DENVER, Feb. 15, 2017 /PRNewswire/ -- Cimarex Energy Co. (XEC) today reported fourth quarter 2016 net income of $38.2 million, or $0.40 per share, compared to fourth quarter 2015 net loss of $630.5 million, or $6.78 per share.
> Adjusted fourth quarter net income (non-GAAP) was $56.7 million, or $0.60 per share. My forecast was $0.68 per share
> Adjusted cash flow from operations (non-GAAP) totaled $218.7 million in the fourth quarter. My forecast was $219.2 million ($2.35/share).
> Total company production volumes averaged 960 million cubic feet equivalent (MMcfe) per day in the fourth quarter. My forecast was 972 MMcfe per day.
Updating my forecast model now.
Cimarex Energy (XEC) Q4 Results
Cimarex Energy (XEC) Q4 Results
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Cimarex Energy (XEC) Q4 Results
This will have more of an impact on my valuation than Q4 results. This is a BIG increase in capex over 2016. - Dan
DENVER, Feb. 15, 2017 /PRNewswire/ -- Cimarex Energy Co. (XEC) today announced projected 2017 exploration and development capital of $1.1 – 1.2 billion, a 56 percent increase from 2016 levels at the midpoint. An additional $60 million is earmarked for midstream and other infrastructure. Using current strip commodity prices, the capital program at the midpoint is expected to be funded primarily with cash flow from operating activities.
For 2017, total company production is projected to average 1.06 - 1.11 billion cubic feet equivalent (Bcfe) per day, an increase of 13 percent at the midpoint from 2016 production levels with oil production expected to lead year-over-year growth and be up 22-27% percent. Fourth quarter 2017 oil production is projected to increase 30-35 percent over fourth quarter 2016 levels, with total production up 18-22 percent from fourth quarter 2016 levels. First quarter 2017 output is expected to average 1.01 – 1.05 Bcfe per day. Oil production in the first quarter is expected to increase approximately ten percent from fourth quarter 2016 levels, with natural gas and NGL production expected to increase four to five percent sequentially.
Tom Jorden, Cimarex Chairman and CEO, said, "The capital program we are releasing today anticipates investing our operating cash flow and some portion of the cash on the balance sheet. Our enviable asset base and talented group of geoscientists at Cimarex generated improved full-cycle returns for shareholders in 2016. We want to continue that trend. As our program shifts to larger pads of long-lateral wells, capital efficiencies will continue, but only with thorough evaluation, careful planning and solid execution. Our organization is ready for the challenges ahead."
Cimarex intends to invest $850 - 900 million on drilling and completion during 2017. Approximately 66 percent of the 2017 capital will be invested in the Permian region and the remainder in the Mid-Continent. Permian activities will continue to focus on holding acreage through drilling long lateral Wolfcamp wells in Culberson and Reeves counties in Texas as well as testing new concepts across our acreage and development of a portion of our Bone Spring and Avalon inventory. In the Mid-Continent, the majority of the investment is focused on the drilling and completion of wells to hold and further delineate our Meramec acreage position and to test well spacing for future development in both the Woodford and Meramec plays.
DENVER, Feb. 15, 2017 /PRNewswire/ -- Cimarex Energy Co. (XEC) today announced projected 2017 exploration and development capital of $1.1 – 1.2 billion, a 56 percent increase from 2016 levels at the midpoint. An additional $60 million is earmarked for midstream and other infrastructure. Using current strip commodity prices, the capital program at the midpoint is expected to be funded primarily with cash flow from operating activities.
For 2017, total company production is projected to average 1.06 - 1.11 billion cubic feet equivalent (Bcfe) per day, an increase of 13 percent at the midpoint from 2016 production levels with oil production expected to lead year-over-year growth and be up 22-27% percent. Fourth quarter 2017 oil production is projected to increase 30-35 percent over fourth quarter 2016 levels, with total production up 18-22 percent from fourth quarter 2016 levels. First quarter 2017 output is expected to average 1.01 – 1.05 Bcfe per day. Oil production in the first quarter is expected to increase approximately ten percent from fourth quarter 2016 levels, with natural gas and NGL production expected to increase four to five percent sequentially.
Tom Jorden, Cimarex Chairman and CEO, said, "The capital program we are releasing today anticipates investing our operating cash flow and some portion of the cash on the balance sheet. Our enviable asset base and talented group of geoscientists at Cimarex generated improved full-cycle returns for shareholders in 2016. We want to continue that trend. As our program shifts to larger pads of long-lateral wells, capital efficiencies will continue, but only with thorough evaluation, careful planning and solid execution. Our organization is ready for the challenges ahead."
Cimarex intends to invest $850 - 900 million on drilling and completion during 2017. Approximately 66 percent of the 2017 capital will be invested in the Permian region and the remainder in the Mid-Continent. Permian activities will continue to focus on holding acreage through drilling long lateral Wolfcamp wells in Culberson and Reeves counties in Texas as well as testing new concepts across our acreage and development of a portion of our Bone Spring and Avalon inventory. In the Mid-Continent, the majority of the investment is focused on the drilling and completion of wells to hold and further delineate our Meramec acreage position and to test well spacing for future development in both the Woodford and Meramec plays.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group