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.

Capital

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.

Outlook

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.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
IT Auditor
Expertise: Accounting
Location: Houston, TX
 
Chemicals, Sales Account Manager, Oil & Gas - Midland - Odessa TX
Expertise: Business Development|Marketing|Sales
Location: Midland, TX
 
United States Houston: Senior Accountant
Expertise: Accounting
Location: Houston, TX
 
search for more jobs

Natural Gas : $3.64/MMBtu 0.27%
Brent Crude Oil : $53.93/BBL 1.83%
Light Crude Oil : $50.93/BBL 1.66%
Updated in last 24 hours