Cimarex Energy Co.

Cimarex Energy Co. (XEC - Snapshot Report) has a very bullish 120% earnings growth projection in the next-year period as energy prices trend higher on renewed economic optimism.

Company Description

Cimarex Energy Co. is an independent oil and gas exploration and production company. The company has interests in oil fields primarily in Oklahoma, the Texas panhandle and southwest Kansas. Cimarex was founded in 2002 and has a market cap of $3.52 billion.

Shares of XEC have been trending higher since early March on the heels of an economic recovery and higher energy prices. The company's Q2 results, reported on August 6, were down from last year but still ahead of expectations.

Second-Quarter Results

Revenue was down 64% from last year to $213.4 million. But earnings came in 7 cents ahead of the Zacks Consensus Estimate at 46 cents per share. The company said that the sharp decline in its sales was almost exclusively due to lower gas and oil prices.

Estimates Rising

With energy prices on the upswing, estimates have followed suit. The current-year estimate is up 57 cents in the last 90 days to $1.96 per share. The next-year estimate is very bullish, pegged at $4.32, a 120% growth projection.

The Chart

Shares of XEC have been posting big gains over the last 6 months after bottoming out just above $15 in early March. Shares are currently trading above $44 and in position to challenge the 52-week high $49.16. Take a look at the chart below.