DENVER (AP) -- Oil and gas producer Cimarex Energy Co. said its fourth-quarter profit dipped less than 1 percent as higher costs offset an increase in revenue. But the company said it will boost production this year and shares rose 18 percent in afternoon trading.
The company said Wednesday it expects 2012 production volumes to increase between 4 percent and 10 percent to the average daily equivalent of between 615 million and 650 million cubic feet of gas.
Cimarex Energy produces oil and natural gas within the United States, primarily in Texas, Oklahoma, New Mexico, Kansas, and Wyoming. The company said it plans to spend between $1.4 billion and $1.6 billion in 2012 to develop new wells. The company said it will spend nearly all of that money toward producing crude oil and other liquid hydrocarbons that fetch higher prices than natural gas.
During the quarter ended Dec. 31, the company reported net income of $116.9 million, or $1.36 per share, from $117.6 million, or $1.37 per share during the same period the year before.
Revenue during the quarter was $430.2 million, up 5.5 percent from $408 million in the prior year period. Revenue rose, but the company said that its total costs were higher than the year before, rising 13 percent to $247.2 million.
Costs for producing and transporting energy increased. Overall expenses rose 13 percent to $247.2 million.
For the full year of 2011, the company reported net income of $529.9 million, or $6.15 per share, down from $574.8 million, or $6.70 per share, in 2010. Revenue rose 9 percent to $1.76 billion from $1.61 billion.
Shares rose $12.49 to $81.27.
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