Key Developments For GMX Resources Inc.
GMX Resources Inc. (GMXR.O) (Nasdaq)
GMX Resources Issues Q4 2009, FY 2010 And FY 2011 Production Guidance
GMX Resources announced that for the fourth quarter of 2009, it expects production to be in the range of 3.50 Bcfe to 3.75 Bcfe. Production guidance for fiscal 2010 and fiscal 2011 is estimated to be 17 Bcfe and 25 Bcfe, respectively, under a three rig drilling program. Under a four rig drilling program, production is estimated to be 19 Bcfe and 30 Bcfe for fiscal 2010 and fiscal 2011, respectively. The production guidance for fiscal 2010 and fiscal 2011 does not include any anticipated production from new non-operated wells other than two H/B Hz wells where we have elected to participate.
GMX Resources Announces Closing Of Midstream Transaction With Kinder Morgan Energy Partners, L.P
GMX Resources and Kinder Morgan Energy Partners, L.P. announced that the two companies have closed their previously announced transaction in which GMXR and its wholly owned subsidiary, Endeavor Pipeline Inc., have transferred mid stream gas gathering, compression, and related equipment to a newly formed Endeavor Gathering LLC, and an affiliate of Kinder Morgan has purchased a 40% membership interest in Endeavor Gathering LLC from GMXR for $36 million.
GMX Resources Announces Pricing of Common Stock Offering And Pricing Of $75 Million Principal Amount Of Convertible Senior Notes Offering
GMX Resources announced that it has priced a public offering of 6,950,000 shares of its common stock, which was previously announced at 5,750,000 shares, at $15.00 per share as well as a public offering of $75 million aggregate principal amount of its convertible senior notes due 2015, which was previously announced at $70 million aggregate principal amount, and expects the issuance and delivery of the shares and the notes to occur on October 28, 2009. The Company has also granted the underwriters a 30-day option to purchase a maximum of 1,042,500 additional shares of its common stock as well as a 30-day option to purchase a maximum of $11.25 million aggregate principal amount of additional notes, in each case, solely to cover over-allotments. The Company intends to use the aggregate net proceeds from these offerings to repay a portion of the outstanding indebtedness under its revolving bank credit facility, to repay all of its outstanding senior secured notes and for general corporate purposes.
GMX Resources Confirms Q3 2009 Production Guidance
GMX Resources announced that for the third quarter of 2009, it expects production to meet its previous estimate of 3.4 billion cubic feet equivalent (Bcfe) of natural gas. The third quarter of 2009's expected production is a 2% increase from 3.3 Bcfe in the second quarter of 2009 and a 4% decrease from 3.5 Bcfe in the third quarter of 2008.
GMX Resources Announces Proposed Offering Of 5,750,000 Shares Of Common Stock And Proposed Offering of $70 Million Principal Amount of Convertible Senior Notes
GMX Resources announced that it has launched an underwritten public offering of 5,750,000 shares of the Company's common stock as well as a concurrent underwritten public offering of $70 million in aggregate principal amount of the Company's convertible senior notes due 2015. The Company intends to use the aggregate net proceeds from these offerings to repay a portion of the outstanding indebtedness under its revolving bank credit facility, to repay all of the Company's outstanding senior secured notes and for general corporate purposes. The Company intends to grant the underwriters a 30-day option to purchase a maximum of 862,500 additional shares of its common stock as well as a 30-day option to purchase a maximum of $10.5 million in aggregate principal amount of additional notes, in each case, solely to cover over-allotments. The notes will be general senior, unsecured obligations of the Company and will be convertible, under certain circumstances, into cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's election. The interest rate, conversion rate and other terms of the notes will be determined at the time of pricing of the notes offering. Credit Suisse Securities (USA) LLC and Jefferies & Company, Inc. will act as the joint book-running managers of both offerings.
