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Global Hunter Securities Starts Cimarex Energy (XEC) at Buy, $77 PT

December 21, 2012 8:45 AM EST Send to a Friend
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Price: $129.23 --0%

Rating Summary:
    21 Buy, 12 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 12 | New: 14
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Global Hunter Securities initiates coverage on Cimarex Energy (NYSE: XEC) with a Buy. PT $77.00.

The firm comments, "Cimarex Energy (XEC) is an under-loved, cash-flowing mid-cap E&P company with solid Permian and Mid-Con assets. We estimate 2012 production of 103.6 Mboepd (47% liquids) on total capital expenditures of $1,681MM. We conservatively estimate that XEC may have more than 860 future drilling locations in its core areas. The company's diversified asset base, conservative balance sheet and substantial cash flow afford management the flexibility to move capital to the areas of highest returns, as we expect XEC to do in 2013 with an increased focus on the Permian Basin. We are initiating coverage with a Buy rating and a $77 price target, which is based on a discounted cash flow valuation assuming a 12.0% WACC and 5% terminal decline rate."

For an analyst ratings summary and ratings history on Cimarex Energy click here. For more ratings news on Cimarex Energy click here.

Shares of Cimarex Energy closed at $59.28 yesterday.




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