Cimarex Beats Top and Bottom Line Estimates

Independent oil and gas exploration and production company Cimarex Energy reported third-quarter results today before the markets opened, showing that it posted net revenue of $561.3 million, a robust 38% increase from the year-ago period and ahead of the $527.1 million Capital IQ consensus estimate.

Net income came in at $138.4 million, or $1.59 per share, a sharp 64% increase from $84.3 million, or $0.97 per share, in the same period in 2012. However, adjusting for mark-to-market open derivative positions generated $1.62 per share, up from $1.01 per share last year and $0.10 per share better than the CapIQ estimates of $1.52.

Cimarex says the quarter's revenue and cash flow benefited from higher production volumes and improved commodity prices, as natural gas prices averaged $3.72 per thousand cubic feet, a 33% jump from last year, and oil prices averaged $102.88 per barrel, up 17%.

The oil and gas E&P specialist expects fourth-quarter volumes to average 714-734 MMcfe, with full-year volumes up 11%-12% over 2012 as oil volumes are projected to grow 18% (up 14% when adjusted for property sales last year). Analysts anticipate Cimarex Energy will post earnings of $1.54 per share in the fourth quarter on revenue of $531.3 million.


The article Cimarex Beats Top and Bottom Line Estimates originally appeared on

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool owns shares of Cimarex Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story