Cimarex Energy (XEC)
Posted: Mon Nov 25, 2013 6:00 pm
XEC is in our Sweet 16. I will be sending out an updated profile on XEC tomorrow (Nov. 26). I wanted to give you guys a heads-up, so you can start your homework this evening. Take a look at their recent presentation, which you can download from their website.
It is one of the larger companies in the Sweet 16 with over 123,000 boepd of production today.
XEC has a rock solid balance sheet and more than enough liquidity to accelerate development of their West Texas and New Mexico leasehold, which I believe has incredible upside. Wall Street is in love with the Permian because of stacked pays. They will go "ga'ga" when they see year-end reserve reports.
Other analysts are now seeing the potential of XEC that I do. First Call has increased the price target by more than $30/share since we published a profile on it 3 months ago. My valuation is $135.70/share and I think it will go up after they report strong Q4 results and a very impressive year-end reserve report. Their guidance for 2014 will get a lot of attention.
XEC is one of the companies in the Sweet 16 that has exposure to improving natural gas prices. I use $3.50/mcf in my forecast. XEC is now producing over 350,000 mcf of natural gas per day. However, they are focused on increasing their liquids production.
It is one of the larger companies in the Sweet 16 with over 123,000 boepd of production today.
XEC has a rock solid balance sheet and more than enough liquidity to accelerate development of their West Texas and New Mexico leasehold, which I believe has incredible upside. Wall Street is in love with the Permian because of stacked pays. They will go "ga'ga" when they see year-end reserve reports.
Other analysts are now seeing the potential of XEC that I do. First Call has increased the price target by more than $30/share since we published a profile on it 3 months ago. My valuation is $135.70/share and I think it will go up after they report strong Q4 results and a very impressive year-end reserve report. Their guidance for 2014 will get a lot of attention.
XEC is one of the companies in the Sweet 16 that has exposure to improving natural gas prices. I use $3.50/mcf in my forecast. XEC is now producing over 350,000 mcf of natural gas per day. However, they are focused on increasing their liquids production.