Cimarex Energy Co. declined 1.6% since it reported second-quarter 2021 results on Aug 5. Although the independent oil and gas exploration and production company reported strong quarterly results, the rapidly-spreading deadly variants of coronavirus have induced uncertainty in its upstream business, at least for the near term.
The company reported second-quarter 2021 adjusted earnings per share of $2.09, beating the Zacks Consensus Estimate of $1.87 and turning around from the year-ago quarter’s loss of 51 cents.
Total revenues of $712 million beat the Zacks Consensus Estimate of $614 million and increased from the year-ago quarter’s $249 million.
The strong quarterly results can be attributed to higher oil and gas prices.
Operational Highlights
Production
For the quarter under review, total production averaged 237.1 thousand barrels of oil equivalent per day (MBoe/d), down from 254.7 MBoe/d in the year-ago period on considerably lower activities in the Mid-Continent and Permian Basin. Of the total production, almost 31% was crude oil and 28.3% comprised natural gas liquids (NGLs).
Total oil volumes fell to 72.7 thousand barrels per day (MBbls/d) from 77.9 MBbls/d in the year-ago period. Natural gas production decreased to 584.2 MMcf/d from the year-ago level of 656 MMcf/d. NGL volumes dropped marginally to 67 MBbls/d from the year-ago figure of 67.4 MBbls/d.
Realized Prices
Realized price of crude oil increased from $19.57 per barrel in the prior-year quarter to $64.11. The same for NGL surged to $23.16 from $7.52 in the year-ago quarter. Realized prices for natural gas rose to $2.51 per thousand cubic feet from 91 cents recorded a year ago.
Costs and Expenses
Overall costs and expenses for the quarter plunged to $552.5 million from the year-ago level of $1,432.4 million. Production expenses for the second quarter were recorded at $77.4 million, up from the prior-year figure of $64.3 million. Transportation, processing and other operating costs increased to $59.3 million from the year-ago $53.3 million.
Financial Condition
As of Jun 30, 2021, the company had cash and cash equivalents of $799.3 million. Net long-term debt was almost $2 billion, representing debt to capitalization of 53.1%. It has no debt maturities till June 2024.
Cimarex's adjusted cash flow from operating activities totaled $394 million, up from $144.5 million in the prior-year quarter. The company spent $168.3 million on oil and gas activities in the June quarter.
Guidance
The company reaffirmed its 2021 capital spending at the band of $650 million to $750 million. The upstream player expects the capital budget to drive year-over-year growth in oil production volume in the December quarter of more than 30%.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Whiting Petroleum Corporation , Continental Resources, Inc. and PDC Energy, Inc. . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Continental is expected to witness earnings growth of 256% in 2021.
PDC Energy is likely to see earnings growth of 111.8% in 2021.
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Cimarex (XEC) Stock Loses 1.6% Despite Q2 Earnings Beat
Cimarex Energy Co. declined 1.6% since it reported second-quarter 2021 results on Aug 5. Although the independent oil and gas exploration and production company reported strong quarterly results, the rapidly-spreading deadly variants of coronavirus have induced uncertainty in its upstream business, at least for the near term.
The company reported second-quarter 2021 adjusted earnings per share of $2.09, beating the Zacks Consensus Estimate of $1.87 and turning around from the year-ago quarter’s loss of 51 cents.
Total revenues of $712 million beat the Zacks Consensus Estimate of $614 million and increased from the year-ago quarter’s $249 million.
The strong quarterly results can be attributed to higher oil and gas prices.
Cimarex Energy Co Price, Consensus and EPS Surprise
Cimarex Energy Co price-consensus-eps-surprise-chart | Cimarex Energy Co Quote
Operational Highlights
Production
For the quarter under review, total production averaged 237.1 thousand barrels of oil equivalent per day (MBoe/d), down from 254.7 MBoe/d in the year-ago period on considerably lower activities in the Mid-Continent and Permian Basin. Of the total production, almost 31% was crude oil and 28.3% comprised natural gas liquids (NGLs).
Total oil volumes fell to 72.7 thousand barrels per day (MBbls/d) from 77.9 MBbls/d in the year-ago period. Natural gas production decreased to 584.2 MMcf/d from the year-ago level of 656 MMcf/d. NGL volumes dropped marginally to 67 MBbls/d from the year-ago figure of 67.4 MBbls/d.
Realized Prices
Realized price of crude oil increased from $19.57 per barrel in the prior-year quarter to $64.11. The same for NGL surged to $23.16 from $7.52 in the year-ago quarter. Realized prices for natural gas rose to $2.51 per thousand cubic feet from 91 cents recorded a year ago.
Costs and Expenses
Overall costs and expenses for the quarter plunged to $552.5 million from the year-ago level of $1,432.4 million. Production expenses for the second quarter were recorded at $77.4 million, up from the prior-year figure of $64.3 million. Transportation, processing and other operating costs increased to $59.3 million from the year-ago $53.3 million.
Financial Condition
As of Jun 30, 2021, the company had cash and cash equivalents of $799.3 million. Net long-term debt was almost $2 billion, representing debt to capitalization of 53.1%. It has no debt maturities till June 2024.
Cimarex's adjusted cash flow from operating activities totaled $394 million, up from $144.5 million in the prior-year quarter. The company spent $168.3 million on oil and gas activities in the June quarter.
Guidance
The company reaffirmed its 2021 capital spending at the band of $650 million to $750 million. The upstream player expects the capital budget to drive year-over-year growth in oil production volume in the December quarter of more than 30%.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Whiting Petroleum Corporation , Continental Resources, Inc. and PDC Energy, Inc. . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Continental is expected to witness earnings growth of 256% in 2021.
PDC Energy is likely to see earnings growth of 111.8% in 2021.