Post Earnings Coverage as Cimarex Energy's Revenue Rocketed 86%; Turned Profitable on a Y-o-Y Basis
Upcoming AWS Coverage on Cabot Oil & Gas Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 30, 2017 / Active Wall St. announces its post-earnings coverage on Cimarex Energy Co. (NYSE: XEC). The Company reported its first quarter fiscal 2017 financial results on May 10, 2017. The oil and natural gas Company exceeded top- and bottom-line expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Cimarex Energy's competitors within the Independent Oil & Gas space, Cabot Oil & Gas Corp. (NYSE: COG), reported on April 28, 2017, its financial and operating results for Q1 2017. AWS will be initiating a research report on Cabot Oil & Gas in the coming days.
Today, AWS is promoting its earnings coverage on XEC; touching on COG. Get our free coverage by signing up to:
http://www.activewallst.com/register/.
Earnings Reviewed
For the three months ended March 31, 2017, Cimarex Energy recorded revenue of $447.18 million versus revenue of $240.60 million in Q1 2016. The Company's revenue numbers outperformed analysts' consensus estimates of $428.2 million.
For Q1 2017, Cimarex Energy's total production came in above the high-end of the Company's guidance and averaged 1,063 million cubic feet equivalent (MMcfe) per day, up 9% on a y-o-y basis. Cimarex Energy's oil production averaged 52,181 barrels per day in the reported quarter, up15% on a sequential basis. The Company's realized oil prices averaged $47.71 per barrel in Q1 2017 versus $28.02 per barrel in Q1 2016, an increase of 70%; while realized natural gas prices averaged $3.01 per Mcf, up 57% compared to the year ago same quarter's average of $1.92 per Mcf. The Company's NGL prices averaged $20.40 per barrel, up 107% compared to $9.84 per barrel received in the same period a year ago.
Cimarex Energy reported net income of $130.97 million, or $1.38 per share, in Q1 2017 compared to loss of $231.46 million, or $2.49 per share, in Q1 2016. On an adjusted basis, the Company reported net income of $99.7 million, or $1.05 per share, compared to adjusted net loss of $25.9 million, or $0.28 per share, for the prior year's corresponding quarter.
Segment Results
During Q1 2017, Cimarex Energy's production from the Permian Basin averaged 577 MMcfe per day, up 21% on a y-o-y basis. Oil volumes represented 43% of the region's total production in the reported quarter and grew 13% on a sequential basis. From the Permian Basin, natural gas production increased 12%, while NGL production was up 13% sequentially.
Cimarex Energy brought 25 gross (16 net) wells on production in the Permian region during Q1 2017. There were 14 gross (11 net) wells waiting on completion on March 31, 2017 in the region. Cimarex Energy is currently operating eight rigs in the Permian region.
Cimarex Energy's production from the Mid-Continent averaged 484 MMcfe per day for Q1 2017, down 2% on a y-o-y basis. The segment's crude oil volumes were up 20%, natural gas production grew 3% and NGL volumes jumped 16% on a sequential basis. During the reported quarter, Cimarex Energy completed and brought on production 45 gross (10 net) wells in the Mid-Continent. At the end of the reported quarter, 68 gross (15 net) wells were waiting on completion. The Company currently operates six rigs in the region.
Cash Matters
Cimarex Energy's net cash provided by operating activities was $249.5 million in Q1 2017 compared to $85.4 million in Q1 2016. The Company's adjusted cash flow from operations was $265.8 million in the reported quarter compared to $81.6 million in the prior year's same quarter.
Cimarex Energy invested $306 million in exploration and development during Q1 2017, of which $197 million was attributable to drilling and completion activities. The Company's total debt at March 31, 2017, consisted of $1.5 billion of long-term notes. Cimarex Energy had no borrowings under its revolving credit facility and a cash balance of $579 million.
On May 12, 2017, Cimarex Energy's Board of Directors declared a quarterly cash dividend on its common stock of $0.08 per share. The dividend is payable on September 01, 2017, to stockholders of record on August 15, 2017.
Outlook
Cimarex Energy increased its FY17 full-year production estimate to 1.09-1.13 Bcfe per day, a midpoint increase of 15% over FY16 volumes. Exploration and development capital for 2017 remains unchanged at $1.1 billion - 1.2 billion. For Q2 2017, the Company is forecasting output to average 1.08-1.13 Bcfe per day, with oil production expected to outpace total Company volume growth and rise 6%-10% sequentially.
Stock Performance
At the close of trading session on Friday, May 26, 2017, Cimarex Energy's stock price was marginally down by 0.03% to end the day at $110.95. A total volume of 712.59 thousand shares were exchanged during the session. The stock currently has a market cap of $10.55 billion.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS 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.
AWS 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 [email protected]. Rohit Tuli, a CFA® charterholder (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 AWS. AWS 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
AWS, 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. AWS, 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, AWS, 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 AWS 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://www.activewallst.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: [email protected]
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street
