Cimarex Energy (XEC)

dan_s · Post by **dan_s** » Thu May 05, 2016 3:04 pm

I have updated my forecast model for Cimarex. It will be available on the EPG website later today.

I am increasing my valuation $22.80/share to $125.00. This compares to First Calls Price Target of $108.39. I'm sure the First Call price target will increase over the next few weeks as other analysts have a chance to update their models.

Cimarex:
> Reported Q1 production well above my forecast
> Increased their production guidance
> Are living within cash flow from operations and they have a VERY STRONG balance sheet

I decided to increase the multiple of CFPS that I use to value XEC because of their outstanding well results and position in STACK, which I had not given them enough credit for. This is an outstanding company with Top Tier management, technical teams and leasehold positions.