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Cimarex Energy (XEC) Q1 Earnings & Revenues Top Estimates

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Cimarex Energy Co. XEC 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, ConocoPhillips COP and Centennial Resource Development, Inc. CDEV.

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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ConocoPhillips (COP) : Free Stock Analysis Report
 
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
 
Cimarex Energy Co (XEC) : Free Stock Analysis Report
 
Centennial Resource Development, Inc. (CDEV) : Free Stock Analysis Report
 
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