Cimarex (XEC) Announces Expiration Of 5.875% Senior Notes

Cimarex Energy Co. (NYSE:XEC) recently declared that its earlier announced cash tender offer to purchase any and all of the outstanding aggregate principal amount of its 5.875% Senior Notes, due 2022, expired on Apr 7, 2017.

As of the expiry time (5:00 pm, New York City time, on Apr 7), $253,423,000 aggregate principal amount of the Notes (34%) were validly tendered. This, however, does not include $194,000 aggregate principal amount of the Notes that are subject to guaranteed delivery procedures.

Cimarex is likely to accept for payment all Notes validly tendered and not validly withdrawn in the tender offer. The company is anticipated to make payment for the Notes on Apr 10, 2017. According to the terms of the tender offer, Notes that have not been tendered in the offer will remain outstanding.

Cimarex is likely to send a redemption notice for any and all outstanding Notes following the terms of the indenture, as revised and supplemented, governing the Notes on Apr 12, 2017. All the remaining outstanding Notes will be redeemed (subject to the terms thereof) on May 12, 2017.

Cimarex Energy is an independent oil & gas exploration and production firm. The company’s operations are located mainly in Oklahoma, Texas and New Mexico. Its exploration and production (E&P) activities take place primarily in two areas – the Permian Basin and the Mid-Continent region.

The company has established a track record of focused and disciplined exploration and production capital spending. This has driven profitable growth over the past many years. Management’s conservatism can be gauged by the fact that the company does not recognize undeveloped reserves as part of its proven reserves for reporting purposes. As a result, almost all of the company’s reserves are developed.

However, Cimarex Energy’s price chart shows weakness. Shares of the company depreciated 17% in the last three months, while the Zacks categorized Oil & Gas – U.S. Exploration & Production industry registered a decrease of 10.1% in the same time span.

Currently, Cimarex Energy carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the space are Bellatrix Exploration Ltd. (TO:BXE) , Crescent Point Energy Corp. (TO:CPG) and Cenovus Energy Inc. (TO:CVE) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Bellatrix Exploration posted a positive earnings surprise of 240.00% in the preceding quarter. It beat estimates in three of the four trailing quarters with an average positive earnings surprise of 58.54%.

Crescent Point Energy posted a positive earnings surprise of 244.44% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 127.16%.

Cenovus Energy posted a positive earnings surprise of 583.33% in the preceding quarter. It beat estimates in two of the four trailing quarters with an average positive earnings surprise of 74.89%.

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