Cimarex Energy (XEC) Update - Nov 13

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dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Cimarex Energy (XEC) Update - Nov 13

Post by dan_s »

XEC is up today because a lot of analysts consider it a gasser and because it was grossly oversold. Q3 production on a boe basis was 42.6% natural gas, 28.2% NGLs and 29.2% crude oil.

I am reviewing the updated profile now and we will publish it on Wednesday morning.

In the last 3 months, 6 ranked analysts set 12-month price targets for XEC. The average price target among the analysts is $126.50. Their valuations range from $124 to $129 per share.
Dan Steffens
Energy Prospectus Group
jb2257
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Joined: Sat Apr 20, 2013 8:12 pm

Re: Cimarex Energy (XEC) Update - Nov 13

Post by jb2257 »

XEC is acquiring REM and is down over $6.00 this morning. I can't win for losing.
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Cimarex Energy (XEC) Update - Nov 13

Post by dan_s »

Cimarex has a rock solid management team and I'm sure they did extensive due diligence before making an acquisition of this size. I've never understood why the Wall Street Gang seems to always assume that the Buyer paid too much for a strategic acquisition. I guess it is just the near-term uncertainty of the transition period.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Cimarex Energy (XEC) Update - Nov 13

Post by dan_s »

Tudor, Pickering and Holt said Resolute's acreage in the Delaware basin sits directly adjacent to Cimarex's.

"Multi-year outlook will be hugely important for stock performance as shareholders likely need to see return of capital enter the conversation post-deal," the analysts said in a client note.

As part of the deal, Resolute shareholders have the option to receive 0.3943 shares of Cimarex common stock, $35 per share in cash, or a combination of $14 per share in cash and 0.2366 share of Cimarex common stock.

For the cash offer of $35 per share, the deal represents about 14.8 percent premium to Resolute's Friday closing price of $30.49 per share.

Chief Executive Officer Thomas Jorden said the deal
Dan Steffens
Energy Prospectus Group
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