Cimarex Craters: Fool by Numbers
On May 9, Cimarex Energy (NYSE: XEC) released first-quarter earnings for the period ended March 31.
- Revenues, earnings, and cash flow were hurt by lower price realizations. First-quarter 2007 gas prices declined 6% to $6.73 per thousand cubic feet (Mcf) and oil dropped 7% to $55.22 per barrel.
- Cimarex's aggressive capital spending program is on track, but temporarily hampering free cash flow.
- Cimarex sports a top-of-the-line five-star rating in the Motley Fool CAPS investor intelligence database, while fellow natural gas players Chesapeake Energy (NYSE: CHK) and Southwestern Energy (NYSE: SWN) come in at five and four stars, respectively.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007
|
Q1 2006
|
Change
|
|
Sales
|
$306.9
|
$335.3
|
(8.5%)
|
|
Net Profit
|
$64.6
|
$110.2
|
(41.4%)
|
|
EPS
|
$0.77
|
$1.29
|
(40.3%)
|
|
Diluted Shares
|
84.4
|
85.2
|
(1%)
|
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007
|
Q1 2006
|
Change*
|
|
Gross Margin
|
81%
|
84.3%
|
(3.3)
|
|
Operating Margin
|
33.1%
|
50.6%
|
(17.6)
|
|
Net Margin
|
21.1%
|
32.9%
|
(11.8)
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
Q1 2007
|
Q1 2006
|
Change
|
|
Cash + ST Invest.
|
$7.4
|
$50.7
|
(85.4%)
|
|
Accounts Rec.
|
$300.1
|
$261
|
15%
|
|
Inventory
|
$42
|
$41.1
|
2.2%
|
|
Liabilities
|
Q1 2007
|
Q1 2006
|
Change
|
|
Accounts Payable
|
$49.4
|
$69.1
|
(28.5%)
|
|
Long-Term Debt
|
$508.7
|
$351.5
|
44.7%
|
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007
|
Q1 2006
|
Change
|
|
Cash From Ops.
|
$186.5
|
$228
|
(18.2%)
|
|
Capital Expenditures
|
$252.4
|
$221.8
|
13.8%
|
|
Free Cash Flow
|
($65.9)
|
$6.2
|
N/A
|
Free cash flow is a Fool's best friend.
Related Foolishness:
Cimarex and Stock Madness 2007 winner Chesapeake are both Motley Fool Inside Value newsletter selections. Want to see what Philip Durell and his team of value investing experts sees in them? Check out a 30-day all-access free trial to the service today.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
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