Grommit, I posted this on XEC about 5 weeks ago on another thread. I since closed out my position for a modest gain, before this rampant selling. I may look to reenter.
XEC: Independent with a PE around 11 and profit margins of nearly 23%. In June completed acquisition of Magum Hunter Resources, thus tripling its proved reserves and doubled its production. About 81% of proven reserves are natural gas. More than 80% of Cimarex's reserves are in Oklahoma, Texas, and Kansas. Has a strong record of exploration and development with rigorous collection and analysis of data by a top-drawer engineering staff. With higher NG prices, XEC could use the extra cash to aggressively pay off debt, which is low to begin with. Has low exposure in GOM; aerial surveys indicated that all operated platforms and producing structures are intact and appear to have suffered only minimal damage. Some of Cimarex's onshore Gulf Coast operations also suffered light damage. S&P rates it a buy with a $50 target. On 9/1 Lehman Bros. raised its target to $58 fro $52. Lastly, XEC has an unusually smart, civil, and sophisticated Yahoo message board, a bullish sign IMO. |
