Three Things Magnum Hunter Resources Corp (MHR) Must Do to Win Back Investors

On the other end of the spectrum, Kodiak Oil & Gas Corp (USA) (NYSE:KOG) spends about $10 million to drill its Bakken wells. The math in getting well costs down is pretty compelling. At the current cost to drill a well, Kodiak Oil & Gas Corp (USA) (NYSE:KOG) will drill about 75 wells this year; however, if it was able to cut its costs closer to Continental Resources, Inc. (NYSE:CLR)’s levels the company could drill more than a dozen additional wells. For Magnum Hunter this means it needs to keep its well costs under control so that it can stretch its limited capital resources as far as possible.

Final Foolish thoughts

Magnum Hunter has a lot on its plate this year. The company needs to ensure that it provides its investors with an annual report as soon as possible in order to remove that cloud of uncertainty. In addition to that, the company needs to complete its refocusing efforts and then execute to grow the company into one that generates sustainable cash flow. If it’s able to do those three things then it should be able to win back the confidence of investors and prove the doubters to be wrong.

The article 3 Things Magnum Hunter Resources Must Do to Win Back Investors originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool owns shares of Devon Energy.

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