Over the past year, the stock of Magnum Hunter Resources Corporation (NASDAQOTH:MHRCQ) is up more than 80%. It might not be done going up either as the company is loaded with potential. However, before we get to that potential, it's important to gain a better understanding of the company as a whole.
Most investors probably didn't know that the original Magnum Hunter Resources was founded by Gary Evans in 1985 with just a $1,000 initial investment. However, he sold that company to Cimarex Energy (NYSE:XEC) in 2005 for more than $2.1 billion. It wasn't until 2009 that the former management team of Magnum Hunter Resources took over Petro Resources Corporation and changed its name and strategy. Since that time the management team has been working to replicate the success of the old Magnum Hunter, which achieved an internal rate of return of 38% for shareholders before it was sold to Cimarex Energy.
Magnum Hunter is far from the only energy company that's been rebirthed by a management team that is looking to get back into the game after cashing out. Halcon Resources (NYSE:HK), for example, is the rebirth of Floyd Wilson's Petrohawk Energy. Wilson sold Petrohawk for $15.1 billion and has since started Halcon Resources. That name is significant as Halcon means "hawk" in Spanish. That said, knowing the history of a company is only one small part of the investing story.
For investors looking to learn more about Magnum Hunter Resources as well as its plan and potential, I've put together a slideshow presentation, which can be seen below.
Matt DiLallo has no position in any stocks mentioned. The Motley Fool owns shares of Cimarex Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.