Cimarex Energy (XEC)

[dan_s]

I am expecting Cimarex Energy's Q4 results to be significantly better than what First Call estimates now show. I think their EPS for the quarter will be 10 to 15 cents higher. More important, I think their operating cash flow per share will be significantly higher. The expected beat is because XEC produces a lot of NGLs, almost as much as their oil production.

For a company of this size, Cimarex maintains a rather low profile.

STACK update s/b impressive and production guidance s/b 10% to 15% YOY growth in 2017.

If NGL price goes to 50% of WTI, which many analysts are now forecast, my valuation of XEC will top $180/share, even if they do not increase their production guidance.

[dan_s]

"I'm of the belief that every dip in oil prices and in oil stocks, is now an opportunity not to be missed. The sagging of oil stock prices in the last weeks has brought some of my favorites to real nice buying zones, that is EOG Resources (EOG) at $97, Action Alerts PLUS charity portfolio name Cimarex (XEC) at $127 and Anadarko (APC) at $67. So even if "everyone" is long (on crude oil futures contracts), it might not mean that you'll necessarily get that quick dip in prices to load up on oil stocks at even lower, super cheap prices. If I didn't have a sizable position in oil stocks yet, I'd take this moment to begin an accumulation." - Dan Dicker (Read: https://www.thestreet.com/story/1400020 ... point.html )

Pay attention to what Dan says about Saudi Arabia using traders to support the oil price.