Cimarex Energy 1Q profit soars on higher output, prices

DENVER—Natural-gas and oil producer Cimarex Energy Co. said its first-quarter profit more than doubled, topping Wall Street forecasts, on increased production and higher commodity prices.

Net income for the first three months of the year rose to $149.8 million, or $1.76 per share, compared with $64.6 million, or 77 cents per share, during the same period a year earlier.

Analysts predicted the company would earn $1.62 per share, on average, according to a survey by Thomson Financial.

Revenue increased to $477.1 million from $306.9 million a year earlier. Analysts predicted revenue of $462 million, according to Thomson.

Cimarex said average gas prices rose 25 percent to $8.38 per thousand cubic feet, while oil prices surged 71 percent to $94.38 per barrel.

Total daily oil and gas production rose 8 percent over the same period a year earlier. Gas output was up 5 percent to an average of 339.7 million cubic feet per day, while oil production climbed 16 percent to an average of 22,757 barrels per day.

Looking ahead, Cimarex said it expects second-quarter output to equal to 478 million to 488 million cubic feet of gas per day. Full-year production is expected to equal 475 million to 495 million cubic feet per day, up 8 to 12 percent over 2007 after adjusting for property sales.