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Cimarex Energy (XEC) Q1 Earnings & Revenues Top Estimates

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Cimarex Energy Co. (XEC - Free Report) reported first-quarter 2021 adjusted earnings per share of $1.98, beating the Zacks Consensus Estimate by a penny. Moreover, the figure increased from 58 cents per share in the year-ago quarter.

Total revenues of $679 million beat the Zacks Consensus Estimate of $584 million and increased from the year-ago quarter’s $473 million. 

The strong quarterly results can be attributed to higher oil and gas prices. Rebound in oil prices has favored other upstream companies also, including EOG Resources, Inc. (EOG - Free Report) , ConocoPhillips (COP - Free Report) and Centennial Resource Development, Inc. (CDEV - Free Report) .

Operational Highlights

Production

For the quarter under review, total production averaged 219.7 thousand barrels of oil equivalent per day (MBoe/d), down from 276.6 MBoe/d in the year-ago period on considerably lower activities in the Mid-Continent and Permian Basin. Of the total production, 31.2% was crude oil and 26.3% comprised natural gas liquids (NGLs).

Total oil volumes fell to 68.6 thousand barrels per day (MBbls/d) from 89.8 MBbls/d in the year-ago period. Moreover, natural gas production decreased to 560.1 MMcf/d from the year-ago level of 694.3 MMcf/d. Also, NGL volumes dropped to 57.8 MBbls/d from the year-ago figure of 71.1 MBbls/d.

Realized Prices

Realized price of crude oil increased from $44.18 per barrel in the prior-year quarter to $55.85. The same for NGL surged to $22.43 from $9.84 in the year-ago quarter. Also, realized prices for natural gas rose to $4.14 per thousand cubic feet from 55 cents recorded a year ago.

Costs and Expenses

Overall costs and expenses for the quarter plunged to $499.8 million from the year-ago level of $1,254.5 million. Production expense for the first quarter was recorded at $74.8 million, down from the prior-year figure of $87.2 million. However, transportation, processing and other operating costs increased to $63.6 million from the year-ago figure of $54.9 million.

Financial Condition

As of Mar 31, 2021, the company had cash and cash equivalents of $523.8 million. Net long-term debt was almost $2 billion, representing a net long-term debt to capital of 54.4%. It has no debt maturities till June 2024.

Cimarex's adjusted cash flow from operating activities totaled $395.2 million, up from $306.4 million in the prior-year quarter. The company spent $130 million on oil and gas activities in the March quarter.

Guidance

The company reaffirmed its 2021 capital spending at the band of $650 million to $750 million. The upstream player issued its projection for oil production for the June quarter of this year in the band of 69 MBbl/d to 73 MBbl/d.

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