Cimarex Energy (NYSE:XEC) -3.1% after-hours despite reporting better than expected Q4 earnings and revenues, as the company projects 2018 capex of $1.6B-$1.7B, a 29% increase from 2017 levels at the midpoint.
Q4 production averaged 1.2B cfe/day, with oil production rising 36% Y/Y; proved reserves increased 16% to 3.4T cfe while replacing 211% of 2017 production.
XEC expects Q1 production will average 198K-207K boe/day, with oil production increasing ~3% Q/Q while natural gas and natural gas liquids come in flat.
For FY 2018, XEC forecasts production of 211K-221K boe/day, up 14% at the midpoint from 2017 levels, with oil production rising 21%-26%. Fourth quarter 2018 oil production is projected to increase 29-34 percent over fourth quarter 2017 levels
XEC says it plans to invest $1.3B-$1.4B on the drilling and completion of 127 net wells during 2018, with nearly 70% of capital spent in the Permian region and the remainder in the Mid-Continent.
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