XEC’s Stock Up on Upbeat 2Q16 Earnings and Increase in Oil Prices


Aug. 9 2016, Updated 11:07 a.m. ET

Cimarex Energy’s stock performance

Following Cimarex Energy’s (XEC) 2Q16 earnings release, its stock increased by ~3.3% the next day.

Year-over-year (or YoY), XEC has increased by ~20%. In this part of the series, we’ll analyze Cimarex Energy’s stock performance with respect to movements in the broader industry and the broader market.

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Peer comparison

Meanwhile, Hess Corp. (HES) has seen its stock price drop by ~6.1% on a YoY basis.

As the graph above shows, Cimarex Energy’s performance has been driven mainly by WTI (West Texas Intermediate) crude oil prices (OIL) and natural gas prices (UNG). These have also been driving the broader industry ETF, the Energy Select Sector SPDR ETF (XLE).

XEC was an outperformer

From July 21 to August 4, Cimarex Energy’s stock was initially underperforming the Energy Select Sector SPDR ETF (XLE). However, toward the end of the period, it ended up giving higher returns compared to XLE. Cimarex Energy’s stock increased by ~7.2% during this period while XLE fell by ~1.7%.

Cimarex Energy’s stock also overperformed the SPDR S&P 500 ETF (SPY). XEC also outperformed natural gas prices, which increased by 5.3% at the end of the period.

Cimarex Energy’s stock increased by ~3.3% on August 4, which means markets reacted positively to XEC’s 2Q16 earnings beat. A ~2.7% increase in crude oil prices also likely helped boost XEC’s stock higher.

Please read the first part of this series to learn more about Cimarex Energy’s 2Q16 performance.


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