Fourteen analysts have increased their 2017 earnings forecasts for this energy company.
Cimarex Energy (XEC)
From Stock Pickers Digest
Cimarex Energy (XEC; TSINetwork Rating: Extra Risk) produces and explores for natural gas and oil. Gas makes up 47% of the company’s output; the remaining 53% is oil.
Cimarex’s properties are mostly in the Wolfcamp shale area of Texas and New Mexico. The company also has production sites in Oklahoma’s Cana-Woodford shale region. In the three months ended December 31, 2016, Cimarex produced an average 165,500 barrels of oil equivalent per day. That’s down 2.6% from 170,000 a year earlier.
Despite the lower output, the company’s reduced costs and higher oil and gas prices improved its cash flow. That jumped 70.6% in the latest quarter, to $2.32 a share from $1.36.
Cimarex plans to spend as much as $1.2 billion on exploration and development this year. That’s up 56% from its 2016 spending of $735 million.
The company’s balance sheet is very strong. Its long-term debt of $1.5 billion is a low 13.4% of its $11.2 billion market cap. Cimarex currently holds cash of $652.9 million, or $6.87 a share.
Cimarex Energy is a buy.
Patrick McKeough, Stock Pickers Digest, www.tsinetwork.ca, 888-292-0296, May 2017