NYSE:XEC

Stock Analysis Report

Executive Summary

Cimarex Energy Co. operates as an independent oil and gas exploration and production company primarily in Oklahoma, Texas, and New Mexico.

Snowflake

Fundamentals

Undervalued average dividend payer.


Similar Companies

Share Price & News

How has Cimarex Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.2%

XEC

0.8%

US Oil and Gas

2.3%

US Market


1 Year Return

-53.0%

XEC

-22.2%

US Oil and Gas

5.6%

US Market

Return vs Industry: XEC underperformed the US Oil and Gas industry which returned -22.2% over the past year.

Return vs Market: XEC underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

XECIndustryMarket
7 Day0.2%0.8%2.3%
30 Day-19.3%-7.9%-1.0%
90 Day-11.6%-8.3%-0.7%
1 Year-52.4%-53.0%-19.3%-22.2%7.9%5.6%
3 Year-68.5%-69.1%-8.2%-16.4%45.6%36.3%
5 Year-58.4%-59.6%-23.7%-34.3%65.8%47.6%

Price Volatility Vs. Market

How volatile is Cimarex Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cimarex Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: XEC ($43.38) is trading below our estimate of fair value ($105.44)

Significantly Undervalued: XEC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: XEC is good value based on its PE Ratio (7.1x) compared to the Oil and Gas industry average (9.8x).

PE vs Market: XEC is good value based on its PE Ratio (7.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: XEC is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: XEC is overvalued based on its PB Ratio (1.1x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Cimarex Energy forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XEC's forecast earnings growth (16% per year) is above the savings rate (2.7%).

Earnings vs Market: XEC's earnings (16% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: XEC's earnings are forecast to grow, but not significantly.

Revenue vs Market: XEC's revenue (7.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: XEC's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: XEC's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Cimarex Energy performed over the past 5 years?

32.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: XEC's earnings have grown significantly by 32% per year over the past 5 years.

Accelerating Growth: XEC's earnings growth over the past year (0.8%) is below its 5-year average (32% per year).

Earnings vs Industry: XEC earnings growth over the past year (0.8%) underperformed the Oil and Gas industry 22.6%.


Return on Equity

High ROE: XEC's Return on Equity (15.2%) is considered low.


Return on Assets

ROA vs Industry: XEC has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: XEC has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Cimarex Energy's financial position?


Financial Position Analysis

Short Term Liabilities: XEC's short term assets ($520.1M) do not cover its short term liabilities ($814.7M)

Long Term Liabilities: XEC's short term assets (520.1M) do not cover its long term liabilities (2.8B)


Debt to Equity History and Analysis

Debt Level: XEC's debt to equity ratio (50.3%) is considered high

Reducing Debt: XEC's debt to equity ratio has increased from 35% to 50.3% over the past 5 years.

Debt Coverage: XEC's debt is well covered by operating cash flow (76.1%).

Interest Coverage: XEC's interest payments on its debt are well covered by EBIT (25.4x coverage).


Balance Sheet

Inventory Level: XEC has a high level of physical assets or inventory.

Debt Coverage by Assets: XEC's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Cimarex Energy's current dividend yield, its reliability and sustainability?

1.84%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Cimarex Energy before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.8%marketbottom25%1.5%markettop25%3.8%industryaverage4.2%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: XEC's dividend (1.84%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: XEC's dividend (1.84%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: XEC's dividend payments have been volatile in the past 10 years.

Growing Dividend: XEC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.4%), XEC's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: XEC's dividends in 3 years are forecast to be thoroughly covered by earnings (12% payout ratio).


Next Steps

Management

What is the CEO of Cimarex Energy's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

Tom Jorden (62yo)

8.1yrs

Tenure

US$9,727,480

Compensation

Mr. Thomas E. Jorden, also known as Tom, has been the Chief Executive Officer and President at Cimarex Energy Company since September 30, 2011. Mr. Jorden served as Executive Vice President of Exploration  ...


CEO Compensation Analysis

Compensation vs. Market: Tom's total compensation ($USD9.73M) is about average for companies of similar size in the US market ($USD5.13M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.2yrs

Average Tenure

57yo

Average Age

Experienced Management: XEC's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: XEC's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$69,30518 Mar 19
Harold Logan
EntityIndividual
Role
Lead Director
Lead Director
Shares990
Max PriceUS$70.00
BuyUS$9,61705 Mar 19
Lisa Stewart
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares130
Max PriceUS$73.98
SellUS$104,76817 Dec 18
Michael Sullivan
EntityIndividual
Shares1,492
Max PriceUS$70.22

Ownership Breakdown


Management Team

  • Steve Bell (64yo)

    Executive Vice President of Business Development

    • Tenure: 7.1yrs
    • Compensation: US$4.22m
  • Tom Jorden (62yo)

    Chairman

    • Tenure: 8.1yrs
    • Compensation: US$9.73m
  • Joe Albi (60yo)

    Executive VP

    • Tenure: 8.1yrs
    • Compensation: US$4.58m
  • Karen Acierno

    Vice President of Investor Relations

    • Tenure: 0yrs
  • G. Burford (51yo)

    Senior VP & CFO

    • Tenure: 4.1yrs
    • Compensation: US$4.01m
  • Francis Barron (56yo)

    Senior VP

    • Tenure: 6.3yrs
  • Tim Ficker (51yo)

    VP, Controller

    • Tenure: 2.7yrs
  • John Lambuth (57yo)

    Senior Vice President of Exploration

    • Tenure: 3.8yrs
    • Compensation: US$4.36m
  • Chris Clason

    VP & Chief Human Resources Officer

    • Tenure: 0.5yrs

Board Members

  • Hans Helmerich (60yo)

    Independent Director

    • Tenure: 17.7yrs
    • Compensation: US$311.03k
  • Monroe Robertson (69yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: US$325.91k
  • Tom Jorden (62yo)

    Chairman

    • Tenure: 8.1yrs
    • Compensation: US$9.73m
  • Joe Albi (60yo)

    Executive VP

    • Tenure: 8.1yrs
    • Compensation: US$4.58m
  • Hal Logan (75yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$345.91k
  • Lisa Stewart (61yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$305.98k
  • Floyd Price (70yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$324.41k
  • Kathy Hogenson (58yo)

    Independent Director

    • Tenure: 0.08yrs
  • Paul Eckley (64yo)

    Director

    • Tenure: 0.4yrs
  • Fran Vallejo (53yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$305.52k

Company Information

Cimarex Energy Co.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cimarex Energy Co.
  • Ticker: XEC
  • Exchange: NYSE
  • Founded: 2002
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$4.324b
  • Shares outstanding: 99.67m
  • Website: https://www.cimarex.com

Number of Employees


Location

  • Cimarex Energy Co.
  • 1700 Lincoln Street
  • Suite 3700
  • Denver
  • Colorado
  • 80203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
XECNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2002
ENYDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2002
0HYBLSE (London Stock Exchange)YesCommon StockGBUSDSep 2002

Biography

Cimarex Energy Co. operates as an independent oil and gas exploration and production company primarily in Oklahoma, Texas, and New Mexico. As of December 31, 2018, it had a total proved reserves of 591.2 m ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:45
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.