Cimarex Posts Lower Q1 Earnings
Cimarex Energy Co. on Wednesday reported first-quarter 2007 net income of $64.6 million, or $0.77 per share. This compares to first-quarter 2006 earnings of $110.2 million, or $1.29 per diluted share.
Revenues from oil and gas sales in the first quarter of 2007 were $293.5 million, compared to $322.0 million in the same period of 2006. First-quarter 2007 cash flow from operations totaled $215.4 million versus $227.1 million in the same period of 2006.
The decrease in first-quarter 2007 revenues, earnings and cash flow is primarily a result of lower oil and gas prices. First-quarter 2007 gas prices decreased 6% to $6.73 per thousand cubic feet (Mcf) and oil fell 7% to $55.22 per barrel.
First-quarter 2007 oil and gas production volumes averaged 441.5 million cubic feet equivalent per day (MMcfe/d). The current quarter's average daily production was comprised of 324.2 million cubic feet of gas and 19,552 barrels of oil.
First-quarter 2007 exploration and development expenditures totaled $246 million as compared to $273 million in the first quarter of 2006. In the first quarter of 2007, Cimarex drilled 110 gross (62 net) wells, completing 94% as producers. Exploration and development capital investment for 2007 is still projected to range from $800 million to $1 billion.
Second-quarter 2007 production volumes are projected to range between 440 - 450 MMcfe/d. Full-year 2007 production volumes are still expected to average 450 - 470 MMcfe/d.
Expenses for the remainder of 2007 are expected to fall within the following ranges:
Expenses ($/Mcfe): Production expense $1.10 - $1.15 Transportation expense 0.13 - 0.17 DD&A and ARO accretion 2.75 - 2.90 General and administrative expense 0.27 - 0.30 Production taxes (% of oil and gas 7.0% - 8.0% revenue)
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent, Permian Basin and Gulf Coast areas of the U.S.
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