Written by StockNews.com

Cimarex Energy Co. (NYSE: XEC) early Wednesday posted market-beating first quarter earnings and upped its production guidance for the full year, as U.S. shale continues to pick up the slack left by OPEC’s production cuts.

The Denver-based oil and natural gas producer reported Q1:

• earnings per share (EPS) of $1.05, which was $0.18 better than the Wall Street consensus estimate of $0.87...[while]
• revenues rose 85.9% from last year to $447.2 million, also beating analysts’ view for $423.62 million,
• total production for the latest period was 1,063 million cubic feet equivalent (MMcfe) per day, which was at the high end of XEC’s production guidance. That was up 9% year-over-year, and up 11% on a sequential basis from the fourth quarter.

The company boosted its 2017 production estimates via press release:

Cimarex is increasing its full-year production estimate for 2017 to 1.09 – 1.13 Bcfe per day, a midpoint increase of 15% over 2016 volumes.

Second quarter output is expected to average 1.08 – 1.13 Bcfe per day, with oil production expected to outpace total company volume growth and rise 6 – 10% sequentially.

Exploration and development capital for 2017 remains unchanged at $1.1 – 1.2 billion.

...Year-to-date, XEC has declined -12.37%, versus a 7.58% rise in the benchmark S&P 500 index during the same period.

XEC currently has a StockNews.com POWR Rating of C (Neutral) and is ranked #31 of 103 stocks in the Energy – Oil & Gas category.