Cimarex Expects Production Increase Through 2011

Cimarex Energy, Inc. XEC has strong cash flow, and shows a current inventory of 12-15 Gulf Coast wells, 12 rigs in the Permian Basin (up from 7) and 8 rigs in the Midcontinent, which Dahlman Rose expects to increase production up to 30% y/y in 2010, and an additional 8% in 2011. Dahlman reiterates its "buy" rating, as valuation remains very attractive and its price target at $85. Cimarex Energy, Inc. closed yesterday at $69.05.