August 29, 2017 - 7:00 AM EDT
Print Email Article Font Down Font Up
Earnings Review and Free Research Report: Cimarex Energy’s Revenue Soared 53%; Adjusted EPS Rocketed 382%

Research Desk Line-up: Rosehill Resources Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 29, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Cimarex Energy Co. (NYSE: XEC) ("Cimarex"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=XEC, following the Company's posting of its second quarter financial results on August 08, 2017. The oil and natural gas Company outperformed top- and bottom-line expectations and raised its daily production outlook for 2017. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Independent Oil & Gas industry. Pro-TD has currently selected Rosehill Resources Inc. (NASDAQ: ROSE) for due-diligence and potential coverage as the Company reported on August 15, 2017, its operational and financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Rosehill Resources when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on XEC; also brushing on ROSE. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=XEC

http://protraderdaily.com/optin/?symbol=ROSE

Earnings Reviewed

For the three months ended June 30, 2017, Cimarex reported revenue of $456.45 million compared to revenue of $298.87 million for Q2 2016. The Company's revenue number exceeded analysts' expectations of $443.5 million.

During Q2 2017, Cimarex's total production came in above the high-end of its guidance, averaging 1,156 million cubic feet equivalent (MMcfe) per day, up 19% on a y-o-y basis. The Company's oil production averaged 57,871 barrels per day, reflecting an 11% increase sequentially.

Cimarex noted that commodity prices improved significantly from a year ago and had a positive impact on the Company's financial results in Q2 2017. Cimarex's realized oil prices averaged $44.14 per barrel in the reported quarter, up 10% versus $40.07 per barrel in the year earlier corresponding quarter. Cimarex's realized natural gas prices averaged $2.82 per thousand cubic feet (Mcf), up 55% from an average of $1.82 per Mcf in Q2 2016. NGL's prices averaged $18.24 per barrel, up 31% from the $13.93 per barrel received in the prior year's same quarter.

Cimarex reported net income of $97.3 million, or $1.02 per share, in Q2 2017 compared to a net loss of $214.4 million, or $2.31 per share, in Q2 2016. The Company's reported quarter adjusted net income was $101.0 million, or $1.06 per share, in Q2 2017 versus adjusted income of $20.9 million, or $0.22 per share, in the prior year's comparable quarter. Cimarex's earnings outperformed Wall Street's estimates of $0.95 per share.

Operating Results

Cimarex invested $296 million in exploration and development (E&D) during Q2 2017, of which $219 million is attributable to drilling and completion activities. Cimarex completed 51 gross (18 net) wells during the quarter. At June 30, 2017, 98 gross (29 net) wells were waiting on completion. Cimarex is currently operating 14 drilling rigs.

Segment Results

During Q2 2017, Cimarex's production from the Permian Basin averaged 644.7 MMcfe per day, up 27% on a y-o-y basis. The Company's oil volumes represented 43% of the region's total production. Natural gas production increased 9% and NGL production was up 16% on a sequential basis.

During Q2 2017, Cimarex completed a successful four-well downspacing project testing 16 wells per section in the Upper Wolfcamp. Located in Reeves County, the Pagoda State project was brought on production in late April. The four 10,000-foot lateral wells had an average peak 30-day initial production of 1,922 BOE per day of which 956 barrels per day was oil.

Cimarex brought 11 gross wells on production in the Permian region during Q2 2017. There were 27 gross wells waiting on completion on June 30 2017. Cimarex currently operates eight rigs in the Permian region.

In the reported quarter, Cimarex's production from the Mid-Continent averaged 509 MMcfe per day, up 10% on a q-o-q basis. During Q2 2017, Cimarex completed and brought on production 40 gross wells in the Mid-Continent. At the end of the reported quarter, 71 gross wells were waiting on completion. Cimarex is currently operating six rigs in the region.

Cash Matters

Cimarex's net cash provided by operating activities was $255.3 million in Q2 2017 compared to $132.4 million in Q2 2016. The Company's adjusted cash flow from operations was $278.8 million in the reported quarter compared to $146.9 million in the year earlier same quarter.

Cimarex's total debt at June 30, 2017, consisted of $1.5 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $520 million. The Company's debt was 39% of total capitalization.

Outlook

Cimarex re-affirmed its estimated full-year exploration and development capital investment of $1.1billion – 1.2 billion for 2017. The Company's estimated capital investment is allocated 62% to the Permian and 37% to the Mid-Continent. Cimarex is forecasting daily production for 2017 to average 1,120 – 1,140 MMcfe, up slightly from previous guidance. Oil volumes are expected to grow 24%-29% on a y-o-y basis.

For Q3 2017, Cimarex's output is expected to average 1,100 – 1,140 MMcfe per day. The Company's oil production is anticipated to grow 30%-35% in Q4 2017 on a y-o-y basis.

Stock Performance

On Monday, August 28, 2017, the stock closed the trading session at $99.57, rising slightly by 0.01% from its previous closing price of $99.56. A total volume of 1.54 million shares have exchanged hands, which was higher than the 3-month average volume of 1.21 million shares. Cimarex Energy's stock price advanced 1.25% in the last one month. The stock is trading at a PE ratio of 34.24 and has a dividend yield of 0.32%. The stock currently has a market cap of $9.43 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily


Source: ACCESSWIRE Investor Awareness (August 29, 2017 - 7:00 AM EDT)

News by QuoteMedia
www.quotemedia.com
Tags:

Legal Notice