Cimarex Energy (XEC) Update - June 30
Posted: Wed Jun 30, 2021 1:10 pm
At the time of this post XEC is trading at $72.01.
During June, four analysts have updated their price target to $68, $72, $85 and $90.
I have updated my forecast/valuation model for higher commodity prices. My valuation increases by $7 to $116.
The Wall Street Gang doesn't seem to like the merger with COG, but I do.
COG is a pure gasser and the outlook for ngas is a lot better than when the deal was announced on May 24.
Terms of the merger are that XEC will merge into COG and the NewCo will be renamed.
The merger is expected to close in early Q4.
XEC shareholders will get 4.0146 shares of COG for each share of XEC they hold.
XEC is now "In Play", so they may get a better offer.
COG is trading for $17.30 at the time of this post. $17.30 X 4.0146 = $69.45.
Post-merger the NewCo should have 2022 production of ~675,000 BOE per day with a mix of approximately 74.4% natural gas, 13.6% crude oil & 12.0% NGLs.
During June, four analysts have updated their price target to $68, $72, $85 and $90.
I have updated my forecast/valuation model for higher commodity prices. My valuation increases by $7 to $116.
The Wall Street Gang doesn't seem to like the merger with COG, but I do.
COG is a pure gasser and the outlook for ngas is a lot better than when the deal was announced on May 24.
Terms of the merger are that XEC will merge into COG and the NewCo will be renamed.
The merger is expected to close in early Q4.
XEC shareholders will get 4.0146 shares of COG for each share of XEC they hold.
XEC is now "In Play", so they may get a better offer.
COG is trading for $17.30 at the time of this post. $17.30 X 4.0146 = $69.45.
Post-merger the NewCo should have 2022 production of ~675,000 BOE per day with a mix of approximately 74.4% natural gas, 13.6% crude oil & 12.0% NGLs.