Cara Community Oilers: Cimarex Energy

Cimarex Energy (NYSE: XEC) reviewed 10-30-2020

Market Cap: $2.6 Billion (USD)   Share Price: $25.37 (USD)

Shares outstanding: 102,151,096

Cash & cash equivalents: $43.84 M as of 30 Jun 2020

Debt:  $2.0 Billion

Insiders: 2%        Institutional: 550 hold approx. 98%


Investor Presentations:

CEO & Chairman: Thomas Jorden              HQs: Denver, Colorado, USA

Cimarex is an upstream exploration and production company operating in the Permian and Anadarko Basin(s) of Oklahoma, Texas, and New Mexico

Produces crude oil, natural gas, and NGLs (natural gas liquids)

The company reported a loss of -US$$525 Mil or -US$9.28 GAAP per share for 2Q2020 and a loss of -US$1.7 Bil or -US$17.05 GAAP per share for 1H2020

Revenues were US$249.6 Mil in Q2, down from US546 Mil in 2Q2019 or approx -54% Y/Y

Revenues from oil sales were US$138 Mil, revenues from natural gas & liquids were US$100 Mil and a smaller segment of US$11.6 Mil came from gas gathering

Oil production in the quarter averaged 78 Mbbls per day and total production averaged 254.7 Mboe per day

The shares pay a dividend of US$0.22 per quarter, yielding +3.5% at the current quote

Bottom line:

  • Analysts see Cimarex as possibly the top remaining target in the consolidating US shale sector given the company’s free cash flow profile and “clean” corporate structure
  • Raymond James upgraded Cimarex to Outperform from Market Perform with a $35 price target, citing attractive free cash flow, meaningful capital efficiency gains, and high gas exposure
  • No position


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