Magnum Hunter Resources (NYSE: MHR) is officially no longer a presence in certain parts of Texas' massive Eagle Ford Shale play. The company announced it has closed the sale of its stakes in properties located in Gonzales and Lavaca counties to a subsidiary of Penn Virginia (NYSE: PVA).
The price was $401 million, comprised of $361 million in cash and 10 million shares of Penn Virginia stock valued at $4.00 apiece. The effective date of the sale was this past Jan. 1.
Magnum Hunter is still active in Eagle Ford -- the company boasts 7,000 net mineral acres in Fayette, Lee, and Atascosa counties.
The firm said it intends to use the monies from the Penn Virginia sale to retire its borrowings under a senior revolving credit facility and for "general corporate purposes."