Cimarex’s Management Lauds Its 3Q16 Performance



3Q16 earnings release

Cimarex Energy (XEC) is expected to release its 3Q16 earnings after the market closes on November 2, 2016.

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Cimarex Energy’s 3Q16 revenue estimate

Cimarex Energy’s 3Q16 revenue estimates have been higher than its revenue for most of the past quarters. In 3Q16, its revenue estimate is ~$340 million, ~4.5% lower than its 3Q15 revenue but ~14% higher than its 2Q16 revenue. This higher estimate is likely due to improving crude oil prices (USO), which could result in higher realized prices for the company in 3Q16.

The graph above shows that Cimarex Energy’s revenue almost beat analysts’ expectations in 2Q16. Investors will watch to see how things pan out for the upstream company in 3Q16.

Cimarex Energy’s 3Q16 EPS estimates

Cimarex Energy’s 3Q16 earnings per share (or EPS) estimate is $0.36. Its 2Q16 EPS were $0.07. The corresponding quarter’s 2015 EPS were -$0.15.

Cimarex Energy’s peers Apache Corporation (APA) and Newfield Exploration (NFX) are expected to report EPS of -$0.14 and $0.24, respectively, in 2Q16. All these companies make up 6% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

Key management commentary in 2Q16

Joseph Alibi, Cimarex’s chief operating officer, remarked during the company’s 2Q16 earnings conference, “We had another great quarter. We made tremendous strides reducing our overall operating cost structure. We’re staying focused on efficiencies to reduce and optimize our drilling and completion cost. And we continue to make good progress, maximizing the productivity and profitability of our wells.”


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