Cimarex Energy Soars on Q4 Earnings Results

Denver based Cimarex Energy

released its fiscal Q4 earnings results prior to the opening bell on Wednesday. The company reported net income of $116.9 million or $1.36 per share, compared to $117.6 million or $1.37 per share, in the year ago period. This compared to consensus Wall Street EPS estimates of $1.30 heading into the report. Revenues for the quarter from oil, gas, and natural gas liquids were $417.5 million compared to $394.7 million in last year's fourth quarter. This compared to Wall Street analysts' consensus revenue estimates of $417.73 million. While XEC delivered a strong bottom-line beat, revenues were slightly below consensus. The stock is moving primarily based on the company's fiscal 2012 production guidance. Analysts at Bank of America

wrote "XEC surprised the street with its FY2012 production growth forecast of 4%-10% versus street's expectations of 0%-5%." At last check, XEC shares had soared more than 18% to $81.26 on Wednesday in the wake of the company's earnings report. Volume has been very heavy with more than 5.5 million shares trading hands compared to a 3-month daily average of under 1 million. Cimarex shares trade at a trailing P/E of 12.99, a forward P/E of 14.88 and a PEG ratio of 1.32. Wall Street analysts have a median price target on the stock of $79.00 with a high target of $105.00. Cimarex Energy Co. (Cimarex) is an independent oil and gas exploration and production company. Its operations are located in Texas, Oklahoma, New Mexico, Kansas and Wyoming.