* Says to spend majority of 2012 capex on oil, liquids-rich
* Sees 2012 production up 4-10 pct
* Q4 EPS $1.36 vs est $1.30
* Q4 rev up 6 pct at $417.5 mln
Feb 15 Natural-gas focused Cimarex Energy
said it will direct nearly all of its 2012 capital
budget towards lucrative oil and liquids-rich gas drilling and
forecast higher full-year production.
Natural gas prices have slumped to their lowest level
in a decade, pressured by a glut caused by higher output from
shale fields and slack demand due to a mild winter. U.S. crude
oil prices rose 17 percent to average about $92.39 per
barrel in the October-December period.
Cimarex, whose fourth-quarter production dipped half a
percent, said it expects full-year output to grow by 4 percent
to 10 percent to 615-650 million cubic feet equivalent per day.
The Denver, Colorado-based company forecast capital
expenditure of $1.4 billion to $1.6 billion for the year. The
company said more than half of the budget would be invested in
its Permian Basin assets in Texas.
The Permian Basin accounted for nearly 70 percent of
Cimarex's fourth-quarter oil output.
Fourth-quarter profit beat market estimates for the
third-straight quarter as higher oil prices helped offset the
drop in production.
Net income fell marginally to $116.9 million, or $1.36 a
share, from $117.6 million, or $1.37 a share, in the year-ago
Total revenue rose 6 percent to $417.5 million.
Analysts on average had expected earnings of $1.30 a share,
on revenue of $417.7 million, according to Thomson Reuters
Shares of the company closed at $68.78 on Tuesday on the New
York Stock Exchange.