May 30, 2017 - 8:21 AM EDT
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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:

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:

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.


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.

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SOURCE: Active Wall Street

Source: ACCESSWIRE (May 30, 2017 - 8:21 AM EDT)

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