A presentation from Atlas Consulting CEO Dallas Salazar, a major stockholder in Magnum Hunter Resources. Salazar has threatened MHR with a takeover attempt if management does not right the ship and take certain actions. Salazar lays out in this presentation, in broad brush strokes, his plan for how MHR can rescue itself from bankruptcy.

1. MAGNUM HUNTER
UNLOCKING SHAREHOLDER VALUE
OCTOBER
7TH,
2015
ATLAS CONSULTING
ATHENA
INVESTMENT
RESEARCH,
LLC
CapGainr

2. 2
CONTENTS
ISSUES
SOLUTIONS
OPPORTUNITIES
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ATHENA INVESTMENT RESEARCH, LLC | ATLAS CONSULTING

3. MAGNUM HUNTER
ISSUES
1. Too
Much
Financial
Complexity
2. Too
Much
Debt
3. Secured
Bank
Debt
Greatly
Reduces
Financial
Flexibility
4. Current
Capital
Structure
Limits
Growth
5. Poor
Corporate
CommunicaUon
6. Energy
Prices,
Overall
Industry
Stress
Weighing
On
Asset
Values
7. Truncated
Timetable
8. Investor
SenUment
Hugely
NegaUve
–
Distrust
Of
Management/Board
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ATHENA INVESTMENT RESEARCH, LLC | ATLAS CONSULTING

4. MAGNUM HUNTER
REQUIRED SOLUTIONS
1. Increase
Liquidity
2. Reduce
Debt
3. Reduce
Financial
Complexity
4. Increase
Equity
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ATHENA INVESTMENT RESEARCH, LLC | ATLAS CONSULTING

5. SPECIFIC ACTION
PHASE I – FINANCIAL ENGINEERING
1. Obtain
Bank
Waiver
–
Present
Credible
Restructuring
Plan
To
Bank
• Enable
Open
Market
High
Debt
Repurchase
• Provide
Reasonable
Time
Required
To
ExecuUon
• Replace
Senior
Bank
OR
Provide
Sweetener
To
Current
Bank
-­‐
Higher
Interest
Rate/
Equity
Kicker/
Blend
2. Raise
PE,
Buy
Discounted
High
Yield
Debt
Prearranged
Debt/Equity
Swap
w/
Investor
• Side-­‐Step
Secured
Bank
Covenants
3. Convert
Preferred
Equity
Into
Common
• Eliminate
~$400
million
Quasi-­‐Debt
• Reduce
Fixed
Charge
ObligaUons
• Minimal
DiluUon
At
Higher
Pricing
4. Rights
Offering
• Provides
Needed
Growth
Capital
• Enables
ExisUng
Holders
Opportunity
To
Hold
Ownership
PosiUon
• Enables
ExisUng
Holders
A
Lower
Cost
Basis
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ATHENA INVESTMENT RESEARCH, LLC | ATLAS CONSULTING

6. SPECIFIC ACTION
PHASE II – OPERATIONAL IMPROVEMENTS
1. Sell/
Take
Eureka
Hunter
Public
via
IPO/Sell
w/
Forgivable
Long-­‐Dated
Loan
(volumes)
• IPO
Possibility
Creates
Urgency/
Bid
Demand
via
MLP
• Long-­‐Dated
Loan
Brings
Immediate
Liquidity/
Performance
Kicker
To
Sale
2. Work
JV’s
w/
PE,
Develop/MoneXze
UXca
&
Marcellus
Assets
• Leases
Trading
Deeply
Discounted
–
Selling
At
Depreseed
Value
Hurts
Equity
Value
• JV
Enables
MHR
Increased
ProducUon
w/
NO
CAPEX
• Increased
ProducUon
Increases
OperaUng
Scale,
Reduces
OperaUng
Overhead
Per
Boe/d
3. Sell
Fully
Valued
Non-­‐Core
Assets
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ATHENA INVESTMENT RESEARCH, LLC | ATLAS CONSULTING

7. MAGNUM HUNTER
OPPORTUNITIES
1. High
Yield
Debt
Trading
Deeply
Discounted
• Open
Market
Purchases
At
Deep
Discounts
&
Swap
For
Equity
• Opportunity
To
Reduce
High
Yield
Debt
By
50%
or
~$300
million
2. Preferred
SecuriXes
Trading
At
Deep
Discount
3. Open
Market
Purchases
At
Deep
Discounts
&
Swap
For
Equity
4. Generous
Exchange
Offer
To
Preferred
Holders
To
Swap
Into
Equity
• Allows
Preferred
Holders
Upside
Opportunity
In-­‐Line
w/
Equity
Counterparts
• Long-­‐Term
Viability
Improvement
Drives
Equity
Value,
Removes
PorUon
Of
Short
Overhang
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ATHENA INVESTMENT RESEARCH, LLC | ATLAS CONSULTING

8. MAGNUM HUNTER
CONCLUSION
8
1. Need
To
Reduce
Debt,
Increase
Equity
2. Time
SensiUve
3. Opportunity
To
Repurchase
OR
Swap
Junior
SecuriUes
At
Deep
Discounts
4. Rights
Offering,
Add
Non-­‐DiluUve
Equity
5. Selling
Fully
Valued
Assets,
Raise
Cash
6. JV
Partner
To
Develop
UUca
and
Marcellus,
Raise
Cash
7. Increase
ProducUon
8. Limit
Cash
Outlay
9. Preferred
Conversion
Strategy
To
Selling
Raw
Land
At
Distressed
Prices
10. Aligning
Obligors
To
Equity
Counterparts
Will
Drive
Long-­‐Term
Viability
Visibility/
Remove
Short
Seller
Overhang
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ATHENA INVESTMENT RESEARCH, LLC | ATLAS CONSULTING

9. THANK YOU
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