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.

Risks

  • Cimarex Energy has significant price volatility in the past 3 months.

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

20.0%

NYSE:XEC

4.7%

US Oil and Gas

1.1%

US Market


1 Year Return

-41.0%

NYSE:XEC

-16.7%

US Oil and Gas

2.1%

US Market

XEC underperformed the Oil and Gas industry which returned -19.2% over the past year.

XEC underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

XECIndustryMarket
7 Day20.0%4.7%1.1%
30 Day31.0%10.3%3.7%
90 Day-5.0%-0.07%2.3%
1 Year-40.3%-41.0%-13.6%-16.7%4.4%2.1%
3 Year-56.8%-57.7%4.7%-4.8%47.0%37.4%
5 Year-56.6%-57.9%-24.0%-34.4%61.6%43.8%

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 based on future cash flows and its price relative to the stock market?

47%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Cimarex Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).

Cimarex Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Cimarex Energy is good value based on earnings compared to the US Oil and Gas industry average.

Cimarex Energy is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Cimarex Energy is good value based on expected growth next year.


Price Based on Value of Assets

Cimarex Energy is overvalued based on assets compared to the US Oil and Gas industry average.


Next Steps

Future Growth

How is Cimarex Energy expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

18.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cimarex Energy's revenue is expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).

Cimarex Energy's earnings are expected to grow by 18.7% yearly, however this is not considered high growth (20% yearly).

Cimarex Energy's revenue growth is expected to exceed the United States of America market average.

Cimarex Energy's earnings growth is expected to exceed the United States of America market average.

Cimarex Energy's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Cimarex Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Cimarex Energy has delivered over 20% year on year earnings growth in the past 5 years.

Cimarex Energy's 1-year earnings growth is less than its 5-year average (0.8% vs 32%)

Cimarex Energy's earnings growth has not exceeded the US Oil and Gas industry average in the past year (0.8% vs 22.6%).


Return on Equity

Cimarex Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Cimarex Energy used its assets more efficiently than the US Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Cimarex Energy has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cimarex Energy's financial position?


Financial Position Analysis

Cimarex Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Cimarex Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Cimarex Energy's level of debt (50.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (35% vs 50.3% today).

Debt is well covered by operating cash flow (76.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 25.4x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.48%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Cimarex Energy's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Cimarex Energy's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (8.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (8.9x coverage).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Tom Jorden (62yo)

8yrs

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

Tom's remuneration is higher than average for companies of similar size in United States of America.

Tom's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.1yrs

Average Tenure

57yo

Average Age

The average tenure for the Cimarex Energy management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.1yrs

Average Tenure

63yo

Average Age

The tenure for the Cimarex Energy board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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
Role
Member of the Board of Directors
Independent Director
Shares1,492
Max PriceUS$70.22

Ownership Breakdown


Management Team

  • Steve Bell (64yo)

    Executive Vice President of Business Development

    • Tenure: 7yrs
    • Compensation: US$4.22m
  • Tom Jorden (62yo)

    Chairman

    • Tenure: 8yrs
    • Compensation: US$9.73m
  • Joe Albi (60yo)

    Executive VP of Operations

    • Tenure: 8yrs
    • Compensation: US$4.58m
  • Karen Acierno

    Director of Investor Relations

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

    Senior VP & CFO

    • Tenure: 4yrs
    • Compensation: US$4.01m
  • Francis Barron (56yo)

    Senior VP

    • Tenure: 6.2yrs
  • Tim Ficker (51yo)

    VP, Controller

    • Tenure: 2.6yrs
  • John Lambuth (57yo)

    Senior Vice President of Exploration

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

    VP & Chief Human Resources Officer

    • Tenure: 0.4yrs

Board Members

  • Hans Helmerich (60yo)

    Independent Director

    • Tenure: 17.6yrs
    • Compensation: US$311.03k
  • Monroe Robertson (69yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$325.91k
  • Tom Jorden (62yo)

    Chairman

    • Tenure: 8yrs
    • Compensation: US$9.73m
  • Joe Albi (60yo)

    Executive VP of Operations

    • Tenure: 8yrs
    • Compensation: US$4.58m
  • Hal Logan (75yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$345.91k
  • Michael Sullivan (79yo)

    Independent Director

    • Tenure: 17yrs
    • Compensation: US$305.91k
  • Lisa Stewart (61yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$305.98k
  • Floyd Price (70yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$324.41k
  • Paul Eckley (64yo)

    Director

    • Tenure: 0.3yrs
  • Fran Vallejo (53yo)

    Director

    • Tenure: 2.3yrs
    • 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$5.359b
  • 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 Analysis2019/09/16 23:44
End of Day Share Price2019/09/16 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.