XEC
Posted: Fri May 06, 2011 11:02 am
I was a bit disappointed with Cimarex Energy (XEC) first quarter results but then I see they have a ton of wells that are waiting on completion at the end of the quarter. A shortage of frac crews, proppants and acid in the Permian and Granite Wash are causing delays in getting wells completed. Bad weather in West Texas also caused a lot of problems. It is dry as a bone out there now. Production was down slightly in Q1 but that will be fixed as they get all these new wells on-line and keep drilling.
They are having success in SE New Mexico, which is good for micro-cap Cross Borders Resources (XBOR). XEC will be drilling two or three JV wells with XBOR this year.
XEC has a rock solid Balance Sheet. Very little of their production is hedged (none beyond 2011). If you think oil and gas prices are going higher, XEC is for you.
I will be on their conference call at noon and my updated forecast should be on the website late this afternoon.
They are having success in SE New Mexico, which is good for micro-cap Cross Borders Resources (XBOR). XEC will be drilling two or three JV wells with XBOR this year.
XEC has a rock solid Balance Sheet. Very little of their production is hedged (none beyond 2011). If you think oil and gas prices are going higher, XEC is for you.
I will be on their conference call at noon and my updated forecast should be on the website late this afternoon.