HOUSTON (AP) — Magnum Hunter Resources Corp. said it is restating its second-quarter financial results because of an inadvertent accounting error.
The oil and gas producer said Monday that the error was in calculating non-cash stock-based compensation expense related to common stock options granted to certain employees during the period ended June 30.
Magnum said that the stock-based compensation expense was understated and that the error was found when it started using new software that tracks such expenses.
"Management has implemented additional procedures to further strengthen its internal controls related to share-based compensation expense which should help prevent any future recurrence of similar errors," Magnum Executive Vice President and Chief Financial Officer Ronald Ormand said in a statement.
The Houston company's second-quarter loss should have been 12 cents per share as opposed to 10 cents per share. The net loss attributable to shareholders should be $18.5 million instead of $14.6 million.
Magnum said it plans to file an amendment to its second quarter in the near future.
The company's stock declined 19 cents, or 4.4 percent, to $4.16 in morning trading. Over the past year, the shares have traded in a range of $3.42 to $7.71.