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Cimarex Energy – XEC – Reports First-Quarter 2012 Results

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Cimarex Energy Co. (NYSE: XEC) reported first-quarter 2012 net income of $106.1 million, or $1.23 per diluted share. This compares to first-quarter 2011 earnings of $118.2 million, or $1.37 per diluted share.

XEC First-quarter 2012 net income includes an unrealized non-cash loss on derivative instruments associated with 2012 oil hedges of $2.6 million after-tax, or $0.03 per share. First-quarter 2011 results had a $12.8 million ($0.15 per share) after-tax non-cash loss on derivative instruments.

Oil, gas and natural gas liquids (NGLs) revenue in the first quarter of 2012 totaled $411.3 million as compared to $414.0 million in the same period of 2011. First-quarter 2012 cash flow from operations was $303.0 million versus $304.6 million a year ago(1).


XEC First-quarter 2012 production volumes averaged 603.5 million cubic feet equivalent (MMcfe) per day as compared to first-quarter 2011 output of 590.0 MMcfe per day. Permian Basin oil production grew 50% to a record 21,800 barrels per day. Overall oil production also reached an all-time high of 29,562 barrels per day.

Combined Permian and Mid-Continent first-quarter 2012 volumes averaged 554.2 MMcfe per day, growing 26% over the same period in 2011. First-quarter 2012 production volumes were 53% gas, 29% oil and 18% NGLs.

XEC First-quarter 2012 realized oil prices increased 9% to $99.28 per barrel, while natural gas liquids prices fell 10% to $36.66 per barrel. Gas prices averaged $2.92 per thousand cubic feet (Mcf) in the current quarter, a 34% decrease as compared to the first quarter of 2011.

2012 Outlook

Second-quarter 2012 production estimates incorporate the anticipated volume impact of known processing plant turnarounds and likely periods of Cana-Woodford ethane rejection, which together are expected to reduce second-quarter production by approximately 10-12 MMcfe/d. Second-quarter 2012 combined Permian Basin and Mid-Continent (PB/MC) production is projected to average 550-560 MMcfe/d, an increase of 18-20% over second-quarter 2011. Gulf Coast volumes are estimated to average 30-40 MMcfe/d for second-quarter 2012. Total company second-quarter 2012 volumes are expected to average 580-600 MMcfe/d.

After including estimated second-quarter plant turnarounds and ethane rejection, full-year 2012 PB/MC production volumes are now projected to average 578-593 MMcfe/d, growing 19-22% over 2011. Gulf Coast volumes, assuming no drilling contribution, are projected to average 34-39 MMcfe/d for 2012, or approximately 6% of total estimated company volumes. Total Company 2012 volumes are projected to average 612-632 MMcfe/d, or 3-7% growth over 2011.

About Cimarex Energy

Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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