Wunderlich Securities Reiterates Buy, Raises Price Target On Cimarex Energy On Plenty Of Flexibility

In a report published Thursday, Wunderlich Securities analyst Irene O. Haas reiterated a Buy rating on

, and raised the price target from $122.00 to $132.00. In the report, Wunderlich Securities noted, "Cimarex Energy (XEC) is exiting 2014 with a debt-to-cap ratio of 25% and should be able to fund a much-reduced capex of $0.9-$1.1 billion in 2015 with operational cash flow and cash on hand. The company is determined not to increase leverage in this uncertain time. By starting with a very defensive game plan, XEC has plenty of flexibility and the option to ramp up if and when crude prices stabilize. XEC delivered impressive growth in proved reserves and, as a result, we raised our NAV and price target from $122 to $132. Even in a $50/ bbl oil and $3/mcfe gas environment, the combination of lower service costs and optimization is yielding some very strong returns in some of XEC's key plays in the Permian and the Mid-Continent. We reiterate our Buy rating on XEC." Cimarex Energy closed on Wednesday at $113.14.