Disclosure: I sold my similar names in this space (PXD, PE) in Feb and Mar. I remain long TRP, CVX and VLO. Also long BMO, BX and PJT. Never owned MHR.
Interesting week over in Magnam Hunter land (MHR). It had all the makings of a soap opera and highlights the dark underbelly of the penny stock space which several of the oil plays have become residents of. If you have a morbid curiosity, Google MHR on Seeking Alpha, American Business Journals, Twitter, et.al. Basically, an analyst decided to launch a takeover attempt after tweeting potentially libelous and/or slanderous accusations about the CEO and board. As of this writing, this was also done without a 13F filing within the 10 day window. I’m sure this is only the beginning of this saga.
Now this is where this gets interesting. For several months I’ve suggested buying BX to get in front of the PJT spinoff. I’ve also suggested increasing your BMO holdings. After a couple of letters from the analyst/activist, MHR decided to hire a firm to assist with “strategic alternatives”.
MHR has one asset they’ve been trying to monetize. A pipeline partially owned by MS. MHR’s interest in this pipeline is collateral for a BMO loan. And who was hired to assist MHR? None other than PJT! Talk about playing both angles without much risk. I’m sure there will be more to this story.