1. DEBTWIRE BROADCAST: MAGNUM HUNTER’S BANKRUPTCY PLAN SLASHES FUNDED DEBT TO ZERO… SO WHAT’S THE CATCH?
Debtwire’s team of reporters and analysts host a roundtable discussion to explore Magnum Hunter’s plan to eliminate its entire prepetition funded debtload, as well as highlight how the deal architects potentially skirted some of the stumbling blocks that cropped up in other recent court proceedings. | 17 December 2015

2. AGENDA Opening Remarks: Kate Marino
The Eureka Factor: Alexander Gladstone
Case Overview
Financial Analysis: Thomas Rorick
First Day Hearing: Patrick Holohan
Legal Analysis: Richard M. Goldman
Concluding remarks: Alexander Gladstone
What’s next?

3. THE EUREKA FACTOR: CASE OVERVIEW
Magnum Hunter’s bankruptcy filing:
Oil price decline prompts capex curtailment, liquidity crisis
Strategic options center on stake in Eureka Hunter Holdings
Failure to achieve asset sales
Status of second lien claim on Eureka
Second lien and unsecured holders collaborate on rescue loan to buy time

4. FINANCIAL ANALYSIS: ADJUSTED CAPITAL STRUCTURE
PRO FORMA ADJUSTED SUMMARY CAPITAL STRUCTURE (USD m) 
Capital Structure as of 15 Dec. 2015
Coupon
Face Amount
Market Amount
Adj.
Pro Forma Face Amount
Price
Yield
Maturity
2016P Pro Forma Face Leverage
DIP Term Loan Facility 1
L+ 8.0%
200 -
(200)
15 Apr 2016
First Lien Bridge Financing Facility 2
L + 4.0% 70
(70)
15 Dec 2015
Equipment & real estate notes payable
4.25% - 8.7% 13
5.7x
Second lien term loan 3
L + 7.5%
337
195
(337)
58.0
26.9%
22 Oct 2019
Total secured debt
420
278
(607)
Senior unsecured notes
9.75%
600
189
(600)
31.5
48.9%
15 May 2020
Total debt
1,020
467
(1,207)
Cash and cash equivalents 2
(1) 1
Net debt
1,018
465 12
5.2x
Liquidation Preference
Series C cumulative perpetual preferred stock 4
$25
100
(100)
$0.18
Series D cumulative preferred stock 4
$50
221
(221)
$0.10
Series E cumulative convertible preferred stock 4 95
(95)
$0.02
Market value of common stock 5 4
884
888
Enterprise value
1,438
471
900
LTM Adjusted EBITDAX 48
2016P Adjusted EBITDAX
Asset Retirement Obligations
USD 28m
1) The DIP Term Loan Facility is subject to a 1% Libor floor.
The DIP Term Loan facility will mature the earlier of a) nine months after the closing date, b) 30 days after entering into the Interim DIP Order approving the DIP Facility if the Final DIP Order has not been entered into by the Bankruptcy Court prior to the 30 day period, c) effective date of plan of reorganization or liquidation or d) termination by the DIP Facility Lenders following an event of default.
2) Absent an event of default the Bridge Financing Facility is due on the earlier of 30 December 2015 or the filing of a Chapter 11 case.
3) The second-lien term loan is subject to a 1% LIBOR floor.
4) On 9 October, MHR suspended the monthly dividends on its preferred stock. Unpaid dividends will continue to accumulate from 31 October and afterward.
5) Under the RSA, the total enterprise value assumed is USD 900m.
Sources: SEC Filings, MarketAxess, Markit, Debtwire Analytics, FINRA.

5. FINANCIAL ANALYSIS: DIP FINANCING
SOURCES & USES
Sources
Uses
DIP Term Loan Facility
200
Repayment of First Lien Bridge Financing Facility 70
Commitment fee 4
Cash collateralize letters of credit 39
General unsecured claims 67
Cash used during bankruptcy 20
Total Sources
Total Uses
PLAN RECOVERIES (USDm)
Class
Portion of New Common Equity
Value of Equity Received
Claim
Estimated Recoveries
DIP Lenders 1
31.800%
212
200
107.8%
Second Lien Lenders
36.9%
245
341
71.9%
Senior Noteholders
31.3%
208
632
33.0%
1) Our recovery for DIP Lenders includes the 3% Backstop Fee payable in New Common Equity.
Sources: 3Q15 10-Q Report, Court Filings, Debtwire Analytics.

6. FINANCIAL ANALYSIS: CASH BUDGET
USD m
Fcst Week 1 12/18/15
Fcst Week 2 12/25/15
Fcst Week 3 1/1/16
Fcst Week 4 1/8/16
Fcst Week 5 1/15/16
Fcst Week 6 1/22/16
Fcst Week 7 1/29/16
Fcst Week 8 2/5/16
Fcst Week 9 2/12/16
Fcst Week 10 2/19/16
Fcst Week 11 2/26/16
Fcst Week 12 3/4/16
Fcst Week 13 3/11/16
Beginning Cash - 40 37 30 23 33 29 28 21 20 4
DIP Draw 96
1st Lien Roll-up
(70)
Net Operating Receipts 3 1 5
Net Operating Disbursements
(1)
(0)
(3)
(4)
(5)
Total Capital Expenditures
(2)
Ch.11 Relief / Financing Costs / Other
(6)
(9)
(11)
Ending Cash Balance
Source: Interim DIP Order.

7. FINANCIAL ANALYSIS: MGT. PROJECTIONS
$ in millions, except pricing data)
Q1 2016
Q2 2016
Q3 2016
Q4 2016
FY 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
FY 2017
FY 2018
FY 2019
FY 2020
Net Production
Oil (Boe)
0.2
0.7
0.1
0.6
0.5
0.4
Gas (Bcf)
7.0
7.5
7.8
8.3
30.5
9.1
8.0
7.2
10.3
34.6
47.7
60.4
74.7
NGL (Mboe)
0.3
1.1
0.9
0.8
Total Net Production (Bcfe)
9.8
10.4
10.5
10.9
41.5
11.4
10.2
9.3
12.5
43.5
55.4
66.9
81.2
Realized Prices
Oil ($/Bbl)
$36.22
$37.99
$39.07
$40.04
$38.27
$40.97
$41.74
$42.45
$43.20
$42.06
$44.62
$46.41
$47.59
Gas ($/Mcf)
$2.08
$2.06
$2.14
$2.24
$2.13
$2.68
$2.48
$2.54
$2.66
$2.60
$2.76
$2.87
NGL ($/Bbl)
$13.96
$14.52
$14.85
$15.14
$14.61
$15.42
$15.64
$15.85
$16.09
$15.74
$16.50
$17.04
$17.40
Cash Flows
Oil 7 27 6 24 21 19 18
Gas 15 17 65 20 28 90
127
167
214
NGL 4 3 14 13 12
Total Oil & Gas Revenue 25 29
108 34 37
128
161
197
245
Other Revenue-Oilfield Services 2 11 9 16
Total Revenue 30 31
120 36 32 39
137
178
261
Operating Expense-Upstream 81 77 86 93
107
Operating Expense-Oilfield Services 8
G&A
Expenses
117 26
110
126
133
146
EBITDAX
(1)
(0) 1 5 10 52
115
Capex-Williston Hunter --
Capex-Triad
(12)
(6)
(41)
(17)
(42)
(33)
(97)
(105)
(101)
(111)
Capex-MH Production
Capex-Alpha Hunter Drilling
Discretionary Cash Flow
(13)
(11)
(10)
(39)
(37)
(23)
(70)
(53)
(21)
Working Capital
(2)
(3)
(4)
Other Free Cash Flow Items
Unlevered Free Cash Flow
(14)
(7)
(43)
(5)
(34)
(61)
(65)
(20)
Source: Lender Presentation.

8. LEGAL ANALYSIS Debtor in possession financing
Restructuring support agreement
Industry comps – Samson Resources and Sabine Oil & Gas
Throwing a wrench in the works

9. CONCLUDING REMARKS: WHAT’S NEXT?
What happens to Eureka stake?
How can Magnum generate value for post-reorg equity holders?

10. DISCLAIMER
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