Cimarex (XEC) Gears Up For Q2 Earnings: What's In The Cards?
Zacks Investment Research | Jul 30, 2019 10:29PM ET
Cimarex Energy Co. (NYSE:XEC) is set to release second-quarter 2019 results on Aug 5, after the closing bell.
In the last reported quarter, the upstream energy player posted a negative earnings surprise of 12.4%. However, the company surpassed the Zacks Consensus Estimate twice in the last four quarters, with a four-quarter average positive earnings surprise of 7.2%.
Let’s see how things are shaping up for this announcement.
Which Way Are Estimates Treading?
Let’s take a look at the estimate revision trend to get a clear picture of what analysts expect from the company’s upcoming earnings release.
The Zacks Consensus Estimate of $1.20 for second-quarter 2019 earnings has been revised downward in the past seven days. The figure indicates a year-over-year decline of almost 24.5%.
Nonetheless, the consensus estimate for revenues of $595.3 million suggests an increase of 7% from the year-ago quarter.
Now let’s take a look at the factors that will possibly give shape to the upcoming results.
Factors to Consider
The Zacks Consensus Estimate for the company’s second-quarter production from the prolific Permian basin is pegged at 179 thousand barrels of oil equivalent per day (MBoe/d), indicating a rise from 121.7 MBoe/d in the year-earlier period.
From the Mid-Continent region, the Zacks Consensus Estimate for production stands at 90 MBoe/d, higher than the year-ago quarter’s 88.9 MBoe/d.
Owing to higher expected production volumes from the Permian and the Mid-Continent areas, total production is likely to increase by a solid margin. The Zacks Consensus Estimate for the explorer’s total production for the June quarter of 2019 is pegged at 270 MBoe/d, up from 211.4 MBoe/d in the year-ago quarter.
Although the quarterly production picture looks favorable and is likely to support the bottom line, the expected realized prices of the commodities tell a different tale. Notably, the Zacks Consensus Estimate for average realized natural gas price of $1.09 per thousand cubic feet calls for a decline from the year-ago reported figure of $1.65.
Moreover, the Zacks Consensus Estimate for average realized oil price is $55 per barrel, implying a decline from the year-ago $61. Also, the Zacks Consensus Estimate for average realized natural gas liquids price of $15.80 per barrel suggests a decline from the year-ago reported figure of $22.29.
Cimarex Energy Co Price and EPS Surprise
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