Cimarex Energy (XEC) Misses Q2 EPS by 3c

Cimarex Energy (NYSE: XEC) reported Q2 EPS of ($0.51), $0.03 worse than the analyst estimate of ($0.48).

• Generated Cash from Operating Activities of $145 million in the quarter
• Invested $84 million in the second quarter
• $26 million in free cash flow after dividend
• Oil production averaged 78,000 barrels per day

Cimarex Chairman and CEO, Tom Jorden, said, "The second quarter required drastic and prudent action. Our response to the challenging price environment included a significant decrease in activity and curtailing May production volumes. With improved oil prices we have elected to resume activity. We are bringing three additional drilling rigs back to work in the third quarter and will begin completing wells again in September with two completion crews on the schedule. As a result, we expect capital investment for the year to total approximately $600 million, in line with expectations of an operational restart from our previous guidance range."

Mr. Jorden continued, "This activity puts us in a strong position as we enter 2021. We see Cimarex in a position to generate more than enough free cash flow to fund our dividend in 2021 at $35 WTI, a testament to increasing efficiencies. Any excess free cash flow would be used to fund dividend increases and grow cash on the balance sheet to retire debt."

"The health and safety of our employees remains top of mind. Cimarex has taken a number of steps to protect employees in the wake of the COVID-19 pandemic including the implementation of a staggered office schedule and the adoption of COVID-19 protocols for field staff and employees working in the office."

For earnings history and earnings-related data on Cimarex Energy (XEC) click here.

You May Also Be Interested In

• Jefferies sees a buying opportunity in this S&P 500 sector
• Wolfe Research upgrades Biogen, AbbVie on pipeline strength and valuation
• Boxlight Corporation (BOXL) Tops Q2 EPS by 2050c