Free Post Earnings Research Report: Cimarex’ Revenue Surged 38%; EPS More than Doubled
LONDON, UK / ACCESSWIRE / December 20, 2017 / Active-Investors free earnings report on Cimarex Energy Co. (NYSE: XEC) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=XEC. Cimarex Energy reported its third quarter fiscal 2017 (Q3 FY17) operating results on November 08, 2017. The oil and natural gas Company outperformed top- and bottom-line expectations and also provided guidance for the upcoming quarter and full year.
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Earnings Highlights and Summary
For the three months ended September 30, 2017, Cimarex' revenue totaled $463.68 million compared to $335.72 million for Q3 2016. The Company's revenue numbers topped analysts' estimates of $451.3 million.
Cimarex reported Q3 2017 net income of $91.4 million, or $0.96 per share, compared to a net loss of $10.7 million, or $0.12 per share, in Q3 2016. The Company's reported quarter adjusted net income was $103.6 million, or $1.09 per share, versus adjusted net income of $50.3 million, or $0.53 per share, for the year ago comparable period, and came in ahead of Wall Street's estimates of $0.97 per share.
Operating Results
Cimarex's total production for Q3 2017 came in slightly above the high-end of the Company's forecasts, averaging 1,143 million cubic feet equivalent (MMcfe) per day or 190.5 thousand barrels of oil equivalent (MBoe) per day. The Company's oil production averaged 56,687 barrels per day, in-line with its estimates.
During Q3 2017, Cimarex' realized oil prices averaged $44.38 per barrel versus $40.54 per barrel in Q3 2016. The Company's realized natural gas prices averaged $2.65 per thousand cubic feet (Mcf) versus the year ago same period average of $2.66 per Mcf. Cimarex's NGL prices surged 53% on a y-o-y basis and averaged $21.63 per barrel from the $14.14 per barrel received in the same period of 2016.
Cimarex invested $335 million in exploration and development (E&D) during Q3 2017, 60% in the Permian Basin, and 39% in the Mid-Continent. The Company completed 77 gross (30 net) wells during the quarter. At September 30, 2017, Cimarex had 131 gross (32 net) wells waiting on completion.
Permian Region
During Q3 2017, Cimarex' production from the Permian region averaged 628.2 MMcfe per day, reflecting growth of 21% on a y-o-y basis. The Company's oil volumes averaged 43,735 barrels per day and represented 42% of the region's total equivalent production. Cimarex completed 29 gross (16 net) wells in the Permian region during the reported quarter.
Mid-Continent
For Q3 2017, Cimarex' production from the Mid-Continent averaged 512.7 MMcfe per day, up 20% on a y-o-y basis. In the reported quarter, the Company completed 48 gross (14 net) wells in the Mid-Continent region.
Cimarex also announced drilling results from several Woodford shale wells in its Lone Rock area. These wells were brought on production over the past several quarters and show some of the best returns the Company has seen to date in the Woodford shale. Cimarex has approximately 16,000 net acres in the Lone Rock area and has completed seven wells in 2017 including the Hines Federal #1H, the Company's best well to date in the area. The Hines had 30-day average peak production of 15.2 MMcfe per day (40% oil, 23% NGL, 37% gas).
Cash Matters
Cimarex' net cash provided by operating activities was $251.0 million in Q3 2017 compared to $223.0 million in Q3 2016. The Company's adjusted cash flow from operations was $283.9 million in the reported quarter compared to $181.9 million in the year earlier same quarter.
Cimarex' total debt at September 30, 2017, consisted of $1.5 billion of long-term notes. The Company had no borrowings under its revolving credit facility and a cash balance of $423 million. Cimarex' debt was 38% of total capitalization.
Outlook
For the fourth quarter 2017, Cimarex is forecasting production volumes to average 1,175 - 1,225 Mmcfe, or 195.8 - 204.2 MBoe per day, up 3% to 7% from Q3 2017 volumes, as a result of the increase in well completions late in the third quarter. The Company's oil production is expected to grow 32% – 37% on a y-o-y basis.
Cimarex's total daily production volumes for full year 2017 is estimated to average 1,134 – 1,147 MMcfe (189.0 – 191.2 MBoe), up 18% on a y-o-y basis. The Company estimates full-year E&D capital investment to be approximately $1.2 billion compared to its previous forecast of $1.1 billion – 1.2 billion.
Stock Performance Snapshot
December 19, 2017 - At Tuesday's closing bell, Cimarex Energy's stock marginally fell 0.54%, ending the trading session at $113.05.
Volume traded for the day: 778.85 thousand shares.
Stock performance in the last three-month period – up 3.41%; and past six-month period – up 22.45%
After yesterday's close, Cimarex Energy's market cap was at $10.84 billion.
Price to Earnings (P/E) ratio was at 28.23.
The stock has a dividend yield of 0.28%.
The stock is part of the Basic Materials sector, categorized under the Independent Oil & Gas industry.
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