Cimarex Energy Update

[dan_s]

Cimarex Energy (XEC): An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab.

My Fair Value Estimate has increased to $143.35/share, compared to First Call's Price Target of $117.75.

First Quarter production will be down slightly due to weather related issues in the Permian Basin and some shut-ins waiting on pipleline repairs. However, revenues will be up on higher natural gas and NGL prices.

2014 Hedges:
Natural Gas: 37% of forecast volumes hedged with collars that have $4.54 ceilings
Crude Oil: 28% of forecast volumes hedged with collars that have $103.47 ceiling.
NGLs: No hedges < XEC will get a big unexpected revenue boost on their NGLs this year.

XEC has one of the strongest balance sheets.