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Cimarex Energy Increased Its 2016 Production Guidance

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Aug. 9 2016, Updated 9:08 a.m. ET

Cimarex Energy’s key operational highlights

Cimarex Energy’s (XEC) 2Q16 production volumes totaled 974 million cubic feet equivalent (MMcfe). In comparison, 2Q15 production volumes were ~1.0 billion cubic feet equivalent. Cimarex Energy’s 1Q16 production volumes amounted to 973 MMcfe.

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XEC’s production trends

As we can see in the image above, XEC’s production has grown consistently since 2012 but is expected to stay flat in 2016.

Since 3Q15, when crude oil prices started experiencing multiyear lows, XEC’s oil production percentage declined. That said, XEC’s liquids production (oil plus natural gas liquids) as a percentage of total production has mostly remained consistent since 1Q13 at ~53%. XEC expects oil to make up 28% of its total production volumes in 2016.

Cimarex Energy’s 2Q16 realized prices

Cimarex Energy’s average realized price of crude oil (OIL) and condensates fell from $50.66 per barrel in 2Q15 to $40.07 per barrel in 2Q16. Its average realized price for natural gas (UNG) fell from $2.51 per thousand cubic feet in 2Q15 to $1.82 per thousand cubic feet in 2Q16.

Its average realized price for natural gas liquids decreased from $14.67 per barrel in 2Q15 to $13.93 per barrel in 2Q16.

Cimarex Energy’s 2016 production guidance

Cimarex’s 2016 production growth guidance range was increased to 980 MMcfe to 1,000 MMcfe (million cubic feet equivalent). The previous guidance range provided in 1Q16 was 940 MMcfe to 970 MMcfe. The updated guidance represents a year-over-year increase of 0.5% compared to 2015 levels.

In comparison, Oasis Petroleum (OAS) has provided growth guidance of -6% at the midpoint. Hess Corp (HES) has provided a guidance of 12%. PDC Energy (PDCE), on the other hand, expects its annual production to rise by 30% to 40% in 2016.

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