On Feb. 15, Cimarex Energy (NYSE:XEC) released fourth-quarter earnings for the period ended Dec. 31.

  • Revenue decreased by 31.2% primarily because of drops in oil and gas prices of 2% and 41%, respectively, from the same period of 2005.
  • Management expects to spend $800 million to $1 billion on exploration and development capital expenditures in 2007.
  • XEC is popular with Motley Fool CAPS players, as 42 All-Stars expect it to outperform the S&P 500.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$295.6

$429.5

(31.2%)

Net Profit

$58.7

$168.4

(65.1%)

EPS

$0.70

$1.98

(64.6%)

Diluted Shares

84.1

85.1

(1.2%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

79.3%

86.7%

(7.4)

Operating Margin

29.8%

60.9%

(31.0)

Net Margin

19.9%

39.2%

(19.3)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$47.0

$61.6

(23.8%)

Accounts Rec.

$306.5

$289.2

6.0%

Inventory

$39.4

$34.8

13.3%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$56.2

$81.9

(31.4%)

Long-Term Debt

$443.7

$352.5

25.9%



Learn the ways of the balance sheet.

Cash Flow Highlights

Q4 2006

Q4 2005

Change

Cash From Ops.

$201.3

$287.3

(29.9%)

Capital Expenditures

$246.9

$233.4

5.8%

Free Cash Flow

($45.6)

$53.9

N/A



Find out why Fools always follow the money.

Related Companies:

  • Occidental Petroleum (NYSE:OXY)
  • XTO Energy (NYSE:XTO)
  • EOG Resources (NYSE:EOG)
  • Denbury Resources (NYSE:DNR)
  • Plains Exploration & Production (NYSE:PXP)

Related Foolishness:

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