Why Cimarex Energy (XEC) Stock Is Up Today

NEW YORK (TheStreet) -- Cimarex Energy (XEC) was gaining 8% to $129.62 Wednesday after a positive first quarter and news that it will acquire Cena-Woodford assets for about $249 million.

For the first quarter Cimarex Energy reported earnings of $1.67 a share, beating the Capital IQ Consensus Estimate of $1.52 a share by 15 cents. Revenue grew 41% year-over-year to $599.2 million. Analysts expected revenue of $542.04 million for the quarter.

Cimarex separately announced that it will acquire oil and gas assets in the Cena-Woodford shale in Western Oklahoma for $497.4 million. Cimarex will sell a 50% interest in the assets to Devon Energy (DVN) for $248.7 million. The deal is expected to close on or before June 30.

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TheStreet Ratings team rates CIMAREX ENERGY CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CIMAREX ENERGY CO (XEC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

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