Oil and gas production increased 9% for the three months ended March 31, 2013 to 1.239 million barrels of oil equivalent ("MMBoe") or 13,769 barrels of oil equivalent per day ("Boepd") (61% oil/liquids) as compared to the 1.149 MMBoe or 12,624 Boepd reported for the three months ended March 31, 2012. On a pro forma basis, production increased 34% to 16,889 Boepd including production shut-ins of 3,120 BOEPD as described below. The increase in production was primarily attributable to prior acquisitions, but more importantly, the Company's successful drilling program in its shale plays. In addition, the Company's oil/liquids production mix increased to 61% of overall production in the first quarter of 2013 compared to 35% in the first quarter of 2012. This change is a result of the shift in our capital expenditure program toward an oil and liquids rich development program.
As noted above, in the first quarter of 2013, the Company's production was significantly impacted by production shut-ins in the Appalachian division primarily due to pipeline and liquid handling issues relating to the Company's midstream gathering facilities. These production shut-ins resulted from the presence of significantly greater liquids in the Company's natural gas production than originally anticipated. As a result, Eureka Hunter Pipeline, our midstream subsidiary, was required to re-engineer a portion of its gathering lines. Once Eureka Hunter Pipeline completed the capital project program, production was further delayed due to requirements for new air permits and lengthy delays in obtaining such permits from the State of West Virginia. The production shut-ins negatively impacted first quarter 2013 production by approximately 3,120 Boepd; thus, including the shut-in production volumes, first quarter 2013 production would have been approximately 16,889 Boepd. All liquids handling issues associated with the production of our Marcellus natural gas were resolved in May 2013, and the pipeline is fully operational with all natural gas and natural gas liquids now being processed at MarkWest's Mobley processing facility.
Capital Expenditures and Liquidity
Magnum Hunter's total upstream and midstream capital expenditures, excluding acquisitions and Eagle Ford Shale capital expenditures (which were recouped on April 24, 2013, through purchase price adjustments as a result of the January 1, 2013 effective date of sale) were $75.0 million for the three months ended March 31, 2013. Total upstream capital expenditures were $56.0 million with $31.9 million for the Williston Basin, $21.6 million for the Appalachian region and $2.5 million for the South Texas region. As a result of our Eagle Ford Shale properties sale, the Company reallocated its 2013 upstream capital expenditure budget of $300 million, with $150 million allocated to the Appalachian Basin, almost all of which is allocated to its Marcellus Shale and Utica Shale plays, and $150 million allocated to its Williston Basin/Bakken Shale play. The Company has allocated a significant portion of its 2013 upstream capital budget to the Marcellus Shale and Utica Shale plays to take advantage of its processing capacity which went live in December 2012 at the MarkWest Mobley processing plant. In addition, the Company, in the first quarter of 2013, spent $19.0 million for the expansion of the Eureka Hunter Gas Gathering System.
As a result of the Company's internally generated cash flows and availability under its Senior Revolving Credit Facility, Magnum Hunter has sufficient liquidity to fund its fiscal 2013 upstream capital budget of $300 million. As of June 30, 2013, the Company had total cash liquidity of approximately $310.8 million which is comprised of approximately $45.8 million of cash and $265.0 million of borrowing availability under its Senior Revolving Credit Facility. In addition, the Company currently owns 10 million shares of common stock of Penn Virginia (with current market value of $50.4 million based on the closing price of $5.04 per share as of July 5, 2013). In order to enhance our liquidity and reduce leverage, the Company intends to divest up to $100 - $200 million of non-core assets in 2013 and 2014. The Company also intends to pursue monetizing its ownership in Eureka Hunter Pipeline, its midstream subsidiary, commencing in the third quarter of 2013.
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