By Melodie Warner Cimarex Energy Co.'s (XEC) first-quarter earnings fell 15% as lower oil and natural-gas liquids prices continued to pressure the company's bottom line. Cimarex's drilling activities are conducted within the Permian Basin and the midcontinent region, areas attracting renewed interest as advanced technologies like horizontal drilling and hydraulic fracturing are unlocking energy trapped in vast shale formations. But Cimarex's revenue has been challenged of late by lower prices for oil, natural-gas liquids and gasoline. The company also agreed in November to sell certain noncore, long-lived oil and gas properties in Texas for $294 million. For the quarter ended March 31, Cimarex reported a profit of $89.9 million, or $1.04 a share, down from $106.1 million, or $1.23 a share, a year earlier. The most-recent quarter included a hedging loss of two cents a share, while the year-earlier quarter included a three-cent hedging loss. Revenue edged up 0.8% to $426.4 million as production rose 10% to an average of 661.1 million cubic feet equivalent per day. Analysts polled by Thomson Reuters had most recently forecast per-share earnings of $1.08 on revenue of $429 million. Operating margin fell to 33.9% from 39%. Oil sales--which contribute most of the top line--dropped 3.6% to $257.5 million. Gas sales climbed 19% to $101.1 million, and sales of natural-gas liquids fell 3.6% to $56.9 million. Oil prices per barrel decreased 13% to $86.31. Gas prices climbed 16%, while prices for natural-gas liquids dropped 20%. Shares closed Monday at $75 and were inactive premarket. The stock is up 30% since the beginning of the year. Write to Melodie Warner at melodie.warner@dowjones.com Order free Annual Report for Cimarex Energy Co. Visit http://djnweurope.ar.wilink.com/?ticker=US1717981013 or call +44 (0)208 391 6028

Source