BUSINESSWEEK'S HOT GROWTH COMPANIES

Hot Growth Special Report 2006 >

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Cimarex Energy (XEC)

Even hurricane-related disruptions in the Gulf of Mexico weren't enough to shut down growth at this Denver oil and gas producer. The outfit, which works wells in the gulf and across West Texas and New Mexico, was helped by its midyear acquisition of Magnum Hunter Resources for $2.1 billion in stock and the assumption of debt. That helped drive net income and revenues, both of which more than doubled, with net income rising 113% to $328.3 million while revenues jumped 135% to $1.1 billion. Gas production rose 77% in the final quarter of the year alone, while oil volumes leapt 125%, despite reductions in the gulf. Repairs to the last of its damaged facilities, along with additions from Magnum, should help power still more gains this year. Investors have prospered. The company went public at $17.25 a share in late 2002. The stock now trades for more than $40.

Company Info

2005 Rank

38

Market Value*
($ Millions)

3,538.1

Sales*
($ Millions)

1,332.4

Sales Growth
(3-yr. avg. annual)

81.2 %

Profits*
($ Millions)

328.3

Profit Growth
(3-yr. avg. annual)

98.0 %

Return on Inv. Capital (3-yr.)

13.0 %

Share Price
12-Mo. Hi/Lo

48/33

Share Price
As of 4/28/06

43

Return on Equity

12.7 %

P/E Ratio

9

No. of Employees

689

Industry Oil & Gas Exploration & Production
CURRENT
MARKET INFO

XEC >

COMPANY WEB SITE >
Location Denver
Phone 303 295-3995
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Cimarex Energy operates as an oil and gas exploration and production company in the U.S. Its exploration properties are located in Oklahoma, the Texas panhandle, and southwest Kansas; the Permian Basin region of west Texas and southeast New Mexico; the upper Gulf Coast areas of Texas, south Louisiana and Mississippi; and the Gulf of Mexico. The company also has smaller projects in Michigan, North Dakota, and California. In addition, it provides compression, gathering, and gas processing services. As of Dec. 31, 2005, the company's proved oil and gas reserves totaled 1.4 trillion cubic feet, consisting of 1 trillion cubic feet of gas and 64.7 million barrels of oil and natural gas liquids. Cimarex Energy was founded in 2002 and has its headquarters in Denver, Colo.


Data provided by Capital IQ
 
F. H. Merelli

F. H. Merelli, 70

Chairman, Chief Executive Officer and President


Total Compensation*

$ 1,608,455

Total Options Value*

$ 22,639,778

* Fiscal Year 2005


Executive Bio

F. H. Merelli has been the chairman, chief executive, and president of Cimarex Energy, a Denver-based independent oil and gas exploration and production company, since September, 2002. Prior to Cimarex, Merelli served as chairman of the board and CEO of Key Production from 1992 to October, 2002, and served as Key's president from 1992 to September, 1999, and from March, 2002, to October, 2002. Merelli was president and chief operating officer of Apache and president and chief operating officer of Key from June, 1988, to July, 1991, at which time he resigned from those positions in both companies. He was president of Terra Resources, a Tulsa oil and gas company, from 1979 to 1988. From July, 1991, to September, 1992, Merelli was engaged as a private consultant in the oil and gas industry. He was with Key Production from September, 1992. He has been a director of Cimarex Energy since September, 2002. He serves as a director of Key Production. He has been a director of Apache, managing partner for Apache Offshore Investment Partnership, since July, 1997. Merelli is a member of the audit and executive committees of Apache. He was a director of Key from June, 1988, to July, 1991.


Management Team

Key Executives

F. H. Merelli; Gary R. Abbott; James H. Shonsey; Richard S. Dinkins; Joseph R. Albi; Stephen P. Bell; Thomas E. Jorden; Paul Korus

Board Directors

Hans Helmerich; Glenn A. Cox; Cortland S. Dietler; Paul D. Holleman; David A. Hentschel; F. H. Merelli; L. Paul Teague; Michael J. Sullivan; Jerry Box; Monroe W. Robertson


Executive Data provided by Capital IQ