Cimarex Energy (XEC) PT Raised to $130 at Deutsche Bank

Deutsche Bank maintained a Buy rating on Cimarex Energy (NYSE: XEC) and raised its price target to $130.00 (from $114.00).

Analyst Ryan Todd said, "In our 2014 Outlook, we named XEC our top SMID-cap pick for 2014, driven largely by what we viewed as the best combination of resource expansion, positive CF revisions, and attractive value. In advance of two days of meetings with Cimarex Energy CEO Tom Jorden, we revisit the thesis, including progress to date on Wolfcamp delineation (positive), earnings revisions (encouraging early guidance), and amongst the largest unhedged natural gas leverage in our universe (a good thing)."

"We expect conservative guidance, solid execution and the leading exposure to the expanding Delaware Wolfcamp to continue to drive outperformance," he added. "Since publishing our 2014 outlook, XEC has continued to methodically delineate the significant resource in the Delaware Wolfcamp, including successful tests of the Culberson County Wolfcamp “A” (1,251 boe/d, 54% oil), the Reeves County “B/C” (1,067 boe/d, 44% oil), Ward County “A” (889 boe/d, 74% oil), upsized fracs (160%+ improvement in NPV) and 10,000ft lateral in Culberson (2,803 boe/d, 27% oil), a 160% improvement from earlier one-mile laterals. We expect to see continued resource expansion over the course of 2014, particularly via downspacing, where tests are currently ongoing on 80 acre spacing and stacked laterals in both Culberson and Reeves County (~$15-20/sh)."

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 $109.69 yesterday.

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