Morgan Stanley Infrastructure holds majority stake in Eureka Hunter, which owns Eureka Hunter Pipeline and TransTex Hunter.
Magnum Hunter Resources expects the divestment to boost its liquidity as well as help restructure its balance sheet.
Meanwhile, the company has a deadline date of 10 July to repay its market debts of around $65m and has raised about $55.6m till date. The firm is continuing to pursue liquidity enhancing transactions, reported Reuters.
BMO Capital Markets Analysts told the news agency as saying that the sale of its prize asset, Eureka Hunter Pipeline, will leave the company with less valuable oil and gas business.
Eureka Hunter Pipeline owns and operates a natural gas gathering system located in southeastern Ohio and northern West Virginia as well as operating approximately 175 miles of high pressure pipeline in the Marcellus and Utica Shale plays.
In May this year, Magnum announced planto sell undeveloped assets in Ohio and West Virginia and also form a joint venture for parts of its Utica shale assets.
The company also said it would sell portion of its stake in Eureka Hunter to raise nearly $50m .
