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Cimarex Energy Co. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 4, 2011 07:20PM
Cimarex Energy Co. (XEC) filed Quarterly Report for the period ended 2011-06-30. Cimarex Energy Co. has a market cap of $6.91 billion; its shares were traded at around $80.8 with a P/E ratio of 13.4 and P/S ratio of 4.3. The dividend yield of Cimarex Energy Co. stocks is 0.5%.
Highlight of Business Operations:
Based on current market prices and service costs, we expect that 2011 Exploration and Development (E&D) expenditures may range from $1.5 to $1.6 billion, up from $999 million in 2010. We anticipate approximately 47% of our E&D costs to be directed toward the Permian Basin, 46% to the Mid-Continent and 7% to the Gulf Coast and other. At June 30, 2011 we had 27 operated rigs running. At June 30, 2010 we had 19 operated rigs running.
· Second quarter sales of oil, gas and NGLs increased 24% to $452.3 million from $364.9 million in the previous year.
· Cash flow from operating activities was $373.8 million, up from $273.2 million a year earlier.
· Net income of $166.7 million ($1.94 per diluted share) increased from net income of $124.6 million ($1.46 per diluted share) in 2010.
On an energy equivalent basis, 55% of our aggregate 2011 production was natural gas. A $0.10 per Mcf change in our average realized gas sales price would have resulted in approximately a $5.9 million change in our gas revenues. Similarly, 45% of our production was crude oil and NGLs. A $1.00 per barrel change in our average realized sales price would have resulted in approximately a $7.9 million change in our combined oil and NGL revenues.
Net income for the second quarter of 2011 was $166.7 million, or $1.94 per diluted share. This compares to $124.6 million, or $1.46 per diluted share, for the same period in 2010. The increase in net income is mainly due to the improvement of realized commodity prices in the second quarter of 2011 compared to 2010. For the six months ended June 30, 2011 net income was $284.9 million, or $3.31 per diluted share. In 2010 we recognized a net income of $329.0 million, or $3.84 per diluted share, for the first six months of the year. The decrease in net income results primarily from a decrease in the net gain on derivative contracts during the first half of 2011 compared to 2010. These changes are discussed further in the analysis that follows.
Stocks Discussed: XEC,