As of December 31, 2015, Cimarex Energy (XEC) had total proved reserves of ~2.9 Tcfe (trillion cubic feet equivalent). By comparison, Cabot Oil & Gas (COG) had proved reserves of 8.2 Tcfe at the end of 2015. Notably, COG and XEC make up 5.2% of the Guggenheim S&P 500 Equal Weight Energy ETF (RYE).
According to Cimarex’s 10-K filing, the discounted value of its reserve base at the end of 2015 was ~$355 million, as compared to $2 billion at the end of 2014.
Remember, proved reserves are an important metric when considering an upstream energy company’s valuation because they determine future cash flows.
Continue to the next part for a comparison of peer valuations.