Cimarex Energy Q2 Profit Rises, Production Up 16% - Quick Facts

(RTTNews) - Oil and gas company, Cimarex Energy Co. (XEC), Wednesday reported a surge in the second-quarter net income, reflecting higher revenues.

For the three-month period, the company reported net income of $129.6 million or $1.49 per share, up from $64.3 million or $0.74 per share during the same quarter last year. The recent earnings included a non-cash hedging gain of $12.6 million, and a gain on the sale of midstream assets of $4.3 million.

On average, 24 analysts polled by Thomson Reuters expected earnings per share of $1.27 for the quarter. Analysts' estimates typically exclude one-time items.

Cimarex clocked revenues of $493.7 million for the second quarter, compared with $353.1 million during the corresponding quarter last year. Analysts expected the company to generate revenues of $473.19 million for the quarter. Quarterly production grew 16 percent year-over-year averaging 686.8 million cubic feet equivalent or MMcfe per day. Oil production grew 29 percent and averaged 36,878 barrels per day. Realized oil prices averaged $90.72 per barrel, up 3 percent, and NGL prices averaged $27.76 per barrel, down 4 percent from last year.

Factoring in estimated ethane rejection, third-quarter volumes are forecast between 675 and 700 MMcfe per day.

Looking forward to 2013, the midpoint of the production guidance is unchanged at 690 MMcfe per day, with a narrowed range of 680-700 MMcfe per day, while the annual capital expenditures are expected to be about $1.5 billion.

In Reeves County, Texas, Cimarex has drilled and completed two gross Wolfcamp A tests with per well first 30-day production rates averaging 925 BOE per day.