Advertisement
Australia markets closed

  • ALL ORDS

    7,837.40
    -100.10 (-1.26%)
     

  • ASX 200

    7,575.90
    -107.10 (-1.39%)
     

  • AUD/USD

    0.6540
    +0.0016 (+0.25%)
     

  • OIL

    83.68
    +0.11 (+0.13%)
     

  • GOLD

    2,363.40
    +20.90 (+0.89%)
     

  • Bitcoin AUD

    98,559.29
    +609.30 (+0.62%)
     

  • CMC Crypto 200

    1,391.00
    -5.53 (-0.40%)
     

  • AUD/EUR

    0.6091
    +0.0018 (+0.29%)
     

  • AUD/NZD

    1.0982
    +0.0024 (+0.22%)
     

  • NZX 50

    11,805.09
    -141.34 (-1.18%)
     

  • NASDAQ

    17,430.50
    -96.30 (-0.55%)
     

  • FTSE

    8,108.51
    +29.65 (+0.37%)
     

  • Dow Jones

    38,085.80
    -375.12 (-0.98%)
     

  • DAX

    18,049.58
    +132.30 (+0.74%)
     

  • Hang Seng

    17,651.15
    +366.61 (+2.12%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

Cimarex (XEC) Gears Up for Q2 Earnings: What's in the Cards?

Zacks Equity Research

Cimarex Energy Co. 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.

ADVERTISEMENT

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

 

Cimarex Energy Co Price and EPS Surprise
Cimarex Energy Co Price and EPS Surprise

Cimarex Energy Co price-eps-surprise | Cimarex Energy Co Quote

Earnings Whispers

Our proven model does not suggest a beat for Cimarex this earnings season. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -2.56%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Cimarex currently carries a Zacks Rank #3. Though a Zacks Rank of 3 increases the predictive power of ESP, a negative ESP makes surprise prediction difficult.

Conversely, Sell-rated stocks (Zacks Rank #4 and 5) should never be considered going into an earnings announcement.

Energy Stocks With Favorable Combination

While an earnings beat looks uncertain for Cimarex, here are a few companies from the energy space you may want to consider on the basis of our model, which shows that they have the right combination of elements to post a beat this quarter:

TC Energy Corporation TRP has an Earnings ESP of +0.98% and a Zacks Rank #2. The company is anticipated to release earnings on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Callon Petroleum Company CPE has an Earnings ESP of +0.84% and a Zacks Rank #3. The company is set to release earnings on Aug 6.

Independence Contract Drilling, Inc. ICD has an Earnings ESP of +18.18% and a Zacks Rank #3. The company is anticipated to release earnings on Aug 1.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Independence Contract Drilling, Inc. (ICD) : Free Stock Analysis Report
 
TransCanada Corporation (TRP) : Free Stock Analysis Report
 
Cimarex Energy Co (XEC) : Free Stock Analysis Report
 
Callon Petroleum Company (CPE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research