Hit a low of $88.00 yesterday - up today. $92.55 now.
Recent new high of $117.95 ( - within past 30 days - so some profit taking (plus other factors) for recent price decline.
Reason for hit - reduced 1st quart earnings - announced 06 May, 2011.
Here it is in relation to two other oil/gas stocks:
http://quotes.freerealtime.com/dl/frt/M?SA=quotes|Chart&IM=quotes&qm_page=25521&symbol=XEC
From recent news: -
http://quotes.freerealtime.com/dl/frt/N?NewsStory=1
EARNINGS DOWN FROM 1st quart. 2010 -
NYSE: XEC) today reported first-quarter 2011 net income of $118.2 million, or $1.37 per diluted share. This compares to first-quarter 2010 earnings of $204.4 million, or $2.39 per diluted share.
Loss on derivative hedges - 2.0 Mil actual cash loss - 18 mil on mark-to-market losses (which will probably translate to real losses, unlike many m2m losses.)
Revenue down 1st quarter: "Oil, gas and natural gas liquids (NGLs) revenue in the first quarter of 2011 totaled $414.0 million, a 4% decrease compared to $432.4 million in the same period of 2010. "
Operations Cash flow not hit as hard, but still down: "First-quarter 2011 cash flow from operations was $304.6 million versus $313.2 million a year ago(1)."
Oil prices up - offset some of the DECREASE in NatGas Prices. "First-quarter 2011 realized oil prices increased 20% to $91.46 per barrel. Gas prices fell 31% to $4.45 per thousand cubic feet (Mcf) as compared to the same period of 2010. "
OK - Yeah - I look at stuff like an investor - forgive me, all ye traders here ....
On the PLUS SIDE:
1. Nat Gas prices are heavily effected by electricity peaker demand and by base load. This year has been EXTREMELY COOL so far in Texas (a big user) - I haven't had to even turn on my A.C. yet - and it is still only about 74-76 degrees here today. IF IT HEATS UP - nat gas prices will increase.
2. XEC has an extremely rare 'overweight' in natgas v oil production compared to most companies - First-quarter 2011 production volumes were 56% gas, 27% oil and 17% NGLs.
3. 1st Quarter PRODUCTION VOLUMES are up 1% year over year - THAT is always an excellent sign - increased production - even when the revenue decreases due to total average commodity price decreases. (ie $oil% + $gas% + $ngl% )
4. XEC has an almost unbelievable unheard of debt ratio ... STILL .... Granted it is up astronomically from before their Magnum Hunter acquisition ... but then, sitting currently at 11% vs. 0% previously - that's really a 'gotcha statement' ... *lol* what is infinity times 0 ?
"Debt to total capitalization ratio at quarter-end was 11% ."
5. XEC has a VERY, VERY low utilization rate on hedges, which, imo - are never cost effective except in truly disastrous situations. Most companies waste a whole hell of a lot more money playing (gambling) on hedges (i.e. over-insuring) than XEC ever has.
6. XEC operates in predominantly 'politically stable' areas of the United States - Mid-Continent, Permian Basin (Texas), Gulf Coast (La.&Tx. mostly), and has very little in the politically volatile 'left coasts' of this country (both east and west).
So, hope this helps some of you traders - I know this is a bit 'low' on your trade potentials - but it is solid from an investment standpoint, imo.
Perhaps ya'll can make some money off the options - I'm not currently trading/buying/anything because my 'game is not quite back on' ... Hopefully soon I may have my head screwed on straight agin.
Ciao,
Monkey
Finally, brethren, whatsoever things are true, whatsoever things are honest, whatsoever things are just, whatsoever things are pure, whatsoever things are lovely, whatsoever things are of good ...
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