Magnum Hunter Resources (MHR) announced a $200 million capital budget for 2012, with $150 million dedicated to the company’s upstream segment.
Magnum Hunter Resources has allocated $70 million to the exploration and development of the Marcellus Shale and other formations in the Appalachian Basin. This level of expenditure represents 27.5% of the total capital budget for the year. The company is also evaluating other plays on its leasehold including the Utica, Huron and Weir formations.
Magnum Hunter Resources estimates that this level of capital spending will generate an annual production growth rate between 80% and 90% in 2012.