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Cimarex Energy (XEC) Q3 Earnings Beat Estimates, Rise Y/Y

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Cimarex Energy Co. (XEC - Free Report) reported third-quarter 2018 earnings of $1.99 per share, which surpassed the Zacks Consensus Estimate of $1.52 and the year-ago figure of $1.09.  

Total revenues of $591.5 million exceeded the Zacks Consensus Estimate of $556 million. The reported figure also came ahead of $464 million registered in third-quarter 2017.

The strong third quarter results were aided by increase in oil equivalent production and higher liquids price realizations.

Operational Highlights

In the quarter under review, total production averaged 218.6 thousand barrels of oil equivalent (MBOE) per day, up 14.7% year over year. Oil volumes rose 12.7% to 63.9 thousand barrels per day (MBbls/d) on a year-over-year basis, and marginally outpaced the Zacks Consensus Estimate of 63 MBbls/d.

Natural gas volumes increased 8.3% to 558.8 MMcf/d year over year and trumped the Zacks Consensus Estimate of 547 MMcf/d. Natural gas liquids (NGL) volumes jumped 28.7% year over year to 61.6 MBbls/d and came ahead of the Zacks Consensus Estimate of 58 MBbls/d.

While realized prices for natural gas declined 30.6% to $1.84 per thousand cubic feet, the same for crude oil and NGL increased 31.3% and 18.9% year over year to $58.25 per barrel and $25.72 per barrel, respectively.         

Through the July to September period, this upstream energy player brought on stream 115 gross wells.  

Financial Condition

As of Sep 30, the company had cash and cash equivalents of $863.9 million. Net long-term debt was roughly $1.5 billion, which represents a debt-to-capitalization ratio of almost 33%.   

Cimarex Energy's cash from operating activities, adjusted, totaled $388.7 million, up from $283.9 million in the prior-year quarter. The company spent $500.7 million on exploration and development during the third quarter.  

Guidance

Cimarex Energy projects total daily production for the December quarter of 2018 in the range of 238-247 MBoE. Of which, oil production is likely to be in the band of 73-78 MBbls/d. Daily production for 2018 is estimated in the range of 213-216 MBoE.

For 2018, the company reiterated capital spending between $1.6 billion and $1.7 billion.

Cimarex Energy Co Price, Consensus and EPS Surprise

Cimarex Energy Co Price, Consensus and EPS Surprise | Cimarex Energy Co Quote

Zacks Rank and Other Stocks to Consider

Cimarex Energy currently carries a Zacks Rank #2 (Buy). Other prospective players in the energy space areMurphy Oil Corporation (MUR - Free Report) , Exxon Mobil Corporation (XOM - Free Report) and Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) . While Murphy sports a Zacks Rank #1 (Strong Buy), ExxonMobil and Petrobras has a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.   

Murphy has an average four-quarter positive earnings surprise of 96.5%.

ExxonMobil will likely see earnings growth of 32% in 2018.

Petrobras’ bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters.

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