Cimarex Energy Co. (XEC, Financial) filed Quarterly Report for the period ended 2009-09-30.
Cimarex Energy is an independent oil and gas exploration and production company focused on increasing shareholder value through strategies linked to generating attractive economic returns on capital employed and profitable growth in per-share reserves production and cash flow. They intend to profitably grow reserves and production through a balanced mix of exploration exploitation and acquisitions. They have a diversified base of high-quality production along with attractive drilling opportunities. Cimarex Energy Co. has a market cap of $3.32 billion; its shares were traded at around $39.77 with a P/E ratio of 13 and P/S ratio of 1.7. The dividend yield of Cimarex Energy Co. stocks is 0.6%. Cimarex Energy Co. had an annual average earning growth of 18.6% over the past 5 years.
In October our bank group, as part of the regularly scheduled fall review, reaffirmed our $1.0 billion borrowing base related to our credit facility maturing in April 2012. Bank group commitments of $800 million also remain unchanged. As of September 30, 2009, we had borrowings outstanding of $156 million, which is $183 million less than the second quarter balance of $339 million. The reduction in borrowings was funded from non-core property sales, tax refunds, lower capital spending relative to cash flow and a net positive working capital change.
· Average realized gas price fell 61% to $3.80 per Mcf versus $9.76 per Mcf.
· Net income of $38.7 million, or $0.46 per diluted share, versus a loss of $232.4 million, or $2.85 per share.
On an energy equivalent basis, 70% of our 2009 aggregate production was natural gas. A $0.10 per Mcf change in our average realized gas sales price would have resulted in approximately an $8.8 million change in our gas revenues. Similarly 30% of our production was crude oil. A $1.00 per barrel change in our average realized crude oil sales price would have resulted in approximately a $6.4 million change in our oil revenues.
Net income for the third quarter of 2009 was $38.7 million, or $0.46 per diluted share. This compares to a net loss of $232.4 million, or $2.85 per share for the same period in 2008. For the nine months ended September 30, 2009, we recognized a net loss of $416.6 million, or $5.10 per share, compared to net income of $146.1 million, or $1.71 per diluted share, for the first nine months of 2008. The change in net income for both the quarter and nine months ended is primarily the result of non-cash full cost ceiling write-downs that were recorded in the third quarter of 2008 and the first quarter of 2009. These impairments are discussed further in the operating costs and expenses section below.
Read the The complete ReportXEC is in the portfolios of Third Avenue Management, Robert Rodriguez of FPA Capital, Martin Whitman of Third Avenue Value Fund, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC, David Dreman of Dreman Value Management.
Cimarex Energy is an independent oil and gas exploration and production company focused on increasing shareholder value through strategies linked to generating attractive economic returns on capital employed and profitable growth in per-share reserves production and cash flow. They intend to profitably grow reserves and production through a balanced mix of exploration exploitation and acquisitions. They have a diversified base of high-quality production along with attractive drilling opportunities. Cimarex Energy Co. has a market cap of $3.32 billion; its shares were traded at around $39.77 with a P/E ratio of 13 and P/S ratio of 1.7. The dividend yield of Cimarex Energy Co. stocks is 0.6%. Cimarex Energy Co. had an annual average earning growth of 18.6% over the past 5 years.
Highlight of Business Operations:
As a result, our earnings for the first nine months of 2009 were negatively impacted. During the third quarter, we generated net income of $38.7 million, or $0.46 per diluted share, and for the first nine months of the year we reported a net loss of $416.6 million, or $5.10 per share. The year to date loss in 2009 was primarily the result of a first quarter noncash impairment of our oil and gas properties of $501.8 million, net of income taxes. Substantially all of this noncash charge was the result of the continuing drop in commodity prices in the first quarter.In October our bank group, as part of the regularly scheduled fall review, reaffirmed our $1.0 billion borrowing base related to our credit facility maturing in April 2012. Bank group commitments of $800 million also remain unchanged. As of September 30, 2009, we had borrowings outstanding of $156 million, which is $183 million less than the second quarter balance of $339 million. The reduction in borrowings was funded from non-core property sales, tax refunds, lower capital spending relative to cash flow and a net positive working capital change.
· Average realized gas price fell 61% to $3.80 per Mcf versus $9.76 per Mcf.
· Net income of $38.7 million, or $0.46 per diluted share, versus a loss of $232.4 million, or $2.85 per share.
On an energy equivalent basis, 70% of our 2009 aggregate production was natural gas. A $0.10 per Mcf change in our average realized gas sales price would have resulted in approximately an $8.8 million change in our gas revenues. Similarly 30% of our production was crude oil. A $1.00 per barrel change in our average realized crude oil sales price would have resulted in approximately a $6.4 million change in our oil revenues.
Net income for the third quarter of 2009 was $38.7 million, or $0.46 per diluted share. This compares to a net loss of $232.4 million, or $2.85 per share for the same period in 2008. For the nine months ended September 30, 2009, we recognized a net loss of $416.6 million, or $5.10 per share, compared to net income of $146.1 million, or $1.71 per diluted share, for the first nine months of 2008. The change in net income for both the quarter and nine months ended is primarily the result of non-cash full cost ceiling write-downs that were recorded in the third quarter of 2008 and the first quarter of 2009. These impairments are discussed further in the operating costs and expenses section below.
Read the The complete ReportXEC is in the portfolios of Third Avenue Management, Robert Rodriguez of FPA Capital, Martin Whitman of Third Avenue Value Fund, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC, David Dreman of Dreman Value Management.
