Cimarex Energy Company (NYSE:XEC) To Sell Off Its Gas and Oil Assets Worth $326 Million

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By Thomas Copeland on August 27, 2014 Energy & Solar

Cimarex Energy Company (NYSE:XEC) recently announced that it has sealed a number of sale and purchase agreements. According to the latest news, the company plans on selling some of its gas and oil assets. News has it that the total worth of the deal is around $326 million, and the company expects the sale deals to be executed latest by September 30, 2014.

The assets that Cimarex Energy Company (NYSE:XEC) plans on selling include almost 4,200 acres of well land in the Midland Basin that is situated in the County of Reagan, Texas; the respective land is to be sold for $242 million. The company will also sell some of its other properties located in Gulf Coast and Mid-Continent for a total of $84 million.

Estimates have it that the properties being sold have around 47 billion cubic reserves; meanings that those assets contain almost 63 percent natural gas reserves. The wells also produce around 11 million cubic reserves daily.

The company plans to use the sale proceeds in its ongoing investment plan. News has it that the company will invest around $1.95 billion in the development and exploration of new reserves.

The company has already invested around $964 million in the said program during the first part of the year 2014. Out of these $964 million, Cimarex Energy Company (NYSE:XEC) invested 71 percent in its Permian Basin and the remainder in its Mid Continent reserves.

During the second quarter of the year 2014, Cimarex Energy Company (NYSE:XEC) also acquired some new assets in the region of Cana-Woodford for a total of $238 million.

Cimarex Energy Company (NYSE:XEC) is a private company that deals with the exploration and extraction of natural gas and oil. The company primarily operates in the region of United States.

Cimarex Energy Company’s (NYSE:XEC) main focus in on improving the value of the company for its shareholders by reporting remarkable returns, profitable margins and impressive cash flow.

The company also plans on expanding its oil reserves and improving its extraction by acquiring new assets. The company has a number of impressive and unique drilling opportunities in the region of United States.

Cimarex Energy Company’s (NYSE:XEC) profits and sales figures depend upon the prices of natural gas and oil, which can never remain certain. The company currently has a #2 Zacks rank on its stocks together with a consensus rating of ‘Buy’.

Coming to the stock prices of Cimarex Energy Company (NYSE:XEC), the company, on the last trading day, August 26, 2014, started its stocks at a price of $139.74 and closed at an increased price of $141.38, after hitting the highest figures of $143.65. The company has a market capitalization of $11.97 billion with a P/E (price to earnings) ratio of 19.52. As far as the dividend yield of the company’s stocks is concerned, the figures are recorded to be around 0.45 percent.

Cimarex Energy Company (NYSE:XEC) has an EPS (earnings per share) of $7.03 and a beta of 2.31.