On May 9, Cimarex Energy
- 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) |
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:
- And the Stock Madness 2007 Winner Is...
- Fast Pitch: Chesapeake Energy
- Cimarex Continues Cooling: Fool by Numbers
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.
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