Cimarex Energy Co. (XEC - Free Report) reported first-quarter 2019 earnings per share of $1.20, failing to beat the Zacks Consensus Estimate of $1.37 and declining from the year-ago quarter’s $1.82. The underperformance can be primarily blamed on declining realized commodity prices.
Total revenues of $577 million marginally beat the Zacks Consensus Estimate of $576 million and were also higher than $567.1 million recorded a year ago. Higher Permian activities attributed to the strong numbers.
In the quarter under review, total production averaged 258.9 thousand barrels of oil equivalent (MBOE) per day, up 26% year over year on considerably higher activities in the Permian Basin.
Oil volumes rose 22% to 79.4 thousand barrels per day (MBbls/d) on a year-over-year basis. Moreover, natural gas volumes increased almost 20% to 639.1 MMcf/d year over year. Natural gas liquids (NGL) volumes jumped 41.1% year over year to 73 MBbls/d.
With realized prices for natural gas declining 16.2% to $1.91 per thousand cubic feet, the same for crude oil and NGL fell 18.5% and 19% year over year to $48.87 per barrel and $16.44 per barrel, respectively.
Through the March quarter, this upstream energy player brought online 38 gross wells.
As of Mar 31, 2019, the company had cash and cash equivalents of $20.9 million. Net long-term debt was almost $2 billion, which represents a debt-to-capitalization ratio of almost 34.5%.
Cimarex's cash flow from operating activities, adjusted, totaled $351.1 million, down from $367.2 million in the prior-year quarter. The company spent $332.7 million on exploration and development in the first quarter.
Cimarex projects total daily production for the June quarter of 2019 in the range of 263-275 MBoE. The company also announced its projections of daily oil equivalent productions for 2019 in the band of 260-275 MBoE.
For 2019, the company continues to project capital spending between $1.4 billion and $1.5 billion on exploration & development activities.
Zacks Rank and Other Key Picks
Cimarex currently carries a Zacks Rank #2 (Buy). Other prospective players in the energy space are Murphy Oil Corporation (MUR - Free Report) , Anadarko Petroleum Corporation (APC - Free Report) and ProPetro Holding Corp. (PUMP - Free Report) . Murphy and Anadarko sport a Zacks Rank #1 (Strong Buy), while ProPetro holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy Oil posted an average positive earnings surprise of 17.3% for the last four quarters.
Anadarko Petroleum has average positive earnings surprise of 6.6% for the last four quarters.
The Zacks Consensus Estimate for ProPetro’s 2019 earnings is pegged at $2.53, suggesting 26.5% growth over the year-ago reported figure.
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