, giving the two co-ownership in the business valued at $1 billion. Morgan Stanley Infrastructure said it would pay Magnum Hunter $65 million for a 6.5 percent stake and that it would purchase ArcLight Capital Partners LLC's 41 percent stake in the business for an unspecified amount.After the two transactions, Magnum Hunter and Morgan Stanley Infrastructure would together hold an equity interest of about 98 percent in Eureka Hunter."We have found a new equity partner ... which will allow this tremendous asset to grow and prosper in preparation for an anticipated MLP offering sometime next year," said Gary Evans, Magnum Hunter's chief executive officer. (Reporting By Kanika Sikka in Bangalore; Editing by Savio D'Souza)
Magnum Hunter Resources Corporation (Magnum Hunter) is an independent oil and gas company engaged in the exploration for and the exploitation, acquisition, development and production of crude oil, natural gas and natural gas liquids, primarily in the states of West Virginia, Ohio, Texas, Kentucky and North Dakota and in Saskatchewan, Canada. Shares of MHR fell by 3.17% or $-0.2/share to $6.10. In the past year, the shares have traded as low as $5.18 and as high as $9.27. On average, 3399110 shares of MHR exchange hands on a given day and today's volume is recorded at 3106124.
Morgan Stanley is a global financial services company that, through its subsidiaries and affiliates, provides its products and services to a range of clients and customers, including corporations, governments, financial institutions and individuals. Shares of MS traded higher by 0.57% or $0.2/share to $35.21. In the past year, the shares have traded as low as $26.41 and as high as $35.23. On average, 8368960 shares of MS exchange hands on a given day and today's volume is recorded at 9632689.
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