UPDATE: Canaccord Initiates Coverage on Cimarex Energy on Market Leader Position

In a report published Tuesday, Canaccord Genuity analyst Ipsit Mohanty initiated coverage on

with a Buy rating and $99.00 price target. In the report, Canaccord Genuity noted, “XEC has led the industry in the evolution of the Delaware Basin. In addition to successful exploration, development, and production from the 2nd Bone Spring trend in Eddy/Lea counties, XEC has continued to test the limits of the basin and has now developed 3rd Bone Spring and Wolfcamp trends as well. Today, XEC's Permian portfolio comprises an inventory of all three Bone Spring sands, Avalon and Wolfcamp shales, and Cisco/Canyon formations. In a complex, multi-stratigraphic, discontinuous basin like the Delaware, the learning curve is steep, and in our opinion XEC is relatively ahead of the curve vs. its peers. We believe it will stay among the leaders as it tests stacked laterals, new benches, downspacing, etc., in the near term.” Cimarex Energy Co. closed on Monday at $88.88.