Hot Stock under Consideration: Cimarex Energy Co. (NYSE: XEC)

On Monday, Shares of Cimarex Energy Co. (NYSE: XEC) rose 0.40% to $96.80. The stock recorded $95.46 as its minimum price and hit the max level of $97.04, during its most recent trading session. It traded total volume of 509.8K shares lower than the average volume of 1.59M shares.

Cimarex Energy Co. (XEC) recently stated first quarter 2018 net income of $186.30M, or $1.96 per share, contrast to $131.00M, or $1.38 per share, in the same period a year ago.  First quarter adjusted net income (non-GAAP) was $173.60M, or $1.82 per share, contrast to first quarter 2017 adjusted net income (non-GAAP) of $99.70M, or $1.05 per share.1  Net cash offered by operating activities was $383.10M in the first quarter of 2018 contrast to $249.50M in the same period a year ago.  Adjusted cash flow from operations (non-GAAP) was $367.20M in the first quarter of 2018 contrast to $265.80M in the first quarter a year ago.

Total company production for the quarter came in at the high end of guidance, averaging 206.1.0K barrels of oil equivalent (MBOE) per day.  Oil production averaged 65.212K barrels per day, up six percent from fourth quarter 2017 levels. Realized oil prices averaged $59.93 per barrel, up 26 percent from the $47.71 per barrel received in the first quarter of 2017. Realized natural gas prices averaged $2.28 per thousand cubic feet (Mcf) down 24 percent from the first quarter 2017 average of $3.01per Mcf.  NGL prices were down 1 percent and averaged $20.19 per barrel from the $20.40 per barrel received in the same period of 2017.  Realized prices for 2018 reflect the adoption of Accounting Standards Codification 606 (ASC 606).  See table below (Impact of ASC 606) for comparison of realized prices for 2018 for pre- and post ASC 606.

Cimarex invested $313.0M in exploration and development (E&D) during the first quarter, of which $264.0M is attributable to drilling and completion activities.  First quarter investments were funded with cash flow from operations.  Total debt at March 31, 2018 consisted of $1.50B of long-term notes.  Cimarex had no borrowings under its revolving credit facility and a cash balance of $464.0M.  Debt was 35 percent of total capitalization.

XEC has the market capitalization of $9.25B and its EPS growth ratio for the past five years was 2.20%. The price to book ratio of the Company was 3.28 while its return on investment ratio stands at 11.70%. Price to sales ratio was 4.54 while 98.20% of the stock was owned by institutional investors.

Grover Beam

Grover Beam has over 14 years experience in the financial services industry giving him a vast understanding of how news affects the financial markets. He is an active day trader spending the majority of her time analyzing earnings reports and watching commodities and derivatives. He has a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.