Back to top

Analyst Blog

Zacks Equity Research

Cimarex Acquires Cana-Woodford Assets; to Sell Kansas Property

QEP EQT TCP XEC

Trades from $3
Read Full ArticleHide Full Article

Denver-based Cimarex Energy Company (XEC - Free Report) closed the acquisition of Western Oklahoma assets primarily located in the Cana-Woodford shale play. Following customary purchase price adjustments, the net amount paid at closing was $238 million.

The acquisition added about 140 billion cubic feet equivalent (bcfe) of proved developed reserves, net production of 35 million cubic feet equivalent (mmcfe) per day and 50,000 net acres.

In a separate transaction, Cimarex agreed to sell producing properties in Kansas to an undisclosed buyer for $138 million. These assets include 50 bcfe of proved reserves and 15 mmcfe per day of production. The sale is expected to close by Jul 31, 2014.

Full-year 2014 production adjusted to reflect both transactions is estimated to be 835 - 860 mmcfe per day versus 822 - 847 mmcfe per day previously.

Cimarex is an independent exploration & production company. The primary activities of the company are in the Mid-Continent and Permian Basin areas of the U.S.

The company is 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. It intends to profitably grow reserves and production through a balanced mix of exploration, exploitation and acquisitions. Cimarex has a diversified base of high-quality production and attractive drilling opportunities.

As is the case with other independent exploration and production companies, Cimarex’s results are directly exposed to oil and gas prices, which are inherently volatile and subject to complex market forces.

Currently, Cimarex carries a Zacks Rank #3 (Hold). Meanwhile, one can consider better-ranked players from the broader energy sector such as EQT Corporation (EQT - Free Report) , QEP Resources, Inc. (QEP - Free Report) and TC PipeLines, LP (TCP - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy).
 




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


QEP Resources, Inc. (QEP) - free report >>

EQT Corporation (EQT) - free report >>

TC PipeLines, LP (TCP) - free report >>

Cimarex Energy Co (XEC) - free report >>