XEC - Cimarex Energy: Positive Cash Flow At Current Oil Prices Despite Weakness In Gas Prices
Cimarex Energy (XEC) appears to be going strong despite around 40% of its production being natural gas and it generating only modest revenue from that natural gas production. It indicates that it could deliver positive free cash flow starting at $50 WTI oil and $2.25 Henry Hub natural gas.
Source: Cimarex Energy
Improvements in capital efficiency are allowing it to increase oil production and maintain value-weighted production in 2020 (compared to Q4 2019) while also offering a small dividend and generating some positive cash flow at strip.
I estimate Cimarex's value at closer