Cimarex Energy Co.
Company Summary
Website
https://www.cimarex.com/Operational Regions
- Oklahoma STACK Play
- Midcontinent
- Permian Basin
- Texas Panhandle
- SCOOP
- Meramec Shale
- Delaware Basin
- Wolfcamp
- Bone Spring Sands
- Avalon Shale
Financial Data:
NYSE:XEC from Google FinanceTickers:
-
XEC - New York Stock Exchange
Related Entities
Recent news
- 10/4/2021 - Coterra Energy Formed... (subscriber access)
- 9/30/2021 - Cabot & Cimarex... (subscriber access)
- 5/24/2021 - Cabot & Cimarex Merger... (subscriber access)
- 5/24/2021 - Cabot & Cimarex Merging... (subscriber access)
- 5/18/2021 - BCE-Mach III Acquiring... (subscriber access)
Investor Presentations
- Cabot & Cimarex Merger Presentation
- Enercom Conference - August 2020 (subscriber access)
- 3Q19 Investor Presentation (subscriber access)
- 2Q19 Investor Presentation (subscriber access)
- May 2019 Presentation (subscriber access)
- 4Q18 Investor Presentation (subscriber access)
- 3Q18 Investor Presentation (subscriber access)
- 2Q18 Investor Presentation (subscriber access)
- 1Q18 Investor Presentation (subscriber access)
- Fourth Quarter 2017 Earnings Presentation (subscriber access)
- 3Q17 Earnings Presentation (subscriber access)
- 2Q17 Earnings Presentation (subscriber access)
- 1Q17 Corporate Update (subscriber access)
- 4Q16 & 2016 Investor Presentation (subscriber access)
- Investor Presentation - November 2016 (subscriber access)
- Enercom Presentation - August 2016 (subscriber access)
Company Transactions
Date: 11/15/2021
Type: Merger
NOTES:
Cimarex shareholders will receive 4.0146 shares of Cabot common stock for their own shares, reflecting a combined company enterprise value of $17 billion. Cabot shareholders will own 49.5% of the company while Cimarex holds 50.5%. This deal merges Cabot's 173,000 net acres in the Marcellus with Cimarex's 560,000 net acres across the Permian & Anadarko Basins. Their production will total 601 Mboe/d (79% gas), including 220 Mboe/d from Cimarex and 381 Mboe/d from Cabot.
Cimarex shareholders will receive 4.0146 shares of Cabot common stock for their own shares, reflecting a combined company enterprise value of $17 billion. Cabot shareholders will own 49.5% of the company while Cimarex holds 50.5%. This deal merges Cabot's 173,000 net acres in the Marcellus with Cimarex's 560,000 net acres across the Permian & Anadarko Basins. Their production will total 601 Mboe/d (79% gas), including 220 Mboe/d from Cimarex and 381 Mboe/d from Cabot.
REGIONS:
Permian Basin
Anadarko Basin
Marcellus Shale
Date: 6/30/2021
Type: Acquisition
NOTES:
Cimarex Energy has recently entered into a deal for $115 million in non-core asset sales which includes positions in the Permian and MidCon. Production on the assets totals 0.9 Mboed and it includes 3,000 gross wells.
Cimarex Energy has recently entered into a deal for $115 million in non-core asset sales which includes positions in the Permian and MidCon. Production on the assets totals 0.9 Mboed and it includes 3,000 gross wells.
REGIONS:
Permian Basin
Midcontinent
Date: 6/15/2021
Type: Acquisition
NOTES:
BCE-Mach III has entered into a purchase and sale agreement with Cimarex Energy to acquire producing assets across Western and Southern Oklahoma and the Texas Panhandle. Further details were not provided and closing is planned for June 2021.
BCE-Mach III has entered into a purchase and sale agreement with Cimarex Energy to acquire producing assets across Western and Southern Oklahoma and the Texas Panhandle. Further details were not provided and closing is planned for June 2021.
REGIONS:
Midcontinent
Date: 10/14/2020
Type: Acquisition
NOTES:
Blackbuck Resources has acquired Cimarex Energy's Whites City water infrastructure located in Eddy County, New Mexico. The assets included 65-miles of pipeline and 100 Mbbl/d in disposal capacity. As part of the deal, Cimarex entered into a 15-year acreage dedication on >40,000 acres.
Blackbuck Resources has acquired Cimarex Energy's Whites City water infrastructure located in Eddy County, New Mexico. The assets included 65-miles of pipeline and 100 Mbbl/d in disposal capacity. As part of the deal, Cimarex entered into a 15-year acreage dedication on >40,000 acres.
REGIONS:
Permian Basin
Date: 3/31/2019
Type: Acquisition
BUYERS:
Cimarex Energy Co.
SELLERS:
Resolute Energy Corporation
DETAILS:
COST: 1.6 $B
VOLUMES: 35 MBOE/d
ACRES: 21100 Acres
NOTES:
Cimarex has entered into a deal to acquire Resolute Energy for $1.6 billion via a cash and stock deal valued at $35.00 per share. The price also includes Resolute's long-term debt of $710 million.
Cimarex has entered into a deal to acquire Resolute Energy for $1.6 billion via a cash and stock deal valued at $35.00 per share. The price also includes Resolute's long-term debt of $710 million.
REGIONS:
Delaware Basin
Date: 8/31/2018
Type: Acquisition
BUYERS:
Callon Petroleum Company
SELLERS:
Cimarex Energy Co.
DETAILS:
COST: 570 $MM
VOLUMES: 6.82 MBOE/d
ACRES: 28657 Acres
NOTES:
The land contains production of 6.82 Mboe/d (73% oil), an inventory of 212 identified horizontal drilling locations across three horizons and potential locations across the Second Bone Spring and Wolfcamp C.
The land contains production of 6.82 Mboe/d (73% oil), an inventory of 212 identified horizontal drilling locations across three horizons and potential locations across the Second Bone Spring and Wolfcamp C.
REGIONS:
Delaware Basin
Midland Basin
News & Press Releases
Criterion News
- 10/4/2021 - Coterra Energy Formed... (subscriber access)
- 9/30/2021 - Cabot & Cimarex... (subscriber access)
- 5/24/2021 - Cabot & Cimarex Merger... (subscriber access)
- 5/24/2021 - Cabot & Cimarex Merging... (subscriber access)
- 5/18/2021 - BCE-Mach III Acquiring... (subscriber access)
- 5/6/2021 - Cimarex Energy Releasing... (subscriber access)
- 5/6/2021 - Cimarex Energy Running... (subscriber access)
- 5/6/2021 - Cimarex Energy Reports... (subscriber access)
- 5/6/2021 - Cimarex Energy Affirms... (subscriber access)
- 5/6/2021 - Cimarex Energy Announces... (subscriber access)
- 5/6/2021 - Cimarex Energy Reports... (subscriber access)
- 2/25/2021 - Cimarex Reports Final... (subscriber access)
- 2/25/2021 - Cimarex Reports 4Q20... (subscriber access)
- 2/25/2021 - Cimarex Sets 2021 CapEx... (subscriber access)
- 11/17/2020 - Kimmeridge Energy... (subscriber access)
- 10/14/2020 - Blackbuck Resources... (subscriber access)
- 8/19/2020 - Cimarex Expecting... (subscriber access)
- 8/19/2020 - Cimarex Issued Updated... (subscriber access)
- 8/19/2020 - Cimarex Reports... (subscriber access)
- 4/16/2020 - Cimarex Energy... (subscriber access)
- 4/16/2020 - Cimarex Energy Cuts 2020... (subscriber access)
- 3/18/2020 - Cimarex Reducing 2020... (subscriber access)
- 2/20/2020 - Cimarex Issues 2020... (subscriber access)
- 2/20/2020 - Cimarex Issues 2020... (subscriber access)
- 11/6/2019 - Cimarex Energy Issues... (subscriber access)
- 11/6/2019 - Cimarex Energy Reports... (subscriber access)
- 11/6/2019 - Cimarex Energy Issues... (subscriber access)
- 11/6/2019 - Cimarex Energy Issues... (subscriber access)
- 11/6/2019 - Cimarex Energy Issues... (subscriber access)
- 11/6/2019 - Cimarex Energy Reports... (subscriber access)
Press Releases
- Generated Net Cash Provided by Operating Activities of $259 million
- Generated $139 million of free cash flow after dividend (Non-GAAP)
- Invested $83 million in the quarter
- Oil production averaged 71,600 barrels per day
- Generated Cash from Operating Activities of $145 million in the quarter
- Invested $84 million in the second quarter
- $26 million in free cash flow after dividend
- Oil production averaged 78,000 barrels per day
- Q1 Oil production averaged 89.8 MBbls/d
- Invested $274 million in the first quarter
- First register at http://www.allianceproxy.com/Cimarex/2020 by 11:59 p.m. (EDT) on May 5, 2020. You will need to enter your name, phone number, control number (included on your proxy card) and email address as part of the registration, following which, you will receive an email confirming your registration, as well as the password to attend the Annual Meeting.
- On the day of the Annual Meeting, if you have properly registered, you may enter the Annual Meeting by logging in using the password you received via email in your registration confirmation at http://www.viewproxy.com/Cimarex/2020/vm/ (you will need the control number included on your proxy card).
- If you wish to vote your shares electronically at the Annual Meeting, you will need to visit http://www.AALvote.com/XEC during the Annual Meeting while the polls are open (you will need the control number included on your proxy card).
- Register at http://www.allianceproxy.com/Cimarex/2020 by 11:59 p.m. (EDT) on May 5, 2020.
- On the day of the Annual Meeting, if you have properly registered, you may enter the Annual Meeting by logging in using the password you received via email in your registration confirmation at http://www.viewproxy.com/Cimarex/2020/vm/ (you will need the virtual control number assigned to you in your registration confirmation email).
- If you wish to vote your shares electronically at the Annual Meeting, you will need to visit http://www.aalvote.com/XEC during the Annual Meeting while the polls are open (you will need the virtual control number assigned to you in your registration confirmation email).
- Total capital investment estimated to be $1.25 - 1.35 billion
- Includes drilling and completion capital of $0.95 - 1.05 billion
- Generates nine percent oil growth at the midpoint
- Free cash flow positive in 2020 assuming $50/bbl WTI* and $2.25/Mcf NYMEX*
*Equates to realized prices of $48.00/bbl of oil and $.65/Mcf of gas ($.05/Mcf for Permian gas) using current strip pricing - Oil production averaged 89.7 MBbls/d; up 8% sequentially
- 2019 Exploration & Development capital guidance range lowered to $1.3 - 1.4 billion
- Reduced per unit production expense 12% year-over-year
- Daily production averaged 274.8 MBOE; oil production averaged 83,430 barrels per day
- 3Q oil production expected to be 85.0- 91.0 MBO/d; up 5.5 percent sequentially
- 2019 oil production expected to grow 23-29 percent; led by the Permian region
- 2019 capital guidance unchanged
- Resolute acquisition closed
- Daily production averaged 258.9 MBOE; oil production averaged 79,415 barrels per day
- 2Q oil production expected to be up 4% sequentially at the midpoint of guidance
- Oil production expected to grow 18-30% year over year
- 2019 capital guidance unchanged
- Exploration & development capital investment estimated at $1.35 - 1.45 billion
- Includes drilling and completion capital of $1.1-1.2 billion
- Generates year-over-year production growth of 13-22%
- Led by oil growth of 15-30%
- Cash flow neutral at $50 oil; $52.50 including dividend
- 4Q daily production above guidance averaging 251.3 MBOE; 79,904 barrels of oil
- Daily production for the full year averaged 221.9 MBOE; 67,699 barrels of oil
- 2018 E&D expenditures below guidance at $1.57 billion
- Cimarex sold assets in Ward County, Texas, and reinvested in assets in Reeves County, Texas through the pending acquisition of Resolute Energy Corporation (expected to close March 1)
- Acquisition Consistent with Disciplined Investment and Capital Allocation Strategy: Cimarex utilized its disciplined returns-driven approach in this transaction, employing its strong balance sheet to acquire assets with attractive returns that are competitive with those in Cimarex's existing high-return portfolio.
- Operational Excellence Results in Productivity Gains: Through the application of sound, idea-driven science, Cimarex has shown significant well productivity gains in this area. Cimarex expects to apply these learnings to the acquired properties in the future.
- Increases Scale of Key Delaware Basin Asset: Net acres in Reeves County, Texas, increase 34% with the addition of 21,100 acres. Pro forma Q3 2018 production was over 253 MBOE/d (79,647 bo/d).
- Financially Accretive: Accretive to 2019 key per-share metrics including: earnings and non-GAAP cash flow.
- Non-GAAP Cash Flow, Non-GAAP Cash Flow Per Share (CFPS) and Free Cash Flow – Non-GAAP Cash Flow (or Cash Flow) is defined as cash from (used in) operating activities excluding net change in other assets and liabilities and working capital. Non-GAAP CFPS is Non-GAAP Cash Flow divided by the weighted average number of common shares outstanding. Free Cash Flow is Non-GAAP Cash Flow in excess of capital expenditures, excluding net acquisitions and divestitures. Management believes these measures are useful to the company and its investors as a measure of operating and financial performance across periods and against other companies in the industry and are an indication of the company's ability to generate cash to finance capital programs, to service debt and to meet other financial obligations. These measures may be used, along with other measures, in the calculation of certain performance targets for the company's management and employees.
- Daily production averaged 218.6 MBOE; oil production averaged 63,909 barrels per day
- 2018 capital guidance unchanged; targeting mid point
- Fourth quarter oil production expected to average 73.0 - 78.0 MBbls per day
- Daily production averaged 211.4 MBOE; oil production up seven percent year-over-year
- 2018 capital guidance unchanged
- Oil production expected to grow 20-25 percent year-over-year
- Ward County asset sale expected to close August 31, 2018
- Daily production averaged 206.1 MBOE; oil production up 25% Y-O-Y
- Sales Agreements in place for bulk of Permian gas production
- Robust Avalon well results in Lea County
- Full-year 2018 production and capital guidance unchanged
- Exploration and development capital investment estimated at $1.6- 1.7 billion
- Capital within available cash at current commodity prices
- Includes drilling and completion capital of $1.3-1.4 billion
- Expects year-over-year production growth of 11-16%
- Led by oil growth of 21-26%
- Total company production averaged 1,204 MMcfe (201 MBOE) per day in the fourth quarter
- Oil production up 36 percent year-over-year
- Proved Reserves increased 16% to 3.4 Tcfe (559 MMBOE); Cimarex replaced 211% of 2017 production
- Second Quarter Production up 9% sequentially; Oil Production up 11% sequentially
- Successful Wolfcamp Downspacing test in the Delaware Basin
- 16 wells per section in Reeves County Upper Wolfcamp
- E&D Capital unchanged for 2017; Production guidance raised slightly
- Third quarter production of 947 MMcfe/day, slightly below company's guidance
- Full-year 2016 production estimate lowered to 960-970 MMcfe/day due to well completion timing and the duration of larger than anticipated completions
- 2017 production estimated to be 1,050 – 1,100 MMcfe/day; up 11 percent year-over-year at the mid-point
- Initial estimate of 2017 drilling and completion capital is $600 million; in line with 2016 levels
- Eight operated rigs currently working in core areas; nine planned by year-end
Cimarex Schedules Fourth Quarter 2020 Earnings Release and Conference Call
Source: PR Newswire
Orignial Article: https://contentapi.cision...
DENVER, Jan. 20, 2021 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced it plans to report fourth quarter 2020 financial results on Monday, February 22, 2021, after market close. The company will host its quarterly conference call at 11:00 AM ET on Tuesday, February 23, 2021.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
FOR FURTHER INFORMATION CONTACT
Cimarex Energy Co.
Karen Acierno
303-285-4957
www.cimarex.com
View original content:http://www.prnewswire.com/news-releases/cimarex-schedules-fourth-quarter-2020-earnings-release-and-conference-call-301211797.html
SOURCE Cimarex Energy Co.
Article Date
1/20/2021Cimarex Energy Approves Dividend on Preferred Stock
Source: PR Newswire
DENVER, Dec. 4, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that its Board of Directors approved a cash dividend of $20.3125 per share on its 8⅛ percent Series A Cumulative Perpetual Convertible Preferred Stock. The dividend is payable on January 15, 2021, to holders of record at the close of business on January 1, 2021, and is for the period beginning on October 16, 2020 and ending on January 15, 2021.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-approves-dividend-on-preferred-stock-301186691.html
SOURCE Cimarex Energy Co.
Article Date
12/4/202012/4/2020 - Cimarex Energy Declares Quarterly Cash Dividend
Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
DENVER, Dec. 4, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.22 per share. The dividend is payable on March 1, 2021, to stockholders of record on February 16, 2021.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-declares-quarterly-cash-dividend-301186481.html
SOURCE Cimarex Energy Co.
Article Date
12/4/202011/4/2020 - Cimarex Reports Third Quarter 2020 Results
Cimarex Reports Third Quarter 2020 Results
Source: PR Newswire
DENVER, Nov. 4, 2020 /PRNewswire/ --
Cimarex Energy Co. (NYSE: XEC) today reported a third quarter 2020 net loss of $292.7 million, or $2.94 per share, compared to net income of $123.8 million, or $1.21 per share, in the same period a year ago. Third quarter results were negatively impacted by non-cash charges related to the impairment of oil and gas properties. Third quarter adjusted net income (non-GAAP) was $52.4 million, or $0.51 per share, compared to third quarter 2019 adjusted net income (non-GAAP) of $96.0 million, or $0.94 per share1. Net cash provided by operating activities was $259.2 million in the third quarter of 2020 compared to $320.1 million in the same period a year ago. Adjusted cash flow from operations (non-GAAP) was $236.7 million in the third quarter of 2020 compared to $360.7 million in the third quarter a year ago1.
Oil production averaged 71.6 thousand barrels (MBbls) per day. Total company production volumes for the quarter averaged 249.4 thousand barrels of oil equivalent (MBOE) per day.
Realized oil prices averaged $37.94 per barrel, up 94 percent from $19.57 in the previous quarter but down 28 percent from the $52.71 per barrel received in the third quarter of 2019. Realized natural gas prices averaged $1.14 per thousand cubic feet (Mcf), up 25 percent sequentially from $0.91 per Mcf and up 30 percent from the third quarter 2019 average of $0.88 per Mcf. NGL prices averaged $10.89 per barrel, up 45 percent from $7.52 per barrel in the second quarter of 2020 and up one percent from the $10.80 barrel received in the third quarter of 2019.
Cimarex's realized oil price was a negative differential to WTI of $2.99 per barrel in the quarter down from $8.28 per barrel in the previous quarter, with a negative oil price differential in the Permian of $2.71 per barrel in the third quarter, down sequentially from $8.12 per barrel. The company realized a negative differential to Henry Hub on its Permian natural gas production of $1.15 per Mcf in the third quarter of 2020 compared to $1.83 per Mcf in the third quarter of 2019 and $1.09 in the second quarter of 2020. In the Mid-Continent region, the company's average negative differential to Henry Hub was $0.31 per Mcf versus $0.66 per Mcf in the third quarter of 2019 and $0.31 per Mcf in the second quarter of 2020.
Cimarex invested a total of $83 million during the quarter, of which $52 million was attributable to drilling and completion activities and $3 million to saltwater disposal assets. Third quarter investments were funded with cash flow from operating activities. Total debt at September 30, 2020 consisted of $2.0 billion of long-term notes, with no debt maturities until 2024. Cimarex had no borrowings under its revolving credit facility and a cash balance of $273 million at quarter end.
The company has reduced staff by 20 percent year to date through a combination of an Early Retirement Program (ERIP), further staff reductions completed in the third quarter, and attrition. Cimarex has incurred $31 million in severance expenses year to date, of which $15 million was expensed in the third quarter. Cost savings are expected to total $40-50 million annually, beginning in 2021.
Outlook
Improved oil prices in the third quarter allowed Cimarex to resume activity. We are currently running four drilling rigs in the Permian basin and have had two completion crews working since September 1. Cimarex continues to expect capital investment for the year to total approximately $600 million, as stated in guidance given in August.
Fourth quarter 2020 production volumes are expected to average 215 - 235 MBOE per day, with oil volumes estimated to average 62.5 - 68.5 MBbls per day. Total 2020 daily production volumes are expected to average 250 - 255 MBOE per day, with annual oil volumes estimated to average 75.5 - 77.5 MBbls per day.
Expenses per BOE of production for 2020 are estimated to be:
Production expense | $2.90 - $3.10 | |
Transportation, processing and other expense | 2.10 - 2.40 | |
DD&A and ARO accretion | 7.50 - 8.00 | |
General and administrative expense | 1.00 - 1.10 | |
Taxes other than income (% of oil and gas revenue) | 5.0% - 7.0% |
Operations Update
Cimarex invested $83 million during the third quarter, with 95 percent invested in the Permian Basin and 5 percent in the Mid-Continent. Cimarex brought 11 gross (1.4 net) wells on production during the quarter. At September 30, 74 gross (39.0 net) wells were waiting on completion.
WELLS BROUGHT ON PRODUCTION BY REGION | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Gross wells | ||||||||||||
Permian Basin | 7 | 44 | 59 | 100 | ||||||||
Mid-Continent | 4 | 52 | 43 | 144 | ||||||||
11 | 96 | 102 | 244 | |||||||||
Net wells | ||||||||||||
Permian Basin | 1.4 | 16.1 | 32.3 | 53.0 | ||||||||
Mid-Continent | nil | 5.4 | 1.7 | 16.1 | ||||||||
1.4 | 21.5 | 34.0 | 69.1 | |||||||||
Permian Region
Production from the Permian region averaged 180.3 MBOE per day in the third quarter, a nine percent decrease from third quarter 2019. Oil volumes averaged 62.9 MBbls per day, a 16 percent decrease from third quarter 2019 and down nine percent sequentially.
Cimarex brought 7 gross (1.4 net) wells on production in the Permian region during the third quarter. There were 51 gross (38.7 net) wells waiting on completion at September 30. Cimarex currently is operating four drilling rigs and two completion crews in the region.
Mid-Continent Region
Production from the Mid-Continent averaged 68.8 MBOE per day for the third quarter, down 22 percent from third quarter 2019 and in line with the previous quarter.
During the third quarter, 4 gross (nil net) wells were brought on production in the Mid-Continent region. At the end of the quarter, 23 gross (0.3 net) wells were waiting on completion. Cimarex currently is not operating drilling rigs or completion crews in the Mid-Continent.
Cimarex's average daily production and commodity price by region is summarized below:
DAILY PRODUCTION BY REGION | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Permian Basin | ||||||||||||
Gas (MMcf) | 380.2 | 422.9 | 415.6 | 381.2 | ||||||||
Oil (Bbls) | 62,930 | 74,819 | 70,415 | 70,188 | ||||||||
NGL (Bbls) | 53,971 | 53,311 | 50,079 | 51,492 | ||||||||
Total Equivalent (MBOE) | 180.3 | 198.6 | 189.8 | 185.2 | ||||||||
Mid-Continent | ||||||||||||
Gas (MMcf) | 222.3 | 293.7 | 234.5 | 292.1 | ||||||||
Oil (Bbls) | 8,523 | 14,788 | 9,173 | 13,880 | ||||||||
NGL (Bbls) | 23,249 | 24,338 | 21,814 | 25,480 | ||||||||
Total Equivalent (MBOE) | 68.8 | 88.1 | 70.1 | 88.0 | ||||||||
Total Company | ||||||||||||
Gas (MMcf) | 603.4 | 718.0 | 651.0 | 674.6 | ||||||||
Oil (Bbls) | 71,571 | 89,731 | 79,743 | 84,230 | ||||||||
NGL (Bbls) | 77,294 | 77,693 | 71,951 | 77,021 | ||||||||
Total Equivalent (MBOE) | 249.4 | 287.1 | 260.2 | 273.7 | ||||||||
AVERAGE REALIZED PRICE BY REGION | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Permian Basin | ||||||||||||
Gas ($ per Mcf) | 0.83 | 0.40 | 0.50 | 0.36 | ||||||||
Oil ($ per Bbl) | 38.22 | 52.69 | 34.46 | 51.70 | ||||||||
NGL ($ per Bbl) | 10.17 | 9.94 | 8.68 | 12.40 | ||||||||
Mid-Continent | ||||||||||||
Gas ($ per Mcf) | 1.67 | 1.57 | 1.48 | 2.01 | ||||||||
Oil ($ per Bbl) | 35.87 | 52.73 | 33.09 | 53.55 | ||||||||
NGL ($ per Bbl) | 12.59 | 12.69 | 11.38 | 15.28 | ||||||||
Total Company | ||||||||||||
Gas ($ per Mcf) | 1.14 | 0.88 | 0.85 | 1.08 | ||||||||
Oil ($ per Bbl) | 37.94 | 52.71 | 34.31 | 52.02 | ||||||||
NGL ($ per Bbl) | 10.89 | 10.80 | 9.50 | 13.36 | ||||||||
Other
Cimarex received cash settlements of $10.8 million related to its oil hedges during the quarter. Settlement of gas hedges resulted in cash receipts of $2.8 million .
The following table summarizes the company's current open hedge positions:
4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | |||||||||||||||||||||||
Gas Collars: | PEPL (2) | ||||||||||||||||||||||||||||
Volume (MMBtu/d) | 100,000 | 100,000 | 100,000 | 90,000 | 90,000 | 60,000 | 20,000 | ||||||||||||||||||||||
Wtd Avg Floor | $ | 1.78 | $ | 1.83 | $ | 1.89 | $ | 2.00 | $ | 2.00 | $ | 2.13 | $ | 2.40 | |||||||||||||||
Wtd Avg Ceiling | $ | 2.21 | $ | 2.23 | $ | 2.28 | $ | 2.42 | $ | 2.42 | $ | 2.55 | $ | 2.86 | |||||||||||||||
El Paso Perm (2) | |||||||||||||||||||||||||||||
Volume (MMBtu/d) | 70,000 | 70,000 | 80,000 | 70,000 | 70,000 | 40,000 | 20,000 | ||||||||||||||||||||||
Wtd Avg Floor | $ | 1.36 | $ | 1.50 | $ | 1.62 | $ | 1.86 | $ | 1.86 | $ | 2.13 | $ | 2.40 | |||||||||||||||
Wtd Avg Ceiling | $ | 1.64 | $ | 1.79 | $ | 1.92 | $ | 2.22 | $ | 2.22 | $ | 2.53 | $ | 2.88 | |||||||||||||||
Waha (2) | |||||||||||||||||||||||||||||
Volume (MMBtu/d) | 70,000 | 90,000 | 100,000 | 90,000 | 90,000 | 60,000 | 20,000 | ||||||||||||||||||||||
Wtd Avg Floor | $ | 1.43 | $ | 1.52 | $ | 1.61 | $ | 1.82 | $ | 1.82 | $ | 1.98 | $ | 2.40 | |||||||||||||||
Wtd Avg Ceiling | $ | 1.73 | $ | 1.83 | $ | 1.93 | $ | 2.17 | $ | 2.17 | $ | 2.39 | $ | 2.86 | |||||||||||||||
Oil Collars: | WTI (3) | ||||||||||||||||||||||||||||
Volume (Bbl/d) | 41,000 | 40,000 | 34,000 | 25,000 | 25,000 | 11,000 | 4,000 | ||||||||||||||||||||||
Wtd Avg Floor | $ | 40.91 | $ | 38.06 | $ | 34.62 | $ | 32.44 | $ | 32.44 | $ | 35.91 | $ | 37.50 | |||||||||||||||
Wtd Avg Ceiling | $ | 49.84 | $ | 46.45 | $ | 43.28 | $ | 41.49 | $ | 41.49 | $ | 47.37 | $ | 51.04 | |||||||||||||||
Oil Basis Swaps: | WTI Midland (4) | ||||||||||||||||||||||||||||
Volume (Bbl/d) | 32,000 | 31,000 | 33,000 | 28,000 | 28,000 | 15,000 | 8,000 | ||||||||||||||||||||||
Wtd Avg Differential | $ | 0.18 | $ | 0.03 | $ | (0.02) | $ | (0.20) | $ | (0.20) | $ | 0.19 | $ | 0.25 | |||||||||||||||
Oil Roll Differential Swaps: | WTI (3) | ||||||||||||||||||||||||||||
Volume (Bbl/d) | — | 7,000 | 11,000 | 11,000 | 11,000 | 11,000 | 4,000 | ||||||||||||||||||||||
Wtd Avg Price | $ | — | $ | (0.24) | $ | (0.22) | $ | (0.22) | $ | (0.22) | $ | (0.22) | $ | (0.20) | |||||||||||||||
Conference call and webcast
Cimarex will host a conference call tomorrow, November 5, 2020 at 11:00 a.m. EST (9:00 a.m. MST). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216). A replay will be available on the company's website.
Investor Presentation
For more details on Cimarex's third quarter 2020 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the disclosures under the heading "Outlook" contain projections for certain 2020 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility, including those resulting from demand destruction from the COVID-19 pandemic; disruptions to the availability of workers and contractors due to illness and stay at home orders related to the COVID-19 pandemic; disruptions to gathering, pipeline, refining, transportation and other midstream and downstream activities, including due to the COVID-19 pandemic; disruptions to supply chains and availability of critical equipment and supplies, including as a result of the COVID-19 pandemic; the effectiveness of controls over financial reporting; declines in the values of our oil and gas properties resulting in impairments; impairments of goodwill; higher than expected costs and expenses, including the availability and cost of services and materials, which may be impacted by the COVID-19 pandemic; compliance with environmental and other regulations, including new regulations that may result from a change in federal and state administrations and legislatures; regulatory approvals, including regulatory restrictions on federal lands which may be negatively impacted by a change in administration; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water, which may be negatively impacted by a change in administration; costs and availability of third party facilities for gathering, processing, refining and transportation; risks associated with concentration of operations in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner, which may be negatively impacted by COVID-19 restrictions on regulatory personnel who process and approve those matters and by changes in federal and state administrations and legislatures; development drilling and testing results; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
________________________________________ | |
1 | Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for reconciliations of the related GAAP amounts. |
2 | PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index, El Paso Perm refers to El Paso Permian Basin index, and Waha refers to West Texas (Waha) Index, all as quoted in Platt's Inside FERC. |
3 | WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. |
4 | Index price on basis swaps is WTI NYMEX less the weighted average WTI Midland differential, as quoted by Argus Americas Crude. |
RECONCILIATION OF ADJUSTED NET INCOME | ||||||||||||||||
The following reconciles net (loss) income as reported under generally accepted accounting principles (GAAP) to adjusted net income (non-GAAP) for the periods indicated. | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Net (loss) income | $ | (292,740) | $ | 123,847 | $ | (1,992,169) | $ | 259,472 | ||||||||
Impairment of oil and gas properties (1) | 351,029 | — | 1,625,878 | — | ||||||||||||
Impairment of goodwill | — | — | 714,447 | — | ||||||||||||
Mark-to-market loss (gain) on open derivative positions | 79,281 | (37,039) | 83,281 | 34,831 | ||||||||||||
Loss on early extinguishment of debt | — | — | — | 4,250 | ||||||||||||
Acquisition related costs | — | 13 | — | 8,404 | ||||||||||||
Asset retirement obligation | — | — | 2,800 | — | ||||||||||||
Tax impact (2) | (85,201) | 9,146 | (376,631) | (11,491) | ||||||||||||
Adjusted net income | $ | 52,369 | $ | 95,967 | $ | 57,606 | $ | 295,466 | ||||||||
Diluted (loss) earnings per share | $ | (2.94) | $ | 1.21 | $ | (19.99) | $ | 2.56 | ||||||||
Adjusted diluted earnings per share* | $ | 0.51 | $ | 0.94 | $ | 0.56 | $ | 2.95 | ||||||||
Weighted-average number of shares outstanding: | ||||||||||||||||
Adjusted diluted** | 102,046 | 101,593 | 102,097 | 100,266 | ||||||||||||
______________________________________ | |
(1) | An additional ceiling test impairment is anticipated in the fourth quarter. |
(2) | Because the goodwill impairment is not deductible for tax purposes, the tax impact in the 2020 period is calculated using an effective tax rate determined by excluding goodwill from the effective tax rate calculation. |
Adjusted net income and adjusted diluted earnings per share exclude the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP measures because: | |
a) | Management uses adjusted net income to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies. |
b) | Adjusted net income is more comparable to earnings estimates provided by research analysts. |
* Does not include adjustments resulting from application of the "two-class method" used to determine earnings per share under GAAP. | |
** Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding stock options. | |
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS, FREE CASH FLOW AND FREE CASH FLOW AFTER DIVIDEND
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP), free cash flow (non-GAAP) and free cash flow after dividend (non-GAAP) for the periods indicated.
Three Months Ended | Nine Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in thousands) | |||||||||||||||
Net cash provided by operating activities | $ | 259,193 | $ | 320,074 | $ | 712,690 | $ | 984,157 | |||||||
Change in operating assets and liabilities | (22,529) | 40,655 | (25,077) | 63,996 | |||||||||||
Adjusted cash flow from operations | 236,664 | 360,729 | 687,613 | 1,048,153 | |||||||||||
Oil and gas expenditures | (70,811) | (286,250) | (482,141) | (999,225) | |||||||||||
Other capital expenditures | (1,913) | (18,894) | (39,965) | (59,035) | |||||||||||
Change in capital accruals | (1,343) | (2,787) | 84,943 | 11,866 | |||||||||||
Free cash flow | 162,597 | 52,798 | 250,450 | 1,759 | |||||||||||
Dividends paid | (23,684) | (21,483) | (68,893) | (60,130) | |||||||||||
Free cash flow after dividend | $ | 138,913 | $ | 31,315 | $ | 181,557 | $ | (58,371) | |||||||
Management uses the non-GAAP financial measures of adjusted cash flow from operations, free cash flow and free cash flow after dividend as means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities. Management believes these non-GAAP financial measures provide useful information to investors for the same reason, and that they are also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.
OIL AND GAS CAPITALIZED EXPENDITURES | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in thousands) | |||||||||||||||
Acquisitions: | |||||||||||||||
Proved | $ | — | $ | 2,373 | $ | 7,250 | $ | 696,173 | |||||||
Unproved | — | (30,314) | — | 1,021,468 | |||||||||||
— | (27,941) | 7,250 | 1,717,641 | ||||||||||||
Exploration and development: | |||||||||||||||
Land and seismic | 11,586 | 18,377 | $ | 37,626 | $ | 42,456 | |||||||||
Exploration and development | 68,963 | 278,083 | 375,357 | 947,002 | |||||||||||
80,549 | 296,460 | 412,983 | 989,458 | ||||||||||||
Property sales: | |||||||||||||||
Proved | (67,514) | (9,286) | $ | (67,514) | $ | (27,314) | |||||||||
Unproved | — | (81) | (830) | (9,835) | |||||||||||
(67,514) | (9,367) | (68,344) | (37,149) | ||||||||||||
$ | 13,035 | $ | 259,152 | $ | 351,889 | $ | 2,669,950 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except per share information) | ||||||||||||||||
Revenues: | ||||||||||||||||
Oil sales | $ | 249,826 | $ | 435,094 | $ | 749,623 | $ | 1,196,166 | ||||||||
Gas and NGL sales | 140,761 | 135,483 | 339,503 | 479,442 | ||||||||||||
Gas gathering and other | 11,072 | 11,728 | 34,746 | 30,117 | ||||||||||||
401,659 | 582,305 | 1,123,872 | 1,705,725 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Impairment of oil and gas properties | 351,029 | — | 1,625,878 | — | ||||||||||||
Depreciation, depletion, amortization, and accretion | 159,626 | 230,172 | 576,051 | 638,122 | ||||||||||||
Impairment of goodwill | — | — | 714,447 | — | ||||||||||||
Production | 62,025 | 89,820 | 213,598 | 257,219 | ||||||||||||
Transportation, processing, and other operating | 53,130 | 59,797 | 161,334 | 173,479 | ||||||||||||
Gas gathering and other | 4,649 | 5,273 | 16,473 | 17,015 | ||||||||||||
Taxes other than income | 22,822 | 30,873 | 70,269 | 105,600 | ||||||||||||
General and administrative | 28,598 | 15,499 | 80,333 | 69,494 | ||||||||||||
Stock compensation | 9,738 | 6,797 | 22,879 | 20,004 | ||||||||||||
Loss (gain) on derivative instruments, net | 65,607 | (38,735) | (37,448) | 35,949 | ||||||||||||
Other operating expense, net | 167 | 10,141 | 548 | 19,057 | ||||||||||||
757,391 | 409,637 | 3,444,362 | 1,335,939 | |||||||||||||
Operating (loss) income | (355,732) | 172,668 | (2,320,490) | 369,786 | ||||||||||||
Other (income) and expense: | ||||||||||||||||
Interest expense | 23,361 | 24,586 | 69,589 | 69,665 | ||||||||||||
Capitalized interest | (12,286) | (16,264) | (38,407) | (41,811) | ||||||||||||
Loss on early extinguishment of debt | — | — | — | 4,250 | ||||||||||||
Other, net | (1,572) | (140) | 1,053 | (4,548) | ||||||||||||
(Loss) income before income tax | (365,235) | 164,486 | (2,352,725) | 342,230 | ||||||||||||
Income tax (benefit) expense | (72,495) | 40,639 | (360,556) | 82,758 | ||||||||||||
Net (loss) income | $ | (292,740) | $ | 123,847 | $ | (1,992,169) | $ | 259,472 | ||||||||
Earnings (loss) per share to common stockholders: | ||||||||||||||||
Basic | $ | (2.94) | $ | 1.21 | $ | (19.99) | $ | 2.56 | ||||||||
Diluted | $ | (2.94) | $ | 1.21 | $ | (19.99) | $ | 2.56 | ||||||||
Dividends declared per common share | $ | 0.22 | $ | 0.20 | $ | 0.66 | $ | 0.60 | ||||||||
Weighted-average number of shares outstanding: | ||||||||||||||||
Basic | 100,013 | 99,735 | 99,912 | 98,452 | ||||||||||||
Diluted | 100,013 | 99,735 | 99,912 | 98,458 | ||||||||||||
Comprehensive (loss) income: | ||||||||||||||||
Net (loss) income | $ | (292,740) | $ | 123,847 | $ | (1,992,169) | $ | 259,472 | ||||||||
Other comprehensive income: | ||||||||||||||||
Change in fair value of investments, net of tax of $0, ($648), $0 and ($220), respectively | — | (2,198) | — | (745) | ||||||||||||
Total comprehensive (loss) income | $ | (292,740) | $ | 121,649 | $ | (1,992,169) | $ | 258,727 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net (loss) income | $ | (292,740) | $ | 123,847 | $ | (1,992,169) | $ | 259,472 | ||||||||
Adjustments to reconcile net (loss) income to net cash | ||||||||||||||||
provided by operating activities: | ||||||||||||||||
Impairment of oil and gas properties | 351,029 | — | 1,625,878 | — | ||||||||||||
Depreciation, depletion, amortization, and accretion | 159,626 | 230,172 | 576,051 | 638,122 | ||||||||||||
Impairment of goodwill | — | — | 714,447 | — | ||||||||||||
Deferred income taxes | (72,495) | 40,639 | (360,395) | 82,758 | ||||||||||||
Stock compensation | 9,738 | 6,797 | 22,879 | 20,004 | ||||||||||||
Loss (gain) on derivative instruments, net | 65,607 | (38,735) | (37,448) | 35,949 | ||||||||||||
Settlements on derivative instruments | 13,674 | 1,696 | 120,729 | (1,118) | ||||||||||||
Loss on early extinguishment of debt | — | — | — | 4,250 | ||||||||||||
Amortization of debt issuance costs and discounts | 886 | 783 | 2,488 | 2,285 | ||||||||||||
Changes in non-current assets and liabilities | (949) | (5,379) | 6,070 | (2,630) | ||||||||||||
Other, net | 2,288 | 909 | 9,083 | 9,061 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | (24,662) | (37,509) | 179,953 | 80,183 | ||||||||||||
Other current assets | 5,193 | 2,901 | 6,688 | 2,140 | ||||||||||||
Accounts payable and other current liabilities | 41,998 | (6,047) | (161,564) | (146,319) | ||||||||||||
Net cash provided by operating activities | 259,193 | 320,074 | 712,690 | 984,157 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Acquisition of oil and gas properties | — | (2,373) | (7,250) | (285,596) | ||||||||||||
Oil and gas capital expenditures | (70,811) | (286,250) | (482,141) | (999,225) | ||||||||||||
Other capital expenditures | (1,913) | (18,894) | (39,965) | (59,035) | ||||||||||||
Sales of oil and gas assets | 69,006 | 15,314 | 69,836 | 28,547 | ||||||||||||
Sales of other assets | 704 | 425 | 1,892 | 859 | ||||||||||||
Net cash used by investing activities | (3,014) | (291,778) | (457,628) | (1,314,450) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Borrowings of long-term debt | 11,000 | 529,000 | 172,000 | 2,239,310 | ||||||||||||
Repayments of long-term debt | (11,000) | (529,000) | (172,000) | (2,610,000) | ||||||||||||
Financing, underwriting, and debt redemption fees | (9) | (7) | (1,566) | (11,798) | ||||||||||||
Finance lease payments | (1,055) | (1,176) | (3,863) | (2,731) | ||||||||||||
Dividends paid | (23,684) | (21,483) | (68,893) | (60,130) | ||||||||||||
Employee withholding taxes paid upon the net settlement of | (2,316) | (1,752) | (2,505) | (2,406) | ||||||||||||
Proceeds from exercise of stock options | — | 593 | — | 1,267 | ||||||||||||
Net cash used by financing activities | (27,064) | (23,825) | (76,827) | (446,488) | ||||||||||||
Net change in cash and cash equivalents | 229,115 | 4,471 | 178,235 | (776,781) | ||||||||||||
Cash and cash equivalents at beginning of period | 43,842 | 19,414 | 94,722 | 800,666 | ||||||||||||
Cash and cash equivalents at end of period | $ | 272,957 | $ | 23,885 | $ | 272,957 | $ | 23,885 | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
September 30, | December 31, | |||||||
Assets | (in thousands, except share and | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 272,957 | $ | 94,722 | ||||
Accounts receivable, net of allowance | 269,440 | 448,584 | ||||||
Oil and gas well equipment and supplies | 45,959 | 47,893 | ||||||
Derivative instruments | 39,402 | 17,944 | ||||||
Other current assets | 6,271 | 12,343 | ||||||
Total current assets | 634,029 | 621,486 | ||||||
Oil and gas properties at cost, using the full cost method of accounting: | ||||||||
Proved properties | 21,076,796 | 20,678,334 | ||||||
Unproved properties and properties under development, not being amortized | 1,208,733 | 1,255,908 | ||||||
22,285,529 | 21,934,242 | |||||||
Less – accumulated depreciation, depletion, amortization, and impairment | (18,862,339) | (16,723,544) | ||||||
Net oil and gas properties | 3,423,190 | 5,210,698 | ||||||
Fixed assets, net of accumulated depreciation of $439,968 and $389,458, respectively | 457,010 | 519,291 | ||||||
Goodwill | — | 716,865 | ||||||
Derivative instruments | 952 | 580 | ||||||
Deferred income taxes | 21,971 | — | ||||||
Other assets | 68,818 | 71,109 | ||||||
$ | 4,605,970 | $ | 7,140,029 | |||||
Liabilities, Redeemable Preferred Stock, and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 34,635 | $ | 49,020 | ||||
Accrued liabilities | 280,861 | 418,978 | ||||||
Derivative instruments | 96,763 | 16,681 | ||||||
Revenue payable | 123,705 | 207,939 | ||||||
Operating leases | 59,989 | 66,003 | ||||||
Total current liabilities | 595,953 | 758,621 | ||||||
Long-term debt principal | 2,000,000 | 2,000,000 | ||||||
Less—unamortized debt issuance costs and discounts | (13,215) | (14,754) | ||||||
Long-term debt, net | 1,986,785 | 1,985,246 | ||||||
Deferred income taxes | — | 338,424 | ||||||
Derivative instruments | 26,048 | 1,018 | ||||||
Operating leases | 144,755 | 184,172 | ||||||
Other liabilities | 227,007 | 214,787 | ||||||
Total liabilities | 2,980,548 | 3,482,268 | ||||||
Redeemable preferred stock - 8.125% Series A Cumulative Perpetual Convertible | 81,620 | 81,620 | ||||||
Stockholders' equity: | ||||||||
Common stock, 0.01 par value, 200,000,000 shares authorized, 101,970,811 and | 1,020 | 1,021 | ||||||
Additional paid-in capital | 3,226,828 | 3,243,325 | ||||||
(Accumulated deficit) retained earnings | (1,684,046) | 331,795 | ||||||
Total stockholders' equity | 1,543,802 | 3,576,141 | ||||||
$ | 4,605,970 | $ | 7,140,029 | |||||
View original content:http://www.prnewswire.com/news-releases/cimarex-reports-third-quarter-2020-results-301166618.html
SOURCE Cimarex Energy Co.
Article Date
11/4/2020Cimarex Schedules Third Quarter 2020 Earnings Release and Conference Call
Source: PR Newswire
DENVER, Oct. 5, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced it plans to report third quarter 2020 financial results on Wednesday, November 4, 2020, after market close. The company will host its quarterly conference call at 11:00 AM ET on Thursday, November 5, 2020.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-schedules-third-quarter-2020-earnings-release-and-conference-call-301145860.html
SOURCE Cimarex Energy Co.
Article Date
10/5/2020Cimarex Energy Approves Dividend on Preferred Stock
Source: PR Newswire
DENVER, Sept. 9, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that its Board of Directors approved a cash dividend of $20.3125 per share on its 8⅛ percent Series A Cumulative Perpetual Convertible Preferred Stock. The dividend is payable on October 15, 2020, to holders of record at the close of business on October 1, 2020, and is for the period beginning on July 16, 2020 and ending on October 15, 2020.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-approves-dividend-on-preferred-stock-301126772.html
SOURCE Cimarex Energy Co.
Article Date
9/9/20208/28/2020 - Cimarex Energy Declares Quarterly Cash Dividend
Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
DENVER, Aug. 28, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.22 per share. The dividend is payable on December 1, 2020, to stockholders of record on November 13, 2020.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-declares-quarterly-cash-dividend-301120087.html
SOURCE Cimarex Energy Co.
Article Date
8/28/20208/5/2020 - Cimarex Reports Second Quarter 2020 Results
Cimarex Reports Second Quarter 2020 Results
Source: PR Newswire
DENVER, Aug. 5, 2020 /PRNewswire/ --
Cimarex Energy Co. (NYSE: XEC) today reported a second quarter 2020 net loss of $925.1 million, or $9.28 per share, compared to net income of $109.3 million, or $1.07 per share, in the same period a year ago. Second quarter results were negatively impacted by non-cash charges related to the impairment of oil and gas properties. Second quarter adjusted net income (non-GAAP) was $(52.4) million, or $(0.51) per share, compared to second quarter 2019 adjusted net income (non-GAAP) of $83.0 million, or $0.82 per share1. Net cash provided by operating activities was $144.7 million in the second quarter of 2020 compared to $414.0 million in the same period a year ago. Adjusted cash flow from operations (non-GAAP) was $144.5 million in the second quarter of 2020 compared to $336.4 million in the second quarter a year ago1.
Oil production averaged 78.0 thousand barrels (MBbls) per day. Total company production volumes for the quarter averaged 254.7 thousand barrels of oil equivalent (MBOE) per day. Second quarter production volumes were impacted by the operational slow down announced in March and a 20 percent temporary curtailment of May production related to the extreme fluctuation in oil prices caused by the COVID-19 pandemic and the actions of OPEC and other countries during the quarter.
Realized oil prices averaged $19.57 per barrel, down 64 percent from the $54.24 per barrel received in the second quarter of 2019. Realized natural gas prices averaged $0.91 per thousand cubic feet (Mcf), up 82 percent from the second quarter 2019 average of $0.50 per Mcf. NGL prices averaged $7.52 per barrel, down 43 percent from the $13.08 barrel received in the second quarter of 2019.
Cimarex's realized oil price was impacted by a negative differential to WTI of $8.28 per barrel in the quarter from $1.99 per barrel in the previous quarter, with a negative oil price differential in the Permian of $8.12 per barrel in the second quarter, $2.00 per barrel sequentially. Our realized local natural gas price differentials improved in both regions. The company realized a negative differential to Henry Hub on its Permian natural gas production of $1.09 per Mcf in the second quarter of 2020 compared to $3.10 per Mcf in the second quarter of 2019 and $1.85 in the first quarter of 2020. In the Mid-Continent region, the company's average negative differential to Henry Hub was $0.31 per Mcf versus $0.86 per Mcf in the second quarter of 2019 and $0.57 in the first quarter of 2020.
Cimarex invested a total of $84 million during the second quarter, of which $49 million was attributable to drilling and completion activities. Second quarter investments were funded with cash flow from operating activities. Total debt at June 30, 2020 consisted of $2.0 billion of long-term notes, with no debt maturities until 2024. Cimarex had no borrowings under its revolving credit facility and a cash balance of $44 million at quarter end.
Outlook
Cimarex Chairman and CEO, Tom Jorden, said, "The second quarter required drastic and prudent action. Our response to the challenging price environment included a significant decrease in activity and curtailing May production volumes. With improved oil prices we have elected to resume activity. We are bringing three additional drilling rigs back to work in the third quarter and will begin completing wells again in September with two completion crews on the schedule. As a result, we expect capital investment for the year to total approximately $600 million, in line with expectations of an operational restart from our previous guidance range." The table below shows a breakdown of the projected capital by category:
Capital Investment ($MM) | Updated 2020E Guidance | ||
Drilling and Completion (D&C) | ~ $430 | ||
Midstream/Saltwater Disposal (SWD) | ~ 40 | ||
Other* | ~ 130 | ||
Total Capital Investment | ~ $600 | ||
*Capitalized overhead, production, NPL, and technology | |||
Cimarex is also giving production and expense guidance for the remainder of 2020. Third quarter 2020 production volumes are expected to average 230 - 250 MBOE per day, with oil volumes estimated to average 69.0 - 74.0 MBbls per day. Total 2020 daily production volumes are expected to average 240 - 250 MBOE per day, with annual oil volumes estimated to average 75.0 - 78.0 MBbls per day.
Expenses per BOE of production for 2020 are estimated to be:
Production expense | $2.90 - $3.30 | |
Transportation, processing and other expense | 2.10 - 2.40 | |
DD&A and ARO accretion | 7.40 - 7.90 | |
General and administrative expense | 0.95 - 1.15 | |
Taxes other than income (% of oil and gas revenue) | 6.0% - 8.0% |
Mr. Jorden continued, "This activity puts us in a strong position as we enter 2021. We see Cimarex in a position to generate more than enough free cash flow to fund our dividend in 2021 at $35 WTI, a testament to increasing efficiencies. Any excess free cash flow would be used to fund dividend increases and grow cash on the balance sheet to retire debt."
"The health and safety of our employees remains top of mind. Cimarex has taken a number of steps to protect employees in the wake of the COVID-19 pandemic including the implementation of a staggered office schedule and the adoption of COVID-19 protocols for field staff and employees working in the office."
Operations Update
Cimarex invested $84 million during the second quarter, with 88 percent invested in the Permian Basin and 12 percent in the Mid-Continent. Cimarex brought 37 gross (12.5 net) wells on production during the quarter. At June 30, 73 gross (31.1 net) wells were waiting on completion.
WELLS BROUGHT ON PRODUCTION BY REGION | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Gross wells | ||||||||||||
Permian Basin | 17 | 44 | 52 | 56 | ||||||||
Mid-Continent | 20 | 66 | 39 | 92 | ||||||||
37 | 110 | 91 | 148 | |||||||||
Net wells | ||||||||||||
Permian Basin | 11.1 | 31.9 | 30.9 | 36.9 | ||||||||
Mid-Continent | 1.4 | 7.8 | 1.7 | 10.7 | ||||||||
12.5 | 39.7 | 32.6 | 47.6 | |||||||||
Permian Region
Production from the Permian region averaged 185.7 MBOE per day in the second quarter, a two percent decrease from second quarter 2019. Oil volumes averaged 68.8 MBbls per day, a three percent decrease from second quarter 2019 and down 14 percent sequentially.
Cimarex brought 17 gross (11.1 net) wells on production in the Permian region during the second quarter. There were 47 gross (31.1 net) wells waiting on completion at June 30. Cimarex is currently operating three drilling rigs but no completion crews in the region.
Mid-Continent Region
Production from the Mid-Continent averaged 68.7 MBOE per day for the second quarter, down 20 percent from second quarter 2019 and down 6 percent sequentially.
During the second quarter, 20 gross (1.4 net) wells were brought on production in the Mid-Continent region. At the end of the quarter, 26 gross (<1 net) wells were waiting on completion. Cimarex is not currently operating drilling rigs or completion crews in the Mid-Continent.
Cimarex's average daily production and commodity price by region is summarized below:
DAILY PRODUCTION BY REGION | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Permian Basin | ||||||||||||
Gas (MMcf) | 417.8 | 379.3 | 433.4 | 360.1 | ||||||||
Oil (Bbls) | 68,791 | 70,669 | 74,198 | 67,835 | ||||||||
NGL (Bbls) | 47,291 | 54,813 | 48,111 | 50,567 | ||||||||
Total Equivalent (MBOE) | 185.7 | 188.7 | 194.5 | 178.4 | ||||||||
Mid-Continent | ||||||||||||
Gas (MMcf) | 237.3 | 285.5 | 240.7 | 291.3 | ||||||||
Oil (Bbls) | 9,063 | 12,623 | 9,502 | 13,419 | ||||||||
NGL (Bbls) | 20,068 | 25,496 | 21,089 | 26,060 | ||||||||
Total Equivalent (MBOE) | 68.7 | 85.7 | 70.7 | 88.0 | ||||||||
Total Company | ||||||||||||
Gas (MMcf) | 656.0 | 665.8 | 675.2 | 652.5 | ||||||||
Oil (Bbls) | 77,956 | 83,430 | 83,873 | 81,433 | ||||||||
NGL (Bbls) | 67,402 | 80,362 | 69,251 | 76,680 | ||||||||
Total Equivalent (MBOE) | 254.7 | 274.8 | 265.6 | 266.9 | ||||||||
AVERAGE REALIZED PRICE BY REGION | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Permian Basin | ||||||||||||
Gas ($ per Mcf) | 0.62 | (0.46) | 0.35 | 0.34 | ||||||||
Oil ($ per Bbl) | 19.73 | 54.02 | 32.84 | 51.15 | ||||||||
NGL ($ per Bbl) | 6.78 | 11.97 | 7.83 | 13.72 | ||||||||
Mid-Continent | ||||||||||||
Gas ($ per Mcf) | 1.40 | 1.78 | 1.39 | 2.24 | ||||||||
Oil ($ per Bbl) | 18.32 | 55.43 | 31.83 | 54.01 | ||||||||
NGL ($ per Bbl) | 9.26 | 15.47 | 10.71 | 16.51 | ||||||||
Total Company | ||||||||||||
Gas ($ per Mcf) | 0.91 | 0.50 | 0.72 | 1.19 | ||||||||
Oil ($ per Bbl) | 19.57 | 54.24 | 32.74 | 51.64 | ||||||||
NGL ($ per Bbl) | 7.52 | 13.08 | 8.71 | 14.67 | ||||||||
Other
Cimarex received cash settlements of $5.9 million related to its gas hedges during the quarter. Settlement of oil hedges resulted in cash receipts of $58.1 million.
The following table summarizes the company's current open hedge positions:
3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | |||||||||||||||
Gas Collars: | PEPL (2) | ||||||||||||||||||||
Volume (MMBtu/d) | 100,000 | 100,000 | 100,000 | 90,000 | 70,000 | 70,000 | 40,000 | ||||||||||||||
Wtd Avg Floor | $ | 1.78 | $ | 1.78 | $ | 1.83 | $ | 1.83 | $ | 1.88 | $ | 1.88 | $ | 2.00 | |||||||
Wtd Avg Ceiling | $ | 2.21 | $ | 2.21 | $ | 2.23 | $ | 2.22 | $ | 2.29 | $ | 2.29 | $ | 2.40 | |||||||
El Paso Perm (2) | |||||||||||||||||||||
Volume (MMBtu/d) | 70,000 | 70,000 | 70,000 | 70,000 | 50,000 | 50,000 | 20,000 | ||||||||||||||
Wtd Avg Floor | $ | 1.36 | $ | 1.36 | $ | 1.50 | $ | 1.50 | $ | 1.64 | $ | 1.64 | $ | 1.85 | |||||||
Wtd Avg Ceiling | $ | 1.64 | $ | 1.64 | $ | 1.79 | $ | 1.79 | $ | 1.95 | $ | 1.95 | $ | 2.18 | |||||||
Waha (2) | |||||||||||||||||||||
Volume (MMBtu/d) | 70,000 | 70,000 | 90,000 | 90,000 | 70,000 | 70,000 | 40,000 | ||||||||||||||
Wtd Avg Floor | $ | 1.43 | $ | 1.43 | $ | 1.52 | $ | 1.52 | $ | 1.65 | $ | 1.65 | $ | 1.77 | |||||||
Wtd Avg Ceiling | $ | 1.73 | $ | 1.73 | $ | 1.83 | $ | 1.83 | $ | 1.98 | $ | 1.98 | $ | 2.15 | |||||||
Oil Collars: | WTI (3) | ||||||||||||||||||||
Volume (Bbl/d) | 41,000 | 41,000 | 40,000 | 30,000 | 21,000 | 21,000 | 7,000 | ||||||||||||||
Wtd Avg Floor | $ | 40.91 | $ | 40.91 | $ | 38.06 | $ | 34.23 | $ | 31.48 | $ | 31.48 | $ | 35.00 | |||||||
Wtd Avg Ceiling | $ | 49.84 | $ | 49.84 | $ | 46.45 | $ | 42.25 | $ | 39.67 | $ | 39.67 | $ | 45.28 | |||||||
Oil Basis Swaps: | WTI Midland (4) | ||||||||||||||||||||
Volume (Bbl/d) | 32,000 | 32,000 | 31,000 | 25,000 | 20,000 | 20,000 | 7,000 | ||||||||||||||
Wtd Avg Differential | $ | 0.18 | $ | 0.18 | $ | 0.03 | $ | (0.10) | $ | (0.38) | $ | (0.38) | $ | 0.11 | |||||||
Oil Roll Differential | WTI (3) | ||||||||||||||||||||
Volume (Bbl/d) | — | — | 7,000 | 7,000 | 7,000 | 7,000 | 7,000 | ||||||||||||||
Wtd Avg Price | $ | — | $ | — | $ | (0.24) | $ | (0.24) | $ | (0.24) | $ | (0.24) | $ | (0.24) | |||||||
Conference call and webcast
Cimarex will host a conference call tomorrow, August 6, 2020 at 11:00 a.m. EST (9:00 a.m. MST). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216). A replay will be available on the company's website.
Investor Presentation
For more details on Cimarex's second quarter 2020 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the disclosures under the heading "Outlook" contain projections for certain 2020 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility, including those resulting from demand destruction from the COVID-19 pandemic; disruptions to the availability of workers and contractors due to illness and stay at home orders related to the COVID-19 pandemic; disruptions to gathering, pipeline, refining, transportation and other midstream and downstream activities due to the COVID-19 pandemic; disruptions to supply chains and availability of critical equipment and supplies, including as a result of the COVID-19 pandemic; the effectiveness of controls over financial reporting; declines in the values of our oil and gas properties resulting in impairments; impairments of goodwill; higher than expected costs and expenses, including the availability and cost of services and materials, which may be impacted by the COVID-19 pandemic; our ability to successfully integrate the March 2019 acquisition of Resolute Energy Corporation; compliance with environmental and other regulations; costs and availability of third party facilities for gathering, processing, refining and transportation; risks associated with concentration of operations in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner, which may be negatively impacted by COVID-19 restrictions on regulatory personnel who process and approve those matters; development drilling and testing results; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; regulatory approvals, including regulatory restrictions on federal lands which may be negatively impacted by a change in administration; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water, which may be negatively impacted by a change in administration; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
1 | Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for reconciliations of the related GAAP amounts. |
2 | PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index, El Paso Perm refers to El Paso Permian Basin index, and Waha refers to West Texas (Waha) Index, all as quoted in Platt's Inside FERC. |
3 | WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. |
4 | Index price on basis swaps is WTI NYMEX less the weighted average WTI Midland differential, as quoted by Argus Americas Crude. |
RECONCILIATION OF ADJUSTED NET (LOSS) INCOME
The following reconciles net (loss) income as reported under generally accepted accounting principles (GAAP) to adjusted net (loss) income (non-GAAP) for the periods indicated.
Three Months Ended | Six Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Net income (loss) | $ | (925,147) | $ | 109,309 | $ | (1,699,429) | $ | 135,625 | |||||||
Impairment of oil and gas properties (1) | 941,198 | — | 1,274,849 | — | |||||||||||
Impairment of goodwill | — | — | 714,447 | — | |||||||||||
Mark-to-market loss (gain) on open derivative positions | 187,826 | (34,531) | 4,000 | 71,870 | |||||||||||
Loss on early extinguishment of debt | — | — | — | 4,250 | |||||||||||
Acquisition related costs | — | 74 | — | 8,391 | |||||||||||
Asset retirement obligation | — | — | 2,800 | — | |||||||||||
Tax impact (2) | (256,289) | 8,166 | (289,653) | (20,029) | |||||||||||
Adjusted net (loss) income | $ | (52,412) | $ | 83,018 | $ | 7,014 | $ | 200,107 | |||||||
Diluted earnings (loss) per share | $ | (9.28) | $ | 1.07 | $ | (17.05) | $ | 1.34 | |||||||
Adjusted diluted earnings (loss) per share* | $ | (0.51) | $ | 0.82 | $ | 0.07 | $ | 2.01 | |||||||
Weighted-average number of shares outstanding: | |||||||||||||||
Adjusted diluted** | 102,114 | 101,448 | 102,122 | 99,592 | |||||||||||
______________________________________ | ||
(1) | An additional ceiling test impairment is anticipated in the third quarter. | |
(2) | Because the goodwill impairment is not deductible for tax purposes, the tax impact in the 2020 period is calculated using an effective tax rate determined by excluding goodwill from the effective tax rate calculation. | |
Adjusted net (loss) income and adjusted diluted earnings (loss) per share exclude the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP measures because: | ||
a) | Management uses adjusted net (loss) income to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies. | |
b) | Adjusted net (loss) income is more comparable to earnings estimates provided by research analysts. | |
* Does not include adjustments resulting from application of the "two-class method" used to determine earnings per share under GAAP. | ||
** Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding stock options. | ||
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS, FREE CASH FLOW AND FREE CASH FLOW AFTER DIVIDEND
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP), free cash flow (non-GAAP) and free cash flow after dividend (non-GAAP) for the periods indicated.
Three Months Ended | Six Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in thousands) | |||||||||||||||
Net cash provided by operating activities | $ | 144,706 | $ | 413,992 | $ | 453,497 | $ | 664,083 | |||||||
Change in operating assets and liabilities | (178) | (77,630) | (2,548) | 23,341 | |||||||||||
Adjusted cash flow from operations | 144,528 | 336,362 | 450,949 | 687,424 | |||||||||||
Oil and gas expenditures | (152,510) | (379,015) | (418,580) | (711,757) | |||||||||||
Other capital expenditures | (11,627) | (22,313) | (38,052) | (40,141) | |||||||||||
Change in capital accruals | 68,813 | 61,085 | 86,286 | 14,654 | |||||||||||
Free cash flow | 49,204 | (3,881) | 80,603 | (49,820) | |||||||||||
Dividends paid | (23,616) | (21,468) | (45,209) | (38,647) | |||||||||||
Free cash flow after dividend | $ | 25,588 | $ | (25,349) | $ | 35,394 | $ | (88,467) | |||||||
Management uses the non-GAAP financial measures of adjusted cash flow from operations, free cash flow and free cash flow after dividend as means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities. Management believes these non-GAAP financial measures provide useful information to investors for the same reason, and that they are also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.
OIL AND GAS CAPITALIZED EXPENDITURES | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in thousands) | |||||||||||||||
Acquisitions: | |||||||||||||||
Proved | $ | — | $ | 1,200 | $ | 7,250 | $ | 693,800 | |||||||
Unproved | — | 1,000 | — | 1,051,782 | |||||||||||
— | 2,200 | 7,250 | 1,745,582 | ||||||||||||
Exploration and development: | |||||||||||||||
Land and seismic | 12,116 | 14,552 | $ | 26,040 | $ | 24,079 | |||||||||
Exploration and development | 71,666 | 310,428 | 306,394 | 668,919 | |||||||||||
83,782 | 324,980 | 332,434 | 692,998 | ||||||||||||
Property sales: | |||||||||||||||
Proved | — | (22,058) | $ | — | $ | (18,028) | |||||||||
Unproved | — | (6,253) | (830) | (9,754) | |||||||||||
— | (28,311) | (830) | (27,782) | ||||||||||||
$ | 83,782 | $ | 298,869 | $ | 338,854 | $ | 2,410,798 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except per share information) | ||||||||||||||||
Revenues: | ||||||||||||||||
Oil sales | $ | 138,817 | $ | 411,766 | $ | 499,797 | $ | 761,072 | ||||||||
Gas and NGL sales | 100,261 | 126,044 | 198,742 | 343,959 | ||||||||||||
Gas gathering and other | 10,305 | 8,653 | 23,674 | 18,389 | ||||||||||||
249,383 | 546,463 | 722,213 | 1,123,420 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Impairment of oil and gas properties | 941,198 | — | 1,274,849 | — | ||||||||||||
Depreciation, depletion, amortization, and accretion | 196,615 | 215,484 | 416,425 | 407,950 | ||||||||||||
Impairment of goodwill | — | — | 714,447 | — | ||||||||||||
Production | 64,337 | 88,995 | 151,573 | 167,399 | ||||||||||||
Transportation, processing, and other operating | 53,282 | 54,107 | 108,204 | 113,682 | ||||||||||||
Gas gathering and other | 3,526 | 6,560 | 11,824 | 11,742 | ||||||||||||
Taxes other than income | 16,486 | 41,033 | 47,447 | 74,727 | ||||||||||||
General and administrative | 26,226 | 24,911 | 51,735 | 53,995 | ||||||||||||
Stock compensation | 6,747 | 6,494 | 13,141 | 13,207 | ||||||||||||
Loss (gain) on derivative instruments, net | 123,885 | (40,768) | (103,055) | 74,684 | ||||||||||||
Other operating expense, net | 130 | 590 | 381 | 8,916 | ||||||||||||
1,432,432 | 397,406 | 2,686,971 | 926,302 | |||||||||||||
Operating (loss) income | (1,183,049) | 149,057 | (1,964,758) | 197,118 | ||||||||||||
Other (income) and expense: | ||||||||||||||||
Interest expense | 23,047 | 24,674 | 46,228 | 45,079 | ||||||||||||
Capitalized interest | (12,939) | (16,805) | (26,121) | (25,547) | ||||||||||||
Loss on early extinguishment of debt | — | — | — | 4,250 | ||||||||||||
Other, net | 3,496 | (2,167) | 2,625 | (4,408) | ||||||||||||
(Loss) income before income tax | (1,196,653) | 143,355 | (1,987,490) | 177,744 | ||||||||||||
Income tax (benefit) expense | (271,506) | 34,046 | (288,061) | 42,119 | ||||||||||||
Net (loss) income | $ | (925,147) | $ | 109,309 | $ | (1,699,429) | $ | 135,625 | ||||||||
Earnings (loss) per share to common stockholders: | ||||||||||||||||
Basic | $ | (9.28) | $ | 1.07 | $ | (17.05) | $ | 1.34 | ||||||||
Diluted | $ | (9.28) | $ | 1.07 | $ | (17.05) | $ | 1.34 | ||||||||
Dividends declared per common share | $ | 0.22 | $ | 0.20 | $ | 0.44 | $ | 0.40 | ||||||||
Weighted-average number of shares outstanding: | ||||||||||||||||
Basic | 99,880 | 99,658 | 99,861 | 97,800 | ||||||||||||
Diluted | 99,880 | 99,665 | 99,861 | 97,809 | ||||||||||||
Comprehensive (loss) income: | ||||||||||||||||
Net (loss) income | $ | (925,147) | $ | 109,309 | $ | (1,699,429) | $ | 135,625 | ||||||||
Other comprehensive income: | ||||||||||||||||
Change in fair value of investments, net of tax of $0, $89, $0 and $428, respectively | — | 304 | — | 1,453 | ||||||||||||
Total comprehensive (loss) income | $ | (925,147) | $ | 109,613 | $ | (1,699,429) | $ | 137,078 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net (loss) income | $ | (925,147) | $ | 109,309 | $ | (1,699,429) | $ | 135,625 | ||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||||||||||
Impairment of oil and gas properties | 941,198 | — | 1,274,849 | — | ||||||||||||
Depreciation, depletion, amortization, and accretion | 196,615 | 215,484 | 416,425 | 407,950 | ||||||||||||
Impairment of goodwill | — | — | 714,447 | — | ||||||||||||
Deferred income taxes | (271,543) | 34,046 | (287,900) | 42,119 | ||||||||||||
Stock compensation | 6,747 | 6,494 | 13,141 | 13,207 | ||||||||||||
Loss (gain) on derivative instruments, net | 123,885 | (40,768) | (103,055) | 74,684 | ||||||||||||
Settlements on derivative instruments | 63,941 | 6,237 | 107,055 | (2,814) | ||||||||||||
Loss on early extinguishment of debt | — | — | — | 4,250 | ||||||||||||
Amortization of debt issuance costs and discounts | 818 | 783 | 1,602 | 1,502 | ||||||||||||
Changes in non-current assets and liabilities | 4,609 | 601 | 7,019 | 2,749 | ||||||||||||
Other, net | 3,405 | 4,176 | 6,795 | 8,152 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | 85,010 | 83,716 | 204,615 | 117,692 | ||||||||||||
Other current assets | 1,519 | (1,111) | 1,495 | (761) | ||||||||||||
Accounts payable and other current liabilities | (86,351) | (4,975) | (203,562) | (140,272) | ||||||||||||
Net cash provided by operating activities | 144,706 | 413,992 | 453,497 | 664,083 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Acquisition of Resolute Energy, net of cash acquired | — | — | — | (284,441) | ||||||||||||
Oil and gas capital expenditures | (152,510) | (379,015) | (418,580) | (711,757) | ||||||||||||
Other capital expenditures | (11,627) | (22,313) | (38,052) | (40,141) | ||||||||||||
Sales of oil and gas assets | — | 8,233 | 830 | 13,233 | ||||||||||||
Sales of other assets | 1,007 | 234 | 1,188 | 434 | ||||||||||||
Net cash used by investing activities | (163,130) | (392,861) | (454,614) | (1,022,672) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Borrowings of long-term debt | 60,000 | 528,000 | 161,000 | 1,710,310 | ||||||||||||
Repayments of long-term debt | (60,000) | (528,000) | (161,000) | (2,081,000) | ||||||||||||
Financing, underwriting, and debt redemption fees | (1,457) | (853) | (1,557) | (11,791) | ||||||||||||
Finance lease payments | (1,343) | (920) | (2,808) | (1,555) | ||||||||||||
Dividends paid | (23,616) | (21,468) | (45,209) | (38,647) | ||||||||||||
Employee withholding taxes paid upon the net settlement of equity-classified stock awards | (24) | — | (189) | (654) | ||||||||||||
Proceeds from exercise of stock options | — | 594 | — | 674 | ||||||||||||
Net cash used by financing activities | (26,440) | (22,647) | (49,763) | (422,663) | ||||||||||||
Net change in cash and cash equivalents | (44,864) | (1,516) | (50,880) | (781,252) | ||||||||||||
Cash and cash equivalents at beginning of period | 88,706 | 20,930 | 94,722 | 800,666 | ||||||||||||
Cash and cash equivalents at end of period | $ | 43,842 | $ | 19,414 | $ | 43,842 | $ | 19,414 | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
June 30, 2020 | December 31, | |||||||
Assets | (in thousands, except share and | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 43,842 | $ | 94,722 | ||||
Accounts receivable, net of allowance | 244,826 | 448,584 | ||||||
Oil and gas well equipment and supplies | 51,184 | 47,893 | ||||||
Derivative instruments | 71,590 | 17,944 | ||||||
Other current assets | 12,660 | 12,343 | ||||||
Total current assets | 424,102 | 621,486 | ||||||
Oil and gas properties at cost, using the full cost method of accounting: | ||||||||
Proved properties | 21,014,098 | 20,678,334 | ||||||
Unproved properties and properties under development, not being amortized | 1,258,002 | 1,255,908 | ||||||
22,272,100 | 21,934,242 | |||||||
Less – accumulated depreciation, depletion, amortization, and impairment | (18,373,655) | (16,723,544) | ||||||
Net oil and gas properties | 3,898,445 | 5,210,698 | ||||||
Fixed assets, net of accumulated depreciation of $423,873 and $389,458, respectively | 478,553 | 519,291 | ||||||
Goodwill | — | 716,865 | ||||||
Derivative instruments | — | 580 | ||||||
Other assets | 68,688 | 71,109 | ||||||
$ | 4,869,788 | $ | 7,140,029 | |||||
Liabilities, Redeemable Preferred Stock, and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 25,032 | $ | 49,020 | ||||
Accrued liabilities | 268,462 | 418,978 | ||||||
Derivative instruments | 51,556 | 16,681 | ||||||
Revenue payable | 102,824 | 207,939 | ||||||
Operating leases | 56,901 | 66,003 | ||||||
Total current liabilities | 504,775 | 758,621 | ||||||
Long-term debt principal | 2,000,000 | 2,000,000 | ||||||
Less—unamortized debt issuance costs and discounts | (13,729) | (14,754) | ||||||
Long-term debt, net | 1,986,271 | 1,985,246 | ||||||
Deferred income taxes | 50,524 | 338,424 | ||||||
Derivative instruments | 23,210 | 1,018 | ||||||
Operating leases | 155,023 | 184,172 | ||||||
Other liabilities | 217,518 | 214,787 | ||||||
Total liabilities | 2,937,321 | 3,482,268 | ||||||
Redeemable preferred stock - 8.125% Series A Cumulative Perpetual Convertible Preferred Stock, $0.01 par value, 62,500 shares authorized and issued | 81,620 | 81,620 | ||||||
Stockholders' equity: | ||||||||
Common stock, 0.01 par value, 200,000,000 shares authorized, 102,151,096 and 102,144,577 shares issued, respectively | 1,022 | 1,021 | ||||||
Additional paid-in capital | 3,241,244 | 3,243,325 | ||||||
(Accumulated deficit) retained earnings | (1,391,419) | 331,795 | ||||||
Total stockholders' equity | 1,850,847 | 3,576,141 | ||||||
$ | 4,869,788 | $ | 7,140,029 | |||||
View original content:http://www.prnewswire.com/news-releases/cimarex-reports-second-quarter-2020-results-301107036.html
SOURCE Cimarex Energy Co.
Article Date
8/5/2020Cimarex Schedules Second Quarter 2020 Earnings Release and Conference Call
Source: PR Newswire
DENVER, July 2, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced it plans to report second quarter 2020 financial results on Wednesday, August 5, 2020, after market close. The company will host its quarterly conference call at 11:00 AM ET on Thursday, August 6, 2020.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-schedules-second-quarter-2020-earnings-release-and-conference-call-301087430.html
SOURCE Cimarex Energy Co.
Article Date
7/2/2020Cimarex Energy Approves Dividend on Preferred Stock
Source: PR Newswire
DENVER, May 8, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that its Board of Directors approved a cash dividend of $20.3125 per share on its 8⅛ percent Series A Cumulative Perpetual Convertible Preferred Stock. The dividend is payable on July 15, 2020, to holders of record at the close of business on July 1, 2020, and is for the period beginning on April 16, 2020 and ending on July 15, 2020.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-approves-dividend-on-preferred-stock-301055520.html
SOURCE Cimarex Energy Co.
Article Date
5/8/2020Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
DENVER, May 7, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.22 per share. The dividend is payable on September 1, 2020, to stockholders of record on August 14, 2020.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-declares-quarterly-cash-dividend-301054999.html
SOURCE Cimarex Energy Co.
Article Date
5/7/2020Cimarex Reports First Quarter 2020 Results; Issues Abridged Guidance
Source: PR Newswire
DENVER, May 6, 2020 /PRNewswire/ --
Cimarex Energy Co. (NYSE: XEC) today reported a first quarter 2020 net loss of $774.3 million, or $7.77 per share, compared to net income of $26.3 million, or $0.26 per share, in the same period a year ago. First quarter results were negatively impacted by non-cash charges related to the impairment of oil and gas properties and the impairment of goodwill. First quarter adjusted net income (non-GAAP) was $59.7 million, or $0.58 per share, compared to first quarter 2019 adjusted net income (non-GAAP) of $117.3 million, or $1.20 per share1. Net cash provided by operating activities was $308.8 million in the first quarter of 2020 compared to $250.1 million in the same period a year ago. Adjusted cash flow from operations (non-GAAP) was $306.4 million in the first quarter of 2020 compared to $351.1 million in the first quarter a year ago1.
Oil production averaged 89.8 thousand barrels (MBbls) per day, up 13 percent from the same period a year ago and down two percent sequentially. Total company production volumes for the quarter averaged 276.6 thousand barrels of oil equivalent (MBOE) per day.
Realized product prices were down in the first quarter compared to the same quarter a year ago. Realized oil prices averaged $44.18 per barrel, down 10 percent from the $48.87 per barrel received in the first quarter of 2019. Realized natural gas prices averaged $0.55 per thousand cubic feet (Mcf), down 71 percent from the first quarter 2019 average of $1.91 per Mcf. NGL prices averaged $9.84 per barrel, down 40 percent from the $16.44 per barrel received in the first quarter of 2019.
Natural gas prices were negatively impacted by local price differentials. Cimarex's average differential to Henry Hub on its Permian natural gas production was $1.85 per Mcf in the first quarter of 2020 compared to $1.91 per Mcf in the first quarter of 2019 and $1.67 in the fourth quarter of 2019. In the Mid-Continent region, the company's average differential to Henry Hub was $0.57 per Mcf versus $0.46 per Mcf in the first quarter of 2019 and $0.74 in the fourth quarter of 2019. Our realized Permian oil differential to WTI Cushing improved and averaged $2.00 per barrel in the quarter, compared to $6.90 per barrel in the first quarter of 2019 and $2.18 per barrel in the fourth quarter of 2019.
Cimarex invested a total of $274 million during the first quarter, of which $214 million was attributable to drilling and completion activities, $18 million to saltwater disposal assets, and $9 million to midstream assets. First quarter investments were funded with cash flow from operating activities. Total debt at March 31, 2020 consisted of $2.0 billion of long-term notes, with no debt maturities until 2024. Cimarex had no borrowings under its revolving credit facility and a cash balance of $89 million at quarter end. Debt was 43 percent of total capitalization2.
Outlook
Cimarex has taken a number of steps to protect employees in the wake of the COVID-19 pandemic including the implementation of remote work for all office staff and the adoption of COVID-19 protocols for field staff. In addition to the health crisis, the pandemic has caused extreme weakness in oil prices due to lower demand. Because of price uncertainty and resultant production curtailments, Cimarex will forgo quarterly and annual production guidance as well as guidance on per unit operating costs. The company withdraws any previous guidance on these measures.
Cimarex Chairman and CEO, Tom Jorden, said, "Investors expect us to be good stewards of capital. As stated in our April 15th press release, Cimarex's current outlook for capital investment in 2020 is down 55-60% from original plans and expected to be $500 - 600 million." The table below shows a breakdown of the projected capital by category:
Capital Investment ($MM) | Updated 2020E Guidance | ||
Drilling and Completion (D&C) | $300 - $400 | ||
Midstream/Saltwater Disposal (SWD) | ~ $40 | ||
Other* | ~ $160 | ||
Total Capital Investment | $500 - $600 | ||
*Capitalized overhead, production, NPL, and technology | |||
Mr. Jorden continued, "The low end of our investment range assumes deferring well completions for the remainder of the year and limited drilling activity. Under this scenario, we estimate Cimarex will have 47 net wells in progress as we enter 2021. Should conditions warrant, we are prepared to complete additional wells in 2020."
"Our top priorities continue to be the health and safety of our employees, commitment to our balance sheet, and returning capital to shareholders through our dividend. At current prices, with the benefit of our hedge position, Cimarex will generate free cash in 2020. Our immediate actions were and will continue to be focused on the things we can control to protect our company during these unprecedented times. In addition to deferring completions and the slowdown in drilling activity, and with final nominations in, we have curtailed approximately 20 percent of our May oil production. Curtailments will continue should commodity prices remain depressed."
"Another top priority at Cimarex is environmental stewardship including, but not limited to, the reduction of methane emissions and reducing flaring intensity. These measures are now part of the formula used for determining executive compensation."
He went on to say, "We continue to focus on cost control. We recently initiated an Early Retirement Incentive Plan which will result in a ten percent reduction to our staff and ultimately save $25 million on an annual basis when completed. We will continue to reduce costs through the redeployment of our workforce, including replacing field contract labor with company employees. In addition, we have lowered executive salaries and the cash retainer fees paid to our board of directors--a provisionary action in the event the situation improves."
Cimarex previously announced the retirement of Joe Albi, executive vice president and chief operating officer, from the company and as a member of the Board of Directors effective July 1, 2020. At the board's request, in order to have ongoing access to his deep knowledge of the industry and of Cimarex operations, Mr. Albi has agreed to serve out the remainder of his board term, which expires May 2021. At that time, he will not stand for nomination and will retire from the board.
Operations Update
Cimarex invested $274 million during the first quarter, 93 percent in the Permian Basin and 7 percent in the Mid-Continent. Cimarex brought 54 gross (20 net) wells on production during the quarter. At March 31, 98 gross (35 net) wells were waiting on completion. Cimarex is currently running two drilling rigs (dropping to one by mid-May).
WELLS BROUGHT ON PRODUCTION BY REGION | ||||||
Three Months Ended | ||||||
2020 | 2019 | |||||
Gross wells | ||||||
Permian Basin | 35 | 12 | ||||
Mid-Continent | 19 | 26 | ||||
54 | 38 | |||||
Net wells | ||||||
Permian Basin | 20 | 5 | ||||
Mid-Continent | — | 3 | ||||
20 | 8 | |||||
Permian Region
Production from the Permian region averaged 203.4 MBOE per day in the first quarter, a 21 percent increase from first quarter 2019. Oil volumes averaged 79.6 MBbls per day, a 23 percent increase from first quarter 2019 and up two percent sequentially.
Cimarex brought 35 gross (20 net) wells on production in the Permian region during the first quarter. There were 51 gross (33 net) wells waiting on completion at March 31. Cimarex currently operates two drilling rigs (dropping to one by mid-May) but no completion crews in the region.
Mid-Continent Region
Production from the Mid-Continent averaged 72.7 MBOE per day for the first quarter, down 20 percent from first quarter 2019 and down 15 percent sequentially.
During the first quarter, Cimarex brought 19 gross (0 net) wells on production in the Mid-Continent region. At the end of the quarter, 47 gross (2 net) wells were waiting on completion. Cimarex does not currently operate drilling rigs or completion crews in the Mid-Continent.
Cimarex's average daily production and commodity price by region is summarized below:
DAILY PRODUCTION BY REGION | ||||||
Three Months Ended | ||||||
2020 | 2019 | |||||
Permian Basin | ||||||
Gas (MMcf) | 449.0 | 340.6 | ||||
Oil (Bbls) | 79,606 | 64,969 | ||||
NGL (Bbls) | 48,932 | 46,273 | ||||
Total Equivalent (MBOE) | 203.4 | 168.0 | ||||
Mid-Continent | ||||||
Gas (MMcf) | 244.1 | 297.2 | ||||
Oil (Bbls) | 9,941 | 14,224 | ||||
NGL (Bbls) | 22,110 | 26,630 | ||||
Total Equivalent (MBOE) | 72.7 | 90.4 | ||||
Total Company | ||||||
Gas (MMcf) | 694.3 | 639.1 | ||||
Oil (Bbls) | 89,791 | 79,415 | ||||
NGL (Bbls) | 71,099 | 72,956 | ||||
Total Equivalent (MBOE) | 276.6 | 258.9 | ||||
AVERAGE REALIZED PRICE BY REGION | ||||||
Three Months Ended | ||||||
2020 | 2019 | |||||
Permian Basin | ||||||
Gas ($ per Mcf) | 0.10 | 1.24 | ||||
Oil ($ per Bbl) | 44.17 | 48.00 | ||||
NGL ($ per Bbl) | 8.84 | 15.81 | ||||
Mid-Continent | ||||||
Gas ($ per Mcf) | 1.38 | 2.69 | ||||
Oil ($ per Bbl) | 44.15 | 52.73 | ||||
NGL ($ per Bbl) | 12.03 | 17.52 | ||||
Total Company | ||||||
Gas ($ per Mcf) | 0.55 | 1.91 | ||||
Oil ($ per Bbl) | 44.18 | 48.87 | ||||
NGL ($ per Bbl) | 9.84 | 16.44 | ||||
Other
Cimarex received cash settlements of $11.7 million related to its gas hedges during the quarter. Settlement of oil hedges resulted in cash receipts of $31.4 million.
The following table summarizes the company's current open hedge positions:
2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | |||||||||||||||||||||||
Gas Collars: | PEPL (3) | ||||||||||||||||||||||||||||
Volume (MMBtu/d) | 63,297 | 80,000 | 80,000 | 60,000 | 50,000 | 30,000 | 30,000 | ||||||||||||||||||||||
Wtd Avg Floor | $ | 1.89 | $ | 1.75 | $ | 1.75 | $ | 1.72 | $ | 1.69 | $ | 1.73 | $ | 1.73 | |||||||||||||||
Wtd Avg Ceiling | $ | 2.28 | $ | 2.17 | $ | 2.17 | $ | 2.12 | $ | 2.08 | $ | 2.14 | $ | 2.14 | |||||||||||||||
El Paso Perm (3) | |||||||||||||||||||||||||||||
Volume (MMBtu/d) | 33,297 | 70,000 | 70,000 | 50,000 | 50,000 | 30,000 | 30,000 | ||||||||||||||||||||||
Wtd Avg Floor | $ | 1.41 | $ | 1.36 | $ | 1.36 | $ | 1.36 | $ | 1.36 | $ | 1.51 | $ | 1.51 | |||||||||||||||
Wtd Avg Ceiling | $ | 1.82 | $ | 1.64 | $ | 1.64 | $ | 1.63 | $ | 1.63 | $ | 1.80 | $ | 1.80 | |||||||||||||||
Waha (3) | |||||||||||||||||||||||||||||
Volume (MMBtu/d) | 33,297 | 50,000 | 50,000 | 50,000 | 50,000 | 30,000 | 30,000 | ||||||||||||||||||||||
Wtd Avg Floor | $ | 1.56 | $ | 1.32 | $ | 1.32 | $ | 1.32 | $ | 1.32 | $ | 1.50 | $ | 1.50 | |||||||||||||||
Wtd Avg Ceiling | $ | 1.95 | $ | 1.58 | $ | 1.58 | $ | 1.58 | $ | 1.58 | $ | 1.75 | $ | 1.75 | |||||||||||||||
Oil Collars: | WTI (4) | ||||||||||||||||||||||||||||
Volume (Bbl/d) | 34,341 | 41,000 | 41,000 | 33,000 | 23,000 | 14,000 | 14,000 | ||||||||||||||||||||||
Wtd Avg Floor | $ | 48.29 | $ | 40.91 | $ | 40.91 | $ | 38.71 | $ | 34.00 | $ | 29.71 | $ | 29.71 | |||||||||||||||
Wtd Avg Ceiling | $ | 58.96 | $ | 49.84 | $ | 49.84 | $ | 46.70 | $ | 41.33 | $ | 36.86 | $ | 36.86 | |||||||||||||||
Oil Basis Swaps: | WTI Midland (5) | ||||||||||||||||||||||||||||
Volume (Bbl/d) | 27,648 | 32,000 | 32,000 | 24,000 | 18,000 | 13,000 | 13,000 | ||||||||||||||||||||||
Wtd Avg Differential | $ | 0.38 | $ | 0.18 | $ | 0.18 | $ | — | $ | (0.19) | $ | (0.65) | $ | (0.65) | |||||||||||||||
Oil Swaps: | WTI (4) | ||||||||||||||||||||||||||||
Volume (Bbl/d) | 4,692 | — | — | — | — | — | — | ||||||||||||||||||||||
Wtd Avg Fixed | $ | 20.73 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Conference call and webcast
Cimarex will host a conference call tomorrow, May 7, at 11:00 a.m. EDT (9:00 a.m. MDT). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216). A replay will be available on the company's website.
Investor Presentation
For more details on Cimarex's first quarter 2020 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the disclosures under the heading "Outlook" contain projections for certain 2020 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility, including those resulting from demand destruction from the COVID-19 pandemic; disruptions to the availability of workers and contractors due to illness and stay at home orders related to the COVID-19 pandemic; disruptions to gathering, pipeline, refining, transportation and other midstream and downstream activities due to the COVID-19 pandemic; disruptions to supply chains and availability of critical equipment and supplies due to the COVID-19 pandemic; the effectiveness of controls over financial reporting; declines in the values of our oil and gas properties resulting in impairments; impairments of goodwill; higher than expected costs and expenses, including the availability and cost of services and materials; our ability to successfully integrate the March 2019 acquisition of Resolute Energy Corporation; compliance with environmental and other regulations; costs and availability of third party facilities for gathering, processing, refining and transportation; risks associated with concentration of operations in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
______________________________________ | |
1 | Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for reconciliations of the related GAAP amounts. |
2 | Debt to total capitalization is calculated by dividing the sum of (i) the principal amount of senior notes and (ii) redeemable preferred stock by the sum of (x) the principal amount of senior notes, (y) redeemable preferred stock, and (z) total stockholders' equity. |
3 | PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index, El Paso Perm refers to El Paso Permian Basin index, and Waha refers to West Texas (Waha) Index, all as quoted in Platt's Inside FERC. |
4 | WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. |
5 | Index price on basis swaps is WTI NYMEX less the weighted average WTI Midland differential, as quoted by Argus Americas Crude. |
RECONCILIATION OF ADJUSTED NET INCOME
The following reconciles net (loss) income as reported under generally accepted accounting principles (GAAP) to adjusted net income (non-GAAP) for the periods indicated.
Three Months Ended | |||||||
2020 | 2019 | ||||||
(in thousands, except per share data) | |||||||
Net (loss) income | $ | (774,282) | $ | 26,316 | |||
Impairment of oil and gas properties (1) | 333,651 | — | |||||
Impairment of goodwill | 714,447 | — | |||||
Mark-to-market (gain) loss on open derivative positions | (183,826) | 106,401 | |||||
Loss on early extinguishment of debt | — | 4,250 | |||||
Acquisition related costs | — | 8,318 | |||||
Asset retirement obligation | 2,800 | — | |||||
Tax impact (2) | (33,120) | (27,958) | |||||
Adjusted net income | $ | 59,670 | $ | 117,327 | |||
Diluted earnings per share | $ | (7.77) | $ | 0.26 | |||
Adjusted diluted earnings per share* | $ | 0.58 | $ | 1.20 | |||
Weighted-average number of shares outstanding: | |||||||
Adjusted diluted** | 102,131 | 97,715 | |||||
______________________________________ | ||
(1) | An additional ceiling test impairment is anticipated in the second quarter. | |
(2) | Because the goodwill impairment is not deductible for tax purposes, the tax impact in the 2020 period is calculated using an effective tax rate determined by excluding goodwill from the effective tax rate calculation. | |
Adjusted net income and adjusted diluted earnings per share exclude the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP measures because: | ||
a) | Management uses adjusted net income to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies. | |
b) | Adjusted net income is more comparable to earnings estimates provided by research analysts. | |
* Does not include adjustments resulting from application of the "two-class method" used to determine earnings per share under GAAP. | ||
** Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding stock options. | ||
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS, FREE CASH FLOW AND
FREE CASH FLOW AFTER DIVIDEND
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP), free cash flow (non-GAAP) and free cash flow after dividend (non-GAAP) for the periods indicated.
Three Months Ended | |||||||
2020 | 2019 | ||||||
(in thousands) | |||||||
Net cash provided by operating activities | $ | 308,791 | $ | 250,091 | |||
Change in operating assets and liabilities | (2,370) | 100,971 | |||||
Adjusted cash flow from operations | 306,421 | 351,062 | |||||
Oil and gas expenditures | (266,070) | (332,742) | |||||
Other capital expenditures | (26,425) | (17,828) | |||||
Free cash flow | 13,926 | 492 | |||||
Dividends paid | (21,593) | (17,179) | |||||
Free cash flow after dividend | $ | (7,667) | $ | (16,687) | |||
Management uses the non-GAAP financial measures of adjusted cash flow from operations, free cash flow and free cash flow aver dividend as means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities. Management believes these non-GAAP financial measures provide useful information to investors for the same reason, and that they are also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.
OIL AND GAS CAPITALIZED EXPENDITURES | |||||||
Three Months Ended | |||||||
2020 | 2019 | ||||||
(in thousands) | |||||||
Acquisitions: | |||||||
Proved | $ | 7,250 | $ | 692,600 | |||
Unproved | — | 1,050,782 | |||||
7,250 | 1,743,382 | ||||||
Exploration and development: | |||||||
Land and seismic | 13,924 | 9,527 | |||||
Exploration and development | 234,728 | 358,491 | |||||
248,652 | 368,018 | ||||||
Property sales: | |||||||
Proved | — | 4,030 | |||||
Unproved | (830) | (3,501) | |||||
(830) | 529 | ||||||
$ | 255,072 | $ | 2,111,929 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) | ||||||||
Three Months Ended | ||||||||
2020 | 2019 | |||||||
(in thousands, except per | ||||||||
Revenues: | ||||||||
Oil sales | $ | 360,980 | $ | 349,306 | ||||
Gas and NGL sales | 98,481 | 217,915 | ||||||
Gas gathering and other | 13,369 | 9,736 | ||||||
472,830 | 576,957 | |||||||
Costs and expenses: | ||||||||
Impairment of oil and gas properties | 333,651 | — | ||||||
Depreciation, depletion, amortization, and accretion | 219,810 | 192,466 | ||||||
Impairment of goodwill | 714,447 | — | ||||||
Production | 87,236 | 78,404 | ||||||
Transportation, processing, and other operating | 54,922 | 59,575 | ||||||
Gas gathering and other | 8,298 | 5,182 | ||||||
Taxes other than income | 30,961 | 33,694 | ||||||
General and administrative | 25,509 | 29,084 | ||||||
Stock compensation | 6,394 | 6,713 | ||||||
(Gain) loss on derivative instruments, net | (226,940) | 115,452 | ||||||
Other operating expense, net | 251 | 8,326 | ||||||
1,254,539 | 528,896 | |||||||
Operating (loss) income | (781,709) | 48,061 | ||||||
Other (income) and expense: | ||||||||
Interest expense | 23,181 | 20,405 | ||||||
Capitalized interest | (13,182) | (8,742) | ||||||
Loss on early extinguishment of debt | — | 4,250 | ||||||
Other, net | (871) | (2,241) | ||||||
(Loss) income before income tax | (790,837) | 34,389 | ||||||
Income tax (benefit) expense | (16,555) | 8,073 | ||||||
Net (loss) income | $ | (774,282) | $ | 26,316 | ||||
Earnings (loss) per share to common stockholders: | ||||||||
Basic | $ | (7.77) | $ | 0.26 | ||||
Diluted | $ | (7.77) | $ | 0.26 | ||||
Dividends declared per common share | $ | 0.22 | $ | 0.20 | ||||
Weighted-average number of shares outstanding: | ||||||||
Basic | 99,842 | 95,922 | ||||||
Diluted | 99,842 | 95,932 | ||||||
Comprehensive (loss) income: | ||||||||
Net (loss) income | $ | (774,282) | $ | 26,316 | ||||
Other comprehensive income: | ||||||||
Change in fair value of investments, net of tax of $0 and $339, respectively | — | 1,149 | ||||||
Total comprehensive (loss) income | $ | (774,282) | $ | 27,465 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||
Three Months Ended | ||||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net (loss) income | $ | (774,282) | $ | 26,316 | ||||
Adjustments to reconcile net (loss) income to net cash | ||||||||
provided by operating activities: | ||||||||
Impairment of oil and gas properties | 333,651 | — | ||||||
Depreciation, depletion, amortization, and accretion | 219,810 | 192,466 | ||||||
Impairment of goodwill | 714,447 | — | ||||||
Deferred income taxes | (16,357) | 8,073 | ||||||
Stock compensation | 6,394 | 6,713 | ||||||
(Gain) loss on derivative instruments, net | (226,940) | 115,452 | ||||||
Settlements on derivative instruments | 43,114 | (9,051) | ||||||
Loss on early extinguishment of debt | — | 4,250 | ||||||
Amortization of debt issuance costs and discounts | 784 | 719 | ||||||
Changes in non-current assets and liabilities | 2,410 | 2,148 | ||||||
Other, net | 3,390 | 3,976 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 119,605 | 33,976 | ||||||
Other current assets | (24) | 350 | ||||||
Accounts payable and other current liabilities | (117,211) | (135,297) | ||||||
Net cash provided by operating activities | 308,791 | 250,091 | ||||||
Cash flows from investing activities: | ||||||||
Acquisition of Resolute Energy, net of cash acquired | — | (284,441) | ||||||
Oil and gas capital expenditures | (266,070) | (332,742) | ||||||
Other capital expenditures | (26,425) | (17,828) | ||||||
Sales of oil and gas assets | 830 | 5,000 | ||||||
Sales of other assets | 181 | 200 | ||||||
Net cash used by investing activities | (291,484) | (629,811) | ||||||
Cash flows from financing activities: | ||||||||
Borrowings of long-term debt | 101,000 | 1,182,310 | ||||||
Repayments of long-term debt | (101,000) | (1,553,000) | ||||||
Financing, underwriting, and debt redemption fees | (100) | (10,938) | ||||||
Finance lease payments | (1,465) | (635) | ||||||
Dividends paid | (21,593) | (17,179) | ||||||
Employee withholding taxes paid upon the net settlement of equity-classified stock awards | (165) | (654) | ||||||
Proceeds from exercise of stock options | — | 80 | ||||||
Net cash used by financing activities | (23,323) | (400,016) | ||||||
Net change in cash and cash equivalents | (6,016) | (779,736) | ||||||
Cash and cash equivalents at beginning of period | 94,722 | 800,666 | ||||||
Cash and cash equivalents at end of period | $ | 88,706 | $ | 20,930 | ||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
March 31, | December 31, | |||||||
Assets | (in thousands, except share and | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 88,706 | $ | 94,722 | ||||
Accounts receivable, net of allowance | 329,977 | 448,584 | ||||||
Oil and gas well equipment and supplies | 45,108 | 47,893 | ||||||
Derivative instruments | 200,537 | 17,944 | ||||||
Other current assets | 12,263 | 12,343 | ||||||
Total current assets | 676,591 | 621,486 | ||||||
Oil and gas properties at cost, using the full cost method of accounting: | ||||||||
Proved properties | 20,894,962 | 20,678,334 | ||||||
Unproved properties and properties under development, not being amortized | 1,297,493 | 1,255,908 | ||||||
22,192,455 | 21,934,242 | |||||||
Less – accumulated depreciation, depletion, amortization, and impairment | (17,255,321) | (16,723,544) | ||||||
Net oil and gas properties | 4,937,134 | 5,210,698 | ||||||
Fixed assets, net of accumulated depreciation of $406,388 and $389,458, respectively | 527,652 | 519,291 | ||||||
Goodwill | — | 716,865 | ||||||
Derivative instruments | 7,121 | 580 | ||||||
Other assets | 69,848 | 71,109 | ||||||
$ | 6,218,346 | $ | 7,140,029 | |||||
Liabilities, Redeemable Preferred Stock, and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 56,500 | $ | 49,020 | ||||
Accrued liabilities | 360,790 | 418,978 | ||||||
Derivative instruments | 6,772 | 16,681 | ||||||
Revenue payable | 135,079 | 207,939 | ||||||
Operating leases | 65,958 | 66,003 | ||||||
Total current liabilities | 625,099 | 758,621 | ||||||
Long-term debt principal | 2,000,000 | 2,000,000 | ||||||
Less—unamortized debt issuance costs and discounts | (14,242) | (14,754) | ||||||
Long-term debt, net | 1,985,758 | 1,985,246 | ||||||
Deferred income taxes | 322,067 | 338,424 | ||||||
Derivative instruments | 16,235 | 1,018 | ||||||
Operating leases | 182,590 | 184,172 | ||||||
Other liabilities | 215,477 | 214,787 | ||||||
Total liabilities | 3,347,226 | 3,482,268 | ||||||
Redeemable preferred stock - 8.125% Series A Cumulative Perpetual Convertible Preferred Stock, $0.01 par value, 62,500 shares authorized and issued | 81,620 | 81,620 | ||||||
Stockholders' equity: | ||||||||
Common stock, $0.01 par value, 200,000,000 shares authorized, 102,101,878 and 102,144,577 shares issued, respectively | 1,021 | 1,021 | ||||||
Additional paid-in capital | 3,254,760 | 3,243,325 | ||||||
(Accumulated deficit) retained earnings | (466,281) | 331,795 | ||||||
Total stockholders' equity | 2,789,500 | 3,576,141 | ||||||
$ | 6,218,346 | $ | 7,140,029 | |||||
View original content:http://www.prnewswire.com/news-releases/cimarex-reports-first-quarter-2020-results-issues-abridged-guidance-301054288.html
SOURCE Cimarex Energy Co.
Article Date
5/6/2020Cimarex Announces Further Reduction to 2020 Capital Plans; Curtails 30% of May Volumes
Source: PR Newswire
DENVER, April 15, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that, due to the continued weakness in oil prices, it now expects a 55-60 percent reduction in its 2020 capital investment program from its original guidance of $1.25-$1.35 billion.
The company has deferred completion activities and will drop all but one drilling rig in early May.
Cimarex Chairman, President and CEO, Tom Jorden, said, "The pressure on oil prices resulting from the sudden and severe drop in demand, has caused us to defer activity in the Delaware Basin, further reducing our capital investment in 2020. Cimarex retains the flexibility to adjust our investment in the second half of 2020 as conditions change. Our balance sheet continues to be our focus and allows us to maintain a long-term perspective during this unprecedented time."
Cimarex also announced that is has curtailed approximately 30 percent of its volumes for the month of May due to weakness in realized prices.
The company plans to provide a more detailed update as part of its first quarter earnings release on May 6th.
Current Hedge Position
Oil Hedges | 2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 |
WTI Oil Collars1 | |||||||
Volumes (Bbl/d) | 34,341 | 41,000 | 41,000 | 33,000 | 23,000 | 14,000 | 14,000 |
Weighted Average Floor | 48.29 | 40.91 | 40.91 | 38.71 | 34.00 | 29.71 | 29.71 |
Weighted Average Ceiling | 58.96 | 49.84 | 49.84 | 46.70 | 41.33 | 36.86 | 36.86 |
WTI Oil Basis Swaps2 | |||||||
Volumes (Bbl/d) | 27,648 | 32,000 | 32,000 | 24,000 | 18,000 | 13,000 | 13,000 |
Weighted Average Differential3 | 0.38 | 0.18 | 0.18 | 0.00 | (0.19) | (0.65) | (0.65) |
Gas Hedges | 2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 |
PEPL Gas Collars4 | |||||||
Volumes (MMBtu/d) | 63,297 | 80,000 | 80,000 | 60,000 | 50,000 | 30,000 | 30,000 |
Weighted Average Floor | 1.89 | 1.75 | 1.75 | 1.72 | 1.69 | 1.73 | 1.73 |
Weighted Average Ceiling | 2.28 | 2.17 | 2.17 | 2.12 | 2.08 | 2.14 | 2.14 |
El Paso Perm Gas Collars5 | |||||||
Volumes (MMBtu/d) | 33,297 | 70,000 | 70,000 | 50,000 | 50,000 | 30,000 | 30,000 |
Weighted Average Floor | 1.41 | 1.36 | 1.36 | 1.36 | 1.36 | 1.51 | 1.51 |
Weighted Average Ceiling | 1.82 | 1.64 | 1.64 | 1.63 | 1.63 | 1.80 | 1.80 |
Waha Gas Collars6 | |||||||
Volume (MMBtu/d) | 33,297 | 50,000 | 50,000 | 50,000 | 50,000 | 30,000 | 30,000 |
Weighted Average Floor | 1.56 | 1.32 | 1.32 | 1.32 | 1.32 | 1.50 | 1.50 |
Weighted Average Ceiling | 1.95 | 1.58 | 1.58 | 1.58 | 1.58 | 1.75 | 1.75 |
1WTI refers to West Texas Intermediate oil prices as quoted on the New York Mercantile Exchange |
2Index price on basis swaps is WTI Midland as quoted by Argus Americas Crude |
3Index price on basis swaps is WTI NYMEX less weighted average differential shown in table |
4PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent as quoted on Platt's Inside FERC |
5El Paso Perm refers to El Paso Permian Basin index as quoted on Platt's Inside FERC |
6Waha refers to West Texas Natural Gas Index ("Waha") as quoted in Platt's Inside FERC |
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a description of certain risk factors that may affect these forward-looking statements. Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility, including those resulting from demand destruction from the COVID-19 pandemic; disruptions to the availability of workers and contractors due to illness and stay at home orders related to the COVID-19 pandemic; disruptions to gathering, pipeline, refining, transportation and other midstream and downstream activities due to the COVID-19 pandemic; disruptions to supply chains and availability of critical equipment and supplies due to the COVID-19 pandemic; the effectiveness of controls over financial reporting; declines in the values of our oil and gas properties resulting in impairments; impairments of goodwill; higher than expected costs and expenses, including the availability and cost of services and materials; our ability to successfully integrate the March 2019 acquisition of Resolute Energy Corporation; compliance with environmental and other regulations; costs and availability of third party facilities for gathering, processing, refining and transportation; risks associated with concentration of operations in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions;and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
View original content:http://www.prnewswire.com/news-releases/cimarex-announces-further-reduction-to-2020-capital-plans-curtails-30-of-may-volumes-301041409.html
SOURCE Cimarex Energy Co.
Article Date
4/15/2020Cimarex Schedules First Quarter 2020 Earnings Release and Conference Call
Source: PR Newswire
DENVER, April 7, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced it plans to report first quarter 2020 financial results on Wednesday, May 6, 2020, after market close. The company will host its quarterly conference call at 11:00 AM ET on Thursday, May 7, 2020.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-schedules-first-quarter-2020-earnings-release-and-conference-call-301036870.html
SOURCE Cimarex Energy Co.
Article Date
4/7/2020Cimarex Energy Co. Announces Format Change for 2020 Annual Meeting of Shareholders
Source: PR Newswire
DENVER, April 2, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) ("Cimarex" or the "Company") announced today that, due to the current situation regarding the public health impact of the COVID-19 pandemic and limitations within the State of Oklahoma on all non-essential gatherings of individuals, the Company has changed the format of its annual meeting of shareholders from a physical in-person meeting to a virtual webcast, and invites shareholders to participate remotely. The Company expects future annual meetings to be held in person or potentially as hybrid in-person and virtual meetings.
The special shareholders meeting will be held at 8:00 a.m. Mountain/9:00 a.m. Central time on May 6, 2020 via webcast.
Please see below for full details:
Cimarex Virtual Annual Shareholders Meeting
Date: | May 6, 2020 |
Time: | 8:00 a.m. Mountain/9:00 a.m. Central time |
Webcast Link: |
Attending the Virtual Annual Meeting
Both shareholders of record and shareholders who hold their shares in "street name" will need to register to be able to attend the Annual Meeting via live audio webcast, submit their questions during the meeting and vote their shares electronically at the Annual Meeting by following the instructions below.
If you are a shareholder of record, you must:
If your shares are held in a "street name," you must:
Obtain a legal proxy from your broker, bank or other nominee.
You will need to enter your name, phone number and email address, and provide a copy of the legal proxy (which may be uploaded to the registration website or sent via VirtualMeeting@viewproxy.com as part of the registration, following which, you will receive an email confirming your registration, your virtual control number, as well as the password to attend the Annual Meeting.
Please note, if you do not provide a copy of the legal proxy, you may still attend the Annual Meeting but you will be unable to vote your shares electronically at the Annual Meeting.
Technical Difficulties
We will have technicians ready to assist you with any technical difficulties you may have accessing the Annual Meeting live audio webcast. Please be sure to check in by 7:30 a.m. Mountain/8:30 a.m. Central time on May 6, 2020, the day of the Annual Meeting, so we may address any technical difficulties before the Annual Meeting live audio webcast begins. If you encounter any difficulties accessing the Annual Meeting live audio webcast during the check-in or meeting time, please email VirtualMeeting@viewproxy.com or call 866-612-8937.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
Forward-Looking Statements
This press release and the matters discussed in the question and answer period following the virtual Annual Meeting contain forward-looking statements, including statements regarding projected results and future events. These forward-looking statements are based on management's judgment as of the date of this press release and the virtual annual meeting and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a description of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; impacts of the COVID-19 pandemic on employees, demand for oil and gas, and supply chains; higher than expected costs and expenses, including the availability and cost of services and materials; our ability to successfully integrate the March 2019 acquisition of Resolute Energy Corporation; compliance with environmental and other regulations; costs and availability of third party facilities for gathering, processing, refining and transportation; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-co-announces-format-change-for-2020-annual-meeting-of-shareholders-301034077.html
SOURCE Cimarex Energy Co.
Article Date
4/2/2020Cimarex Announces Reduction in 2020 Capital Plans
Source: PR Newswire
DENVER, March 17, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that, due to the recent drop in oil prices, it expects a 40-50 percent reduction in its 2020 capital investment program from its original guidance of $1.25-$1.35 billion.
Cimarex Chairman, President and CEO, Tom Jorden, said, "We are taking action in these challenging times. Our top priority is to preserve our balance sheet strength. Our revised outlook assumes $30 per barrel WTI price for the remainder of 2020. Under this scenario, Cimarex will not incur additional debt in 2020 and will generate sufficient free cash flow to preserve payment of our dividend to our shareholders." He went on to say, "This capital level holds annual oil production flat with 2019 levels and the investments we are making significantly exceed our hurdle rate of return, a testament to the quality of our assets."
Cimarex will continue to monitor commodity price developments and will adjust capital spending plans in response to this dynamic environment. The company plans to provide a more comprehensive update as part of its first quarter earnings release in May.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-announces-reduction-in-2020-capital-plans-301025838.html
SOURCE Cimarex Energy Co.
Article Date
3/17/2020Cimarex Energy Approves Dividend on Preferred Stock
Source: PR Newswire
DENVER, Feb. 25, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that its Board of Directors approved a cash dividend of $20.3125 per share on its 8⅛ percent Series A Cumulative Perpetual Convertible Preferred Stock. The dividend is payable on April 15, 2020, to holders of record at the close of business on April 1, 2020, and is for the period beginning on January 16, 2020 and ending on April 15, 2020.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-approves-dividend-on-preferred-stock-301010481.html
SOURCE Cimarex Energy Co.
Article Date
2/25/20202/19/2020 - Cimarex Energy Declares Quarterly Cash Dividend
Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
DENVER, Feb. 19, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.22 per share, a ten percent increase from the previous dividend. The dividend is payable on June 1, 2020, to stockholders of record on May 15, 2020.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-declares-quarterly-cash-dividend-301007905.html
SOURCE Cimarex Energy Co.
Article Date
2/19/2020Cimarex Announces 2020 Capital Investment Plans and Production and Expense Guidance
Source: PR Newswire
DENVER, Feb. 19, 2020 /PRNewswire/ --
Cimarex Energy Co. (NYSE: XEC) today announced its projected 2020 total capital investment (including midstream capital) of $1.25 - 1.35 billion. The table below shows a breakdown of the projected capital by category:
Capital Expenditures | 2020E Guidance | |
Drilling and Completion (D&C) | $0.95 - 1.05 billion | |
Midstream/Saltwater Disposal (SWD) | $100 million | |
Other* | $200 million | |
Total Capital Investment | $1.25 - 1.35 billion | |
*Capitalized overhead, production, NPL and technology | ||
In 2020, oil production is projected to average 91 - 97 thousand barrels of oil (MBbls) per day, up nine percent at the midpoint from 2019 levels. Total equivalent production is expected to average 270 - 286 thousand barrels of oil equivalent (MBOE) per day, essentially flat from 2019. Following the strong performance in the fourth quarter of 2019, oil production in the first quarter of 2020 is expected to average 87.5 - 91.5 MBbls per day with total production expected to average 272 - 288 MBOE per day, both slightly down from fourth quarter levels.
Tom Jorden, Cimarex Chairman and CEO, said, "Our capital planning for 2020 shows that at $50 WTI and similar capital to the amount invested in 2019, Cimarex can generate nine percent midpoint oil growth and generate free cash flow. As we review our three year plan, we believe a ratable level of activity should, at a minimum, yield similar production growth with increasing free cash flow in each of the next three years at $50 WTI." Mr. Jorden went on to say, "We are pleased with our execution and expect to see further capital efficiencies in 2020 and beyond."
Cimarex intends to invest $0.95 - 1.05 billion on the drilling and completion of wells in 2020 with 90 net wells expected to begin producing during the period. Over 90 percent of the D&C capital will be invested in the Permian region with the remainder in the Mid-Continent. Permian activities will continue to focus on long lateral Wolfcamp wells in Culberson and Reeves counties in Texas, and in Lea and Eddy counties in New Mexico. Avalon and Bone Spring activities round out the remainder of our investments in the region.
Below are the net wells expected to be on production in 2020 by quarter:
1Q20 | 2Q20 | 3Q20 | 4Q20 | Total | |||||||||||
Permian Basin | 20 | 14 | 25 | 18 | 77 | ||||||||||
Mid-Continent | — | 2 | 10 | 1 | 13 | ||||||||||
Total | 20 | 16 | 35 | 19 | 90 | ||||||||||
Expenses for 2020 on a per unit basis are expected to fall within the following ranges:
($/BOE) | ||
Production expense | $3.10 - $3.60 | |
Transportation and other operating expense | 2.30 - 2.50 | |
DD&A and ARO accretion | 8.50 - 9.50 | |
General and administrative expense | 0.95 - 1.15 | |
Taxes other than income (% of oil and gas revenue) | 6.0% - 7.0% | |
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a description of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; higher than expected costs and expenses, including the availability and cost of services and materials; our ability to successfully integrate the March 2019 acquisition of Resolute Energy Corporation; compliance with environmental and other regulations; costs and availability of third party facilities for gathering, processing, refining and transportation; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
View original content:http://www.prnewswire.com/news-releases/cimarex-announces-2020-capital-investment-plans-and-production-and-expense-guidance-301007866.html
SOURCE Cimarex Energy Co.
Article Date
2/19/2020Cimarex Schedules Fourth Quarter 2019 Earnings Release and Conference Call
Source: PR Newswire
DENVER, Jan. 21, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced it plans to report fourth quarter 2019 financial results on Wednesday, February 19, 2020, after market close. The company will host its quarterly conference call at 11:00 AM ET on Thursday, February 20, 2020.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-schedules-fourth-quarter-2019-earnings-release-and-conference-call-300990481.html
SOURCE Cimarex Energy Co.
Article Date
1/21/2020Cimarex Announces Retirement of Joseph R. Albi, Executive Vice President, Chief Operating Officer and Director
Source: PR Newswire
DENVER, Jan. 15, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that its Executive Vice President and Chief Operating Officer (COO), Joe Albi, has informed management and the Cimarex Board of Directors of his retirement as an officer and director of the company effective July 1, 2020. Mr. Albi has been with Cimarex since its formation in 2002, having joined Key Production Company at its outset in 1994. Key was transformed into Cimarex through a merger with Helmerich & Payne's exploration and production business in 2002. Mr. Albi rose through the ranks and was ultimately named Executive Vice President and COO as well as elected to the Board of Directors in September 2011. He is a graduate of the Colorado School of Mines with a B.S. in Petroleum Engineering and M.S. in Mineral Economics.
Mr. Albi stated, "My tenure at Cimarex has been truly rewarding and I am fortunate and grateful to have been part of such a talented, success-driven organization. I take great pride in our accomplishments."
Thomas E. Jorden, Chief Executive Officer and Chairman, said, "It would be impossible to overstate the role that Joe Albi has had on Cimarex's development since our founding. His passion for excellence, attention to detail, and commitment to measurable returns have shaped our organization and our culture. We have all learned a tremendous amount from Joe over the years and we will miss him. To his credit, he will leave us well prepared for the future. We are excited for Joe's next adventure and we wish him well in retirement."
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-announces-retirement-of-joseph-r-albi-executive-vice-president-chief-operating-officer-and-director-300987283.html
SOURCE Cimarex Energy Co.
Article Date
1/15/202012/11/2019 - Cimarex Energy Approves Dividend on Preferred Stock
Cimarex Energy Approves Dividend on Preferred Stock
Source: PR Newswire
DENVER, Dec. 11, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that its Board of Directors approved a cash dividend of $20.3125 per share on its 8⅛ percent Series A Cumulative Perpetual Convertible Preferred Stock. The dividend is payable on January 15, 2020, to holders of record at the close of business on January 1, 2020, and is for the period beginning on October 16, 2019 and ending on January 15, 2020.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-approves-dividend-on-preferred-stock-300972918.html
SOURCE Cimarex Energy Co.
Article Date
12/11/201912/6/2019 - Cimarex Energy Declares Quarterly Cash Dividend
Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
DENVER, Dec. 6, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.20 per share. The dividend is payable on February 28, 2020, to stockholders of record on February 14, 2020.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-declares-quarterly-cash-dividend-300970419.html
SOURCE Cimarex Energy Co.
Article Date
12/6/201911/4/2019 - Cimarex Reports Third Quarter 2019 Results
Cimarex Reports Third Quarter 2019 Results
Source: PR Newswire
DENVER, Nov. 4, 2019 /PRNewswire/ --
Cimarex Energy Co. (NYSE: XEC) today reported third quarter 2019 net income of $40.5 million, or $0.39 per share, compared to $148.4 million, or $1.56 per share, in the same period a year ago. Third quarter 2019 results were negatively impacted by a non-cash charge related to the impairment of oil and gas properties. Third quarter adjusted net income (non-GAAP) was $92.9 million, or $0.91 per share, compared to third quarter 2018 adjusted net income (non-GAAP) of $189.6 million, or $1.99 per share1. Net cash provided by operating activities was $320.1 million in the third quarter of 2019 compared to $453.5 million in the same period a year ago. Adjusted cash flow from operations (non-GAAP) was $360.7 million in the third quarter of 2019 compared to $388.7 million in the third quarter a year ago1.
Oil production averaged 89.7 thousand barrels (MBbls) per day, up 40 percent from the same period a year ago and up eight percent sequentially. Total company production volumes for the quarter averaged 287.1 thousand barrels of oil equivalent (MBOE) per day.
Realized product prices were down in the third quarter compared to the same quarter a year ago. Realized oil prices averaged $52.71 per barrel, down 10 percent from the $58.25 per barrel received in the third quarter of 2018. Realized natural gas prices averaged $0.88 per thousand cubic feet (Mcf), down 52 percent from the third quarter 2018 average of $1.84 per Mcf but up 76 percent sequentially. NGL prices averaged $10.80 per barrel, down 58 percent from the $25.72 per barrel received in the third quarter of 2018. See footnotes to the Average Realized Prices by Region table below for ASC 606 impact on realized prices.
Natural gas prices were negatively impacted by local price differentials. Cimarex's average differential to Henry Hub on its Permian natural gas production was $1.83 per Mcf in the third quarter of 2019 compared to $1.25 per Mcf in the third quarter of 2018 and $3.10 in the second quarter of 2019. In the Mid-Continent region, the company's average differential to Henry Hub was $0.66 per Mcf versus $0.94 per Mcf in the third quarter of 2018 and $0.86 in the second quarter of 2019. Our realized Permian oil differential to WTI Cushing improved and averaged $3.76 per barrel in the quarter, compared to $14.34 per barrel in the third quarter of 2018 and $5.80 per barrel in the second quarter of 2019.
Production expense averaged $3.34 per BOE for the third quarter, down 12 percent compared to the same period a year ago and down five percent sequentially.
Cimarex invested $296 million in exploration and development (E&D) during the third quarter, of which $221 million is attributable to drilling and completion activities. Cimarex invested $19 million in midstream assets during the quarter. Third quarter investments were funded with cash flow from operating activities. Total debt at September 30, 2019 consisted of $2.0 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $24 million. Debt was 35 percent of total capitalization2.
Outlook
Fourth quarter 2019 production volumes are expected to average 272 - 292 MBOE per day. Oil volumes are estimated to average 86.0 - 92.0 MBbls per day in the fourth quarter, essentially flat sequentially at the midpoint, with Permian growth expected to outpace total company growth. Total 2019 daily annual oil volumes are estimated to average 84.5 - 86.5 MBbls per day with total production volumes expected to average 274 - 278 MBOE per day, up three percent at the midpoint from previous guidance due primarily to higher than expected NGL recoveries.
Estimated 2019 exploration and development investment is $1.30 – 1.40 billion, down four percent at the midpoint from guidance given in February. Midstream investments are estimated to total approximately $70 million in 2019.
Expenses per BOE of production for 2019 are estimated to be:
Production expense | $3.30 - 3.55 | |
Transportation, processing and other expense | 1.80 - 2.20 | |
DD&A and ARO accretion | 7.75 - 8.75 | |
General and administrative expense | 0.95 - 1.10 | |
Taxes other than income (% of oil and gas revenue) | 6.0 - 7.0% |
Cimarex Chairman and CEO, Tom Jorden, said, "We have seen strong execution in 2019, which we expect to continue into 2020. Our initial planning indicates that we will generate meaningful free cash flow in 2020 using a flat $50 per barrel WTI price and NYMEX gas price of $2.50 per Mcf, adjusted for basis differentials."
Operations Update
Cimarex invested $296 million in E&D during the third quarter, 84 percent in the Permian Basin and 16 percent in the Mid-Continent. Cimarex brought 96 gross (21 net) wells on production during the quarter. At September 30, 79 gross (34 net) wells were waiting on completion. Cimarex currently is operating eight drilling rigs.
WELLS BROUGHT ON PRODUCTION BY REGION | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Gross wells | ||||||||||||
Permian Basin | 44 | 33 | 100 | 82 | ||||||||
Mid-Continent | 52 | 82 | 144 | 176 | ||||||||
96 | 115 | 244 | 258 | |||||||||
Net wells | ||||||||||||
Permian Basin | 16 | 24 | 53 | 46 | ||||||||
Mid-Continent | 5 | 20 | 16 | 36 | ||||||||
21 | 44 | 69 | 82 | |||||||||
Permian Region
Production from the Permian region averaged 198.6 MBOE per day in the third quarter, a 64 percent increase from third quarter 2018. Oil volumes averaged 74.8 MBbls per day, a 53 percent increase from third quarter 2018 and up six percent sequentially.
Cimarex brought 44 gross (16 net) wells on production in the Permian region during the third quarter. There were 43 gross (32 net) wells waiting on completion at September 30. Cimarex currently is operating eight drilling rigs and two completion crews in the region.
Mid-Continent Region
Production from the Mid-Continent averaged 88.1 MBOE per day for the third quarter, down 10 percent from third quarter 2018 and up three percent sequentially.
During the third quarter, Cimarex brought 52 gross (5 net) wells on production in the Mid-Continent region. At the end of the quarter, 36 gross (2 net) wells were waiting on completion. Cimarex is not currently operating a drilling rig or completion crew in the Mid-Continent.
Cimarex's average daily production and commodity price by region is summarized below:
DAILY PRODUCTION BY REGION | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Permian Basin | ||||||||||||
Gas (MMcf) | 422.9 | 239.4 | 381.2 | 239.3 | ||||||||
Oil (Bbls) | 74,819 | 49,001 | 70,188 | 49,211 | ||||||||
NGL (Bbls) | 53,311 | 31,919 | 51,492 | 29,863 | ||||||||
Total Equivalent (MBOE) | 198.6 | 120.8 | 185.2 | 119.0 | ||||||||
Mid-Continent | ||||||||||||
Gas (MMcf) | 293.7 | 317.9 | 292.1 | 303.6 | ||||||||
Oil (Bbls) | 14,788 | 14,755 | 13,880 | 14,149 | ||||||||
NGL (Bbls) | 24,338 | 29,603 | 25,480 | 27,829 | ||||||||
Total Equivalent (MBOE) | 88.1 | 97.3 | 88.0 | 92.6 | ||||||||
Total Company | ||||||||||||
Gas (MMcf) | 718.0 | 558.8 | 674.6 | 544.4 | ||||||||
Oil (Bbls) | 89,731 | 63,909 | 84,230 | 63,586 | ||||||||
NGL (Bbls) | 77,693 | 61,560 | 77,021 | 57,748 | ||||||||
Total Equivalent (MBOE) | 287.1 | 218.6 | 273.7 | 212.1 | ||||||||
AVERAGE REALIZED PRICE BY REGION | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Permian Basin | ||||||||||||
Gas ($ per Mcf) (1) | 0.40 | 1.66 | 0.36 | 1.79 | ||||||||
Oil ($ per Bbl) | 52.69 | 55.16 | 51.70 | 58.24 | ||||||||
NGL ($ per Bbl) (2) | 9.94 | 27.53 | 12.40 | 23.95 | ||||||||
Mid-Continent | ||||||||||||
Gas ($ per Mcf) (3) | 1.57 | 1.97 | 2.01 | 2.01 | ||||||||
Oil ($ per Bbl) | 52.73 | 68.42 | 53.55 | 64.82 | ||||||||
NGL ($ per Bbl) (4) | 12.69 | 23.75 | 15.28 | 21.77 | ||||||||
Total Company | ||||||||||||
Gas ($ per Mcf) (5) | 0.88 | 1.84 | 1.08 | 1.92 | ||||||||
Oil ($ per Bbl) | 52.71 | 58.25 | 52.02 | 59.70 | ||||||||
NGL ($ per Bbl) (6) | 10.80 | 25.72 | 13.36 | 22.90 | ||||||||
(1) | The average realized gas price shown in the table above includes the effects of ASC 606, which reduced the average realized prices by $0.41 per Mcf, $0.12 per Mcf, $0.37 per Mcf, and $0.11 per Mcf for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively. | |||
(2) | The average realized NGL price shown in the table above includes the effects of ASC 606, which reduced the average realized prices by $1.88 per barrel, $1.55 per barrel, $1.82 per barrel, and $1.64 per barrel for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively. | |||
(3) | The average realized gas price shown in the table above includes the effects of ASC 606, which reduced the average realized prices by $0.04 per Mcf, $0.04 per Mcf, $0.05 per Mcf, and $0.04 per Mcf for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively. | |||
(4) | The average realized NGL price shown in the table above includes the effects of ASC 606, which reduced the average realized prices by $0.29 per barrel, $0.53 per barrel, $0.31 per barrel, and $1.05 per barrel for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively. | |||
(5) | The average realized gas price shown in the table above includes the effects of ASC 606, which reduced the average realized prices by $0.26 per Mcf, $0.07 per Mcf, $0.23 per Mcf, and $0.07 per Mcf for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively. | |||
(6) | The average realized NGL price shown in the table above includes the effects of ASC 606, which reduced the average realized prices by $1.38 per barrel, $1.06 per barrel, $1.31 per barrel, and $1.36 per barrel for the three months ended September 30, 2019 and 2018 and the nine months ended September 30, 2019 and 2018, respectively. | |||
Other
Cimarex received cash settlements of $17.6 million related to its gas hedges during the quarter. Settlement of oil hedges resulted in a cash payment of $15.9 million.
The following table summarizes the company's current open hedge positions:
4Q19 | 1Q20 | 2Q20 | 3Q20 | 4Q20 | 1Q21 | |||||||||||||
Gas Collars: | PEPL(3) | |||||||||||||||||
Volume (MMBtu/d) | 120,000 | 90,000 | 60,000 | 30,000 | 30,000 | 10,111 | ||||||||||||
Wtd Avg Floor | $ | 1.92 | $ | 1.92 | $ | 1.90 | $ | 1.85 | $ | 1.85 | $ | 1.85 | ||||||
Wtd Avg Ceiling | $ | 2.35 | $ | 2.36 | $ | 2.28 | $ | 2.31 | $ | 2.31 | $ | 2.31 | ||||||
El Paso Perm(3) | ||||||||||||||||||
Volume (MMBtu/d) | 60,000 | 40,000 | 30,000 | 20,000 | 20,000 | — | ||||||||||||
Wtd Avg Floor | $ | 1.38 | $ | 1.40 | $ | 1.40 | $ | 1.35 | $ | 1.35 | $ | — | ||||||
Wtd Avg Ceiling | $ | 1.71 | $ | 1.79 | $ | 1.82 | $ | 1.66 | $ | 1.66 | $ | — | ||||||
Waha (3) | ||||||||||||||||||
Volume (MMBtu/d) | 60,000 | 50,000 | 30,000 | — | — | — | ||||||||||||
Wtd Avg Floor | $ | 1.48 | $ | 1.50 | $ | 1.57 | $ | — | $ | — | $ | — | ||||||
Wtd Avg Ceiling | $ | 1.82 | $ | 1.87 | $ | 1.97 | $ | — | $ | — | $ | — | ||||||
Oil Collars: | WTI(4) | |||||||||||||||||
Volume (Bbl/d) | 37,326 | 30,000 | 22,000 | 14,000 | 14,000 | 6,000 | ||||||||||||
Wtd Avg Floor | $ | 54.05 | $ | 53.12 | $ | 50.61 | $ | 49.68 | $ | 49.68 | $ | 49.24 | ||||||
Wtd Avg Ceiling | $ | 66.48 | $ | 65.80 | $ | 62.15 | $ | 60.92 | $ | 60.92 | $ | 58.41 | ||||||
Oil Basis Swaps: | WTI Midland(5) | |||||||||||||||||
Volume (Bbl/d) | 40,826 | 29,000 | 21,000 | 14,000 | 14,000 | 6,000 | ||||||||||||
Wtd Avg Differential | $ | (5.42) | $ | 0.25 | $ | 0.29 | $ | 0.65 | $ | 0.65 | $ | 0.57 | ||||||
Oil Swaps: | WTI(4) | |||||||||||||||||
Volume (Bbl/d) | 5,000 | — | — | — | — | — | ||||||||||||
Wtd Avg Fixed | $ | 64.54 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
Gas Swaps: | Henry Hub(6) | |||||||||||||||||
Volume (MMBtu/d) | 35,000 | — | — | — | — | — | ||||||||||||
Wtd Avg Fixed | $ | 3.00 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
Sold Oil Calls: | WTI(4) | |||||||||||||||||
Volume (Bbl/d) | 3,670 | — | — | — | — | — | ||||||||||||
Wtd Avg Ceiling | $ | 64.36 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
Conference call and webcast
Cimarex will host a conference call tomorrow, November 5, at 11:00 a.m. EST (9:00 a.m. MST). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216). A replay will be available on the company's website.
Investor Presentation
For more details on Cimarex's third quarter 2019 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the "2019 Outlook" contains projections for certain 2019 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; declines in the values of our oil and gas properties resulting in impairments; local commodity price differentials; derivative and hedging activities; higher than expected costs and expenses, including the availability and cost of services and materials; our ability to successfully integrate the business of the recently acquired Resolute Energy Corporation; unknown liabilities related to Resolute; compliance with environmental and other regulations; costs and availability of third party facilities for gathering, processing, refining and transportation; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
1 | Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for reconciliations of the related GAAP amounts. | |||
2 | Debt to total capitalization is calculated by dividing the sum of (i) the principal amount of senior notes and (ii) redeemable preferred stock by the sum of (x) the principal amount of senior notes, (y) redeemable preferred stock, and (z) total stockholders' equity. | |||
3 | PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index, El Paso Perm refers to El Paso Permian Basin index, and Waha refers to West Texas (Waha) Index, all as quoted in Platt's Inside FERC. | |||
4 | WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. | |||
5 | Index price on basis swaps is WTI NYMEX less the weighted average WTI Midland differential, as quoted by Argus Americas Crude. | |||
6 | Henry Hub (located in So. Louisiana) is the official location for futures contracts on the New York Mercantile Exchange (NYMEX). | |||
RECONCILIATION OF ADJUSTED NET INCOME
The following reconciles net income as reported under generally accepted accounting principles (GAAP) to adjusted net income (non-GAAP) for the periods indicated.
Three Months Ended | Nine Months Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Net income | $ | 40,527 | $ | 148,354 | $ | 176,152 | $ | 475,669 | |||||||
Impairment of oil and gas properties (1) | 108,879 | — | 108,879 | — | |||||||||||
Mark-to-market (gain) loss on open derivative positions | (37,039) | 53,507 | 34,831 | 51,128 | |||||||||||
Loss on early extinguishment of debt | — | — | 4,250 | — | |||||||||||
Acquisition related costs | 13 | — | 8,404 | — | |||||||||||
Tax impact | (19,472) | (12,253) | (38,309) | (11,810) | |||||||||||
Adjusted net income | $ | 92,908 | $ | 189,608 | $ | 294,207 | $ | 514,987 | |||||||
Diluted earnings per share | $ | 0.39 | $ | 1.56 | $ | 1.72 | $ | 5.00 | |||||||
Adjusted diluted earnings per share* | $ | 0.91 | $ | 1.99 | $ | 2.93 | $ | 5.39 | |||||||
Weighted-average number of shares outstanding: | |||||||||||||||
Adjusted diluted** | 101,593 | 95,512 | 100,266 | 95,472 | |||||||||||
(1) | An additional ceiling test impairment is anticipated in the fourth quarter. | |||
Adjusted net income and adjusted diluted earnings per share exclude the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP measures because: | ||||
a) | Management uses adjusted net income to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies. | |||
b) | Adjusted net income is more comparable to earnings estimates provided by research analysts. | |||
* Does not include adjustments resulting from application of the "two-class method" used to determine earnings per share under GAAP. | ||||
** Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding stock options. | ||||
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) for the periods indicated.
Three Months Ended | Nine Months Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in thousands) | |||||||||||||||
Net cash provided by operating activities | $ | 320,074 | $ | 453,474 | $ | 984,157 | $ | 1,157,813 | |||||||
Change in operating assets and liabilities | 40,655 | (64,792) | 63,996 | (52,386) | |||||||||||
Adjusted cash flow from operations | $ | 360,729 | $ | 388,682 | $ | 1,048,153 | $ | 1,105,427 | |||||||
Management uses the non-GAAP financial measure of adjusted cash flow from operations as a means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities. Management believes this non-GAAP financial measure provides useful information to investors for the same reason, and that it is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.
OIL AND GAS CAPITALIZED EXPENDITURES | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(in thousands) | ||||||||||||||||
Acquisitions: | ||||||||||||||||
Proved | $ | 2,373 | $ | — | $ | 696,173 | $ | 62 | ||||||||
Unproved | (30,314) | (1) | 10,015 | 1,021,468 | 12,251 | |||||||||||
(27,941) | 10,015 | 1,717,641 | 12,313 | |||||||||||||
Exploration and development: | ||||||||||||||||
Land and seismic | $ | 18,377 | $ | 55,603 | $ | 42,456 | $ | 76,027 | ||||||||
Exploration and development | 278,083 | 445,429 | 947,002 | 1,113,898 | ||||||||||||
296,460 | 501,032 | 989,458 | 1,189,925 | |||||||||||||
Property sales: | ||||||||||||||||
Proved | $ | (9,286) | $ | (527,650) | $ | (27,314) | $ | (557,191) | ||||||||
Unproved | (81) | (12,022) | (9,835) | (17,323) | ||||||||||||
(9,367) | (539,672) | (37,149) | (574,514) | |||||||||||||
$ | 259,152 | $ | (28,625) | $ | 2,669,950 | $ | 627,724 | |||||||||
(1) Amount represents an adjustment made to the Resolute preliminary purchase price allocation upon finalization of the quantity of acres acquired. |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(in thousands, except per share information) | ||||||||||||||||
Revenues: | ||||||||||||||||
Oil sales | $ | 435,094 | $ | 342,495 | $ | 1,196,166 | $ | 1,036,402 | ||||||||
Gas and NGL sales | 135,483 | 240,087 | 479,442 | 646,007 | ||||||||||||
Gas gathering and other | 11,728 | 8,906 | 30,117 | 32,487 | ||||||||||||
582,305 | 591,488 | 1,705,725 | 1,714,896 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Impairment of oil and gas properties | 108,879 | — | 108,879 | — | ||||||||||||
Depreciation, depletion, amortization, and accretion | 230,172 | 138,195 | 638,122 | 417,555 | ||||||||||||
Production | 88,300 | 76,272 | 253,259 | 226,758 | ||||||||||||
Transportation, processing, and other operating | 52,697 | 49,720 | 154,636 | 146,818 | ||||||||||||
Gas gathering and other | 13,893 | 10,569 | 39,818 | 29,859 | ||||||||||||
Taxes other than income | 30,873 | 28,431 | 105,600 | 86,549 | ||||||||||||
General and administrative | 15,499 | 21,148 | 69,494 | 64,208 | ||||||||||||
Stock compensation | 6,797 | 6,437 | 20,004 | 16,262 | ||||||||||||
(Gain) loss on derivative instruments, net | (38,735) | 54,006 | 35,949 | 71,546 | ||||||||||||
Other operating expense, net | 10,141 | 10,015 | 19,057 | 15,470 | ||||||||||||
518,516 | 394,793 | 1,444,818 | 1,075,025 | |||||||||||||
Operating income | 63,789 | 196,695 | 260,907 | 639,871 | ||||||||||||
Other (income) and expense: | ||||||||||||||||
Interest expense | 24,586 | 17,159 | 69,665 | 50,837 | ||||||||||||
Capitalized interest | (16,264) | (5,457) | (41,811) | (15,117) | ||||||||||||
Loss on early extinguishment of debt | — | — | 4,250 | — | ||||||||||||
Other, net | (139) | (7,544) | (4,547) | (14,716) | ||||||||||||
Income before income tax | 55,606 | 192,537 | 233,350 | 618,867 | ||||||||||||
Income tax expense | 15,079 | 44,183 | 57,198 | 143,198 | ||||||||||||
Net income | $ | 40,527 | $ | 148,354 | $ | 176,152 | $ | 475,669 | ||||||||
Earnings per share to common stockholders: | ||||||||||||||||
Basic | $ | 0.39 | $ | 1.56 | $ | 1.72 | $ | 5.00 | ||||||||
Diluted | $ | 0.39 | $ | 1.56 | $ | 1.72 | $ | 5.00 | ||||||||
Dividends declared per common share | $ | 0.20 | $ | 0.18 | $ | 0.60 | $ | 0.50 | ||||||||
Weighted-average number of shares outstanding: | ||||||||||||||||
Basic | 99,735 | 93,845 | 98,452 | 93,758 | ||||||||||||
Diluted | 99,735 | 93,867 | 98,458 | 93,788 | ||||||||||||
Comprehensive income: | ||||||||||||||||
Net income | $ | 40,527 | $ | 148,354 | $ | 176,152 | $ | 475,669 | ||||||||
Other comprehensive income: | ||||||||||||||||
Change in fair value of investments, net of tax of ($648), $159, ($220) and $160, respectively | (2,198) | 539 | (745) | 541 | ||||||||||||
Total comprehensive income | $ | 38,329 | $ | 148,893 | $ | 175,407 | $ | 476,210 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(in thousands) | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 40,527 | $ | 148,354 | $ | 176,152 | $ | 475,669 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Impairment of oil and gas properties | 108,879 | — | 108,879 | — | ||||||||||||
Depreciation, depletion, amortization, and accretion | 230,172 | 138,195 | 638,122 | 417,555 | ||||||||||||
Deferred income taxes | 15,079 | 43,083 | 57,198 | 142,815 | ||||||||||||
Stock compensation | 6,797 | 6,437 | 20,004 | 16,262 | ||||||||||||
(Gain) loss on derivative instruments, net | (38,735) | 54,006 | 35,949 | 71,546 | ||||||||||||
Settlements on derivative instruments | 1,696 | (499) | (1,118) | (20,418) | ||||||||||||
Loss on early extinguishment of debt | — | — | 4,250 | — | ||||||||||||
Amortization of debt issuance costs and discounts | 783 | 727 | 2,285 | 2,183 | ||||||||||||
Changes in non-current assets and liabilities | (5,379) | (1,957) | (2,630) | (1,244) | ||||||||||||
Other, net | 910 | 336 | 9,062 | 1,059 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | (37,509) | (26,784) | 80,183 | (11,772) | ||||||||||||
Other current assets | 2,901 | 2,535 | 2,140 | 4,421 | ||||||||||||
Accounts payable and other current liabilities | (6,047) | 89,041 | (146,319) | 59,737 | ||||||||||||
Net cash provided by operating activities | 320,074 | 453,474 | 984,157 | 1,157,813 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Acquisition of Resolute Energy, net of cash acquired | — | — | (284,441) | — | ||||||||||||
Oil and gas capital expenditures | (288,623) | (500,677) | (1,000,380) | (1,151,484) | ||||||||||||
Sales of oil and gas assets | 15,314 | 538,525 | 28,547 | 573,367 | ||||||||||||
Sales of other assets | 425 | 465 | 859 | 990 | ||||||||||||
Other capital expenditures | (18,894) | (18,925) | (59,035) | (75,037) | ||||||||||||
Net cash (used) provided by investing activities | (291,778) | 19,388 | (1,314,450) | (652,164) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Borrowings of long-term debt | 529,000 | — | 2,239,310 | — | ||||||||||||
Repayments of long-term debt | (529,000) | — | (2,610,000) | — | ||||||||||||
Financing, underwriting, and debt redemption fees | (7) | — | (11,798) | — | ||||||||||||
Finance lease payments | (1,176) | — | (2,731) | — | ||||||||||||
Dividends paid | (21,483) | (15,237) | (60,130) | (38,038) | ||||||||||||
Employee withholding taxes paid upon the net settlement of equity-classified stock awards | (1,752) | (5,464) | (2,406) | (6,410) | ||||||||||||
Proceeds from exercise of stock options | 593 | 962 | 1,267 | 2,211 | ||||||||||||
Net cash used by financing activities | (23,825) | (19,739) | (446,488) | (42,237) | ||||||||||||
Net change in cash and cash equivalents | 4,471 | 453,123 | (776,781) | 463,412 | ||||||||||||
Cash and cash equivalents at beginning of period | 19,414 | 410,823 | 800,666 | 400,534 | ||||||||||||
Cash and cash equivalents at end of period | $ | 23,885 | $ | 863,946 | $ | 23,885 | $ | 863,946 | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
September | December 31, | |||||||
Assets | (in thousands, except share and | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 23,885 | $ | 800,666 | ||||
Accounts receivable, net of allowance | 425,329 | 454,200 | ||||||
Oil and gas well equipment and supplies | 49,113 | 55,553 | ||||||
Derivative instruments | 49,385 | 101,939 | ||||||
Other current assets | 8,867 | 11,781 | ||||||
Total current assets | 556,579 | 1,424,139 | ||||||
Oil and gas properties at cost, using the full cost method of accounting: | ||||||||
Proved properties | 20,134,383 | 18,566,757 | ||||||
Unproved properties and properties under development, not being amortized | 1,539,008 | 436,325 | ||||||
21,673,391 | 19,003,082 | |||||||
Less – accumulated depreciation, depletion, amortization, and impairment | (15,979,664) | (15,287,752) | ||||||
Net oil and gas properties | 5,693,727 | 3,715,330 | ||||||
Fixed assets, net of accumulated depreciation of $373,351 and $324,631, respectively | 538,179 | 257,686 | ||||||
Goodwill | 751,836 | 620,232 | ||||||
Derivative instruments | 5,715 | 9,246 | ||||||
Other assets | 73,169 | 35,451 | ||||||
$ | 7,619,205 | $ | 6,062,084 | |||||
Liabilities, Redeemable Preferred Stock, and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 65,925 | $ | 106,814 | ||||
Accrued liabilities | 430,832 | 379,455 | ||||||
Derivative instruments | 24,983 | 27,627 | ||||||
Revenue payable | 207,751 | 194,811 | ||||||
Operating leases | 67,208 | — | ||||||
Total current liabilities | 796,699 | 708,707 | ||||||
Long-term debt principal | 2,000,000 | 1,500,000 | ||||||
Less—unamortized debt issuance costs and discounts | (15,266) | (11,446) | ||||||
Long-term debt, net | 1,984,734 | 1,488,554 | ||||||
Deferred income taxes | 446,961 | 334,473 | ||||||
Derivative instruments | 403 | 2,267 | ||||||
Operating leases | 199,645 | — | ||||||
Other liabilities | 219,585 | 198,297 | ||||||
Total liabilities | 3,648,027 | 2,732,298 | ||||||
Redeemable preferred stock - 8.125% Series A Cumulative Perpetual Convertible Preferred Stock, $0.01 par value, 62,500 shares authorized and issued and no shares authorized and issued, respectively | 81,620 | — | ||||||
Stockholders' equity: | ||||||||
Common stock, $0.01 par value, 200,000,000 shares authorized, 101,820,140 and 95,755,797 shares issued, respectively | 1,018 | 958 | ||||||
Additional paid-in capital | 3,234,318 | 2,785,188 | ||||||
Retained earnings | 654,212 | 542,885 | ||||||
Accumulated other comprehensive income | 10 | 755 | ||||||
Total stockholders' equity | 3,889,558 | 3,329,786 | ||||||
$ | 7,619,205 | $ | 6,062,084 | |||||
View original content:http://www.prnewswire.com/news-releases/cimarex-reports-third-quarter-2019-results-300951057.html
SOURCE Cimarex Energy Co.
Article Date
11/4/2019Cimarex Schedules Third Quarter 2019 Earnings Release and Conference Call
Source: PR Newswire
DENVER, Oct. 2, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced it plans to report third quarter 2019 financial results on Monday, November 4, 2019, after market close. The company will host its quarterly conference call at 11:00 AM ET on Tuesday, November 5, 2019.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-schedules-third-quarter-2019-earnings-release-and-conference-call-300929964.html
SOURCE Cimarex Energy Co.
Article Date
10/2/2019Cimarex Announces Changes to its Board of Directors: Kathleen Hogenson Joins Following the Retirement of Michael Sullivan
Source: PR Newswire
DENVER, Sept. 23, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced the retirement of Michael J. Sullivan from its Board of Directors and the appointment of Kathleen A. Hogenson as an independent director of Cimarex effective September 30, 2019.
Cimarex Chairman, President and Chief Executive Officer, Tom Jorden, stated, "We are very pleased to announce the addition of Kathleen Hogenson to the Cimarex board. Her more than 35 years of experience and leadership in the oil and gas industry along with her background in E&P Technology and Data Analytics will make her a strong addition to our Boardroom. We welcome her perspective and thank her for her willingness to serve."
Ms. Hogenson is President and Chief Executive Officer at Zone Oil & Gas, LLC, which she co-founded in 2007. Previously, Ms. Hogenson served as President and CEO of Santos USA Corp. and Vice President of Technology at Unocal Corporation for a combined 10 years. Ms. Hogenson was employed at Maxus Energy prior to Unocal serving in a variety of roles. She currently serves on the board of directors of First Quantum Minerals Ltd and Verisk Analytics Inc.
Ms. Hogenson earned a Bachelor of Science in Chemical Engineering from The Ohio State University in 1982.
Mr. Jorden went on to say, "I also want to thank Governor Sullivan for his dedicated service to Cimarex. It would be impossible to overstate the contribution that Mike Sullivan has made to Cimarex. Since joining our board at the founding of Cimarex in 2002, Mike has helped guide Cimarex to become a premier E&P company. We are grateful that he has agreed to serve as Director Emeritus for the next two years, allowing Cimarex ongoing access to his wisdom, insights and judgment."
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-announces-changes-to-its-board-of-directors-kathleen-hogenson-joins-following-the-retirement-of-michael-sullivan-300923554.html
SOURCE Cimarex Energy Co.
Article Date
9/23/2019Cimarex Energy Approves Dividend on Preferred Stock
Source: PR Newswire
DENVER, Sept. 3, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that its Board of Directors approved a cash dividend of $20.3125 per share on its 8⅛ percent Series A Cumulative Perpetual Convertible Preferred Stock. The dividend is payable on October 15, 2019, to holders of record at the close of business on October 1, 2019, and is for the period beginning on July 16, 2019 and ending on October 15, 2019.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-approves-dividend-on-preferred-stock-300910040.html
SOURCE Cimarex Energy Co.
Article Date
9/3/20198/30/2019 - Cimarex Energy Declares Quarterly Cash Dividend
Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
DENVER, Aug. 30, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.20 per share. The dividend is payable on November 29, 2019, to stockholders of record on November 15, 2019.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-declares-quarterly-cash-dividend-300909479.html
SOURCE Cimarex Energy Co.
Article Date
8/30/20198/5/2019 - Cimarex Reports Second Quarter 2019 Results
Cimarex Reports Second Quarter 2019 Results
Source: PR Newswire
DENVER, Aug. 5, 2019 /PRNewswire/ --
Cimarex Energy Co. (NYSE: XEC) today reported second quarter 2019 net income of $109.3 million, or $1.07 per share, compared to $141.0 million, or $1.48 per share, in the same period a year ago. Second quarter adjusted net income (non-GAAP) was $83.0 million, or $0.82 per share, compared to second quarter 2018 adjusted net income (non-GAAP) of $151.9 million, or $1.59 per share1. Net cash provided by operating activities was $414.0 million in the second quarter of 2019 compared to $321.2 million in the same period a year ago. Adjusted cash flow from operations (non-GAAP) was $336.4 million in the second quarter of 2019 compared to $349.5 million in the second quarter a year ago1.
Total company production volumes for the quarter averaged 274.8 thousand barrels of oil equivalent (MBOE) per day. Oil production averaged 83,430 barrels (bbls) per day, up 35 percent from the same period a year ago and up five percent sequentially.
Realized product prices were down in the second quarter as compared to the same quarter a year ago. Realized oil prices averaged $54.24 per barrel, down 11 percent from the $60.99 per barrel received in the second quarter of 2018. Realized natural gas prices averaged $0.50 per thousand cubic feet (Mcf), down 70 percent from the second quarter 2018 average of $1.65 per Mcf. NGL prices averaged $13.08 per barrel, down 41 percent from the $22.29 per barrel received in the second quarter of 2018. See footnotes to the Average Realized Prices by Region table below for ASC 606 impact on realized prices.
Natural gas prices were negatively impacted by local price differentials. Cimarex's average differential to Henry Hub on its Permian natural gas production was $3.10 per Mcf in the second quarter of 2019 compared to $1.31 per Mcf in the second quarter of 2018 and $1.91 in the first quarter of 2019. In the Mid-Continent region, the company's average differential to Henry Hub was $0.86 per Mcf versus $1.03 per Mcf in the second quarter of 2018 and $0.46 in the first quarter of 2019. Our realized Permian oil differential to WTI Cushing improved and averaged $5.80 per barrel in the quarter, compared to $8.05 per barrel in the second quarter of 2018 and $6.90 per barrel in the first quarter of 2019.
Cimarex invested $325 million in exploration and development (E&D) during the second quarter, of which $265 million is attributable to drilling and completion activities. Cimarex invested $22 million in midstream assets during the quarter. Second quarter investments were funded with cash flow from operating activities. Total debt at June 30, 2019 consisted of $2.0 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $19 million. Debt was 35 percent of total capitalization2.
2019 Outlook
Third quarter 2019 production volumes are expected to average 265 - 279 MBOE per day. Oil volumes estimated to average 85.0 - 91.0 MBbls per day in the third quarter, up 5.5 percent sequentially at the midpoint. Total 2019 daily production volumes are now expected to average 263 - 272 MBOE per day, with annual oil volumes estimated to average 83.0 - 87.0 MBbls per day.
Estimated 2019 exploration and development investment is $1.35 – 1.45 billion, unchanged from guidance given in February. Midstream investments are estimated to total approximately $70 million in 2019.
Expenses per BOE of production for 2019 are estimated to be:
Production expense | $3.30 - 3.65 | |
Transportation, processing and other expense | 1.80 - 2.20 | |
DD&A and ARO accretion | 7.75 - 8.75 | |
General and administrative expense | 0.95 - 1.20 | |
Taxes other than income (% of oil and gas revenue) | 6.5 - 7.5% |
Operations Update
Cimarex invested $325 million in E&D during the second quarter, 83 percent in the Permian Basin and 17 percent in the Mid-Continent. Cimarex brought 110 gross (40 net) wells on production during the quarter. At June 30, 99 gross (24 net) wells were waiting on completion. Cimarex currently is operating eight drilling rigs.
WELLS BROUGHT ON PRODUCTION BY REGION | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Gross wells | ||||||||||||
Permian Basin | 44 | 32 | 56 | 49 | ||||||||
Mid-Continent | 66 | 57 | 92 | 94 | ||||||||
110 | 89 | 148 | 143 | |||||||||
Net wells | ||||||||||||
Permian Basin | 32 | 13 | 37 | 22 | ||||||||
Mid-Continent | 8 | 10 | 11 | 16 | ||||||||
40 | 23 | 48 | 38 | |||||||||
Permian Region
Production from the Permian region averaged 188,703 BOE per day in the second quarter, a 55 percent increase from second quarter 2018. Oil volumes averaged 70,669 barrels per day, a 45 percent increase from second quarter 2018 and up nine percent sequentially.
Cimarex completed 44 gross (32 net) wells in the Permian region during the second quarter. There were 44 gross (20 net) wells waiting on completion at June 30. Cimarex currently is operating eight drilling rigs and two completion crews in the region.
Mid-Continent Region
Production from the Mid-Continent averaged 85,696 BOE per day for the second quarter, down four percent from second quarter 2018 and down five percent sequentially.
During the second quarter, Cimarex completed 66 gross (8 net) wells in the Mid-Continent region. At the end of the quarter, 55 gross (4 net) wells were waiting on completion. Cimarex is not currently operating a drilling rig or completion crew in the Mid-Continent.
Production by Region
Cimarex's average daily production and commodity price by region is summarized below:
DAILY PRODUCTION BY REGION | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Permian Basin | ||||||||||||
Gas (MMcf) | 379.3 | 240.5 | 360.1 | 239.2 | ||||||||
Oil (Bbls) | 70,669 | 48,797 | 67,835 | 49,318 | ||||||||
NGL (Bbls) | 54,813 | 32,865 | 50,567 | 28,817 | ||||||||
Total Equivalent (BOE) | 188,703 | 121,744 | 178,413 | 118,002 | ||||||||
Mid-Continent | ||||||||||||
Gas (MMcf) | 285.5 | 297.0 | 291.3 | 296.2 | ||||||||
Oil (Bbls) | 12,623 | 12,473 | 13,419 | 13,841 | ||||||||
NGL (Bbls) | 25,496 | 26,894 | 26,060 | 26,927 | ||||||||
Total Equivalent (BOE) | 85,696 | 88,864 | 88,028 | 90,142 | ||||||||
Total Company | ||||||||||||
Gas (MMcf) | 665.8 | 539.5 | 652.5 | 537.1 | ||||||||
Oil (Bbls) | 83,430 | 61,651 | 81,433 | 63,422 | ||||||||
NGL (Bbls) | 80,362 | 59,857 | 76,680 | 55,810 | ||||||||
Total Equivalent (BOE) | 274,767 | 211,424 | 266,868 | 208,752 | ||||||||
AVERAGE REALIZED PRICE BY REGION | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Permian Basin | ||||||||||||
Gas ($ per Mcf) (1) | (0.46) | 1.49 | 0.34 | 1.86 | ||||||||
Oil ($ per Bbl) | 54.02 | 59.83 | 51.15 | 59.79 | ||||||||
NGL ($ per Bbl) (2) | 11.97 | 22.80 | 13.72 | 21.93 | ||||||||
Mid-Continent | ||||||||||||
Gas ($ per Mcf) (3) | 1.78 | 1.77 | 2.24 | 2.04 | ||||||||
Oil ($ per Bbl) | 55.43 | 65.70 | 54.01 | 62.87 | ||||||||
NGL ($ per Bbl) (4) | 15.47 | 21.66 | 16.51 | 20.67 | ||||||||
Total Company | ||||||||||||
Gas ($ per Mcf) (5) | 0.50 | 1.65 | 1.19 | 1.96 | ||||||||
Oil ($ per Bbl) | 54.24 | 60.99 | 51.64 | 60.45 | ||||||||
NGL ($ per Bbl) (6) | 13.08 | 22.29 | 14.67 | 21.32 | ||||||||
______________________________________ | |
(1) | The average realized gas price shown in the table above includes the effects of ASC 606, which reduced the average realized prices by $0.40 per Mcf, $0.13 per Mcf, $0.34 per Mcf, and $0.11 per Mcf for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively. |
(2) | The average realized NGL price shown in the table above includes the effects of ASC 606, which reduced the average realized prices by $1.77 per barrel, $1.01 per barrel, $1.79 per barrel, and $1.69 per barrel for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively. |
(3) | The average realized gas price shown in the table above includes the effects of ASC 606, which reduced the average realized prices by $0.04 per Mcf, $0.04 per Mcf, $0.04 per Mcf, and $0.04 per Mcf for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively. |
(4) | The average realized NGL price shown in the table above includes the effects of ASC 606, which reduced the average realized prices by $0.25 per barrel, $0.28 per barrel, $0.32 per barrel, and $1.34 per barrel for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively. |
(5) | The average realized gas price shown in the table above includes the effects of ASC 606, which reduced the average realized prices by $0.25 per Mcf, $0.08 per Mcf, $0.21 per Mcf, and $0.07 per Mcf for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively. |
(6) | The average realized NGL price shown in the table above includes the effects of ASC 606, which reduced the average realized prices by $1.29 per barrel, $0.68 per barrel, $1.29 per barrel, and $1.52 per barrel for the three months ended June 30, 2019 and 2018 and the six months ended June 30, 2019 and 2018, respectively. |
Other
Cimarex received cash settlements of $21.2 million related to its gas hedges during the quarter. Settlement of oil hedges resulted in a cash payment of $14.9 million.
The following table summarizes the company's current open hedge positions:
3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | 4Q20 | |||||||||||||
Gas Collars: | PEPL(3) | |||||||||||||||||
Volume (MMBtu/d) | 140,000 | 110,000 | 80,000 | 50,000 | 20,000 | 20,000 | ||||||||||||
Wtd Avg Floor | $ | 1.93 | $ | 1.92 | $ | 1.93 | $ | 1.91 | $ | 1.85 | $ | 1.85 | ||||||
Wtd Avg Ceiling | $ | 2.32 | $ | 2.36 | $ | 2.36 | $ | 2.28 | $ | 2.31 | $ | 2.31 | ||||||
El Paso Perm(3) | ||||||||||||||||||
Volume (MMBtu/d) | 90,000 | 60,000 | 40,000 | 30,000 | 20,000 | 20,000 | ||||||||||||
Wtd Avg Floor | $ | 1.46 | $ | 1.38 | $ | 1.40 | $ | 1.40 | $ | 1.35 | $ | 1.35 | ||||||
Wtd Avg Ceiling | $ | 1.76 | $ | 1.71 | $ | 1.79 | $ | 1.82 | $ | 1.66 | $ | 1.66 | ||||||
Waha (3) | ||||||||||||||||||
Volume (MMBtu/d) | 60,000 | 60,000 | 50,000 | 30,000 | — | — | ||||||||||||
Wtd Avg Floor | $ | 1.48 | $ | 1.48 | $ | 1.50 | $ | 1.57 | $ | — | $ | — | ||||||
Wtd Avg Ceiling | $ | 1.82 | $ | 1.82 | $ | 1.87 | $ | 1.97 | $ | — | $ | — | ||||||
Oil Collars: | WTI(4) | |||||||||||||||||
Volume (Bbl/d) | 40,000 | 32,000 | 24,000 | 16,000 | 8,000 | 8,000 | ||||||||||||
Wtd Avg Floor | $ | 53.85 | $ | 54.81 | $ | 54.08 | $ | 51.13 | $ | 50.00 | $ | 50.00 | ||||||
Wtd Avg Ceiling | $ | 67.44 | $ | 67.75 | $ | 67.65 | $ | 63.56 | $ | 62.80 | $ | 62.80 | ||||||
Oil Basis Swaps: | WTI Midland(5) | |||||||||||||||||
Volume (Bbl/d) | 35,500 | 35,500 | 23,000 | 15,000 | 8,000 | 8,000 | ||||||||||||
Wtd Avg Differential | $ | (7.36) | $ | (6.32) | $ | 0.16 | $ | 0.19 | $ | 0.71 | $ | 0.71 | ||||||
Oil Swaps: | WTI(4) | |||||||||||||||||
Volume (Bbl/d) | 5,000 | 5,000 | — | — | — | — | ||||||||||||
Wtd Avg Fixed | $ | 64.54 | $ | 64.54 | $ | — | $ | — | $ | — | $ | — | ||||||
Gas Swaps: | Henry Hub(6) | |||||||||||||||||
Volume (MMBtu/d) | 35,000 | 35,000 | — | — | — | — | ||||||||||||
Wtd Avg Fixed | $ | 3.00 | $ | 3.00 | $ | — | $ | — | $ | — | $ | — | ||||||
Sold Oil Calls: | WTI(4) | |||||||||||||||||
Volume (Bbl/d) | 3,670 | 3,670 | — | — | — | — | ||||||||||||
Wtd Avg Ceiling | $ | 64.36 | $ | 64.36 | $ | — | $ | — | $ | — | $ | — | ||||||
Conference call and webcast
Cimarex will host a conference call tomorrow, August 6, at 11:00 a.m. EDT (9:00 a.m. MDT). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
Investor Presentation
For more details on Cimarex's second quarter 2019 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the "2019 Outlook" contains projections for certain 2019 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; local commodity price differentials; derivative and hedging activities; higher than expected costs and expenses, including the availability and cost of services and materials; our ability to successfully integrate the business of the recently acquired Resolute Energy Corporation; compliance with environmental and other regulations; costs and availability of third party facilities for gathering, processing, refining and transportation; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
______________________________________ | |
1 | Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for reconciliations of the related GAAP amounts. |
2 | Debt to total capitalization is calculated by dividing the sum of (i) the principal amount of senior notes and (ii) redeemable preferred stock by the sum of (x) the principal amount of senior notes, (y) redeemable preferred stock, and (z) total stockholders' equity. |
3 | PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index, El Paso Perm refers to El Paso Permian Basin index, and Waha refers to West Texas (Waha) Index, all as quoted in Platt's Inside FERC. |
4 | WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. |
5 | Index price on basis swaps is WTI NYMEX less the weighted average WTI Midland differential, as quoted by Argus Americas Crude. |
6 | Henry Hub (located in So. Louisiana) is the official location for futures contracts on the New York Mercantile Exchange (NYMEX). |
RECONCILIATION OF ADJUSTED NET INCOME
The following reconciles net income as reported under generally accepted accounting principles (GAAP) to adjusted net income (non-GAAP) for the periods indicated.
Three Months Ended | Six Months Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Net income | $ | 109,309 | $ | 140,997 | $ | 135,625 | $ | 327,315 | |||||||
Mark-to-market (gain) loss on open derivative positions | (34,531) | 14,169 | 71,870 | (2,379) | |||||||||||
Loss on early extinguishment of debt | — | — | 4,250 | — | |||||||||||
Acquisition related costs | 74 | — | 8,391 | — | |||||||||||
Tax impact | 8,166 | (3,259) | (20,029) | 552 | |||||||||||
Adjusted net income | $ | 83,018 | $ | 151,907 | $ | 200,107 | $ | 325,488 | |||||||
Diluted earnings per share | $ | 1.07 | $ | 1.48 | $ | 1.34 | $ | 3.44 | |||||||
Adjusted diluted earnings per share* | $ | 0.82 | $ | 1.59 | $ | 2.01 | $ | 3.41 | |||||||
Weighted-average number of shares outstanding: | |||||||||||||||
Adjusted diluted** | 101,448 | 95,428 | 99,592 | 95,451 | |||||||||||
Adjusted net income and adjusted diluted earnings per share exclude the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP measures because: | ||
a) | Management uses adjusted net income to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies. | |
b) | Adjusted net income is more comparable to earnings estimates provided by research analysts. | |
* Does not include adjustments resulting from application of the "two-class method" used to determine earnings per share under GAAP. | ||
** Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding stock options. | ||
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) for the periods indicated.
Three Months Ended | Six Months Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in thousands) | |||||||||||||||
Net cash provided by operating activities | $ | 413,992 | $ | 321,246 | $ | 664,083 | $ | 704,339 | |||||||
Change in operating assets and liabilities | (77,630) | 28,265 | 23,341 | 12,406 | |||||||||||
Adjusted cash flow from operations | $ | 336,362 | $ | 349,511 | $ | 687,424 | $ | 716,745 | |||||||
Management uses the non-GAAP financial measure of adjusted cash flow from operations as a means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities. Management believes this non-GAAP financial measure provides useful information to investors for the same reason, and that it is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.
OIL AND GAS CAPITALIZED EXPENDITURES | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in thousands) | |||||||||||||||
Acquisitions: | |||||||||||||||
Proved | $ | 1,200 | $ | — | $ | 693,800 | $ | 62 | |||||||
Unproved | 1,000 | 77 | 1,051,782 | 2,236 | |||||||||||
2,200 | 77 | 1,745,582 | 2,298 | ||||||||||||
Exploration and development: | |||||||||||||||
Land and seismic | $ | 14,552 | $ | 10,327 | $ | 24,079 | $ | 20,424 | |||||||
Exploration and development | 310,428 | 365,097 | 668,919 | 668,469 | |||||||||||
324,980 | 375,424 | 692,998 | 688,893 | ||||||||||||
Property sales: | |||||||||||||||
Proved | $ | (22,058) | $ | (4,577) | $ | (18,028) | $ | (29,541) | |||||||
Unproved | (6,253) | (441) | (9,754) | (5,301) | |||||||||||
(28,311) | (5,018) | (27,782) | (34,842) | ||||||||||||
$ | 298,869 | $ | 370,483 | $ | 2,410,798 | $ | 656,349 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in thousands, except per share information) | |||||||||||||||
Revenues: | |||||||||||||||
Oil sales | $ | 411,766 | $ | 342,184 | $ | 761,072 | $ | 693,907 | |||||||
Gas and NGL sales | 126,044 | 202,202 | 343,959 | 405,920 | |||||||||||
Gas gathering and other | 8,653 | 11,888 | 18,389 | 23,581 | |||||||||||
546,463 | 556,274 | 1,123,420 | 1,123,408 | ||||||||||||
Costs and expenses: | |||||||||||||||
Depreciation, depletion, amortization, and accretion | 215,484 | 145,441 | 407,950 | 279,360 | |||||||||||
Production | 87,726 | 79,215 | 164,959 | 150,486 | |||||||||||
Transportation, processing, and other operating | 48,331 | 51,933 | 101,939 | 97,098 | |||||||||||
Gas gathering and other | 13,605 | 9,467 | 25,925 | 19,290 | |||||||||||
Taxes other than income | 41,033 | 27,930 | 74,727 | 58,118 | |||||||||||
General and administrative | 24,911 | 19,739 | 53,995 | 43,060 | |||||||||||
Stock compensation | 6,494 | 3,095 | 13,207 | 9,825 | |||||||||||
(Gain) loss on derivative instruments, net | (40,768) | 21,699 | 74,684 | 17,540 | |||||||||||
Other operating expense, net | 590 | 5,252 | 8,916 | 5,455 | |||||||||||
397,406 | 363,771 | 926,302 | 680,232 | ||||||||||||
Operating income | 149,057 | 192,503 | 197,118 | 443,176 | |||||||||||
Other (income) and expense: | |||||||||||||||
Interest expense | 24,674 | 16,895 | 45,079 | 33,678 | |||||||||||
Capitalized interest | (16,805) | (4,850) | (25,547) | (9,660) | |||||||||||
Loss on early extinguishment of debt | — | — | 4,250 | — | |||||||||||
Other, net | (2,167) | (2,605) | (4,408) | (7,172) | |||||||||||
Income before income tax | 143,355 | 183,063 | 177,744 | 426,330 | |||||||||||
Income tax expense | 34,046 | 42,066 | 42,119 | 99,015 | |||||||||||
Net income | $ | 109,309 | $ | 140,997 | $ | 135,625 | $ | 327,315 | |||||||
Earnings per share to common stockholders: | |||||||||||||||
Basic | $ | 1.07 | $ | 1.48 | $ | 1.34 | $ | 3.44 | |||||||
Diluted | $ | 1.07 | $ | 1.48 | $ | 1.34 | $ | 3.44 | |||||||
Dividends declared per share | $ | 0.20 | $ | 0.16 | $ | 0.40 | $ | 0.32 | |||||||
Weighted-average number of shares outstanding: | |||||||||||||||
Basic | 99,658 | 93,728 | 97,800 | 93,713 | |||||||||||
Diluted | 99,665 | 93,759 | 97,809 | 93,748 | |||||||||||
Comprehensive income: | |||||||||||||||
Net income | $ | 109,309 | $ | 140,997 | $ | 135,625 | $ | 327,315 | |||||||
Other comprehensive income: | |||||||||||||||
Change in fair value of investments, net of tax of $89, $57, $428 and $1, respectively | 304 | 192 | 1,453 | 2 | |||||||||||
Total comprehensive income | $ | 109,613 | $ | 141,189 | $ | 137,078 | $ | 327,317 | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in thousands) | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 109,309 | $ | 140,997 | $ | 135,625 | $ | 327,315 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation, depletion, amortization, and accretion | 215,484 | 145,441 | 407,950 | 279,360 | |||||||||||
Deferred income taxes | 34,046 | 42,783 | 42,119 | 99,732 | |||||||||||
Stock compensation | 6,494 | 3,095 | 13,207 | 9,825 | |||||||||||
(Gain) loss on derivative instruments, net | (40,768) | 21,699 | 74,684 | 17,540 | |||||||||||
Settlements on derivative instruments | 6,237 | (7,530) | (2,814) | (19,919) | |||||||||||
Loss on early extinguishment of debt | — | — | 4,250 | — | |||||||||||
Amortization of debt issuance costs and discounts | 783 | 727 | 1,502 | 1,456 | |||||||||||
Changes in non-current assets and liabilities | 601 | 1,613 | 2,749 | 713 | |||||||||||
Other, net | 4,176 | 686 | 8,152 | 723 | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable | 83,716 | (29,710) | 117,692 | 15,012 | |||||||||||
Other current assets | (1,111) | 283 | (761) | 1,886 | |||||||||||
Accounts payable and other current liabilities | (4,975) | 1,162 | (140,272) | (29,304) | |||||||||||
Net cash provided by operating activities | 413,992 | 321,246 | 664,083 | 704,339 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Acquisition of Resolute Energy, net of cash acquired | — | — | (284,441) | — | |||||||||||
Oil and gas capital expenditures | (379,015) | (327,352) | (711,757) | (650,807) | |||||||||||
Sales of oil and gas assets | 8,233 | 5,018 | 13,233 | 34,842 | |||||||||||
Sales of other assets | 234 | 93 | 434 | 525 | |||||||||||
Other capital expenditures | (22,313) | (37,056) | (40,141) | (56,112) | |||||||||||
Net cash used by investing activities | (392,861) | (359,297) | (1,022,672) | (671,552) | |||||||||||
Cash flows from financing activities: | |||||||||||||||
Borrowings of long-term debt | 528,000 | — | 1,710,310 | — | |||||||||||
Repayments of long-term debt | (528,000) | — | (2,081,000) | — | |||||||||||
Financing, underwriting, and debt redemption fees | (853) | — | (11,791) | — | |||||||||||
Finance lease payments | (920) | — | (1,555) | — | |||||||||||
Dividends paid | (21,468) | (15,199) | (38,647) | (22,801) | |||||||||||
Employee withholding taxes paid upon the net settlement of equity-classified stock awards | — | (641) | (654) | (946) | |||||||||||
Proceeds from exercise of stock options | 594 | 904 | 674 | 1,249 | |||||||||||
Net cash used by financing activities | (22,647) | (14,936) | (422,663) | (22,498) | |||||||||||
Net change in cash and cash equivalents | (1,516) | (52,987) | (781,252) | 10,289 | |||||||||||
Cash and cash equivalents at beginning of period | 20,930 | 463,810 | 800,666 | 400,534 | |||||||||||
Cash and cash equivalents at end of period | $ | 19,414 | $ | 410,823 | $ | 19,414 | $ | 410,823 | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||
June 30, | December 31, | ||||||
Assets | (in thousands, except share and | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 19,414 | $ | 800,666 | |||
Accounts receivable, net of allowance | 387,362 | 454,200 | |||||
Oil and gas well equipment and supplies | 58,306 | 55,553 | |||||
Derivative instruments | 42,957 | 101,939 | |||||
Other current assets | 12,017 | 11,781 | |||||
Total current assets | 520,056 | 1,424,139 | |||||
Oil and gas properties at cost, using the full cost method of accounting: | |||||||
Proved properties | 19,846,426 | 18,566,757 | |||||
Unproved properties and properties under development, not being amortized | 1,564,074 | 436,325 | |||||
21,410,500 | 19,003,082 | ||||||
Less – accumulated depreciation, depletion, amortization, and impairment | (15,659,363) | (15,287,752) | |||||
Net oil and gas properties | 5,751,137 | 3,715,330 | |||||
Fixed assets, net of accumulated depreciation of $356,631 and $324,631, respectively | 526,429 | 257,686 | |||||
Goodwill | 727,573 | 620,232 | |||||
Derivative instruments | 613 | 9,246 | |||||
Other assets | 70,126 | 35,451 | |||||
$ | 7,595,934 | $ | 6,062,084 | ||||
Liabilities, Redeemable Preferred Stock, and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 119,076 | $ | 106,814 | |||
Accrued liabilities | 397,210 | 379,455 | |||||
Derivative instruments | 50,056 | 27,627 | |||||
Revenue payable | 186,206 | 194,811 | |||||
Operating leases | 62,119 | — | |||||
Total current liabilities | 814,667 | 708,707 | |||||
Long-term debt principal | 2,000,000 | 1,500,000 | |||||
Less—unamortized debt issuance costs and discounts | (15,770) | (11,446) | |||||
Long-term debt, net | 1,984,230 | 1,488,554 | |||||
Deferred income taxes | 439,429 | 334,473 | |||||
Derivative instruments | 840 | 2,267 | |||||
Operating leases | 191,413 | — | |||||
Other liabilities | 221,842 | 198,297 | |||||
Total liabilities | 3,652,421 | 2,732,298 | |||||
Redeemable preferred stock - 8.125% Series A Cumulative Perpetual Convertible Preferred Stock, $0.01 par value, 62,500 shares authorized and issued and no shares authorized and issued, respectively | 81,620 | — | |||||
Stockholders' equity: | |||||||
Common stock, $0.01 par value, 200,000,000 shares authorized, 101,473,177 and 95,755,797 shares issued, respectively | 1,015 | 958 | |||||
Additional paid-in capital | 3,223,331 | 2,785,188 | |||||
Retained earnings | 635,339 | 542,885 | |||||
Accumulated other comprehensive income | 2,208 | 755 | |||||
Total stockholders' equity | 3,861,893 | 3,329,786 | |||||
$ | 7,595,934 | $ | 6,062,084 | ||||
View original content:http://www.prnewswire.com/news-releases/cimarex-reports-second-quarter-2019-results-300896558.html
SOURCE Cimarex Energy Co.
Article Date
8/5/2019Cimarex Schedules Second Quarter 2019 Earnings Release and Conference Call
Source: PR Newswire
DENVER, June 20, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced it plans to report second quarter 2019 financial results on Monday, August 5, 2019, after market close. The company will host its quarterly conference call at 11:00 AM ET on Tuesday, August 6, 2019.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-schedules-second-quarter-2019-earnings-release-and-conference-call-300872209.html
SOURCE Cimarex Energy Co.
Article Date
6/20/2019Cimarex Announces Changes to its Board of Directors: Paul N. Eckley Joins Following the Retirement of David Hentschel
Source: PR Newswire
DENVER, May 28, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced the retirement of David A. Hentschel from its Board of Directors and the appointment of Paul N. Eckley as an independent director of Cimarex effective May 31, 2019. Mr. Eckley will be a member of the Compensation and Governance Committee.
Cimarex Chairman, President and Chief Executive Officer, Tom Jorden, stated, "We want to thank Dave Hentschel for his dedicated service to Cimarex since joining our Board of Directors in 2002 upon the founding of the company. Dave helped guide Cimarex to become a premier operator in two of the best basins in the United States. We are delighted that Dave has agreed to serve as Director Emeritus for the next two years so that we will have ongoing access to his wisdom, insights, and tremendous depth of operational experience."
Mr. Jorden went on to say, "We are very pleased to announce the addition Paul Eckley to the Cimarex board. His 42 years of experience investing in public and private companies across all sectors, including the oil and gas industry, coupled with the extensive leadership roles he has held, make him well qualified to serve as a director at Cimarex. We welcome his perspective and thank him for his willingness to serve."
Mr. Eckley currently serves as Senior Vice President – Investments at State Farm® Corporate Headquarters in Bloomington, Illinois, a position he has held since 1998. He joined State Farm in 1977 as an investment analyst, was promoted to Investment Officer in 1990 and became Vice President – Common Stocks in 1995. State Farm is a top ten owner of Cimarex. Mr. Eckley was a director of the Emerging Markets Growth Fund owned by the Capital Group from 2005 until November 2016, including serving as Chairman of the Board of that fund from January 2014 through November 2016.
Mr. Eckley earned a bachelor's degree in economics and history from Northwestern University in 1975 and a Master of Business Administration from the University of Chicago in 1977. He earned the Chartered Financial Analyst (CFA) designation in 1981.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
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SOURCE Cimarex Energy Co.
Article Date
5/28/2019Cimarex Energy Approves Dividend on Preferred Stock
Source: PR Newswire
DENVER, May 23, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that its Board of Directors approved a cash dividend of $20.3125 per share on its 8⅛ percent Series A Cumulative Perpetual Convertible Preferred Stock. The dividend is payable on July 15, 2019, to holders of record at the close of business on July 1, 2019, and is for the period beginning on April 16, 2019 and ending on July 15, 2019.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-approves-dividend-on-preferred-stock-300856025.html
SOURCE Cimarex Energy Co.
Article Date
5/23/2019Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
DENVER, May 9, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.20 per share. The dividend is payable on August 30, 2019, to stockholders of record on August 15, 2019.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-declares-quarterly-cash-dividend-300846846.html
SOURCE Cimarex Energy Co.
Article Date
5/9/20195/8/2019 - Cimarex Reports First Quarter 2019 Results
Cimarex Reports First Quarter 2019 Results
Source: PR Newswire
DENVER, May 8, 2019 /PRNewswire/ --
Cimarex Energy Co. (NYSE: XEC) today reported first quarter 2019 net income of $26.3 million, or $0.26 per share, compared to $186.3 million, or $1.96 per share, in the same period a year ago. First quarter adjusted net income (non-GAAP) was $117.3 million, or $1.20 per share, compared to first quarter 2018 adjusted net income (non-GAAP) of $173.6 million, or $1.82 per share1. Net cash provided by operating activities was $250.1 million in the first quarter of 2019 compared to $383.1 million in the same period a year ago. Adjusted cash flow from operations (non-GAAP) was $351.1 million in the first quarter of 2019 compared to $367.2 million in the first quarter a year ago1.
On March 1, Cimarex closed the previously announced acquisition of Resolute Energy Corporation and began integrating the assets into the company. On March 8, 2019, we issued $500 million of senior unsecured notes due 2029, which carry an interest rate of 4.375 percent. These notes essentially refinanced Resolute's $600 million 8.50 percent senior notes, which were redeemed as part of the closing of the acquisition.
Total company production volumes for the quarter averaged 258.9 thousand barrels of oil equivalent (MBOE) per day. Oil production averaged 79,415 barrels (bbls) per day, up 22 percent from the same period a year ago and down less than one percent sequentially.
Realized product prices were down in the first quarter as compared to the same quarter a year ago. Realized oil prices averaged $48.87 per barrel, down 18 percent from the $59.93 per barrel received in the first quarter of 2018. Realized natural gas prices averaged $1.91 per thousand cubic feet (Mcf), down 16 percent from the first quarter 2018 average of $2.28 per Mcf. NGL prices averaged $16.44 per barrel, down 19 percent from the $20.19 per barrel received in the first quarter of 2018.
Both oil and natural gas prices in the first quarter were negatively impacted by local price differentials although oil differentials improved from fourth quarter 2018 levels. Our realized Permian oil differential to WTI Cushing averaged $6.90 per barrel in the quarter, compared to $3.12 per barrel in the first quarter of 2018 and $11.64 per barrel in the fourth quarter of 2018. Cimarex's average differential to Henry Hub on its Permian natural gas production was $1.91 per Mcf in the first quarter of 2019 compared to $0.78 per Mcf in the first quarter of 2018 and $2.21 in the fourth quarter of 2018. In the Mid-Continent region, the company's average differential to Henry Hub was $0.46 per Mcf versus $0.70 per Mcf in the first quarter of 2018 and $0.83 in the fourth quarter of 2018.
Cimarex invested $368 million in exploration and development (E&D) during the first quarter, of which $319 million is attributable to drilling and completion activities. First quarter investments were funded with cash flow from operations and cash on the balance sheet. Total debt at March 31, 2019 consisted of $2.0 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $21 million. Debt was 36 percent of total capitalization2.
2019 Outlook
Second quarter 2019 production volumes are expected to average 263 - 275 MBOE per day with oil volumes estimated to average 79.5 - 85.5 MBbls per day, up four percent sequentially at the midpoint. Total 2019 daily production volumes are now expected to average 260 - 275 MBOE per day, with annual oil volumes estimated to average 80.0 - 88.0 Mbbls per day.
Estimated 2019 exploration and development investment is $1.35 – 1.45 billion, unchanged from guidance given in February. Midstream investments are estimated to total $60-70 million in 2019.
Expenses per BOE of production for the remainder of 2019 are estimated to be:
Production expense | $3.20 - 3.70 | ||
Transportation, processing and other expense | 2.10 - 2.50 | ||
DD&A and ARO accretion | 7.75 - 8.75 | ||
General and administrative expense | 1.00 - 1.25 | ||
Taxes other than income (% of oil and gas revenue) | 5.5 - 6.5% | ||
Operations Update
Cimarex invested $368 million in E&D during the first quarter, 77 percent in the Permian Basin and 23 percent in the Mid-Continent. Cimarex brought 38 gross (8 net) wells on production during the quarter. At March 31, 131 gross (52 net) wells were waiting on completion. Cimarex currently is operating nine drilling rigs.
WELLS BROUGHT ON PRODUCTION BY REGION | ||||||
Three Months Ended | ||||||
2019 | 2018 | |||||
Gross wells | ||||||
Permian Basin | 12 | 17 | ||||
Mid-Continent | 26 | 37 | ||||
38 | 54 | |||||
Net wells | ||||||
Permian Basin | 5 | 9 | ||||
Mid-Continent | 3 | 6 | ||||
8 | 15 | |||||
Permian Region
Production from the Permian region averaged 168,008 BOE per day in the first quarter, a 47 percent increase from first quarter 2018. Oil volumes averaged 64,969 barrels per day, a 30 percent increase from first quarter 2018 and up five percent sequentially.
Cimarex completed 12 gross (5 net) wells in the Permian region during the first quarter. There were 56 gross (40 net) wells waiting on completion at March 31. Cimarex currently is operating eight drilling rigs and three completion crews in the region.
Mid-Continent Region
Production from the Mid-Continent averaged 90,386 BOE per day for the first quarter, down one percent from first quarter 2018 and down 13 percent sequentially.
During the first quarter, Cimarex completed 26 gross (3 net) wells in the Mid-Continent region. At the end of the quarter, 75 gross (12 net) wells were waiting on completion. Cimarex currently is operating one drilling rig and one completion crew in the region.
Production by Region
Cimarex's average daily production and commodity price by region is summarized below:
DAILY PRODUCTION BY REGION | |||||||||||||||||
Three Months Ended | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Permian Basin | |||||||||||||||||
Gas (MMcf) | 340.6 | 237.9 | |||||||||||||||
Oil (Bbls) | 64,969 | 49,845 | |||||||||||||||
NGL (Bbls) | 46,273 | 24,725 | |||||||||||||||
Total Equivalent (BOE) | 168,008 | 114,218 | |||||||||||||||
Mid-Continent | |||||||||||||||||
Gas (MMcf) | 297.2 | 295.5 | |||||||||||||||
Oil (Bbls) | 14,224 | 15,225 | |||||||||||||||
NGL (Bbls) | 26,630 | 26,959 | |||||||||||||||
Total Equivalent (BOE) | 90,386 | 91,433 | |||||||||||||||
Total Company | |||||||||||||||||
Gas (MMcf) | 639.1 | 534.7 | |||||||||||||||
Oil (Bbls) | 79,415 | 65,212 | |||||||||||||||
NGL (Bbls) | 72,956 | 51,719 | |||||||||||||||
Total Equivalent (BOE) | 258,882 | 206,050 | |||||||||||||||
AVERAGE REALIZED PRICE BY REGION | |||||||||||||||||
Three Months Ended | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Permian Basin | |||||||||||||||||
Gas ($ per Mcf) | 1.24 | 2.23 | |||||||||||||||
Oil ($ per Bbl) | 48.00 | 59.75 | |||||||||||||||
NGL ($ per Bbl) | 15.81 | 20.76 | |||||||||||||||
Mid-Continent | |||||||||||||||||
Gas ($ per Mcf) | 2.69 | 2.31 | |||||||||||||||
Oil ($ per Bbl) | 52.73 | 60.53 | |||||||||||||||
NGL ($ per Bbl) | 17.52 | 19.67 | |||||||||||||||
Total Company | |||||||||||||||||
Gas ($ per Mcf) | 1.91 | 2.28 | |||||||||||||||
Oil ($ per Bbl) | 48.87 | 59.93 | |||||||||||||||
NGL ($ per Bbl) | 16.44 | 20.19 | |||||||||||||||
Other
The following table summarizes the company's current open hedge positions:
2Q19 | 3Q19 | 4Q19 | 1Q20 | 2Q20 | ||||||||||||||||
Gas Collars: | PEPL(3) | |||||||||||||||||||
Volume (MMBtu/d) | 150,000 | 120,000 | 90,000 | 60,000 | 30,000 | |||||||||||||||
Wtd Avg Floor | $ | 2.03 | $ | 1.94 | $ | 1.94 | $ | 1.96 | $ | 1.95 | ||||||||||
Wtd Avg Ceiling | $ | 2.39 | $ | 2.32 | $ | 2.37 | $ | 2.38 | $ | 2.26 | ||||||||||
El Paso Perm(3) | ||||||||||||||||||||
Volume (MMBtu/d) | 90,000 | 70,000 | 40,000 | 20,000 | 10,000 | |||||||||||||||
Wtd Avg Floor | $ | 1.67 | $ | 1.49 | $ | 1.40 | $ | 1.45 | $ | 1.50 | ||||||||||
Wtd Avg Ceiling | $ | 1.95 | $ | 1.79 | $ | 1.73 | $ | 1.92 | $ | 2.13 | ||||||||||
Waha (3) | ||||||||||||||||||||
Volume (MMBtu/d) | 40,000 | 60,000 | 60,000 | 50,000 | 30,000 | |||||||||||||||
Wtd Avg Floor | $ | 1.41 | $ | 1.48 | $ | 1.48 | $ | 1.50 | $ | 1.57 | ||||||||||
Wtd Avg Ceiling | $ | 1.73 | $ | 1.82 | $ | 1.82 | $ | 1.87 | $ | 1.97 | ||||||||||
Oil Collars: | WTI(4) | |||||||||||||||||||
Volume (Bbl/d) | 34,000 | 32,000 | 24,000 | 16,000 | 8,000 | |||||||||||||||
Wtd Avg Floor | $ | 53.68 | $ | 54.81 | $ | 56.42 | $ | 56.13 | $ | 52.25 | ||||||||||
Wtd Avg Ceiling | $ | 66.57 | $ | 68.60 | $ | 69.40 | $ | 70.08 | $ | 64.31 | ||||||||||
Oil Basis Swaps: | WTI Midland(5) | |||||||||||||||||||
Volume (Bbl/d) | 40,500 | 35,500 | 27,500 | 15,000 | 7,000 | |||||||||||||||
Wtd Avg Differential | $ | (6.51) | $ | (7.36) | $ | (8.36) | $ | (0.13) | $ | (0.40) | ||||||||||
Oil Swaps: | WTI(4) | |||||||||||||||||||
Volume (Bbl/d) | 5,000 | 5,000 | 5,000 | — | — | |||||||||||||||
Wtd Avg Fixed | $ | 64.54 | $ | 64.54 | $ | 64.54 | $ | — | $ | — | ||||||||||
Gas Swaps: | Henry Hub(6) | |||||||||||||||||||
Volume (MMBtu/d) | 35,000 | 35,000 | 35,000 | — | — | |||||||||||||||
Wtd Avg Fixed | $ | 3.00 | $ | 3.00 | $ | 3.00 | $ | — | $ | — | ||||||||||
Sold Oil Calls: | WTI(4) | |||||||||||||||||||
Volume (Bbl/d) | 3,670 | 3,670 | 3,670 | — | — | |||||||||||||||
Wtd Avg Ceiling | $ | 64.36 | $ | 64.36 | $ | 64.36 | $ | — | $ | — | ||||||||||
Conference call and webcast
Cimarex will host a conference call tomorrow, May 9, at 11:00 a.m. EDT (9:00 a.m. MDT). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
Investor Presentation
For more details on Cimarex's first quarter 2019 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the "2019 Outlook" contains projections for certain 2019 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; higher than expected costs and expenses, including the availability and cost of services and materials; our ability to successfully integrate the business of the recently acquired Resolute Energy Corporation; compliance with environmental and other regulations; costs and availability of third party facilities for gathering, processing, refining and transportation; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
_____________________________________________
1 | Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for reconciliations of the related GAAP amounts. |
2 | Debt to total capitalization is calculated by dividing the sum of (i) the principal amount of senior notes and (ii) redeemable preferred stock by the sum of (i) the principal amount of senior notes, (ii) redeemable preferred stock, and (iii) total stockholders' equity. |
3 | PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index, El Paso Perm refers to El Paso Permian Basin index, and Waha refers to West Texas (Waha) Index, all as quoted in Platt's Inside FERC. |
4 | WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. |
5 | Index price on basis swaps is WTI NYMEX less the weighted average WTI Midland differential, as quoted by Argus Americas Crude. |
6 | Henry Hub (located in So. Louisiana) is the official location for futures contracts on the New York Mercantile Exchange (NYMEX). |
RECONCILIATION OF ADJUSTED NET INCOME
The following reconciles net income as reported under generally accepted accounting principles (GAAP) to adjusted net income (non-GAAP) for the periods indicated.
Three Months Ended | |||||||
2019 | 2018 | ||||||
(in thousands, except per share data) | |||||||
Net income | $ | 26,316 | $ | 186,318 | |||
Mark-to-market loss (gain) on open derivative positions | 106,401 | (16,548) | |||||
Loss on early extinguishment of debt | 4,250 | — | |||||
Acquisition related costs | 8,318 | — | |||||
Tax impact | (27,958) | 3,872 | |||||
Adjusted net income | $ | 117,327 | $ | 173,642 | |||
Diluted earnings per share | $ | 0.26 | $ | 1.96 | |||
Adjusted diluted earnings per share* | $ | 1.20 | $ | 1.82 | |||
Weighted-average number of shares outstanding: | |||||||
Adjusted diluted** | 97,715 | 95,475 | |||||
Adjusted net income and adjusted diluted earnings per share exclude the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP measures because:
a) | Management uses adjusted net income to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies. |
b) | Adjusted net income is more comparable to earnings estimates provided by research analysts. |
* Does not include adjustments resulting from application of the "two-class method" used to determine earnings per share under GAAP.
** Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding stock options.
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) for the periods indicated.
Three Months Ended | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Net cash provided by operating activities | $ | 250,091 | $ | 383,093 | |||
Change in operating assets and liabilities | 100,971 | (15,859) | |||||
Adjusted cash flow from operations | $ | 351,062 | $ | 367,234 | |||
Management uses the non-GAAP financial measure of adjusted cash flow from operations as a means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities. Management believes this non-GAAP financial measure provides useful information to investors for the same reason, and that it is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.
OIL AND GAS CAPITALIZED EXPENDITURES | |||||||
Three Months Ended | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Acquisitions: | |||||||
Proved | $ | 692,600 | $ | 62 | |||
Unproved | 1,050,782 | 2,159 | |||||
1,743,382 | 2,221 | ||||||
Exploration and development: | |||||||
Land and seismic | $ | 9,527 | $ | 10,097 | |||
Exploration and development | 358,491 | 303,372 | |||||
368,018 | 313,469 | ||||||
Property sales: | |||||||
Proved | $ | 4,030 | $ | (24,964) | |||
Unproved | (3,501) | (4,860) | |||||
529 | (29,824) | ||||||
$ | 2,111,929 | $ | 285,866 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited) | ||||||||
Three Months Ended | ||||||||
2019 | 2018 | |||||||
(in thousands, except per | ||||||||
Revenues: | ||||||||
Oil sales | $ | 349,306 | $ | 351,723 | ||||
Gas and NGL sales | 217,915 | 203,718 | ||||||
Gas gathering and other | 9,736 | 11,693 | ||||||
576,957 | 567,134 | |||||||
Costs and expenses: | ||||||||
Depreciation, depletion, amortization, and accretion | 192,466 | 133,919 | ||||||
Production | 77,233 | 71,271 | ||||||
Transportation, processing, and other operating | 53,608 | 45,165 | ||||||
Gas gathering and other | 12,320 | 9,823 | ||||||
Taxes other than income | 33,694 | 30,188 | ||||||
General and administrative | 29,084 | 23,321 | ||||||
Stock compensation | 6,713 | 6,730 | ||||||
Loss (gain) on derivative instruments, net | 115,452 | (4,159) | ||||||
Other operating expense, net | 8,326 | 203 | ||||||
528,896 | 316,461 | |||||||
Operating income | 48,061 | 250,673 | ||||||
Other (income) and expense: | ||||||||
Interest expense | 20,405 | 16,783 | ||||||
Capitalized interest | (8,742) | (4,810) | ||||||
Loss on early extinguishment of debt | 4,250 | — | ||||||
Other, net | (2,241) | (4,567) | ||||||
Income before income tax | 34,389 | 243,267 | ||||||
Income tax expense | 8,073 | 56,949 | ||||||
Net income | $ | 26,316 | $ | 186,318 | ||||
Earnings per share to common stockholders: | ||||||||
Basic | $ | 0.26 | $ | 1.96 | ||||
Diluted | $ | 0.26 | $ | 1.96 | ||||
Dividends declared per share | $ | 0.20 | $ | 0.16 | ||||
Weighted-average number of shares outstanding: | ||||||||
Basic | 95,922 | 93,699 | ||||||
Diluted | 95,932 | 93,737 | ||||||
Comprehensive income: | ||||||||
Net income | $ | 26,316 | $ | 186,318 | ||||
Other comprehensive income: | ||||||||
Change in fair value of investments, net of tax of $339 and ($56), respectively | 1,149 | (190) | ||||||
Total comprehensive income | $ | 27,465 | $ | 186,128 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||
Three Months Ended | ||||||||
2019 | 2018 | |||||||
(in thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 26,316 | $ | 186,318 | ||||
Adjustments to reconcile net income to net cash | ||||||||
provided by operating activities: | ||||||||
Depreciation, depletion, amortization, and accretion | 192,466 | 133,919 | ||||||
Deferred income taxes | 8,073 | 56,949 | ||||||
Stock compensation | 6,713 | 6,730 | ||||||
Loss (gain) on derivative instruments, net | 115,452 | (4,159) | ||||||
Settlements on derivative instruments | (9,051) | (12,389) | ||||||
Loss on early extinguishment of debt | 4,250 | — | ||||||
Amortization of debt issuance costs and discounts | 719 | 729 | ||||||
Changes in non-current assets and liabilities | 2,148 | (900) | ||||||
Other, net | 3,976 | 37 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 33,976 | 44,722 | ||||||
Other current assets | 350 | 1,603 | ||||||
Accounts payable and other current liabilities | (135,297) | (30,466) | ||||||
Net cash provided by operating activities | 250,091 | 383,093 | ||||||
Cash flows from investing activities: | ||||||||
Acquisition of Resolute Energy, net of cash acquired | (284,441) | — | ||||||
Oil and gas capital expenditures | (332,742) | (323,455) | ||||||
Sales of oil and gas assets | 5,000 | 29,824 | ||||||
Sales of other assets | 200 | 432 | ||||||
Other capital expenditures | (17,828) | (19,056) | ||||||
Net cash used by investing activities | (629,811) | (312,255) | ||||||
Cash flows from financing activities: | ||||||||
Borrowings of long-term debt | 1,182,310 | — | ||||||
Repayments of long-term debt | (1,553,000) | — | ||||||
Financing, underwriting, and debt redemption fees | (10,938) | — | ||||||
Finance lease payments | (635) | — | ||||||
Dividends paid | (17,179) | (7,602) | ||||||
Employee withholding taxes paid upon the net settlement of equity-classified stock awards | (654) | (305) | ||||||
Proceeds from exercise of stock options | 80 | 345 | ||||||
Net cash used by financing activities | (400,016) | (7,562) | ||||||
Net change in cash and cash equivalents | (779,736) | 63,276 | ||||||
Cash and cash equivalents at beginning of period | 800,666 | 400,534 | ||||||
Cash and cash equivalents at end of period | $ | 20,930 | $ | 463,810 | ||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
March 31, | December 31, | |||||||
Assets | (in thousands, except share and per share information) | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 20,930 | $ | 800,666 | ||||
Accounts receivable, net of allowance | 465,902 | 454,200 | ||||||
Oil and gas well equipment and supplies | 62,600 | 55,553 | ||||||
Derivative instruments | 35,830 | 101,939 | ||||||
Other current assets | 10,946 | 11,781 | ||||||
Total current assets | 596,208 | 1,424,139 | ||||||
Oil and gas properties at cost, using the full cost method of accounting: | ||||||||
Proved properties | 19,410,269 | 18,566,757 | ||||||
Unproved properties and properties under development, not being amortized | 1,707,089 | 436,325 | ||||||
21,117,358 | 19,003,082 | |||||||
Less – accumulated depreciation, depletion, amortization, and impairment | (15,462,464) | (15,287,752) | ||||||
Net oil and gas properties | 5,654,894 | 3,715,330 | ||||||
Fixed assets, net of accumulated depreciation of $340,147 and $324,631, respectively | 509,554 | 257,686 | ||||||
Goodwill | 727,573 | 620,232 | ||||||
Derivative instruments | 626 | 9,246 | ||||||
Other assets | 68,337 | 35,451 | ||||||
$ | 7,557,192 | $ | 6,062,084 | |||||
Liabilities, Redeemable Preferred Stock, and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 90,854 | $ | 106,814 | ||||
Accrued liabilities | 463,065 | 379,455 | ||||||
Derivative instruments | 77,557 | 27,627 | ||||||
Revenue payable | 215,613 | 194,811 | ||||||
Operating leases | 62,825 | — | ||||||
Total current liabilities | 909,914 | 708,707 | ||||||
Senior notes principal | 2,000,000 | 1,500,000 | ||||||
Less—senior notes unamortized debt issuance costs and discounts | (16,273) | (11,446) | ||||||
Senior notes, net | 1,983,727 | 1,488,554 | ||||||
Deferred income taxes | 405,294 | 334,473 | ||||||
Derivative instruments | 756 | 2,267 | ||||||
Operating leases | 186,356 | — | ||||||
Other liabilities | 228,163 | 198,297 | ||||||
Total liabilities | 3,714,210 | 2,732,298 | ||||||
Redeemable preferred stock - 8.125% Series A Cumulative Perpetual Convertible Preferred Stock, $0.01 par value, 62,500 shares authorized and issued and no shares authorized and issued, respectively | 81,620 | — | ||||||
Stockholders' equity: | ||||||||
Common stock, $0.01 par value, 200,000,000 shares authorized, 101,407,583 and 95,755,797 shares issued, respectively | 1,014 | 958 | ||||||
Additional paid-in capital | 3,210,818 | 2,785,188 | ||||||
Retained earnings | 547,626 | 542,885 | ||||||
Accumulated other comprehensive income | 1,904 | 755 | ||||||
Total stockholders' equity | 3,761,362 | 3,329,786 | ||||||
$ | 7,557,192 | $ | 6,062,084 | |||||
View original content:http://www.prnewswire.com/news-releases/cimarex-reports-first-quarter-2019-results-300846741.html
SOURCE Cimarex Energy Co.
Article Date
5/8/2019Cimarex Schedules First Quarter 2019 Earnings Release and Conference Call
Source: PR Newswire
DENVER, April 5, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced it plans to report first quarter 2019 financial results on Wednesday, May 8, 2019, after market close. The company will host its quarterly conference call at 11:00 AM ET on Thursday, May 9, 2019.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-schedules-first-quarter-2019-earnings-release-and-conference-call-300825541.html
SOURCE Cimarex Energy Co.
Article Date
4/5/2019Cimarex Energy Approves Dividend on Preferred Stock
Source: PR Newswire
DENVER, March 18, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that its Board of Directors approved a cash dividend of $20.3125 per share on its 8⅛ percent Series A Cumulative Perpetual Convertible Preferred Stock, which was issued to replace Resolute Energy Corporation's Cumulative Perpetual Preferred Stock, in connection with the March 1, 2019, closing of the merger. The dividend is for the period beginning on January 16, 2019 and ending on April 15, 2019.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-approves-dividend-on-preferred-stock-300814162.html
SOURCE Cimarex Energy Co.
Article Date
3/18/2019Cimarex Announces Pricing of Senior Unsecured Notes
Source: PR Newswire
DENVER, March 6, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) ("Cimarex") announced today that it has priced an offering of $500 million aggregate principal amount of senior unsecured notes due 2029, which will carry an interest rate of 4.375 percent. The notes were sold to the public at 99.862 percent for a yield to maturity of 4.392 percent. Cimarex intends to use the net proceeds from the offering to repay borrowings under its revolving credit facility. As of March 5, 2019, Cimarex had approximately $525 million of borrowings outstanding under its revolving credit facility, all of which was used to fund the redemption of all $600 million aggregate principal amount of Resolute Energy Corporation's 8.50% Senior Notes due 2020 in connection with the completion of its acquisition of Resolute.
Interest is payable March 15 and September 15 of each year. The first interest payment will be made September 15, 2019, and interest will accrue from March 8, 2019. The offering is expected to close on March 8, 2019, subject to the satisfaction of customary closing conditions.
J.P. Morgan Securities LLC, MUFG Securities Americas Inc. and Wells Fargo Securities, LLC have acted as joint book-running managers for the offering. The offering is being made pursuant to an effective registration statement previously filed with the Securities and Exchange Commission ("SEC") on Form S-3 (File No. 333-230048) and available for review on the SEC's website at www.sec.gov. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of the senior notes referred to above. An offering of any such securities will be made only by means of a prospectus forming a part of the effective registration statement, the preliminary prospectus supplement thereto and other related documents. Any such documents shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. You may obtain copies of these documents without charge from the SEC at www.sec.gov. Alternatively, copies of these documents can be obtained from J.P. Morgan Securities LLC at 383 Madison Avenue, New York, NY 10179, Attention: Investment Grade Syndicate Desk – 3rd Floor, or via phone, collect, at 1-212-834-4533; or MUFG Securities Americas Inc. at 1221 Avenue of the Americas, 6th Floor, New York, NY 10020, Attention: Capital Markets Group, or toll-free at 1-877-649-6848; or Wells Fargo Securities, LLC at 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, Attention: WFS Customer Service, or via phone at 1-800-645-3751, or by email at wfscustomerservice@wellsfargo.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This communication contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including a successful closing of the offering. These risks and uncertainties are more fully described in SEC reports filed by Cimarex. While Cimarex makes these forward-looking statements in good faith, management cannot guarantee that anticipated future results will be achieved. Cimarex assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law. Actual results may differ materially from Cimarex projections and can be affected by a variety of factors outside Cimarex's control, including the risks and uncertainties described in Cimarex's SEC reports.
View original content:http://www.prnewswire.com/news-releases/cimarex-announces-pricing-of-senior-unsecured-notes-300808107.html
SOURCE Cimarex Energy Co.
Article Date
3/6/2019Cimarex announces closing of the acquisition of Resolute Energy
Source: PR Newswire
DENVER, March 1, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced that it completed its acquisition of Resolute Energy Corporation (NYSE: REN) ("Resolute") on March 1, 2019.
Resolute stockholders were able to elect to receive all cash, all stock or a combination of the two, subject to proration, so that the aggregate merger consideration consisted of no more than 60 percent shares of Cimarex Common Stock and 40 percent cash, based on the closing sale price for shares of Cimarex Common Stock on November 16, 2018. Following proration, Cimarex issued approximately 5.7 million shares of Cimarex Common Stock and paid $325.6 million in cash to former holders of Resolute Common Stock and Resolute Equity Awards. At closing the total amount of funds necessary to pay the cash portion of the merger consideration, pay transaction fees and expenses and repay in full the amount outstanding under Resolute's revolving credit facility was approximately $615 million, which Cimarex funded with cash on hand. In connection with the merger and concurrently with the closing, Cimarex also deposited funds sufficient to redeem any $600 million 8.50% Senior Notes of Resolute outstanding on April 1, 2019, using cash on hand and borrowings under Cimarex's revolving credit facility, satisfying and discharging the indenture governing the 8.50% Senior Notes. As of March 1, 2019, we had $525 million in borrowings outstanding under our revolving credit facility, leaving an unused borrowing availability of $722.5 million.
Tom Jorden, Chairman and CEO of Cimarex stated, "We are ready to get to work on the high-quality assets we acquired from Resolute and are commencing completion operations on wells on the acquired acreage in the next few days." He went on to say, "Cimarex is committed to cash flow neutrality in 2019, including payment of our common stock dividend. We can achieve this at a $52.50 NYMEX oil price and grow oil production."
In our recently provided 2019 production guidance, Cimarex assumed a contribution from the Resolute assets for the month of March of 28,000 barrels of oil equivalent per day (including 12,000 barrels of oil per day). This estimate takes into account volumes that are expected to be shut in to accommodate nearby completion operations. Cimarex estimates combined year over year production growth of 18 percent at the midpoint of guidance, with oil expected to grow 23 percent at the midpoint.
About Cimarex
Denver-based Cimarex is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S. For more information, visit https://www.cimarex.com. The company's common stock is traded on the NYSE under the ticker symbol "XEC."
Forward Looking Statements
This press release contains forward-looking statements, including statements regarding projected results and future events. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a description of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; higher than expected costs and expenses, including the availability and cost of services and materials; to successfully integrate the business of Resolute; compliance with environmental and other regulations; costs and availability of third party facilities for gathering, processing, refining and transportation; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
View original content:http://www.prnewswire.com/news-releases/cimarex-announces-closing-of-the-acquisition-of-resolute-energy-300804956.html
SOURCE Cimarex Energy Co.
Article Date
3/1/2019Cimarex Releases 2019 Capital Investment Plans and Production and Expense Guidance
Source: PR Newswire
DENVER, Feb. 20, 2019 /PRNewswire/ --
Cimarex Energy Co. (NYSE: XEC) today announced its projected 2019 exploration and development (E&D) capital investment of $1.35 - 1.45 billion, an 11 percent decrease from 2018 levels at the midpoint. The company estimates $60-70 million of additional capital for midstream and other infrastructure. All projections in this release assume closing of the pending Resolute Energy Corporation acquisition on March 1, 2019.
Total company production for 2019 is projected to average 250 - 270 thousand barrels of oil equivalent (MBOE) per day, with oil production expected to average 78-88 thousand barrels of oil (MBO) per day.
Tom Jorden, Cimarex Chairman and CEO, said, "Cimarex is using a $50 to $55 per barrel NYMEX oil price sensitivity for planning capital investments in 2019 and beyond. As we see it today, our planned activity for 2019 results in Cimarex being cash flow neutral at $52.50 per barrel NYMEX including the payment of our dividend. More importantly, the level of spending planned for this year puts us in a strong position to generate free cash flow at $50 per barrel of oil including payment of the dividend in 2020-21." Mr. Jorden went on to say, "We continue to seek out capital efficiencies and are determined to execute our 2019 capital plans, including the payment of our dividend, within cash flow. Of course, oil prices and associated price differentials have the largest impact on our cash flow and our ability to achieve this goal, but we have other levers to pull as well. As has been the case, our continued success will be the result of the things at which we excel--thorough evaluation, careful planning and solid execution."
Following the large production ramp Cimarex experienced in the fourth quarter of 2018, first quarter 2019 output is expected to average 245-257 MBOE per day, essentially flat with fourth quarter levels. Oil production in the first quarter is expected to decrease slightly and average 75-81 MBO per day.
Cimarex intends to invest $1.1-1.2 billion on the drilling and completion of 83 net wells during 2019. Approximately 85 percent of the D&C capital will be invested in the Permian region with the remainder in the Mid-Continent. Permian activities will continue to focus on our long lateral Wolfcamp programs in Culberson and Reeves counties in Texas, and in Lea County, New Mexico. Avalon and Bone Spring activities round out the remainder of our investments in the region.
Below are the net wells expected to be on production in 2019 by quarter:
1Q19 | 2Q19 | 3Q19 | 4Q19 | Total | ||||||
Permian Basin | 4 | 23 | 20 | 19 | 66 | |||||
Mid-Continent | 2 | 10 | 4 | 1 | 17 | |||||
Total | 6 | 33 | 24 | 20 | 83 |
Expenses for 2019 are expected to fall within the following ranges:
($/BOE) | ||
Production expense | $3.20 - $3.70 | |
Transportation and other operating expense | 2.30 - 2.90 | |
DD&A and ARO accretion | 7.75 - 8.75 | |
General and administrative expense | 1.00 - 1.30 | |
Taxes other than income (% of oil and gas revenue) | 5.5% - 6.5% | |
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent ares of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a description of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; higher than expected costs and expenses, including the availability and cost of services and materials; our ability to complete our pending acquisition of Resolute Energy ("Resolute") and to successfully integrate the business of Resolute; compliance with environmental and other regulations; costs and availability of third party facilities for gathering, processing, refining and transportation; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
View original content:http://www.prnewswire.com/news-releases/cimarex-releases-2019-capital-investment-plans-and-production-and-expense-guidance-300799163.html
SOURCE Cimarex Energy Co.
Article Date
2/20/2019Cimarex Reports Fourth Quarter and Full Year 2018 Results
Source: PR Newswire
DENVER, Feb. 20, 2019 /PRNewswire/ --
Cimarex Energy Co. (NYSE: XEC) today reported fourth quarter 2018 net income of $316.2 million, or $3.32 per share, compared to $174.7 million, or $1.83 per share, in the same period a year ago. Fourth quarter adjusted net income (non-GAAP) was $189.7 million, or $1.98 per share, compared to fourth quarter 2017 adjusted net income (non-GAAP) of $140.0 million, or $1.47 per share1. Net cash provided by operating activities was $393.2 million in the fourth quarter of 2018 compared to $340.8 million in the same period a year ago. Adjusted cash flow from operations (non-GAAP) was $428.2 million in the fourth quarter of 2018 compared to $357.1 million in the fourth quarter a year ago1.
Driven by solid execution, total company volumes for the fourth quarter averaged 251.3 thousand barrels of oil equivalent (MBOE) per day. Oil production averaged 79,904 barrels (bbls) per day, up 29 percent from the same period a year ago and up 25 percent from third quarter 2018 levels.
Realized oil prices averaged $49.30 per barrel on the fourth quarter, down 5 percent from the $51.68 per barrel received in the fourth quarter of 2017 and realized natural gas prices averaged $2.16 per thousand cubic feet (Mcf) down 16 percent from the fourth quarter 2017 average of $2.58 per Mcf. NGL prices averaged $20.71 per barrel, down 20 percent from the $25.88 per barrel received in the fourth quarter of 2017. For the full year, Cimarex realized $56.61 per barrel of oil, up 20 percent from 2017, $1.99 per Mcf of natural gas and $22.28 per barrel of NGLs sold. Realized prices for 2018 reflect the adoption of Accounting Standards Codification 606 (ASC 606). See table below (Impact of ASC 606) for comparison of realized prices for 2018 for pre- and post-ASC 606.
During 2018, both oil and natural gas prices were negatively impacted by local price differentials. Our realized Permian oil differential to WTI Cushing averaged $(9.82) per barrel in 2018. Cimarex's average differential on its Permian natural gas production was $(1.40) per Mcf below Henry Hub in 2018 and, in the Mid-Continent region, realized gas prices were $(0.86) per Mcf below the Henry Hub index.
Cimarex invested $1.57 billion in exploration and development (E&D) in 2018, including $380 million in the fourth quarter. Investments made in 2018 were funded with cash flow from operations and cash on the balance sheet. Total debt at December 31, 2018, consisted of $1.5 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $800.7 million at year-end. Debt was 31 percent of total capitalization2.
Proved reserves at December 31, 2018, totaled 591 million barrels of oil equivalent (MMBOE), up six percent year over year. Proved developed reserves increased eight percent to 501 MMBOE. Cimarex added 159 MMBOE through extensions and discoveries and deducted 23 MMBOE through net revisions resulting in reserve replacement of 168 percent of 2018 production. Proved reserves are 85 percent proved developed.
On August 31, 2018, we closed on the sale of properties in Ward County, Texas, and have received $534.6 million in net cash proceeds adjusted for the resolution of all asserted defects as of December 31, 2018. On November 18, 2018, Cimarex entered into a merger agreement to acquire Resolute Energy Corporation in a cash and stock transaction valued at $1.6 billion, including the assumption of Resolute's long-term debt, which was approximately $710 million. The transaction is expected to close on March 1, 2019, and is subject to the approval of the Resolute shareholders and the satisfaction of certain regulatory approvals and other closing conditions.
Operations Update
Cimarex invested $1.57 billion in E&D in 2018--70 percent in the Permian region and 30 percent in the Mid-Continent. An additional $103 million was invested in midstream operations and other infrastructure in 2018. Of the $1.57 billion of E&D investment in 2018, $1.35 billion (86 percent) went toward the drilling and completion of new wells.
During 2018, Cimarex participated in the drilling and completion of 349 gross (122 net) wells. At year-end, 83 gross (28 net) wells were waiting on completion, of which 48 gross (8 net) were in the Mid-Continent and 35 gross (20 net) were in the Permian. Cimarex currently operates 11 drilling rigs.
WELLS BROUGHT ON PRODUCTION BY REGION | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Gross wells | ||||||||||||
Permian Basin | 40 | 32 | 129 | 97 | ||||||||
Mid-Continent | 46 | 85 | 220 | 222 | ||||||||
86 | 117 | 349 | 319 | |||||||||
Net wells | ||||||||||||
Permian Basin | 32 | 14 | 80 | 55 | ||||||||
Mid-Continent | 6 | 10 | 42 | 43 | ||||||||
38 | 24 | 122 | 98 | |||||||||
Permian Region
Production from the Permian region averaged 147,404 BOE per day in the fourth quarter, a 31 percent increase from fourth quarter 2017. Oil volumes averaged 61,621 barrels per day, a 29 percent increase from fourth quarter 2017. For the full year, production averaged 126,124 BOE per day, up 20 percent year over year.
Cimarex brought 40 gross (32 net) wells on production in the Permian region during the fourth quarter. Activity in the fourth quarter included first production from 32 wells in the Wolfcamp, Avalon and Bone Spring formations. Of note is a 10,000-ft lateral, the Kingman 45 State Unit 3H, a Third Bone Spring test on the western side of Culberson County, Texas. This new zone had average 30-day initial peak production of 2,917 BOE per day including 1,965 barrels of oil per day (67 percent). Cimarex had additional success in the Third Bone Spring in Lea County, New Mexico, where three 5,000-ft laterals had an average 30-day peak initial production of 1,461 BOE per day (81 percent oil).
Cimarex brought 129 gross (80 net) wells on production in the Permian region in 2018. About 70 percent of our operated wells were drilled from multi-well pads and our average lateral length on our operated wells in the Permian was 7,617 feet in 2018. Cimarex currently operates ten rigs in the region. Please see our press release announcing our 2019 capital plans as well as our most recent presentation for more details.
Mid-Continent Region
Production from the Mid-Continent averaged 103,432 BOE per day for the fourth quarter, up 17 percent from fourth quarter 2017 and up six percent sequentially. Oil volumes averaged 18,122 barrels per day and represented 18 percent of the region's total equivalent production. For the full year, production averaged 95,307 BOE per day, up 12 percent year over year.
Wells brought on production during the fourth quarter totaled 46 gross (6 net) in the Mid-Continent region, bringing the total wells in 2018 to 220 gross (42 net). At the end of the quarter, 48 gross (8 net) wells were waiting on completion.
Activity in the region continues to focus on the Woodford and Meramec shale plays in western Oklahoma. Cimarex currently operates one rig in the Mid-Continent. Please see our press release announcing our 2019 capital plans as well as our most recent presentation for more details.
Production by Region
Cimarex's average daily production and commodity price by region is summarized below:
DAILY PRODUCTION BY REGION | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Permian Basin | ||||||||||||
Gas (MMcf) | 296.4 | 232.6 | 253.7 | 217.9 | ||||||||
Oil (Bbls) | 61,621 | 47,642 | 52,339 | 44,577 | ||||||||
NGL (Bbls) | 36,380 | 25,747 | 31,505 | 24,269 | ||||||||
Total Equivalent (BOE) | 147,404 | 112,157 | 126,124 | 105,157 | ||||||||
Mid-Continent | ||||||||||||
Gas (MMcf) | 324.2 | 300.3 | 308.8 | 294.4 | ||||||||
Oil (Bbls) | 18,122 | 13,999 | 15,150 | 12,457 | ||||||||
NGL (Bbls) | 31,275 | 24,176 | 28,697 | 23,296 | ||||||||
Total Equivalent (BOE) | 103,432 | 88,225 | 95,307 | 84,822 | ||||||||
Total Company | ||||||||||||
Gas (MMcf) | 621.9 | 534.0 | 563.9 | 513.6 | ||||||||
Oil (Bbls) | 79,904 | 61,771 | 67,699 | 57,153 | ||||||||
NGL (Bbls) | 67,706 | 49,954 | 60,258 | 47,600 | ||||||||
Total Equivalent (BOE) | 251,254 | 200,729 | 221,946 | 190,354 | ||||||||
AVERAGE REALIZED PRICE BY REGION | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||
2018* | 2017 | 2018* | 2017 | |||||||||
Permian Basin | ||||||||||||
Gas ($ per Mcf) | 1.44 | 2.56 | 1.69 | 2.72 | ||||||||
Oil ($ per Bbl) | 47.17 | 51.38 | 54.95 | 46.96 | ||||||||
NGL ($ per Bbl) | 20.13 | 25.07 | 22.84 | 20.25 | ||||||||
Mid-Continent | ||||||||||||
Gas ($ per Mcf) | 2.82 | 2.60 | 2.23 | 2.78 | ||||||||
Oil ($ per Bbl) | 56.48 | 52.72 | 62.31 | 47.42 | ||||||||
NGL ($ per Bbl) | 21.38 | 26.73 | 21.67 | 23.02 | ||||||||
Total Company | ||||||||||||
Gas ($ per Mcf) | 2.16 | 2.58 | 1.99 | 2.76 | ||||||||
Oil ($ per Bbl) | 49.30 | 51.68 | 56.61 | 47.06 | ||||||||
NGL ($ per Bbl) | 20.71 | 25.88 | 22.28 | 21.61 | ||||||||
*Realized prices for 2018 reflect the adoption of ASC 606. See Impact of ASC 606 table for a comparison of 2018 realized prices on a pre- and post-ASC 606 basis. |
Other
The following table summarizes Cimarex's current hedge positions:
1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q20 | 2Q20 | |||||||||||||
Gas Collars: | PEPL(3) | |||||||||||||||||
Volume (MMBtu/d) | 139,667 | 150,000 | 120,000 | 90,000 | 60,000 | 30,000 | ||||||||||||
Wtd Avg Floor | $ | 2.04 | $ | 2.03 | $ | 1.94 | $ | 1.94 | $ | 1.96 | $ | 1.95 | ||||||
Wtd Avg Ceiling | $ | 2.40 | $ | 2.39 | $ | 2.32 | $ | 2.37 | $ | 2.38 | $ | 2.26 | ||||||
El Paso Perm(3) | ||||||||||||||||||
Volume (MMBtu/d) | 86,556 | 90,000 | 70,000 | 40,000 | 20,000 | 10,000 | ||||||||||||
Wtd Avg Floor | $ | 1.67 | $ | 1.67 | $ | 1.49 | $ | 1.40 | $ | 1.45 | $ | 1.50 | ||||||
Wtd Avg Ceiling | $ | 1.94 | $ | 1.95 | $ | 1.79 | $ | 1.73 | $ | 1.92 | $ | 2.13 | ||||||
Waha (3) | ||||||||||||||||||
Volume (MMBtu/d) | 36,556 | 40,000 | 40,000 | 40,000 | 30,000 | 10,000 | ||||||||||||
Wtd Avg Floor | $ | 1.40 | $ | 1.41 | $ | 1.41 | $ | 1.41 | $ | 1.43 | $ | 1.50 | ||||||
Wtd Avg Ceiling | $ | 1.71 | $ | 1.73 | $ | 1.73 | $ | 1.73 | $ | 1.79 | $ | 1.90 | ||||||
Oil Collars: | WTI(4) | |||||||||||||||||
Volume (Bbl/d) | 31,689 | 33,000 | 26,000 | 18,000 | 10,000 | 2,000 | ||||||||||||
Wtd Avg Floor | $ | 53.85 | $ | 53.70 | $ | 55.23 | $ | 57.56 | $ | 58.00 | $ | 50.00 | ||||||
Wtd Avg Ceiling | $ | 66.79 | $ | 66.62 | $ | 69.46 | $ | 70.90 | $ | 73.20 | $ | 62.60 | ||||||
Oil Basis Swaps: | WTI Midland(5) | |||||||||||||||||
Volume (Bbl/d) | 29,000 | 29,000 | 24,000 | 16,000 | 7,000 | 7,000 | ||||||||||||
Weighted Avg Differential | $ | (5.46) | $ | (5.46) | $ | (6.50) | $ | (7.79) | $ | (0.40) | $ | (0.40) | ||||||
Conference call and webcast
Cimarex will host a conference call tomorrow, February 21, at 11:00 a.m. EST (9:00 a.m. MST) to discuss its fourth quarter and 2018 financial and operating results as well as management's outlook for 2019. The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
Investor Presentation
For more details on Cimarex's 2018 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding projected results and future events. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a description of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; higher than expected costs and expenses, including the availability and cost of services and materials; our ability to complete our pending acquisition of Resolute Energy ("Resolute") and to successfully integrate the business of Resolute; compliance with environmental and other regulations; costs and availability of third party facilities for gathering, processing, refining and transportation; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
1 | Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for reconciliations of the related GAAP amounts. | |||||||
2 | Debt to total capitalization is calculated by dividing long-term debt by long-term debt plus stockholders' equity. | |||||||
3 | PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index, El Paso Perm refers to El Paso Permian Basin index, and Waha refers to West Texas (Waha) Index, all as quoted in Platt's Inside FERC. | |||||||
4 | WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. | |||||||
5 | Index price on basis swaps is WTI NYMEX less the weighted average WTI Midland differential, as quoted by Argus Americas Crude. | |||||||
RECONCILIATION OF ADJUSTED NET INCOME
The following reconciles net income as reported under generally accepted accounting principles (GAAP) to adjusted net income (non-GAAP) for the periods indicated.
Three Months Ended | Twelve Months Ended | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Net income | $ | 316,182 | $ | 174,696 | $ | 791,851 | $ | 494,329 | |||||||
Mark-to-market (gain) loss on open derivative positions | (161,516) | 30,160 | (110,388) | (22,843) | |||||||||||
Loss on early extinguishment of debt | — | 18 | — | 28,187 | |||||||||||
Asset Retirement Obligation | — | 10,460 | — | 10,460 | |||||||||||
Impact of reduction in Federal statutory tax rate | — | (61,146) | — | (61,146) | |||||||||||
Tax impact | 35,049 | (14,142) | 24,948 | (5,768) | |||||||||||
Adjusted net income | $ | 189,715 | $ | 140,046 | $ | 706,411 | $ | 443,219 | |||||||
Diluted earnings per share | $ | 3.32 | $ | 1.83 | $ | 8.32 | $ | 5.19 | |||||||
Adjusted diluted earnings per share* | $ | 1.98 | $ | 1.47 | $ | 7.40 | $ | 4.65 | |||||||
Weighted-average number of shares outstanding: | |||||||||||||||
Adjusted diluted** | 95,675 | 95,363 | 95,523 | 95,265 | |||||||||||
Adjusted net income and adjusted diluted earnings per share exclude the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP measures because: | |
a) | Management uses adjusted net income to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies. |
b) | Adjusted net income is more comparable to earnings estimates provided by research analysts. |
* Does not include adjustments resulting from application of the "two-class method" used to determine earnings per share under GAAP. | |
** Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding stock options. | |
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) for the periods indicated.
Three Months Ended | Twelve Months Ended | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Net cash provided by operating activities | $ | 393,181 | $ | 340,759 | $ | 1,550,994 | $ | 1,096,564 | |||||||
Change in operating assets and liabilities | 34,971 | 16,339 | (17,415) | 89,067 | |||||||||||
Adjusted cash flow from operations | $ | 428,152 | $ | 357,098 | $ | 1,533,579 | $ | 1,185,631 | |||||||
Management uses the non-GAAP financial measure of adjusted cash flow from operations as a means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities. Management believes this non-GAAP financial measure provides useful information to investors for the same reason, and that it is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.
PROVED RESERVES
Gas | Oil | NGL | Total | ||||||||
December 31, 2017 | 1,607,635 | 137,238 | 153,860 | 559,037 | |||||||
Revisions of previous estimates | (132,577) | (4,348) | 3,777 | (22,667) | |||||||
Extensions and discoveries | 342,810 | 53,763 | 47,614 | 158,512 | |||||||
Purchases of reserves | 3 | — | — | 1 | |||||||
Production | (205,837) | (24,710) | (21,994) | (81,010) | |||||||
Sales of reserves | (20,713) | (15,405) | (3,821) | (22,678) | |||||||
December 31, 2018 | 1,591,321 | 146,538 | 179,436 | 591,195 | |||||||
Proved developed reserves: | |||||||||||
December 31, 2017 | 1,334,510 | 114,116 | 126,227 | 462,761 | |||||||
December 31, 2018 | 1,398,729 | 116,339 | 151,566 | 501,027 | |||||||
2018 | 2017 | % Change | |||||||||
Standardized Measure ($ in millions) | 4,015 | 3,285 | 22 | % | |||||||
Pre-tax PV-10 ($ in millions) * | 4,739 | 3,725 | 27 | % | |||||||
Average prices used in Standardized Measure | 2018 | 2017 | % Change | ||||||||
Gas ($ per Mcf) | 3.10 | 2.98 | 4 | % | |||||||
Oil ($ per Bbl) | 65.56 | 51.34 | 28 | % | |||||||
NGL ($ per Bbl) | 21.03 | 19.09 | 10 | % | |||||||
* Pre-tax PV-10 is a non-GAAP financial measure. Pre-tax PV-10 is comparable to the standardized measure, which is the most directly comparable GAAP financial measure. Pre-tax PV-10 is computed on the same basis as the standardized measure but without deducting future income taxes. As of December 31, 2018 and 2017, Cimarex's discounted future income taxes were $724.0 million and $439.8 million, respectively. Cimarex's standardized measure of discounted future net cash flows was $4,015.2 million at year-end 2018 and $3,285.0 million at year-end 2017. Management uses pre-tax PV-10 as one measure of the value of the company's proved reserves and to compare relative values of proved reserves to other exploration and production companies without regard to income taxes. Management believes pre-tax PV-10 is a useful measure for comparison of proved reserve values among companies because, unlike standardized measure, it excludes future income taxes that often depend on the unique income tax characteristics of the owner of the reserves rather than on the nature, location and quality of the reserves themselves. Management further believes that professional research analysts and rating agencies use pre-tax PV-10 in similar ways. However, pre-tax PV-10 is not a substitute for the standardized measure of discounted future net cash flows. Cimarex's pre-tax PV-10 and the standardized measure of discounted future net cash flows do not purport to present the fair value of its oil and natural gas reserves. |
PROVED RESERVES BY REGION
Gas (MMcf) | Oil (MBbls) | NGL (MBbls) | Total (MBOE) | ||||||||
Permian Basin | 727,985 | 116,378 | 96,533 | 334,241 | |||||||
Mid-Continent | 861,440 | 29,908 | 82,826 | 256,307 | |||||||
Other | 1,896 | 252 | 77 | 647 | |||||||
1,591,321 | 146,538 | 179,436 | 591,195 | ||||||||
IMPACT OF ASC 606
Effective January 1, 2018, Cimarex adopted the provisions of Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606"). Application of ASC 606 has no impact on our net income or cash flows from operations; however, certain costs classified as Transportation, processing, and other operating expenses in the statement of operations under prior accounting standards are now reflected as deductions from revenue under ASC 606. The following tables present certain Pre- and Post-ASC 606 amounts:
REVENUES | ||||||||||||
Three Months Ended | ||||||||||||
2018 | 2017 | |||||||||||
Pre-ASC 606 | Post-ASC 606 | As Reported | ||||||||||
(in thousands) | ||||||||||||
Oil sales | $ | 362,411 | $ | 362,411 | $ | 293,686 | ||||||
Gas sales | $ | 129,508 | $ | 123,810 | $ | 126,810 | ||||||
NGL sales | $ | 136,023 | $ | 129,015 | $ | 118,918 | ||||||
Twelve Months Ended | ||||||||||||
2018 | 2017 | |||||||||||
Pre-ASC 606 | Post-ASC 606 | As Reported | ||||||||||
(in thousands) | ||||||||||||
Oil sales | $ | 1,398,813 | $ | 1,398,813 | $ | 981,646 | ||||||
Gas sales | $ | 425,233 | $ | 408,751 | $ | 516,936 | ||||||
NGL sales | $ | 518,410 | $ | 490,081 | $ | 375,421 | ||||||
AVERAGE REALIZED PRICE BY REGION | |||||||||
Three Months Ended | |||||||||
2018 | 2017 | ||||||||
Pre-ASC 606 | Post-ASC 606 | As Reported | |||||||
Permian Basin | |||||||||
Gas ($ per Mcf) | 1.60 | 1.44 | 2.56 | ||||||
Oil ($ per Bbl) | 47.17 | 47.17 | 51.38 | ||||||
NGL ($ per Bbl) | 21.94 | 20.13 | 25.07 | ||||||
Mid-Continent | |||||||||
Gas ($ per Mcf) | 2.86 | 2.82 | 2.60 | ||||||
Oil ($ per Bbl) | 56.48 | 56.48 | 52.72 | ||||||
NGL ($ per Bbl) | 21.70 | 21.38 | 26.73 | ||||||
Total Company | |||||||||
Gas ($ per Mcf) | 2.26 | 2.16 | 2.58 | ||||||
Oil ($ per Bbl) | 49.30 | 49.30 | 51.68 | ||||||
NGL ($ per Bbl) | 21.84 | 20.71 | 25.88 | ||||||
Twelve Months Ended | |||||||||
2018 | 2017 | ||||||||
Pre-ASC 606 | Post-ASC 606 | As Reported | |||||||
Permian Basin | |||||||||
Gas ($ per Mcf) | 1.82 | 1.69 | 2.72 | ||||||
Oil ($ per Bbl) | 54.95 | 54.95 | 46.96 | ||||||
NGL ($ per Bbl) | 24.53 | 22.84 | 20.25 | ||||||
Mid-Continent | |||||||||
Gas ($ per Mcf) | 2.27 | 2.23 | 2.78 | ||||||
Oil ($ per Bbl) | 62.31 | 62.31 | 47.42 | ||||||
NGL ($ per Bbl) | 22.52 | 21.67 | 23.02 | ||||||
Total Company | |||||||||
Gas ($ per Mcf) | 2.07 | 1.99 | 2.76 | ||||||
Oil ($ per Bbl) | 56.61 | 56.61 | 47.06 | ||||||
NGL ($ per Bbl) | 23.57 | 22.28 | 21.61 | ||||||
TRANSPORTATION, PROCESSING, AND OTHER OPERATING EXPENSES | ||||||||||||
Three Months Ended | ||||||||||||
2018 | 2017 | |||||||||||
Pre-ASC 606 | Post-ASC 606 | As Reported | ||||||||||
(in thousands, except per BOE) | ||||||||||||
Transportation, processing, and other operating expenses | $ | 66,690 | $ | 53,984 | $ | 59,606 | ||||||
Per BOE | $ | 2.89 | $ | 2.34 | $ | 3.23 | ||||||
Twelve Months Ended | ||||||||||||
2018 | 2017 | |||||||||||
Pre-ASC 606 Adoption | Post-ASC 606 Adoption | As Reported | ||||||||||
(in thousands, except per BOE) | ||||||||||||
Transportation, processing, and other operating expenses | $ | 245,613 | $ | 200,802 | $ | 231,640 | ||||||
Per BOE | $ | 3.03 | $ | 2.48 | $ | 3.33 | ||||||
OIL AND GAS CAPITALIZED EXPENDITURES | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Acquisitions: | |||||||||||||||
Proved | $ | — | $ | 678 | $ | 62 | $ | 938 | |||||||
Unproved | 13,965 | 2,590 | 26,216 | 6,853 | |||||||||||
13,965 | 3,268 | 26,278 | 7,791 | ||||||||||||
Exploration and development: | |||||||||||||||
Land and seismic | $ | 6,764 | $ | 17,157 | $ | 82,791 | $ | 140,516 | |||||||
Exploration and development | 373,555 | 326,855 | 1,487,453 | 1,140,548 | |||||||||||
380,319 | 344,012 | 1,570,244 | 1,281,064 | ||||||||||||
Property sales | (7,285) | (3,544) | (581,799) | (11,680) | |||||||||||
$ | 386,999 | $ | 343,736 | $ | 1,014,723 | $ | 1,277,175 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(in thousands, except per share information) | ||||||||||||||||
Revenues: | ||||||||||||||||
Oil sales | $ | 362,411 | $ | 293,686 | $ | 1,398,813 | $ | 981,646 | ||||||||
Gas and NGL sales | 252,825 | 245,728 | 898,832 | 892,357 | ||||||||||||
Gas gathering and other | 8,885 | 11,526 | 41,372 | 44,246 | ||||||||||||
624,121 | 550,940 | 2,339,017 | 1,918,249 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Depreciation, depletion, amortization, and accretion | 180,060 | 142,482 | 597,615 | 461,655 | ||||||||||||
Production | 66,455 | 71,771 | 293,213 | 262,180 | ||||||||||||
Transportation, processing, and other operating | 53,984 | 59,606 | 200,802 | 231,640 | ||||||||||||
Gas gathering and other | 12,105 | 9,910 | 41,964 | 35,840 | ||||||||||||
Taxes other than income | 38,620 | 26,760 | 125,169 | 89,864 | ||||||||||||
General and administrative | 16,642 | 21,161 | 80,850 | 79,996 | ||||||||||||
Stock compensation | 6,633 | 6,637 | 22,895 | 26,256 | ||||||||||||
(Gain) loss on derivative instruments, net | (157,505) | 29,051 | (85,959) | (21,210) | ||||||||||||
Other operating expense, net | 30 | 337 | 15,500 | 1,314 | ||||||||||||
217,024 | 367,715 | 1,292,049 | 1,167,535 | |||||||||||||
Operating income | 407,097 | 183,225 | 1,046,968 | 750,714 | ||||||||||||
Other (income) and expense: | ||||||||||||||||
Interest expense | 17,387 | 16,836 | 68,224 | 74,821 | ||||||||||||
Capitalized interest | (5,738) | (5,492) | (20,855) | (22,948) | ||||||||||||
Loss on early extinguishment of debt | — | 18 | — | 28,187 | ||||||||||||
Other, net | (8,192) | (2,338) | (22,908) | (11,342) | ||||||||||||
Income before income tax | 403,640 | 174,201 | 1,022,507 | 681,996 | ||||||||||||
Income tax expense (benefit) | 87,458 | (495) | 230,656 | 187,667 | ||||||||||||
Net income | $ | 316,182 | $ | 174,696 | $ | 791,851 | $ | 494,329 | ||||||||
Earnings per share to common stockholders: | ||||||||||||||||
Basic | $ | 3.32 | $ | 1.83 | $ | 8.32 | $ | 5.19 | ||||||||
Diluted | $ | 3.32 | $ | 1.83 | $ | 8.32 | $ | 5.19 | ||||||||
Dividends declared per share | $ | 0.18 | $ | 0.08 | $ | 0.68 | $ | 0.32 | ||||||||
Weighted-average number of shares outstanding: | ||||||||||||||||
Basic | 93,897 | 93,569 | 93,793 | 93,466 | ||||||||||||
Diluted | 93,915 | 93,612 | 93,820 | 93,509 | ||||||||||||
Comprehensive income: | ||||||||||||||||
Net income | $ | 316,182 | $ | 174,696 | $ | 791,851 | $ | 494,329 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Change in fair value of investments, net of tax | (1,985) | 394 | (1,444) | 1,254 | ||||||||||||
Total comprehensive income | $ | 314,197 | $ | 175,090 | $ | 790,407 | $ | 495,583 | ||||||||
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(in thousands) | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 316,182 | $ | 174,696 | $ | 791,851 | $ | 494,329 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation, depletion, amortization, and accretion | 180,060 | 142,482 | 597,615 | 461,655 | ||||||||||||
Deferred income taxes | 90,465 | 2,311 | 233,280 | 190,479 | ||||||||||||
Stock compensation | 6,633 | 6,637 | 22,895 | 26,256 | ||||||||||||
(Gain) loss on derivative instruments, net | (157,505) | 29,051 | (85,959) | (21,210) | ||||||||||||
Settlements on derivative instruments | (4,011) | 1,109 | (24,429) | (1,633) | ||||||||||||
Loss on early extinguishment of debt | — | 18 | — | 28,187 | ||||||||||||
Changes in non-current assets and liabilities | (535) | (253) | (1,779) | 1,891 | ||||||||||||
Other, net | (3,137) | 1,047 | 105 | 5,677 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | 17,193 | (57,236) | 5,421 | (186,157) | ||||||||||||
Other current assets | (6,378) | 1,441 | (1,957) | (17,931) | ||||||||||||
Accounts payable and other current liabilities | (45,786) | 39,456 | 13,951 | 115,021 | ||||||||||||
Net cash provided by operating activities | 393,181 | 340,759 | 1,550,994 | 1,096,564 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Oil and gas capital expenditures | (415,099) | (331,177) | (1,566,583) | (1,233,126) | ||||||||||||
Sales of oil and gas assets | 7,285 | 3,544 | 580,652 | 11,680 | ||||||||||||
Sales of other assets | 2,782 | 391 | 3,772 | 901 | ||||||||||||
Other capital expenditures | (28,422) | (14,020) | (103,459) | (45,352) | ||||||||||||
Net cash used by investing activities | (433,454) | (341,262) | (1,085,618) | (1,265,897) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Borrowings of long-term debt | — | — | — | 748,110 | ||||||||||||
Repayments of long-term debt | — | — | — | (750,000) | ||||||||||||
Call premium, financing, and underwriting fees | (100) | (118) | (100) | (29,312) | ||||||||||||
Dividends paid | (17,205) | (7,789) | (55,243) | (30,532) | ||||||||||||
Employee withholding taxes paid upon the net settlement of equity-classified stock awards | (5,732) | (14,032) | (12,142) | (21,669) | ||||||||||||
Proceeds from exercise of stock options | 30 | 168 | 2,241 | 394 | ||||||||||||
Net cash used by financing activities | (23,007) | (21,771) | (65,244) | (83,009) | ||||||||||||
Net change in cash and cash equivalents | (63,280) | (22,274) | 400,132 | (252,342) | ||||||||||||
Cash and cash equivalents at beginning of period | 863,946 | 422,808 | 400,534 | 652,876 | ||||||||||||
Cash and cash equivalents at end of period | $ | 800,666 | $ | 400,534 | $ | 800,666 | $ | 400,534 | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
December 31, | December 31, | |||||||
Assets | (in thousands, except share and per share information) | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 800,666 | $ | 400,534 | ||||
Accounts receivable, net of allowance | 454,200 | 460,174 | ||||||
Oil and gas well equipment and supplies | 55,553 | 49,722 | ||||||
Derivative instruments | 101,939 | 15,151 | ||||||
Other current assets | 11,781 | 10,054 | ||||||
Total current assets | 1,424,139 | 935,635 | ||||||
Oil and gas properties at cost, using the full cost method of accounting: | ||||||||
Proved properties | 18,566,757 | 17,513,460 | ||||||
Unproved properties and properties under development, not being amortized | 436,325 | 476,903 | ||||||
19,003,082 | 17,990,363 | |||||||
Less – accumulated depreciation, depletion, amortization, and impairment | (15,287,752) | (14,748,833) | ||||||
Net oil and gas properties | 3,715,330 | 3,241,530 | ||||||
Fixed assets, net of accumulated depreciation of $324,631 and $290,114, respectively | 257,686 | 210,922 | ||||||
Goodwill | 620,232 | 620,232 | ||||||
Derivative instruments | 9,246 | 2,086 | ||||||
Other assets | 35,451 | 32,234 | ||||||
$ | 6,062,084 | $ | 5,042,639 | |||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 106,814 | $ | 98,386 | ||||
Accrued liabilities | 379,455 | 351,849 | ||||||
Derivative instruments | 27,627 | 42,066 | ||||||
Revenue payable | 194,811 | 187,273 | ||||||
Total current liabilities | 708,707 | 679,574 | ||||||
Long-term debt: | ||||||||
Principal | 1,500,000 | 1,500,000 | ||||||
Less – unamortized debt issuance costs and discount | (11,446) | (13,080) | ||||||
Long-term debt, net | 1,488,554 | 1,486,920 | ||||||
Deferred income taxes | 334,473 | 101,618 | ||||||
Derivative instruments | 2,267 | 4,268 | ||||||
Other liabilities | 198,297 | 201,981 | ||||||
Total liabilities | 2,732,298 | 2,474,361 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, $0.01 par value, 15,000,000 shares authorized, no shares issued | — | — | ||||||
Common stock, $0.01 par value, 200,000,000 shares authorized, 95,755,797 and 95,437,434 shares issued, respectively | 958 | 954 | ||||||
Additional paid-in capital | 2,785,188 | 2,764,384 | ||||||
Retained earnings (accumulated deficit) | 542,885 | (199,259) | ||||||
Accumulated other comprehensive income | 755 | 2,199 | ||||||
Total stockholders' equity | 3,329,786 | 2,568,278 | ||||||
$ | 6,062,084 | $ | 5,042,639 | |||||
View original content:http://www.prnewswire.com/news-releases/cimarex-reports-fourth-quarter-and-full-year-2018-results-300799193.html
SOURCE Cimarex Energy Co.
Article Date
2/20/20192/20/2019 - Cimarex Energy Declares Quarterly Cash Dividend
Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
DENVER, Feb. 20, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.20 per share, an 11 percent increase from the previous dividend. The dividend is payable on May 31, 2019, to stockholders of record on May 15, 2019.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-declares-quarterly-cash-dividend-300799170.html
SOURCE Cimarex Energy Co.
Article Date
2/20/2019Cimarex Energy and Resolute Energy Announce February 22nd Deadline for Resolute Stockholder's Election of Form of Merger Consideration
Source: PR Newswire
DENVER, Feb. 11, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) ("Cimarex") and Resolute Energy Corporation (NYSE: REN) ("Resolute") today announced that, in connection with Cimarex's pending acquisition of Resolute, the election deadline for holders of shares of Resolute's common stock and holders of shares of Resolute's restricted stock (time and/or performance vested), outperformance share rights and/or options to elect the form of merger consideration they wish to receive in connection with the transaction, subject to proration, is 5:00 p.m. Eastern time on February 22, 2019.
Accordingly, an election will be valid only if a properly completed and signed election form, together with all required documents and materials set forth in the election form and the instructions thereto, is received by the exchange agent, Continental Stock Transfer & Trust Company, before 5:00 p.m. Eastern time on February 22, 2019. Holders of Resolute equity awards and stockholders who hold their shares through a bank, broker or other nominee may be subject to an earlier deadline and should carefully read the instructions from Resolute or their bank, broker or nominee, respectively, regarding making elections.
The election form was sent to Resolute stockholders and Resolute equity award holders on or about January 31, 2019. You may contact Continental Stock Transfer & Trust Company directly with any questions at (917) 262-2378 or via email at reorg@continentalstock.com.
About Cimarex
Denver-based Cimarex is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S. For more information, visit https://www.cimarex.com. The company's common stock is traded on the NYSE under the ticker symbol "XEC."
About Resolute
Resolute is an independent oil and gas company focused on the acquisition and development of unconventional oil and gas properties in the Delaware Basin portion of the Permian Basin of west Texas. For more information, visit www.resoluteenergy.com. The company routinely posts important information about the Company under the Investor Relations section of its website. The company's common stock is traded on the NYSE under the ticker symbol "REN."
Additional Information and Where to Find It
This communication does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval. This communication relates to a proposed transaction between Cimarex and Resolute.
In connection with the proposed transaction, Cimarex has filed with the SEC a registration statement on Form S-4, as amended, that includes a proxy statement of Resolute and a prospectus of Cimarex. The registration statement became effective on January 30, 2019. Resolute filed with the SEC a definitive proxy statement on Schedule 14A on January 30, 2019. The proxy statement/prospectus was mailed to stockholders of Resolute on or about January 30, 2019. Each of Cimarex and Resolute also plan to file other relevant documents with the SEC regarding the proposed transaction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended. INVESTORS AND SECURITY HOLDERS OF RESOLUTE ARE URGED TO READ THE REGISTRATION STATEMENT, PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS THAT MAY BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
Investors and security holders will be able to obtain free copies of these documents (if and when available) and other documents containing important information about Cimarex and Resolute, once such documents are filed with the SEC through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by Cimarex will be available free of charge on Cimarex's website at https://www.cimarex.com/home/default.aspx under the tab "Investor Relations" and then under the heading "Financial Information." Copies of the documents filed with the SEC by Resolute will be available free of charge on Resolute's website at https://www.resoluteenergy.com/ under the tab "Investors" and then under the heading "SEC Filings."
Participants in the Solicitation
Cimarex, Resolute and certain of their respective directors, executive officers and other persons may be deemed to be participants in the solicitation of proxies from Resolute's stockholders in respect of the proposed transaction. Information about the directors and executive officers of Cimarex is set forth in Cimarex's definitive proxy statement for its 2018 annual meeting of stockholders, which was filed with the SEC on March 30, 2018. Information about the directors and executive officers of Resolute, including a description of their direct and indirect interests, by security holdings or otherwise, is set forth in the proxy statement/prospectus and is set forth in its definitive proxy statement for its 2018 annual meeting of stockholders, which was filed with the SEC on May 18, 2018. These documents can be obtained free of charge from the sources indicated above. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, are contained in the proxy statement/prospectus and will be contained in other relevant materials to be filed with the SEC when such materials become available. Investors should read the proxy statement/prospectus carefully before making any voting or investment decisions. You may obtain free copies of these documents from Cimarex or Resolute using the sources indicated above.
Cautionary Statements Regarding Forward-Looking Information
This communication contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates," "believes," "expects," "intends," "will," "should," "may" and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect Cimarex's and Resolute's current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed merger involving Cimarex and Resolute, including future financial and operating results, Cimarex's and Resolute's plans, objectives, expectations and intentions, the expected timing and likelihood of completion of the transaction, and other statements that are not historical facts, including estimates of oil and natural gas reserves and resources, estimates of future production, assumptions regarding future oil and natural gas pricing, planned drilling activity, future results of operations, projected cash flow and liquidity, business strategy and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this communication will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, without limitation, the ability to obtain the requisite Resolute stockholder approval, the risk that an event, change or other circumstances could give rise to the termination of the proposed merger, the risk that a condition to closing of the merger may not be satisfied, the timing to consummate the proposed merger, the risk that the businesses will not be integrated successfully, the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected, the risk that any announcement relating to the proposed transaction could have adverse effects on the market price of Cimarex's common stock or Resolute's common stock, the outcome of litigation related to the proposed transaction, disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers, the diversion of management time on merger-related issues, the volatility in commodity prices for crude oil and natural gas, the presence or recoverability of estimated reserves, the ability to replace reserves, environmental risks, drilling and operating risks, exploration and development risks, competition, government regulation or other actions, the ability of management to execute its plans to meet its goals and other risks inherent in Cimarex's and Resolute's businesses.
All such factors are difficult to predict and are beyond Cimarex's or Resolute's control, including those detailed in Cimarex's annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K that are available on its website at https://www.cimarex.com and on the SEC's website at http://www.sec.gov, and those detailed in Resolute's annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K that are available on Resolute's website at https://www.resoluteenergy.com/ and on the SEC's website at http://www.sec.gov.
Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither Cimarex nor Resolute undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-and-resolute-energy-announce-february-22nd-deadline-for-resolute-stockholders-election-of-form-of-merger-consideration-300793410.html
SOURCE Cimarex Energy Co.; Resolute Energy Corporation
Article Date
2/11/2019Cimarex Schedules Fourth Quarter 2018 Earnings Release and Conference Call
Source: PR Newswire
DENVER, Jan. 23, 2019 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced it plans to report fourth quarter 2018 financial results on Wednesday, February 20, 2019, after market close. The company will host its quarterly conference call at 11:00 AM ET on Thursday, February 21, 2019.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-schedules-fourth-quarter-2018-earnings-release-and-conference-call-300783338.html
SOURCE Cimarex Energy Co.
Article Date
1/23/201912/21/2018 - Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Energy Index
Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Energy Index
Source: PR Newswire
DALLAS, Dec. 21, 2018 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing® Energy Index (the "Index") as part of normal index operations. After the markets close on December 31, 2018, the constituents of the Index will be rebalanced, and the following changes will become effective on January 2, 2019:
Constituents added:
CNX Midstream Partners LP (NYSE: CNXM)
Crestwood Equity Partners LP (NYSE: CEQP)
Shell Midstream Partners, L.P. (NYSE: SHLX)
Cimarex Energy Co. (NYSE: XEC)
Constituents removed:
AmeriGas Partners, L.P. (NYSE: APU)
Dominion Energy Midstream Partners, LP (NYSE: DM)
EnLink Midstream Partners, LP (NYSE: ENLK)
ABOUT THE CUSHING® ENERGY INDEX
The Cushing® Energy Index tracks the performance of widely held companies engaged in exploration and production, refining and marketing, and storage and transportation of oil, natural gas, coal and consumable fuels, as well as oil and natural gas equipment and services companies. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CENI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of midstream energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Judson Redmond
214-692-6334
www.cushingasset.com
Source: Cushing® Asset Management, LP, and Swank Capital, LLC
The Cushing® Energy Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-rebalancing-of-the-cushing-energy-index-300770032.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
12/21/201812/6/2018 - Cimarex Energy Declares Quarterly Cash Dividend
Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
DENVER, Dec. 6, 2018 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.18 per share. The dividend is payable on March 1, 2019, to stockholders of record on February 15, 2019.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
FOR FURTHER INFORMATION CONTACT
Karen Acierno - Director of Investor Relations
303.285.4957
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-declares-quarterly-cash-dividend-300761703.html
SOURCE Cimarex Energy Co.
Article Date
12/6/201811/19/2018 - ALERT: Rowley Law PLLC is Investigating Proposed Acquisition of Resolute Energy Corporation
ALERT: Rowley Law PLLC is Investigating Proposed Acquisition of Resolute Energy Corporation
Source: PR Newswire
NEW YORK, Nov. 19, 2018 /PRNewswire/ -- Rowley Law PLLC is investigating potential claims against Resolute Energy Corporation (NYSE: REN) and its board of directors for breach of fiduciary duty concerning the proposed acquisition of the company by Cimarex Energy Co. (NYSE: XEC). Stockholders will receive $35.00 in cash, 0.3943 shares of Cimarex Energy Co. common stock, or a combination of stock and cash for each share of Resolute Energy Corporation stock that they hold. The transaction is valued at approximately $1.6 billion (including debt) and is expected to close by the end of the first quarter of 2019.
If you are a stockholder of Resolute Energy Corporation and are interested in obtaining additional information regarding this investigation, please visit us at: http://www.rowleylawpllc.com/investigation/ren. You may also contact Shane Rowley, Esq. at Rowley Law PLLC, 50 Main Street Suite 1000, White Plains, NY 10606, by email at info@rowleylawpllc.com, or by telephone at 914-400-1920 or 844-400-4643 (toll-free).
Rowley Law PLLC represents shareholders nationwide in class actions and derivative lawsuits in complex corporate litigation. For more information about the firm and its attorneys, please visit http://www.rowleylawpllc.com.
Attorney Advertising. Prior results do not guarantee a similar outcome.
View original content:http://www.prnewswire.com/news-releases/alert-rowley-law-pllc-is-investigating-proposed-acquisition-of-resolute-energy-corporation-300753041.html
SOURCE Rowley Law PLLC
Article Date
11/19/2018Cimarex to Acquire Delaware Pure-Play Resolute for $1.6 billion
Source: PR Newswire
DENVER, Nov. 19, 2018 /PRNewswire/ -- Cimarex (NYSE: XEC) and Resolute Energy Corporation (NYSE: REN) ("Resolute") today announced that Cimarex has entered into a definitive agreement to acquire Resolute in a cash and stock transaction valued at $35.00 per share, or a total purchase price of approximately $1.6 billion, including Resolute's long term debt of $710 million, as of September 30, 2018. The transaction was unanimously approved by both companies' Boards of Directors.
"This high-quality, bolt-on asset is tailor-made for Cimarex," said Thomas E. Jorden, Chairman, President and CEO of Cimarex. "It is a perfect fit with our existing Reeves County position and will allow us to leverage our knowledge and deliver superior results over a broader asset base for the benefit of both Cimarex and Resolute shareholders. The Resolute assets are expected to generate free cash flow in 2019, basically funding any additional development capital from the start. I want to compliment Rick Betz and the entire Resolute team on the outstanding job that they have done in building these premier Reeves County assets."
Cimarex will continue to maintain an industry-leading cost structure and strong balance sheet. Cimarex expects the combined companies to generate free cash flow in 2020.
"Today's transaction further demonstrates the commitment of the Board of Directors and entire management team at Resolute to maximizing long term value for the company's shareholders," said Rick Betz, Chief Executive Officer of Resolute. "Our dedicated team of talented professionals has worked tirelessly to position this company to be able to capitalize on the tremendous opportunity this merger represents. The combination of our assets and people with the incredibly strong platform that Tom and his team at Cimarex have built will surely lead to superior results for the shareholders of both companies. We look forward to working through a seamless transition with the Cimarex team."
Compelling Strategic and Financial Benefits include:
Terms and Financing
Under the terms of the definitive merger agreement, Resolute shareholders will have the right to receive 0.3943 shares of Cimarex common stock, $35 per share in cash, or a combination of $14 per share in cash and 0.2366 share of common stock. The amount of stock and cash is subject to proration for total stock and cash mix of 60% and 40%, respectively.
The consideration represents an approximate 14.8% percent premium to Resolute's closing price of $30.49 on November 16, 2018. Upon closing of the transaction, Cimarex shareholders will own approximately 94.4% of the combined company, and Resolute shareholders will own approximately 5.6%. The transaction, which is expected to be completed by the end of the first quarter of 2019, is subject to the approval of Resolute shareholders, and the satisfaction of certain regulatory approvals and other customary closing conditions.
The cash portion of the transaction is expected to be funded through a combination of cash on hand (including proceeds from the previously announced sale of assets in Ward County, Texas) and borrowings under Cimarex's revolving credit facility.
Upon closing, the Board of Directors and executive team of Cimarex will remain unchanged. The resulting capital structure is consistent with Cimarex's strategy of maintaining a conservative financial position and is expected to have no impact on the company's investment grade credit rating.
Advisors
Evercore is acting as exclusive financial advisor to Cimarex, and Akin Gump Strauss Hauer & Feld LLP is acting as legal advisor. Petrie Partners Securities, LLC and Goldman Sachs & Co. LLC are acting as financial advisors to Resolute. Arnold & Porter and Wachtell, Lipton, Rosen & Katz are acting as legal advisors to Resolute.
Conference Call and Webcast
Cimarex will host a conference today at 9:00 a.m. EST (7:00 a.m. MST). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
Presentation
For more details, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex
Denver-based Cimarex is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S. For more information, visit https://www.cimarex.com. The company's common stock is traded on the NYSE under the ticker symbol "XEC."
About Resolute
Resolute is an independent oil and gas company focused on the acquisition and development of unconventional oil and gas properties in the Delaware Basin portion of the Permian Basin of west Texas. For more information, visit www.resoluteenergy.com. The company routinely posts important information about the Company under the Investor Relations section of its website. The company's common stock is traded on the NYSE under the ticker symbol "REN."
Additional Information and Where to Find It
This communication does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval. This communication relates to a proposed business combination between Cimarex and Resolute.
In connection with the proposed transaction, Cimarex intends to file with the SEC a registration statement on Form S-4 that will include a proxy statement of Resolute that also constitutes a prospectus of Cimarex. Each of Cimarex and Resolute also plan to file other relevant documents with the SEC regarding the proposed transaction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended. This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to buy any securities or the solicitation of any vote or approval in any jurisdiction pursuant to or in connection with the proposed transaction or otherwise. Any definitive proxy statement/prospectus of Resolute will be mailed to stockholders of Resolute if and when available.
INVESTORS AND SECURITY HOLDERS OF CIMAREX AND RESOLUTE ARE URGED TO READ THE REGISTRATION STATEMENT, PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
Investors and security holders will be able to obtain free copies of these documents (if and when available) and other documents containing important information about Cimarex and Resolute, once such documents are filed with the SEC through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by Cimarex will be available free of charge on Cimarex's website at https://www.cimarex.com/home/default.aspx under the tab "Investor Relations" and then under the heading "Financial Information." Copies of the documents filed with the SEC by Resolute will be available free of charge on Resolute's website at https://www.resoluteenergy.com/ under the tab "Investors" and then under the heading "SEC Filings."
Participants in the Solicitation
Cimarex, Resolute and certain of their respective directors, executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding the directors and executive officers of Cimarex is available in its definitive proxy statement for its 2018 annual meeting, filed with the SEC on March 30, 2018, and information regarding the directors and executive officers of Resolute is available in its definitive proxy statement for its 2018 annual meeting, filed with the SEC on May 18, 2018. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC when such materials become available. Investors should read the proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from Cimarex or Resolute using the sources indicated above.
Cautionary Statements Regarding Forward-Looking Information
This communication contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates," "believes," "expects," "intends," "will," "should," "may" and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect Cimarex's and Resolute's current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed merger involving Cimarex and Resolute, including future financial and operating results, Cimarex's and Resolute's plans, objectives, expectations and intentions, the expected timing and likelihood of completion of the transaction, and other statements that are not historical facts, including estimates of oil and natural gas reserves and resources, estimates of future production, assumptions regarding future oil and natural gas pricing, planned drilling activity, future results of operations, projected cash flow and liquidity, business strategy and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this communication will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, without limitation, the ability to obtain the requisite Resolute stockholder approval; the risk that Resolute or Cimarex may be unable to obtain governmental and regulatory approvals required for the merger, or required governmental and regulatory approvals may delay the merger or result in the imposition of conditions that could cause the parties to abandon the merger, the risk that an event, change or other circumstances could give rise to the termination of the proposed merger, the risk that a condition to closing of the merger may not be satisfied, the timing to consummate the proposed merger, the risk that the businesses will not be integrated successfully, the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected, the risk that any announcement relating to the proposed transaction could have adverse effects on the market price of Cimarex's common stock or Resolute's common stock, the risk of litigation related to the proposed transaction, disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers, the diversion of management time on merger-related issues, the volatility in commodity prices for crude oil and natural gas, the presence or recoverability of estimated reserves, the ability to replace reserves, environmental risks, drilling and operating risks, exploration and development risks, competition, government regulation or other actions, the ability of management to execute its plans to meet its goals and other risks inherent in Cimarex's and Resolute's businesses.
All such factors are difficult to predict and are beyond Cimarex's or Resolute's control, including those detailed in Cimarex's annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K that are available on its website at https://www.cimarex.com and on the SEC's website at http://www.sec.gov, and those detailed in Resolute's annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K that are available on Resolute's website at https://www.resoluteenergy.com/ and on the SEC's website at http://www.sec.gov.
Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Cimarex undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
Non-GAAP Measures
This communication also contains certain historical and forward-looking non-GAAP measures of financial performance that management believes are good tools for internal use and the investment community in evaluating Cimarex's overall financial performance. These non-GAAP measures are broadly used to value and compare companies in the exploration and production industry.
Certain measures in this release do not have any standardized meaning as prescribed by U.S. GAAP and, therefore, are considered non-GAAP measures. These measures may not be comparable to similar measures presented by other companies and should not be viewed as a substitute for measures reported under U.S. GAAP.
This news release contains references to non-GAAP measures as follows:
View original content:http://www.prnewswire.com/news-releases/cimarex-to-acquire-delaware-pure-play-resolute-for-1-6-billion-300752696.html
SOURCE Cimarex Energy Co.
Article Date
11/19/201811/6/2018 - Cimarex Reports Third Quarter 2018 Results
Cimarex Reports Third Quarter 2018 Results
Source: PR Newswire
DENVER, Nov. 6, 2018 /PRNewswire/ --
Cimarex Energy Co. (NYSE: XEC) today reported third quarter 2018 net income of $148.4 million, or $1.56 per share, compared to $91.4 million, or $0.96 per share, in the same period a year ago. Third quarter adjusted net income (non-GAAP) was $189.6 million, or $1.99 per share, compared to third quarter 2017 adjusted net income (non-GAAP) of $103.6 million, or $1.09 per share1. Net cash provided by operating activities was $453.5 million in the third quarter of 2018 compared to $251.0 million in the same period a year ago. Adjusted cash flow from operations (non-GAAP) was $388.7 million in the third quarter of 2018 compared to $283.9 million in the third quarter a year ago1.
On August 31, Cimarex closed on the previously announced transaction for the sale of its Ward County assets for $544.5 million. Reported production volumes for the third quarter reflect this closing date.
Total company volumes for the quarter averaged 218.6 thousand barrels of oil equivalent (MBOE) per day. Oil production averaged 63,909 barrels (bbls) per day, up 13 percent from the same period a year ago (17 percent on a pro forma basis) and up four percent from second quarter 2018 levels (eight percent on a pro forma basis). Driven by the 80 wells expected to be brought on production in the second half of 2018 (including 44 wells brought on production in the third quarter) and pro forma for the sale of assets in Ward County, Texas, Cimarex continues to expect oil production growth of 21-23 percent year-over-year. (See Pro Forma Production Reconciliation table below.)
Realized oil prices averaged $58.25 per barrel, up 31 percent from the $44.38 per barrel received in the third quarter of 2017. Realized natural gas prices averaged $1.84 per thousand cubic feet (Mcf) down 31 percent from the third quarter 2017 average of $2.65 per Mcf. NGL prices averaged $25.72 per barrel, up 19 percent from the $21.63 per barrel received in the third quarter of 2017 and up 15 percent sequentially. Realized prices for 2018 reflect the adoption of Accounting Standards Codification 606 (ASC 606). See table below (Impact of ASC 606) for comparison of realized prices for 2018 for pre- and post-ASC 606.
Both oil and natural gas prices were negatively impacted by local price differentials. Our realized Permian oil differential to WTI Cushing averaged $(14.34) per barrel in the quarter, compared to $(8.05) per barrel in the second quarter of 2018 and $(4.06) per barrel in the third quarter of 2017. Cimarex's average differential on its Permian natural gas production was $(1.25) per Mcf below Henry Hub in the third quarter of 2018 compared to $(0.29) per Mcf lower in the third quarter of 2017. In the Mid-Continent region, realized gas prices were $(0.94) per Mcf below the Henry Hub index versus $(0.38) per Mcf below Henry Hub in the third quarter of 2017.
Cimarex invested $501 million in exploration and development (E&D) during the third quarter, of which $400 million is attributable to drilling and completion activities. Third quarter investments were funded with cash flow from operations and cash on the balance sheet. Total debt at September 30, 2018 consisted of $1.5 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $864 million. Debt was 33 percent of total capitalization2.
2018 Outlook
Fourth quarter 2018 production volumes are expected to average 238 - 247 MBOE per day with oil volumes estimated to average 73.0 - 78.0 MBbls per day, or 29 - 38 percent higher than the pro forma fourth quarter 2017 average. The total 2018 daily production volumes are now expected to average 218 - 221 MBOE per day with annual oil volumes estimated to average 66.0 - 67.2 MBbls per day.
On a pro forma basis (excluding Ward volumes entirely), Cimarex expects 2018 total production (MBOE per day) and oil production (barrels per day) to grow 17-18 percent and 21-23 percent over 2017 volumes. See Pro Forma Production Reconciliation table below.
Pro Forma Production Reconciliation | |||||||||
(excludes Ward volumes for all periods) | |||||||||
2018E | 2017 | % Growth | |||||||
Daily Production (MBOE/d) | 213 | - | 216 | 183.1 | 17-18% | ||||
Daily Oil Production (MBbls/d) | 62.6 | - | 63.8 | 51.8 | 21-23% | ||||
Estimated 2018 exploration and development investment is $1.6 – 1.7 billion, unchanged. from original guidance given in February.
Expenses per BOE of production for the fourth quarter of 2018 are estimated to be:
Production expense | $3.35 - 3.80 | |
Transportation, processing and other expense* | 2.40 - 3.00 | |
DD&A and ARO accretion | 7.00 - 7.60 | |
General and administrative expense | 1.10 - 1.40 | |
Taxes other than income (% of oil and gas revenue) | 5.75 - 6.25% | |
*Reflects adoption of ASC 606 (see Impact of ASC 606 table below). | ||
Operations Update
Cimarex invested $501 million in E&D during the third quarter, 74 percent in the Permian Basin and 26 percent in the Mid-Continent. Cimarex brought 115 gross (44 net) wells on production during the quarter. At September 30, 98 gross (41 net) wells were waiting on completion. Cimarex currently is operating 16 drilling rigs.
WELLS BROUGHT ON PRODUCTION BY REGION | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Gross wells | ||||||||||||
Permian Basin | 33 | 29 | 82 | 65 | ||||||||
Mid-Continent | 82 | 48 | 176 | 133 | ||||||||
115 | 77 | 258 | 198 | |||||||||
Net wells | ||||||||||||
Permian Basin | 24 | 16 | 46 | 42 | ||||||||
Mid-Continent | 20 | 14 | 36 | 32 | ||||||||
44 | 30 | 82 | 74 | |||||||||
Permian Region
Production from the Permian region averaged 120,822 BOE per day in the third quarter, a 15 percent increase from third quarter 2017 (19 percent on a pro forma basis). Oil volumes averaged 49,001 barrels per day, a 12 percent increase from third quarter 2017 (17 percent on a pro forma basis).
Cimarex completed 33 gross (24 net) wells in the Permian region during the third quarter. There were 45 gross (32 net) wells waiting on completion at September 30.
In Lea County, New Mexico, Cimarex is pleased to announce results from five new wells including the Red Hills Unit 17H, a long lateral Upper Wolfcamp well that had average peak 30-day initial production of 5,164 BOE (3,611 barrels of oil) per day. Cimarex drilled three additional 10,000-foot lateral wells in the Red Hills area on the Vaca Draw 20-17 lease including one well in each of the Avalon, Leonard and Upper Wolfcamp formations (see company presentation for details). A 5,000-foot lateral in the Third Bone Spring was brought on line in Northern Lea County that had a 30-day initial production rate of 2,638 BOE (2,165 barrels of oil) per day.
Cimarex currently is operating 12 drilling rigs and three completion crews in the region.
Mid-Continent Region
Production from the Mid-Continent averaged 97,346 BOE per day for the third quarter, up 14 percent from third quarter 2017 and up ten percent sequentially.
During the third quarter, Cimarex completed 82 gross (20 net) wells in the Mid-Continent region including multi-well pads at the Steve-O Meramec development (six wells) and the Shelly (eight wells) and J.D. Hoppinscotch (four wells) spacing pilots in the Woodford formation in the Lone Rock area. At the end of the quarter, 53 gross (9 net) wells were waiting on completion. Cimarex currently is operating four drilling rigs and one completion crew in the region.
Production by Region
Cimarex's average daily production and commodity price by region is summarized below:
DAILY PRODUCTION BY REGION | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Permian Basin | ||||||||||||
Gas (MMcf) | 239.4 | 217.9 | 239.3 | 212.9 | ||||||||
Oil (Bbls) | 49,001 | 43,735 | 49,211 | 43,544 | ||||||||
NGL (Bbls) | 31,919 | 24,659 | 29,863 | 23,771 | ||||||||
Total Equivalent (BOE) | 120,822 | 104,703 | 118,952 | 102,798 | ||||||||
Mid-Continent | ||||||||||||
Gas (MMcf) | 317.9 | 296.8 | 303.6 | 292.4 | ||||||||
Oil (Bbls) | 14,755 | 12,846 | 14,149 | 11,937 | ||||||||
NGL (Bbls) | 29,603 | 23,142 | 27,829 | 22,999 | ||||||||
Total Equivalent (BOE) | 97,346 | 85,451 | 92,569 | 83,676 | ||||||||
Total Company | ||||||||||||
Gas (MMcf) | 558.8 | 515.9 | 544.4 | 506.7 | ||||||||
Oil (Bbls) | 63,909 | 56,687 | 63,586 | 55,596 | ||||||||
NGL (Bbls) | 61,560 | 47,840 | 57,748 | 46,806 | ||||||||
Total Equivalent (BOE) | 218,595 | 190,518 | 212,069 | 186,858 | ||||||||
AVERAGE REALIZED PRICE BY REGION | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
2018* | 2017 | 2018* | 2017 | |||||||||
Permian Basin | ||||||||||||
Gas ($ per Mcf) | 1.66 | 2.70 | 1.79 | 2.78 | ||||||||
Oil ($ per Bbl) | 55.16 | 44.14 | 58.24 | 45.33 | ||||||||
NGL ($ per Bbl) | 27.53 | 20.58 | 23.95 | 18.50 | ||||||||
Mid-Continent | ||||||||||||
Gas ($ per Mcf) | 1.97 | 2.61 | 2.01 | 2.85 | ||||||||
Oil ($ per Bbl) | 68.42 | 45.21 | 64.82 | 45.33 | ||||||||
NGL ($ per Bbl) | 23.75 | 22.75 | 21.77 | 21.70 | ||||||||
Total Company | ||||||||||||
Gas ($ per Mcf) | 1.84 | 2.65 | 1.92 | 2.82 | ||||||||
Oil ($ per Bbl) | 58.25 | 44.38 | 59.70 | 45.33 | ||||||||
NGL ($ per Bbl) | 25.72 | 21.63 | 22.90 | 20.07 | ||||||||
*Realized prices for 2018 reflect the adoption of ASC 606. See Impact of ASC 606 table for a comparison of 2018 realized prices on a pre- and post-ASC 606 basis. |
Other
The following table summarizes the company's current open hedge positions:
4Q18 | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q20 | 2Q20 | ||||||||||||||||
Gas Collars: | PEPL(3) | |||||||||||||||||||||
Volume (MMBtu/d) | 123,261 | 120,000 | 120,000 | 90,000 | 60,000 | 30,000 | — | |||||||||||||||
Wtd Avg Floor | $ | 2.09 | $ | 2.05 | $ | 2.05 | $ | 1.93 | $ | 1.93 | $ | 1.97 | $ | — | ||||||||
Wtd Avg Ceiling | $ | 2.43 | $ | 2.42 | $ | 2.42 | $ | 2.34 | $ | 2.42 | $ | 2.51 | $ | — | ||||||||
El Paso Perm(3) | ||||||||||||||||||||||
Volume (MMBtu/d) | 86,630 | 80,000 | 80,000 | 60,000 | 30,000 | 10,000 | — | |||||||||||||||
Wtd Avg Floor | $ | 1.78 | $ | 1.69 | $ | 1.69 | $ | 1.48 | $ | 1.37 | $ | 1.40 | $ | — | ||||||||
Wtd Avg Ceiling | $ | 2.01 | $ | 1.92 | $ | 1.92 | $ | 1.74 | $ | 1.60 | $ | 1.70 | $ | — | ||||||||
Waha (3) | ||||||||||||||||||||||
Volume (MMBtu/d) | 26,630 | 30,000 | 30,000 | 30,000 | 30,000 | 20,000 | — | |||||||||||||||
Wtd Avg Floor | $ | 1.38 | $ | 1.38 | $ | 1.38 | $ | 1.38 | $ | 1.38 | $ | 1.40 | $ | — | ||||||||
Wtd Avg Ceiling | $ | 1.67 | $ | 1.67 | $ | 1.67 | $ | 1.67 | $ | 1.67 | $ | 1.73 | $ | — | ||||||||
Oil Collars: | WTI(4) | |||||||||||||||||||||
Volume (Bbl/d) | 37,000 | 31,000 | 31,000 | 24,000 | 16,000 | 8,000 | — | |||||||||||||||
Wtd Avg Floor | $ | 52.97 | $ | 53.94 | $ | 53.94 | $ | 55.67 | $ | 58.50 | $ | 60.00 | $ | — | ||||||||
Wtd Avg Ceiling | $ | 64.79 | $ | 66.88 | $ | 66.88 | $ | 70.03 | $ | 71.94 | $ | 75.85 | $ | — | ||||||||
Oil Basis Swaps: | WTI Midland(5) | |||||||||||||||||||||
Volume (Bbl/d) | 29,000 | 29,000 | 29,000 | 24,000 | 16,000 | 7,000 | 7,000 | |||||||||||||||
Weighted Avg Differential | $ | (5.01) | $ | (5.46) | $ | (5.46) | $ | (6.50) | $ | (7.79) | $ | (0.40) | $ | (0.40) | ||||||||
Conference call and webcast
Cimarex will host a conference call tomorrow, November 7, at 11:00 a.m. EDT (9:00 a.m. MT). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
Investor Presentation
For more details on Cimarex's third quarter 2018 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the "2018 Outlook" contains projections for certain 2018 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; higher than expected costs and expenses, including the availability and cost of services and materials; compliance with environmental and other regulations; costs and availability of third party facilities for gathering, processing, refining and transportation; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
1 | Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for reconciliations of the related GAAP amounts. | ||||
2 | Debt to total capitalization is calculated by dividing long-term debt by long-term debt plus stockholders' equity. | ||||
3 | PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index, El Paso Perm refers to El Paso Permian Basin index, and Waha refers to West Texas (Waha) Index, all as quoted in Platt's Inside FERC. | ||||
4 | WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. | ||||
5 | Index price on basis swaps is WTI NYMEX less the weighted average WTI Midland differential, as quoted by Argus Americas Crude. | ||||
RECONCILIATION OF ADJUSTED NET INCOME
The following reconciles net income as reported under generally accepted accounting principles (GAAP) to adjusted net income (non-GAAP) for the periods indicated.
Three Months Ended | Nine Months Ended | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Net income | $ | 148,354 | $ | 91,399 | $ | 475,669 | $ | 319,633 | |||||||
Mark-to-market loss (gain) on open derivative positions | 53,507 | 19,085 | 51,128 | (53,003) | |||||||||||
Loss on early extinguishment of debt | — | — | — | 28,169 | |||||||||||
Tax impact | (12,253) | (6,851) | (11,810) | 9,213 | |||||||||||
Adjusted net income | $ | 189,608 | $ | 103,633 | $ | 514,987 | $ | 304,012 | |||||||
Diluted earnings per share | $ | 1.56 | $ | 0.96 | $ | 5.00 | $ | 3.36 | |||||||
Adjusted diluted earnings per share* | $ | 1.99 | $ | 1.09 | $ | 5.39 | $ | 3.19 | |||||||
Weighted-average number of shares outstanding: | |||||||||||||||
Adjusted diluted** | 95,512 | 95,320 | 95,472 | 95,222 | |||||||||||
Adjusted net income and adjusted diluted earnings per share exclude the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP measures because:
a) Management uses adjusted net income to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies.
b) Adjusted net income is more comparable to earnings estimates provided by research analysts.
* Does not include adjustments resulting from application of the "two-class method" used to determine earnings per share under GAAP.
** Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding stock options.
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) for the periods indicated.
Three Months Ended | Nine Months Ended | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Net cash provided by operating activities | $ | 453,474 | $ | 251,005 | $ | 1,157,813 | $ | 755,805 | |||||||
Change in operating assets and liabilities | (64,792) | 32,901 | (52,386) | 72,728 | |||||||||||
Adjusted cash flow from operations | $ | 388,682 | $ | 283,906 | $ | 1,105,427 | $ | 828,533 | |||||||
Management uses the non-GAAP financial measure of adjusted cash flow from operations as a means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities. Management believes this non-GAAP financial measure provides useful information to investors for the same reason, and that it is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.
IMPACT OF ASC 606
Effective January 1, 2018, Cimarex adopted the provisions of Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606"). Application of ASC 606 has no impact on our net income or cash flows from operations; however, certain costs classified as Transportation, processing, and other operating expenses in the statement of operations under prior accounting standards are now reflected as deductions from revenue under ASC 606. The following tables present certain Pre- and Post-ASC 606 amounts:
REVENUES | ||||||||||||
Three Months Ended | ||||||||||||
2018 | 2017 | |||||||||||
Pre-ASC 606 | Post-ASC 606 | As Reported | ||||||||||
(in thousands) | ||||||||||||
Oil sales | $ | 342,495 | $ | 342,495 | $ | 231,441 | ||||||
Gas sales | $ | 98,321 | $ | 94,433 | $ | 125,707 | ||||||
NGL sales | $ | 151,648 | $ | 145,654 | $ | 95,191 | ||||||
Nine Months Ended | ||||||||||||
2018 | 2017 | |||||||||||
Pre-ASC 606 | Post-ASC 606 | As Reported | ||||||||||
(in thousands) | ||||||||||||
Oil sales | $ | 1,036,402 | $ | 1,036,402 | $ | 687,960 | ||||||
Gas sales | $ | 295,725 | $ | 284,941 | $ | 390,126 | ||||||
NGL sales | $ | 382,387 | $ | 361,066 | $ | 256,503 | ||||||
AVERAGE REALIZED PRICE BY REGION | |||||||||
Three Months Ended | |||||||||
2018 | 2017 | ||||||||
Pre-ASC 606 | Post-ASC 606 | As Reported | |||||||
Permian Basin | |||||||||
Gas ($ per Mcf) | 1.78 | 1.66 | 2.70 | ||||||
Oil ($ per Bbl) | 55.16 | 55.16 | 44.14 | ||||||
NGL ($ per Bbl) | 29.08 | 27.53 | 20.58 | ||||||
Mid-Continent | |||||||||
Gas ($ per Mcf) | 2.01 | 1.97 | 2.61 | ||||||
Oil ($ per Bbl) | 68.42 | 68.42 | 45.21 | ||||||
NGL ($ per Bbl) | 24.28 | 23.75 | 22.75 | ||||||
Total Company | |||||||||
Gas ($ per Mcf) | 1.91 | 1.84 | 2.65 | ||||||
Oil ($ per Bbl) | 58.25 | 58.25 | 44.38 | ||||||
NGL ($ per Bbl) | 26.78 | 25.72 | 21.63 | ||||||
Nine Months Ended | |||||||||
2018 | 2017 | ||||||||
Pre-ASC 606 | Post-ASC 606 | As Reported | |||||||
Permian Basin | |||||||||
Gas ($ per Mcf) | 1.90 | 1.79 | 2.78 | ||||||
Oil ($ per Bbl) | 58.24 | 58.24 | 45.33 | ||||||
NGL ($ per Bbl) | 25.59 | 23.95 | 18.50 | ||||||
Mid-Continent | |||||||||
Gas ($ per Mcf) | 2.05 | 2.01 | 2.85 | ||||||
Oil ($ per Bbl) | 64.82 | 64.82 | 45.33 | ||||||
NGL ($ per Bbl) | 22.82 | 21.77 | 21.70 | ||||||
Total Company | |||||||||
Gas ($ per Mcf) | 1.99 | 1.92 | 2.82 | ||||||
Oil ($ per Bbl) | 59.70 | 59.70 | 45.33 | ||||||
NGL ($ per Bbl) | 24.26 | 22.90 | 20.07 | ||||||
TRANSPORTATION, PROCESSING, AND OTHER OPERATING EXPENSES | ||||||||||||
Three Months Ended | ||||||||||||
2018 | 2017 | |||||||||||
Pre-ASC 606 | Post-ASC 606 | As Reported | ||||||||||
(in thousands, except per BOE) | ||||||||||||
Transportation, processing, and other operating expenses | $ | 59,602 | $ | 49,720 | $ | 58,387 | ||||||
Per BOE | $ | 2.96 | $ | 2.47 | $ | 3.33 | ||||||
Nine Months Ended | ||||||||||||
2018 | 2017 | |||||||||||
Pre-ASC 606 | Post-ASC 606 | As Reported | ||||||||||
(in thousands, except per BOE) | ||||||||||||
Transportation, processing, and other operating expenses | $ | 178,923 | $ | 146,818 | $ | 172,034 | ||||||
Per BOE | $ | 3.09 | $ | 2.54 | $ | 3.37 | ||||||
OIL AND GAS CAPITALIZED EXPENDITURES | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Acquisitions: | |||||||||||||||
Proved | $ | — | $ | — | $ | 62 | $ | 260 | |||||||
Unproved | 10,015 | 438 | 12,251 | 4,263 | |||||||||||
10,015 | 438 | 12,313 | 4,523 | ||||||||||||
Exploration and development: | |||||||||||||||
Land and seismic | $ | 55,603 | $ | 12,872 | $ | 76,027 | $ | 123,359 | |||||||
Exploration and development | 445,429 | 322,651 | 1,113,898 | 813,693 | |||||||||||
501,032 | 335,523 | 1,189,925 | 937,052 | ||||||||||||
Property sales: | |||||||||||||||
Proved | $ | (527,650) | $ | 1,807 | $ | (557,191) | $ | (85) | |||||||
Unproved | (12,022) | (780) | (17,323) | (8,051) | |||||||||||
(539,672) | 1,027 | (574,514) | (8,136) | ||||||||||||
$ | (28,625) | $ | 336,988 | $ | 627,724 | $ | 933,439 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(in thousands, except per share information) | ||||||||||||||||
Revenues: | ||||||||||||||||
Oil sales | $ | 342,495 | $ | 231,441 | $ | 1,036,402 | $ | 687,960 | ||||||||
Gas and NGL sales | 240,087 | 220,898 | 646,007 | 646,629 | ||||||||||||
Gas gathering and other | 8,906 | 11,342 | 32,487 | 32,720 | ||||||||||||
591,488 | 463,681 | 1,714,896 | 1,367,309 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Depreciation, depletion, amortization, and accretion | 138,195 | 112,893 | 417,555 | 319,173 | ||||||||||||
Production | 76,272 | 65,410 | 226,758 | 190,409 | ||||||||||||
Transportation, processing, and other operating | 49,720 | 58,387 | 146,818 | 172,034 | ||||||||||||
Gas gathering and other | 10,569 | 8,856 | 29,859 | 25,930 | ||||||||||||
Taxes other than income | 28,431 | 24,314 | 86,549 | 63,104 | ||||||||||||
General and administrative | 21,148 | 21,039 | 64,208 | 58,835 | ||||||||||||
Stock compensation | 6,437 | 7,038 | 16,262 | 19,619 | ||||||||||||
Loss (gain) on derivative instruments, net | 54,006 | 16,109 | 71,546 | (50,261) | ||||||||||||
Other operating expense, net | 10,015 | 95 | 15,470 | 977 | ||||||||||||
394,793 | 314,141 | 1,075,025 | 799,820 | |||||||||||||
Operating income | 196,695 | 149,540 | 639,871 | 567,489 | ||||||||||||
Other (income) and expense: | ||||||||||||||||
Interest expense | 17,159 | 16,838 | 50,837 | 57,985 | ||||||||||||
Capitalized interest | (5,457) | (5,373) | (15,117) | (17,456) | ||||||||||||
Loss on early extinguishment of debt | — | — | — | 28,169 | ||||||||||||
Other, net | (7,544) | (4,563) | (14,716) | (9,004) | ||||||||||||
Income before income tax | 192,537 | 142,638 | 618,867 | 507,795 | ||||||||||||
Income tax expense | 44,183 | 51,239 | 143,198 | 188,162 | ||||||||||||
Net income | $ | 148,354 | $ | 91,399 | $ | 475,669 | $ | 319,633 | ||||||||
Earnings per share to common stockholders: | ||||||||||||||||
Basic | $ | 1.56 | $ | 0.96 | $ | 5.00 | $ | 3.36 | ||||||||
Diluted | $ | 1.56 | $ | 0.96 | $ | 5.00 | $ | 3.36 | ||||||||
Dividends declared per share | $ | 0.18 | $ | 0.08 | $ | 0.50 | $ | 0.24 | ||||||||
Weighted-average number of shares outstanding: | ||||||||||||||||
Basic | 93,845 | 93,501 | 93,758 | 93,431 | ||||||||||||
Diluted | 93,867 | 93,531 | 93,788 | 93,465 | ||||||||||||
Comprehensive income: | ||||||||||||||||
Net income | $ | 148,354 | $ | 91,399 | $ | 475,669 | $ | 319,633 | ||||||||
Other comprehensive income: | ||||||||||||||||
Change in fair value of investments, net of tax | 539 | 234 | 541 | 860 | ||||||||||||
Total comprehensive income | $ | 148,893 | $ | 91,633 | $ | 476,210 | $ | 320,493 | ||||||||
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(in thousands) | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 148,354 | $ | 91,399 | $ | 475,669 | $ | 319,633 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation, depletion, amortization, and accretion | 138,195 | 112,893 | 417,555 | 319,173 | ||||||||||||
Deferred income taxes | 43,083 | 51,239 | 142,815 | 188,168 | ||||||||||||
Stock compensation | 6,437 | 7,038 | 16,262 | 19,619 | ||||||||||||
Loss (gain) on derivative instruments, net | 54,006 | 16,109 | 71,546 | (50,261) | ||||||||||||
Settlements on derivative instruments | (499) | 2,975 | (20,418) | (2,742) | ||||||||||||
Loss on early extinguishment of debt | — | — | — | 28,169 | ||||||||||||
Changes in non-current assets and liabilities | (1,957) | 1,068 | (1,244) | 2,144 | ||||||||||||
Other, net | 1,063 | 1,185 | 3,242 | 4,630 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | (26,784) | (67,776) | (11,772) | (128,921) | ||||||||||||
Other current assets | 2,535 | (8,268) | 4,421 | (19,372) | ||||||||||||
Accounts payable and other current liabilities | 89,041 | 43,143 | 59,737 | 75,565 | ||||||||||||
Net cash provided by operating activities | 453,474 | 251,005 | 1,157,813 | 755,805 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Oil and gas capital expenditures | (500,677) | (319,777) | (1,151,484) | (901,949) | ||||||||||||
Sales of oil and gas assets | 538,525 | (1,027) | 573,367 | 8,136 | ||||||||||||
Sales of other assets | 465 | 116 | 990 | 510 | ||||||||||||
Other capital expenditures | (18,925) | (13,123) | (75,037) | (31,332) | ||||||||||||
Net cash provided (used) by investing activities | 19,388 | (333,811) | (652,164) | (924,635) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Borrowings of long-term debt | — | — | — | 748,110 | ||||||||||||
Repayments of long-term debt | — | — | — | (750,000) | ||||||||||||
Call premium, financing, and underwriting fees | — | (159) | — | (29,194) | ||||||||||||
Dividends paid | (15,237) | (7,590) | (38,038) | (22,743) | ||||||||||||
Employee withholding taxes paid upon the net settlement of equity-classified stock awards | (5,464) | (6,422) | (6,410) | (7,637) | ||||||||||||
Proceeds from exercise of stock options | 962 | 190 | 2,211 | 226 | ||||||||||||
Net cash used by financing activities | (19,739) | (13,981) | (42,237) | (61,238) | ||||||||||||
Net change in cash and cash equivalents | 453,123 | (96,787) | 463,412 | (230,068) | ||||||||||||
Cash and cash equivalents at beginning of period | 410,823 | 519,595 | 400,534 | 652,876 | ||||||||||||
Cash and cash equivalents at end of period | $ | 863,946 | $ | 422,808 | $ | 863,946 | $ | 422,808 | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
September 30, 2018 | December 31, 2017 | |||||||
Assets | (in thousands, except share and | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 863,946 | $ | 400,534 | ||||
Accounts receivable, net of allowance | 471,423 | 460,174 | ||||||
Oil and gas well equipment and supplies | 55,546 | 49,722 | ||||||
Derivative instruments | 31,176 | 15,151 | ||||||
Other current assets | 5,624 | 10,054 | ||||||
Total current assets | 1,427,715 | 935,635 | ||||||
Oil and gas properties at cost, using the full cost method of accounting: | ||||||||
Proved properties | 18,047,645 | 17,513,460 | ||||||
Unproved properties and properties under development, not being amortized | 564,982 | 476,903 | ||||||
18,612,627 | 17,990,363 | |||||||
Less – accumulated depreciation, depletion, amortization, and impairment | (15,124,111) | (14,748,833) | ||||||
Net oil and gas properties | 3,488,516 | 3,241,530 | ||||||
Fixed assets, net of accumulated depreciation of $324,270 and $290,114, respectively | 244,125 | 210,922 | ||||||
Goodwill | 620,232 | 620,232 | ||||||
Derivative instruments | 154 | 2,086 | ||||||
Other assets | 37,693 | 32,234 | ||||||
$ | 5,818,435 | $ | 5,042,639 | |||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 141,426 | $ | 98,386 | ||||
Accrued liabilities | 412,747 | 351,849 | ||||||
Derivative instruments | 97,480 | 42,066 | ||||||
Revenue payable | 193,692 | 187,273 | ||||||
Total current liabilities | 845,345 | 679,574 | ||||||
Long-term debt: | ||||||||
Principal | 1,500,000 | 1,500,000 | ||||||
Less – unamortized debt issuance costs and discount | (11,853) | (13,080) | ||||||
Long-term debt, net | 1,488,147 | 1,486,920 | ||||||
Deferred income taxes | 244,592 | 101,618 | ||||||
Derivative instruments | 14,076 | 4,268 | ||||||
Other liabilities | 200,453 | 201,981 | ||||||
Total liabilities | 2,792,613 | 2,474,361 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, $0.01 par value, 15,000,000 shares authorized, no shares issued | — | — | ||||||
Common stock, $0.01 par value, 200,000,000 shares authorized, 95,602,550 and 95,437,434 shares issued, respectively | 956 | 954 | ||||||
Additional paid-in capital | 2,778,203 | 2,764,384 | ||||||
Retained earnings (accumulated deficit) | 243,923 | (199,259) | ||||||
Accumulated other comprehensive income | 2,740 | 2,199 | ||||||
Total stockholders' equity | 3,025,822 | 2,568,278 | ||||||
$ | 5,818,435 | $ | 5,042,639 | |||||
View original content:http://www.prnewswire.com/news-releases/cimarex-reports-third-quarter-2018-results-300745088.html
SOURCE Cimarex Energy Co.
Article Date
11/6/2018Cimarex Schedules Third Quarter 2018 Earnings Release and Conference Call
Source: PR Newswire
DENVER, Oct. 8, 2018 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced it plans to report third quarter 2018 financial results on Tuesday, November 6, 2018, after market close. The company will host its quarterly conference call at 11:00 AM ET on Wednesday, November 7, 2018.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-schedules-third-quarter-2018-earnings-release-and-conference-call-300727159.html
SOURCE Cimarex Energy Co.
Article Date
10/8/2018Cimarex Announces Closing of Ward County Asset Sale
Source: PR Newswire
DENVER, Sept. 4, 2018 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced the August 31, 2018 closing of the previously announced sale of assets in Ward County, Texas, for $544.5 million, adjusted to reflect the resolution of all asserted defects. Proceeds from the sale will be reinvested into the company's high-return capital program over the next two to three years.
Taking into account the $28.5 million deposit received in May and $5.9 million of post effective date net revenue and expenditures, Cimarex received $510.1 million in cash at closing. Final settlement, which will reflect any other post-closing adjustments, will occur within 120 days of closing.
Scotiabank served as exclusive financial advisor to Cimarex on this transaction.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This communication contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including statements regarding post-closing adjustments and reinvestment of proceeds from the sale. These statements are based on current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are more fully described in SEC reports filed by Cimarex. While Cimarex makes these forward-looking statements in good faith, management cannot guarantee that anticipated future results will be achieved. Cimarex assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law. Actual results may differ materially from Cimarex projections and can be affected by a variety of factors outside the company's control including the risks and uncertainties described in the company's SEC reports.
View original content:http://www.prnewswire.com/news-releases/cimarex-announces-closing-of-ward-county-asset-sale-300705517.html
SOURCE Cimarex Energy Co.
Article Date
9/4/20188/30/2018 - Cimarex Energy Increases Quarterly Cash Dividend
Cimarex Energy Increases Quarterly Cash Dividend
Source: PR Newswire
DENVER, Aug. 30, 2018 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.18 per share. The dividend is payable on November 30, 2018, to stockholders of record on November 15, 2018.
Chairman and CEO Tom Jorden said, "We are pleased to announce this 12.5 percent increase in our dividend returning Cimarex to a pattern of growing our annual cash return to shareholders."
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-energy-increases-quarterly-cash-dividend-300705223.html
SOURCE Cimarex Energy Co.
Article Date
8/30/20188/7/2018 - Cimarex Reports Second Quarter 2018 Results
Cimarex Reports Second Quarter 2018 Results
Source: PR Newswire
DENVER, Aug. 7, 2018 /PRNewswire/ --
Cimarex Energy Co. (NYSE: XEC) today reported second quarter 2018 net income of $141.0 million, or $1.48 per share, compared to $97.3 million, or $1.02 per share, in the same period a year ago. Second quarter adjusted net income (non-GAAP) was $151.9 million, or $1.59 per share, compared to second quarter 2017 adjusted net income (non-GAAP) of $101.0 million, or $1.06 per share1. Net cash provided by operating activities was $321.2 million in the second quarter of 2018 compared to $255.3 million in the same period a year ago. Adjusted cash flow from operations (non-GAAP) was $349.5 million in the second quarter of 2018 compared to $278.8 million in the second quarter a year ago1.
The previously announced sale of assets in Ward County, Texas, for $570 million (before any purchase price adjustments), is expected to close on August 31, 2018. The impact of the sale has been factored into our production guidance starting in September.
Total company volumes for the quarter averaged 211.4 thousand barrels of oil equivalent (MBOE) per day. Oil production averaged 61,651 barrels (bbl) per day, up seven percent from the same period a year ago and down five percent from first quarter 2018 levels. Driven by the number of wells expected to be brought on production in the second half of 2018 (86 wells versus 38 wells in the first half), and pro forma for the sale of assets in Ward County, Texas, Cimarex continues to expect oil production growth of 20-25 percent year-over-year. (See Pro Forma Production Reconciliation table below.)
Realized oil prices averaged $60.99 per barrel, up 38 percent from the $44.14 per barrel received in the second quarter of 2017. Realized natural gas prices averaged $1.65 per thousand cubic feet (Mcf) down 41 percent from the second quarter 2017 average of $2.82 per Mcf. NGL prices averaged $22.29 per barrel, up 22 percent from the $18.24 per barrel received in the second quarter of 2017. Realized prices for 2018 reflect the adoption of Accounting Standards Codification 606 (ASC 606). See table below (Impact of ASC 606) for comparison of realized prices for 2018 for pre- and post-ASC 606.
Both oil and natural gas prices were negatively impacted by local price differentials. Market conditions in the Permian Basin caused the realized differential for Midland priced oil and the differential for Permian Basin gas to widen. Our realized Permian oil differential to WTI Cushing averaged $(8.05) per barrel in the quarter, compared to $(3.12) per barrel in the first quarter of 2018 and $(4.14) per barrel in the second quarter of 2017. Cimarex's average differential on its Permian natural gas production was $1.31 per Mcf below Henry Hub in the second quarter of 2018 compared to $0.42 per Mcf lower in the second quarter of 2017. In the Mid-Continent region, realized gas prices were $1.03 per Mcf below the Henry Hub index versus $0.34 per Mcf below Henry Hub in the second quarter of 2017 due to abnormally wide differentials on the ONEOK index (OGT) where approximately 75 percent of the company's second quarter Mid-Continent gas volumes were priced.
As previously discussed, Cimarex has taken a number of steps to ensure the flow of our oil and natural gas volumes out of the Permian Basin with sales agreements in place for our projected oil and natural gas volumes through 2019.
Cimarex invested $375 million in exploration and development (E&D) during the second quarter, of which $322 million is attributable to drilling and completion activities. Second quarter investments were funded with cash flow from operations and cash on the balance sheet. Total debt at June 30, 2018 consisted of $1.5 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $411 million. Debt was 34 percent of total capitalization2.
2018 Outlook
Adjusting for the previously announced sale of assets in Ward County, Texas (assuming an August 31 close), third quarter 2018 production volumes are expected to average 206 -215 MBOE per day with oil volumes estimated to average 61,500 - 64,500 barrels per day. The total 2018 daily production volumes are now expected to average 214 - 221 MBOE per day with annual oil volumes now estimated to average 66,000 - 68,000 barrels per day.
On a pro forma basis (excluding Ward volumes entirely), Cimarex expects 2018 total production (MBOE per day) and oil production (barrels per day) to grow 14-18 percent and 20-25 percent over 2017 volumes, respectively. Additionally, the company expects oil volumes in the fourth quarter to average 75,000 - 81,000 barrels per day, or 33-43 percent higher than the pro forma fourth quarter 2017 average. (See Pro Forma Production Reconciliation table below.)
|
Pro Forma Production Reconciliation | |||||||
|
(excludes Ward volumes for all periods) | |||||||
|
2018E |
2017 |
% Growth | |||||
|
Daily Production (MBOE/d) |
209 |
- |
216 |
183.1 |
14-18% | ||
|
Daily Oil Production (MBbls/d) |
62.4 |
- |
64.6 |
51.8 |
20-25% | ||
Estimated 2018 exploration and development investment remains unchanged at $1.6 – 1.7 billion.
Expenses per BOE of production for the remainder of 2018 are estimated to be:
|
Production expense |
$3.80 - 4.30 |
|
Transportation, processing and other expense* |
2.40 - 3.00 |
|
DD&A and ARO accretion |
7.50 - 8.10 |
|
General and administrative expense |
1.15 - 1.45 |
|
Taxes other than income (% of oil and gas revenue) |
5.75 - 6.25% |
|
*Reflects adoption of ASC 606 (see Impact of ASC 606 table below). |
Operations Update
Cimarex invested $375 million in E&D during the second quarter, 59 percent in the Permian Basin and 41 percent in the Mid-Continent. Cimarex brought 89 gross (23 net) wells on production during the quarter. At June 30, 141 gross (57 net) wells were waiting on completion. Cimarex currently is operating 13 drilling rigs.
|
WELLS BROUGHT ON PRODUCTION BY REGION | |||||||
|
Three Months Ended |
Six Months Ended | ||||||
|
2018 |
2017 |
2018 |
2017 | ||||
|
Gross wells |
|||||||
|
Permian Basin |
32 |
11 |
49 |
36 | |||
|
Mid-Continent |
57 |
40 |
94 |
85 | |||
|
89 |
51 |
143 |
121 | ||||
|
Net wells |
|||||||
|
Permian Basin |
13 |
10 |
22 |
26 | |||
|
Mid-Continent |
10 |
8 |
16 |
18 | |||
|
23 |
18 |
38 |
44 | ||||
Permian Region
Production from the Permian region averaged 121,744 BOE per day in the second quarter, a 13 percent increase from second quarter 2017. Oil volumes averaged 48,797 barrels per day, a six percent increase from second quarter 2017. Total production increased seven percent sequentially, with oil production down two percent.
Cimarex completed 32 gross (13 net) wells in the Permian region during the second quarter. There were 45 gross (32 net) wells waiting on completion at June 30.
Activity in the region for the quarter included twelve wells completed in the Wolfcamp and Bone Spring formations. Of note, in Lea County, New Mexico, the six-well Hallertau 5 FED Upper Wolfcamp infill pilot was brought on-line during the quarter. The infill pilot, which included six short laterals (4,230' average) testing 12 wells per section, had an average peak 30-day initial production rate of 1,295 BOE (783 barrels of oil) per day, with results ranging from 1,855 BOE (1,096 barrels of oil) per day to 937 BOE (564 barrels of oil) per day.
Cimarex currently is operating ten drilling rigs and five completion crews in the region.
Mid-Continent Region
Production from the Mid-Continent averaged 88,864 BOE per day for the second quarter, up five percent versus second quarter 2017 and down three percent sequentially.
During the second quarter, Cimarex completed 57 gross (10 net) wells in the Mid-Continent region. At the end of the quarter, 96 gross (25 net) wells were waiting on completion. Cimarex currently is operating three drilling rigs and one completion crew in the region.
Production by Region
Cimarex's average daily production and commodity price by region is summarized below:
|
DAILY PRODUCTION BY REGION | |||||||
|
Three Months Ended |
Six Months Ended | ||||||
|
2018 |
2017 |
2018 |
2017 | ||||
|
Permian Basin |
|||||||
|
Gas (MMcf) |
240.5 |
219.8 |
239.2 |
210.4 | |||
|
Oil (Bbls) |
48,797 |
45,828 |
49,318 |
43,446 | |||
|
NGL (Bbls) |
32,865 |
24,996 |
28,817 |
23,319 | |||
|
Total Equivalent (BOE) |
121,744 |
107,456 |
118,002 |
101,829 | |||
|
Mid-Continent |
|||||||
|
Gas (MMcf) |
297.0 |
295.4 |
296.2 |
290.2 | |||
|
Oil (Bbls) |
12,473 |
11,893 |
13,841 |
11,475 | |||
|
NGL (Bbls) |
26,894 |
23,693 |
26,927 |
22,926 | |||
|
Total Equivalent (BOE) |
88,864 |
84,827 |
90,142 |
82,774 | |||
|
Total Company |
|||||||
|
Gas (MMcf) |
539.5 |
516.7 |
537.1 |
502.0 | |||
|
Oil (Bbls) |
61,651 |
57,871 |
63,422 |
55,042 | |||
|
NGL (Bbls) |
59,857 |
48,731 |
55,810 |
46,281 | |||
|
Total Equivalent (BOE) |
211,424 |
192,720 |
208,752 |
184,998 | |||
|
AVERAGE REALIZED PRICE BY REGION | |||||||
|
Three Months Ended |
Six Months Ended | ||||||
|
2018* |
2017 |
2018* |
2017 | ||||
|
Permian Basin |
|||||||
|
Gas ($ per Mcf) |
1.49 |
2.77 |
1.86 |
2.83 | |||
|
Oil ($ per Bbl) |
59.83 |
44.15 |
59.79 |
45.94 | |||
|
NGL ($ per Bbl) |
22.80 |
16.65 |
21.93 |
17.38 | |||
|
Mid-Continent |
|||||||
|
Gas ($ per Mcf) |
1.77 |
2.85 |
2.04 |
2.97 | |||
|
Oil ($ per Bbl) |
65.70 |
44.10 |
62.87 |
45.39 | |||
|
NGL ($ per Bbl) |
21.66 |
19.90 |
20.67 |
21.16 | |||
|
Total Company |
|||||||
|
Gas ($ per Mcf) |
1.65 |
2.82 |
1.96 |
2.91 | |||
|
Oil ($ per Bbl) |
60.99 |
44.14 |
60.45 |
45.82 | |||
|
NGL ($ per Bbl) |
22.29 |
18.24 |
21.32 |
19.26 | |||
|
*Realized prices for 2018 reflect the adoption of ASC 606. See Impact of ASC 606 table for a comparison of 2018 realized prices on a pre- and post-ASC 606 basis. |
Other
The following table summarizes the company's current open hedge positions:
|
3Q18 |
4Q18 |
1Q19 |
2Q19 |
3Q19 |
4Q19 | ||||||||
|
Gas Collars: |
PEPL(3) |
||||||||||||
|
Volume (MMBtu/d) |
130,000 |
100,000 |
90,000 |
90,000 |
60,000 |
30,000 | |||||||
|
Wtd Avg Floor |
$ |
2.19 |
$ |
2.12 |
$ |
2.08 |
$ |
2.08 |
$ |
1.92 |
$ |
1.90 | |
|
Wtd Avg Ceiling |
$ |
2.48 |
$ |
2.42 |
$ |
2.39 |
$ |
2.39 |
$ |
2.26 |
$ |
2.33 | |
|
El Paso Perm(3) |
|||||||||||||
|
Volume (MMBtu/d) |
100,000 |
80,000 |
70,000 |
70,000 |
50,000 |
20,000 | |||||||
|
Wtd Avg Floor |
$ |
1.92 |
$ |
1.81 |
$ |
1.73 |
$ |
1.73 |
$ |
1.50 |
$ |
1.35 | |
|
Wtd Avg Ceiling |
$ |
2.14 |
$ |
2.03 |
$ |
1.95 |
$ |
1.95 |
$ |
1.74 |
$ |
1.55 | |
|
Waha (3) |
|||||||||||||
|
Volume (MMBtu/d) |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 |
10,000 | |||||||
|
Wtd Avg Floor |
$ |
1.35 |
$ |
1.35 |
$ |
1.35 |
$ |
1.35 |
$ |
1.35 |
$ |
1.35 | |
|
Wtd Avg Ceiling |
$ |
1.56 |
$ |
1.56 |
$ |
1.56 |
$ |
1.56 |
$ |
1.56 |
$ |
1.56 | |
|
Oil Collars: |
WTI(4) |
||||||||||||
|
Volume (Bbl/d) |
35,000 |
29,000 |
23,000 |
23,000 |
16,000 |
8,000 | |||||||
|
Wtd Avg Floor |
$ |
49.80 |
$ |
51.03 |
$ |
51.83 |
$ |
51.83 |
$ |
53.50 |
$ |
57.00 | |
|
Wtd Avg Ceiling |
$ |
60.49 |
$ |
61.74 |
$ |
63.77 |
$ |
63.77 |
$ |
67.13 |
$ |
68.04 | |
|
Oil Basis Swaps: |
WTI Midland(5) |
||||||||||||
|
Volume (Bbl/d) |
27,000 |
22,000 |
19,000 |
19,000 |
14,000 |
6,000 | |||||||
|
Weighted Avg Differential |
$ |
(3.89) |
$ |
(4.56) |
$ |
(5.17) |
$ |
(5.17) |
$ |
(6.84) |
$ |
(10.73) | |
Conference call and webcast
Cimarex will host a conference call tomorrow, August 8, at 11:00 a.m. EDT (9:00 a.m. MT). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
Investor Presentation
For more details on Cimarex's second quarter 2018 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the "2018 Outlook" contains projections for certain 2018 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; higher than expected costs and expenses, including the availability and cost of services and materials; compliance with environmental and other regulations; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; costs and availability of third party facilities for gathering, processing, refining and transportation; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
|
___________________________________________ | |
|
1 |
Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for reconciliations of the related GAAP amounts. |
|
2 |
Debt to total capitalization is calculated by dividing long-term debt by long-term debt plus stockholders' equity. |
|
3 |
PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index, El Paso Perm refers to El Paso Permian Basin index, and Waha refers to West Texas (Waha) Index, all as quoted in Platt's Inside FERC. |
|
4 |
WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. |
|
5 |
Index price on basis swaps is WTI NYMEX less the weighted average WTI Midland differential, as quoted by Argus Americas Crude. |
RECONCILIATION OF ADJUSTED NET INCOME
The following reconciles net income as reported under generally accepted accounting principles (GAAP) to adjusted net income (non-GAAP) for the periods indicated.
|
Three Months Ended |
Six Months Ended | ||||||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||||||
|
(in thousands, except per share data) | |||||||||||||||
|
Net income |
$ |
140,997 |
$ |
97,262 |
$ |
327,315 |
$ |
228,234 |
|||||||
|
Mark-to-market loss (gain) on open derivative positions |
14,169 |
(22,166) |
(2,379) |
(72,087) |
|||||||||||
|
Loss on early extinguishment of debt |
— |
28,169 |
— |
28,169 |
|||||||||||
|
Tax impact |
(3,259) |
(2,257) |
552 |
16,469 |
|||||||||||
|
Adjusted net income |
$ |
151,907 |
$ |
101,008 |
$ |
325,488 |
$ |
200,785 |
|||||||
|
Diluted earnings per share |
$ |
1.48 |
$ |
1.02 |
$ |
3.44 |
$ |
2.40 |
|||||||
|
Adjusted diluted earnings per share* |
$ |
1.59 |
$ |
1.06 |
$ |
3.41 |
$ |
2.11 |
|||||||
|
Weighted-average number of shares outstanding: |
|||||||||||||||
|
Adjusted diluted** |
95,428 |
95,179 |
95,451 |
95,172 |
|||||||||||
Adjusted net income and adjusted diluted earnings per share exclude the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP measures because:
a) Management uses adjusted net income to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies.
b) Adjusted net income is more comparable to earnings estimates provided by research analysts.
* Does not include adjustments resulting from application of the "two-class method" used to determine earnings per share under GAAP.
** Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding stock options.
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) for the periods indicated.
|
Three Months Ended |
Six Months Ended | ||||||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||||||
|
(in thousands) | |||||||||||||||
|
Net cash provided by operating activities |
$ |
321,246 |
$ |
255,286 |
$ |
704,339 |
$ |
504,800 |
|||||||
|
Change in operating assets and liabilities |
28,265 |
23,507 |
12,406 |
39,827 |
|||||||||||
|
Adjusted cash flow from operations |
$ |
349,511 |
$ |
278,793 |
$ |
716,745 |
$ |
544,627 |
|||||||
Management uses the non-GAAP financial measure of adjusted cash flow from operations as a means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities. Management believes this non-GAAP financial measure provides useful information to investors for the same reason, and that it is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.
IMPACT OF ASC 606
Effective January 1, 2018, Cimarex adopted the provisions of Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606"). Application of ASC 606 has no impact on our net income or cash flows from operations; however, certain costs classified as Transportation, processing, and other operating expenses in the statement of operations under prior accounting standards are now reflected as deductions from revenue under ASC 606. The following tables present certain Pre- and Post-ASC 606 amounts:
|
REVENUES | ||||||||||||
|
Three Months Ended | ||||||||||||
|
2018 |
2017 | |||||||||||
|
Pre-ASC 606 |
Post-ASC 606 |
As Reported | ||||||||||
|
(in thousands) | ||||||||||||
|
Oil sales |
$ |
342,184 |
$ |
342,184 |
$ |
232,453 |
||||||
|
Gas sales |
$ |
84,727 |
$ |
80,787 |
$ |
132,474 |
||||||
|
NGL sales |
$ |
125,126 |
$ |
121,415 |
$ |
80,886 |
||||||
|
Six Months Ended | ||||||||||||
|
2018 |
2017 | |||||||||||
|
Pre-ASC 606 |
Post-ASC 606 |
As Reported | ||||||||||
|
(in thousands) | ||||||||||||
|
Oil sales |
$ |
693,907 |
$ |
693,907 |
$ |
456,519 |
||||||
|
Gas sales |
$ |
197,404 |
$ |
190,508 |
$ |
264,419 |
||||||
|
NGL sales |
$ |
230,739 |
$ |
215,412 |
$ |
161,312 |
||||||
|
AVERAGE REALIZED PRICE BY REGION | |||||||||
|
Three Months Ended | |||||||||
|
2018 |
2017 | ||||||||
|
Pre-ASC 606 |
Post-ASC 606 |
As Reported | |||||||
|
Permian Basin |
|||||||||
|
Gas ($ per Mcf) |
1.62 |
1.49 |
2.77 |
||||||
|
Oil ($ per Bbl) |
59.83 |
59.83 |
44.15 |
||||||
|
NGL ($ per Bbl) |
23.81 |
22.80 |
16.65 |
||||||
|
Mid-Continent |
|||||||||
|
Gas ($ per Mcf) |
1.81 |
1.77 |
2.85 |
||||||
|
Oil ($ per Bbl) |
65.70 |
65.70 |
44.10 |
||||||
|
NGL ($ per Bbl) |
21.94 |
21.66 |
19.90 |
||||||
|
Total Company |
|||||||||
|
Gas ($ per Mcf) |
1.73 |
1.65 |
2.82 |
||||||
|
Oil ($ per Bbl) |
60.99 |
60.99 |
44.14 |
||||||
|
NGL ($ per Bbl) |
22.97 |
22.29 |
18.24 |
||||||
|
Six Months Ended | |||||||||
|
2018 |
2017 | ||||||||
|
Pre-ASC 606 |
Post-ASC 606 |
As Reported | |||||||
|
Permian Basin |
|||||||||
|
Gas ($ per Mcf) |
1.97 |
1.86 |
2.83 |
||||||
|
Oil ($ per Bbl) |
59.79 |
59.79 |
45.94 |
||||||
|
NGL ($ per Bbl) |
23.62 |
21.93 |
17.38 |
||||||
|
Mid-Continent |
|||||||||
|
Gas ($ per Mcf) |
2.08 |
2.04 |
2.97 |
||||||
|
Oil ($ per Bbl) |
62.87 |
62.87 |
45.39 |
||||||
|
NGL ($ per Bbl) |
22.01 |
20.67 |
21.16 |
||||||
|
Total Company |
|||||||||
|
Gas ($ per Mcf) |
2.03 |
1.96 |
2.91 |
||||||
|
Oil ($ per Bbl) |
60.45 |
60.45 |
45.82 |
||||||
|
NGL ($ per Bbl) |
22.84 |
21.32 |
19.26 |
||||||
|
TRANSPORTATION, PROCESSING, AND OTHER OPERATING EXPENSES | ||||||||||||
|
Three Months Ended | ||||||||||||
|
2018 |
2017 | |||||||||||
|
Pre-ASC 606 |
Post-ASC 606 |
As Reported | ||||||||||
|
(in thousands, except per BOE) | ||||||||||||
|
Transportation, processing, and other operating expenses |
$ |
59,584 |
$ |
51,933 |
$ |
58,624 |
||||||
|
Per BOE |
$ |
3.10 |
$ |
2.70 |
$ |
3.34 |
||||||
|
Six Months Ended | ||||||||||||
|
2018 |
2017 | |||||||||||
|
Pre-ASC 606 |
Post-ASC 606 |
As Reported | ||||||||||
|
(in thousands, except per BOE) | ||||||||||||
|
Transportation, processing, and other operating expenses |
$ |
119,321 |
$ |
97,098 |
$ |
113,647 |
||||||
|
Per BOE |
$ |
3.16 |
$ |
2.57 |
$ |
3.39 |
||||||
|
OIL AND GAS CAPITALIZED EXPENDITURES | |||||||||||||||
|
Three Months Ended |
Six Months Ended | ||||||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||||||
|
(in thousands) | |||||||||||||||
|
Acquisitions: |
|||||||||||||||
|
Proved |
$ |
— |
$ |
255 |
$ |
62 |
$ |
260 |
|||||||
|
Unproved |
77 |
792 |
2,236 |
3,825 |
|||||||||||
|
77 |
1,047 |
2,298 |
4,085 |
||||||||||||
|
Exploration and development: |
|||||||||||||||
|
Land and seismic |
$ |
10,327 |
$ |
33,302 |
$ |
20,424 |
$ |
110,487 |
|||||||
|
Exploration and development |
365,097 |
262,575 |
668,469 |
491,042 |
|||||||||||
|
375,424 |
295,877 |
688,893 |
601,529 |
||||||||||||
|
Sales proceeds: |
|||||||||||||||
|
Proved |
$ |
(4,577) |
$ |
(1,957) |
$ |
(29,541) |
$ |
(1,892) |
|||||||
|
Unproved |
(441) |
(2,305) |
(5,301) |
(7,271) |
|||||||||||
|
(5,018) |
(4,262) |
(34,842) |
(9,163) |
||||||||||||
|
$ |
370,483 |
$ |
292,662 |
$ |
656,349 |
$ |
596,451 |
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited) | ||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||
|
2018 |
2017 |
2018 |
2017 | |||||||||||||
|
(in thousands, except per share information) | ||||||||||||||||
|
Revenues: |
||||||||||||||||
|
Oil sales |
$ |
342,184 |
$ |
232,453 |
$ |
693,907 |
$ |
456,519 |
||||||||
|
Gas and NGL sales |
202,202 |
213,360 |
405,920 |
425,731 |
||||||||||||
|
Gas gathering and other |
11,888 |
10,639 |
23,581 |
21,378 |
||||||||||||
|
556,274 |
456,452 |
1,123,408 |
903,628 |
|||||||||||||
|
Costs and expenses: |
||||||||||||||||
|
Depreciation, depletion, amortization, and accretion |
145,441 |
108,844 |
279,360 |
206,280 |
||||||||||||
|
Production |
79,215 |
62,578 |
150,486 |
124,999 |
||||||||||||
|
Transportation, processing, and other operating |
51,933 |
58,624 |
97,098 |
113,647 |
||||||||||||
|
Gas gathering and other |
9,467 |
8,647 |
19,290 |
17,074 |
||||||||||||
|
Taxes other than income |
27,930 |
17,477 |
58,118 |
38,790 |
||||||||||||
|
General and administrative |
19,739 |
19,762 |
43,060 |
37,796 |
||||||||||||
|
Stock compensation |
3,095 |
6,293 |
9,825 |
12,581 |
||||||||||||
|
Loss (gain) on derivative instruments, net |
21,699 |
(22,509) |
17,540 |
(66,370) |
||||||||||||
|
Other operating expense, net |
5,252 |
266 |
5,455 |
882 |
||||||||||||
|
363,771 |
259,982 |
680,232 |
485,679 |
|||||||||||||
|
Operating income |
192,503 |
196,470 |
443,176 |
417,949 |
||||||||||||
|
Other (income) and expense: |
||||||||||||||||
|
Interest expense |
16,895 |
20,095 |
33,678 |
41,147 |
||||||||||||
|
Capitalized interest |
(4,850) |
(5,442) |
(9,660) |
(12,083) |
||||||||||||
|
Loss on early extinguishment of debt |
— |
28,169 |
— |
28,169 |
||||||||||||
|
Other, net |
(2,605) |
(2,231) |
(7,172) |
(4,441) |
||||||||||||
|
Income before income tax |
183,063 |
155,879 |
426,330 |
365,157 |
||||||||||||
|
Income tax expense |
42,066 |
58,617 |
99,015 |
136,923 |
||||||||||||
|
Net income |
$ |
140,997 |
$ |
97,262 |
$ |
327,315 |
$ |
228,234 |
||||||||
|
Earnings per share to common stockholders: |
||||||||||||||||
|
Basic |
$ |
1.48 |
$ |
1.02 |
$ |
3.44 |
$ |
2.40 |
||||||||
|
Diluted |
$ |
1.48 |
$ |
1.02 |
$ |
3.44 |
$ |
2.40 |
||||||||
|
Dividends declared per share |
$ |
0.16 |
$ |
0.08 |
$ |
0.32 |
$ |
0.16 |
||||||||
|
Weighted-average number of shares outstanding: |
||||||||||||||||
|
Basic |
93,728 |
93,402 |
93,713 |
93,396 |
||||||||||||
|
Diluted |
93,759 |
93,435 |
93,748 |
93,431 |
||||||||||||
|
Comprehensive income: |
||||||||||||||||
|
Net income |
$ |
140,997 |
$ |
97,262 |
$ |
327,315 |
$ |
228,234 |
||||||||
|
Other comprehensive income: |
||||||||||||||||
|
Change in fair value of investments, net of tax |
192 |
224 |
2 |
626 |
||||||||||||
|
Total comprehensive income |
$ |
141,189 |
$ |
97,486 |
$ |
327,317 |
$ |
228,860 |
||||||||
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited) | ||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||
|
2018 |
2017 |
2018 |
2017 | |||||||||||||
|
(in thousands) | ||||||||||||||||
|
Cash flows from operating activities: |
||||||||||||||||
|
Net income |
$ |
140,997 |
$ |
97,262 |
$ |
327,315 |
$ |
228,234 |
||||||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||
|
Depreciation, depletion, amortization, and accretion |
145,441 |
108,844 |
279,360 |
206,280 |
||||||||||||
|
Deferred income taxes |
42,783 |
58,617 |
99,732 |
136,929 |
||||||||||||
|
Stock compensation |
3,095 |
6,293 |
9,825 |
12,581 |
||||||||||||
|
Loss (gain) on derivative instruments, net |
21,699 |
(22,509) |
17,540 |
(66,370) |
||||||||||||
|
Settlements on derivative instruments |
(7,530) |
343 |
(19,919) |
(5,717) |
||||||||||||
|
Loss on early extinguishment of debt |
— |
28,169 |
— |
28,169 |
||||||||||||
|
Changes in non-current assets and liabilities |
1,613 |
57 |
713 |
1,076 |
||||||||||||
|
Other, net |
1,413 |
1,717 |
2,179 |
3,445 |
||||||||||||
|
Changes in operating assets and liabilities: |
||||||||||||||||
|
Accounts receivable |
(29,710) |
(16,483) |
15,012 |
(61,145) |
||||||||||||
|
Other current assets |
283 |
(8,139) |
1,886 |
(11,104) |
||||||||||||
|
Accounts payable and other current liabilities |
1,162 |
1,115 |
(29,304) |
32,422 |
||||||||||||
|
Net cash provided by operating activities |
321,246 |
255,286 |
704,339 |
504,800 |
||||||||||||
|
Cash flows from investing activities: |
||||||||||||||||
|
Oil and gas capital expenditures |
(327,352) |
(270,331) |
(650,807) |
(582,172) |
||||||||||||
|
Sales of oil and gas assets |
5,018 |
4,262 |
34,842 |
9,163 |
||||||||||||
|
Sales of other assets |
93 |
349 |
525 |
394 |
||||||||||||
|
Other capital expenditures |
(37,056) |
(10,127) |
(56,112) |
(18,209) |
||||||||||||
|
Net cash used by investing activities |
(359,297) |
(275,847) |
(671,552) |
(590,824) |
||||||||||||
|
Cash flows from financing activities: |
||||||||||||||||
|
Borrowings of long-term debt |
— |
748,110 |
— |
748,110 |
||||||||||||
|
Repayments of long-term debt |
— |
(750,000) |
— |
(750,000) |
||||||||||||
|
Call premium, financing, and underwriting fees |
— |
(29,009) |
— |
(29,035) |
||||||||||||
|
Dividends paid |
(15,199) |
(7,576) |
(22,801) |
(15,153) |
||||||||||||
|
Employee withholding taxes paid upon the net settlement of equity-classified stock awards |
(641) |
(277) |
(946) |
(1,215) |
||||||||||||
|
Proceeds from exercise of stock options |
904 |
— |
1,249 |
36 |
||||||||||||
|
Net cash used by financing activities |
(14,936) |
(38,752) |
(22,498) |
(47,257) |
||||||||||||
|
Net change in cash and cash equivalents |
(52,987) |
(59,313) |
10,289 |
(133,281) |
||||||||||||
|
Cash and cash equivalents at beginning of period |
463,810 |
578,908 |
400,534 |
652,876 |
||||||||||||
|
Cash and cash equivalents at end of period |
$ |
410,823 |
$ |
519,595 |
$ |
410,823 |
$ |
519,595 |
||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
|
June 30, 2018 |
December 31, 2017 | |||||||
|
Assets |
(in thousands, except share and | |||||||
|
Current assets: |
||||||||
|
Cash and cash equivalents |
$ |
410,823 |
$ |
400,534 |
||||
|
Accounts receivable, net of allowance |
444,655 |
460,174 |
||||||
|
Oil and gas well equipment and supplies |
53,375 |
49,722 |
||||||
|
Derivative instruments |
72,943 |
15,151 |
||||||
|
Other current assets |
8,346 |
10,054 |
||||||
|
Total current assets |
990,142 |
935,635 |
||||||
|
Oil and gas properties at cost, using the full cost method of accounting: |
||||||||
|
Proved properties |
18,112,548 |
17,513,460 |
||||||
|
Unproved properties and properties under development, not being amortized |
532,715 |
476,903 |
||||||
|
18,645,263 |
17,990,363 |
|||||||
|
Less – accumulated depreciation, depletion, amortization, and impairment |
(15,000,443) |
(14,748,833) |
||||||
|
Net oil and gas properties |
3,644,820 |
3,241,530 |
||||||
|
Fixed assets, net of accumulated depreciation of $312,927 and $290,114, respectively |
238,964 |
210,922 |
||||||
|
Goodwill |
620,232 |
620,232 |
||||||
|
Derivative instruments |
2,330 |
2,086 |
||||||
|
Other assets |
34,905 |
32,234 |
||||||
|
$ |
5,531,393 |
$ |
5,042,639 |
|||||
|
Liabilities and Stockholders' Equity |
||||||||
|
Current liabilities: |
||||||||
|
Accounts payable |
$ |
95,239 |
$ |
98,386 |
||||
|
Accrued liabilities |
370,371 |
351,849 |
||||||
|
Derivative instruments |
90,480 |
42,066 |
||||||
|
Revenue payable |
180,869 |
187,273 |
||||||
|
Total current liabilities |
736,959 |
679,574 |
||||||
|
Long-term debt: |
||||||||
|
Principal |
1,500,000 |
1,500,000 |
||||||
|
Less – unamortized debt issuance costs and discount |
(12,261) |
(13,080) |
||||||
|
Long-term debt, net |
1,487,739 |
1,486,920 |
||||||
|
Deferred income taxes |
201,350 |
101,618 |
||||||
|
Derivative instruments |
11,511 |
4,268 |
||||||
|
Other liabilities |
207,336 |
201,981 |
||||||
|
Total liabilities |
2,644,895 |
2,474,361 |
||||||
|
Stockholders' equity: |
||||||||
|
Preferred stock, $0.01 par value, 15,000,000 shares authorized, no shares issued |
— |
— |
||||||
|
Common stock, $0.01 par value, 200,000,000 shares authorized, 95,392,547 and 95,437,434 shares issued, respectively |
954 |
954 |
||||||
|
Additional paid-in capital |
2,770,532 |
2,764,384 |
||||||
|
Retained earnings (accumulated deficit) |
112,811 |
(199,259) |
||||||
|
Accumulated other comprehensive income |
2,201 |
2,199 |
||||||
|
Total stockholders' equity |
2,886,498 |
2,568,278 |
||||||
|
$ |
5,531,393 |
$ |
5,042,639 |
|||||
View original content:http://www.prnewswire.com/news-releases/cimarex-reports-second-quarter-2018-results-300693526.html
SOURCE Cimarex Energy Co.
Article Date
8/7/2018Cimarex Schedules Second Quarter 2018 Earnings Release and Conference Call
Source: PR Newswire
DENVER, July 5, 2018 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced it plans to report second quarter 2018 financial results on Tuesday, August 7, 2018, after market close. The company will host its quarterly conference call at 11:00 AM ET on Wednesday, August 8, 2018.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-schedules-second-quarter-2018-earnings-release-and-conference-call-300676720.html
SOURCE Cimarex Energy Co.
Article Date
7/5/20185/11/2018 - Cimarex Energy Declares Quarterly Cash Dividend
Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DENVER, May 11, 2018 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.16 per share. The dividend is payable on August 31, 2018, to stockholders of record on August 15, 2018.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
View original content with multimedia:http://www.prnewswire.com/news-releases/cimarex-energy-declares-quarterly-cash-dividend-300646842.html
SOURCE Cimarex Energy Co.
Article Date
5/11/20185/8/2018 - Cimarex Reports First Quarter 2018 Results
Cimarex Reports First Quarter 2018 Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DENVER, May 8, 2018 /PRNewswire/ --
Cimarex Energy Co. (NYSE: XEC) today reported first quarter 2018 net income of $186.3 million, or $1.96 per share, compared to $131.0 million, or $1.38 per share, in the same period a year ago. First quarter adjusted net income (non-GAAP) was $173.6 million, or $1.82 per share, compared to first quarter 2017 adjusted net income (non-GAAP) of $99.7 million, or $1.05 per share.1 Net cash provided by operating activities was $383.1 million in the first quarter of 2018 compared to $249.5 million in the same period a year ago. Adjusted cash flow from operations (non-GAAP) was $367.2 million in the first quarter of 2018 compared to $265.8 million in the first quarter a year ago1.
Total company production for the quarter came in at the high end of guidance, averaging 206.1 thousand barrels of oil equivalent (MBOE) per day. Oil production averaged 65,212 barrels per day, up six percent from fourth quarter 2017 levels.
Realized oil prices averaged $59.93 per barrel, up 26 percent from the $47.71 per barrel received in the first quarter of 2017. Realized natural gas prices averaged $2.28 per thousand cubic feet (Mcf) down 24 percent from the first quarter 2017 average of $3.01 per Mcf. NGL prices were down 1 percent and averaged $20.19 per barrel from the $20.40 per barrel received in the same period of 2017. Realized prices for 2018 reflect the adoption of Accounting Standards Codification 606 (ASC 606). See table below (Impact of ASC 606) for comparison of realized prices for 2018 for pre- and post ASC 606.
Natural gas prices were negatively impacted by increased local price differentials. In addition, gas takeaway in the Permian Basin between now and when planned additional pipeline capacity is expected to be operational (second half of 2019) has raised concerns about the ability of operators to move gas out of the basin. Cimarex has taken a number of steps to ensure the flow of our natural gas production out of the Permian Basin. We have agreed to terms for the sale of more than 98 percent of our projected Permian Basin natural gas production through October 2019.
Cimarex invested $313 million in exploration and development (E&D) during the first quarter, of which $264 million is attributable to drilling and completion activities. First quarter investments were funded with cash flow from operations. Total debt at March 31, 2018 consisted of $1.5 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $464 million. Debt was 35 percent of total capitalization2.
2018 Outlook
Second quarter 2018 production volumes are expected to average 200 - 209 MBOE per day. Total daily production volumes for full year 2018 remain unchanged at 211 – 221 MBOE per day. Full-year estimated exploration and development capital investment remains unchanged at $1.6 – 1.7 billion.
Expenses per BOE of production for the remainder of 2018 are estimated to be:
|
Production expense |
$3.80 - 4.30 | |
|
Transportation, processing and other expense* |
2.40 - 3.00 | |
|
DD&A and ARO accretion |
7.50 - 8.10 | |
|
General and administrative expense |
1.20 - 1.50 | |
|
Taxes other than income (% of oil and gas revenue) |
5.75 - 6.25% | |
|
*Reflects adoption of ASC 606 (see Impact of ASC6 table below). | ||
Operations Update
Cimarex invested $313 million in E&D during the first quarter, 61 percent in the Permian Basin and 38 percent in the Mid-Continent. Cimarex brought 54 gross (15 net) wells on production during the quarter. At March 31, 125 gross (48 net) wells were waiting on completion. Cimarex currently is operating 13 drilling rigs.
|
WELLS BROUGHT ON PRODUCTION BY REGION | ||||||
|
Three Months Ended | ||||||
|
2018 |
2017 | |||||
|
Gross wells |
||||||
|
Permian Basin |
17 |
25 | ||||
|
Mid-Continent |
37 |
45 | ||||
|
54 |
70 | |||||
|
Net wells |
||||||
|
Permian Basin |
9 |
16 | ||||
|
Mid-Continent |
6 |
10 | ||||
|
15 |
26 | |||||
Permian Region
Production from the Permian region averaged 114,218 BOE per day in the first quarter, a 19 percent increase from first quarter 2017. Oil volumes averaged 49,845 barrels per day, representing 44 percent of the region's total equivalent production, and a 21 percent increase from first quarter 2017. Total production increased two percent sequentially, with oil production up five percent.
Cimarex completed 17 gross (9 net) wells in the Permian region during the first quarter. There were 52 gross (28 net) wells waiting on completion at March 31.
Activity in the region for the quarter included nine wells completed in the Wolfcamp, Avalon and Bone Spring formations. Of note, in Lea County, New Mexico, two Avalon wells were brought on-line during the first quarter. The Coriander AOC 1-12 State 1H, a 10,000-foot lateral, had an average peak 30-day initial production rate of 3,333 BOE (2,233 barrel of oil) per day and the Thyme APY FED 19H, 5,000-foot lateral, had an average peak 30-day initial production rate of 2,059 BOE (1,420 barrels of oil) per day.
Cimarex currently is operating ten drilling rigs and three completion crews in the region.
Mid-Continent Region
Production from the Mid-Continent averaged 91,433 BOE per day for the first quarter, up 13 percent versus first quarter 2017 and up four percent sequentially.
During the first quarter, Cimarex completed 37 gross (6 net) wells in the Mid-Continent region. At the end of the quarter, 73 gross (20 net) wells were waiting on completion. Cimarex currently is operating three drilling rigs and two completion crews in the region.
Production by Region
Cimarex's average daily production and commodity price by region is summarized below:
|
DAILY PRODUCTION BY REGION | ||||||
|
Three Months Ended | ||||||
|
2018 |
2017 | |||||
|
Permian Basin |
||||||
|
Gas (MMcf) |
237.9 |
200.9 | ||||
|
Oil (Bbls) |
49,845 |
41,039 | ||||
|
NGL (Bbls) |
24,725 |
21,624 | ||||
|
Total Equivalent (BOE) |
114,218 |
96,140 | ||||
|
Mid-Continent |
||||||
|
Gas (MMcf) |
295.5 |
285.0 | ||||
|
Oil (Bbls) |
15,225 |
11,053 | ||||
|
NGL (Bbls) |
26,959 |
22,151 | ||||
|
Total Equivalent (BOE) |
91,433 |
80,697 | ||||
|
Total Company |
||||||
|
Gas (MMcf) |
534.7 |
487.2 | ||||
|
Oil (Bbls) |
65,212 |
52,181 | ||||
|
NGL (Bbls) |
51,719 |
43,804 | ||||
|
Total Equivalent (BOE) |
206,050 |
177,190 | ||||
|
AVERAGE REALIZED PRICE BY REGION | ||||||
|
Three Months Ended | ||||||
|
2018* |
2017 | |||||
|
Permian Basin |
||||||
|
Gas ($ per Mcf) |
2.23 |
2.89 | ||||
|
Oil ($ per Bbl) |
59.75 |
47.95 | ||||
|
NGL ($ per Bbl) |
20.76 |
18.22 | ||||
|
Mid-Continent |
||||||
|
Gas ($ per Mcf) |
2.31 |
3.09 | ||||
|
Oil ($ per Bbl) |
60.53 |
46.81 | ||||
|
NGL ($ per Bbl) |
19.67 |
22.53 | ||||
|
Total Company |
||||||
|
Gas ($ per Mcf) |
2.28 |
3.01 | ||||
|
Oil ($ per Bbl) |
59.93 |
47.71 | ||||
|
NGL ($ per Bbl) |
20.19 |
20.40 | ||||
|
*Realized prices for 2018 reflect the adoption of ASC 606. See "Impact of ASC 606" table for a comparison of 2018 realized prices on a pre- and post-ASC 606 basis. |
Other
The following table summarizes the company's current open hedge positions:
|
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 |
3Q19 | ||||||||
|
Gas Collars: |
PEPL(3) |
||||||||||||
|
Volume (MMBtu/d) |
130,000 |
100,000 |
70,000 |
60,000 |
60,000 |
30,000 |
|||||||
|
Wtd Avg Floor |
2.35 |
2.28 |
2.21 |
2.17 |
2.17 |
1.93 |
|||||||
|
Wtd Avg Ceiling |
2.66 |
2.52 |
2.46 |
2.42 |
2.42 |
2.18 |
|||||||
|
El Paso Perm(3) |
|||||||||||||
|
Volume (MMBtu/d) |
100,000 |
80,000 |
60,000 |
50,000 |
50,000 |
30,000 |
|||||||
|
Wtd Avg Floor |
2.15 |
2.06 |
1.97 |
1.88 |
1.88 |
1.60 |
|||||||
|
Wtd Avg Ceiling |
2.43 |
2.28 |
2.19 |
2.12 |
2.12 |
1.87 |
|||||||
|
Oil Collars: |
WTI(4) |
||||||||||||
|
Volume (Bbl/d) |
31,000 |
27,000 |
21,000 |
15,000 |
15,000 |
8,000 |
|||||||
|
Wtd Avg Floor |
47.97 |
47.67 |
48.76 |
49.07 |
49.07 |
50.00 |
|||||||
|
Wtd Avg Ceiling |
58.35 |
58.25 |
59.33 |
61.49 |
61.49 |
66.21 |
|||||||
|
Oil Basis Swaps: |
WTI Midland(5) |
||||||||||||
|
Volume (Bbl/d) |
15,000 |
21,000 |
16,000 |
13,000 |
13,000 |
8,000 |
|||||||
|
Weighted Avg Differential(6) |
(0.78) |
(1.94) |
(2.25) |
(2.60) |
(2.60) |
(3.93) |
|||||||
Conference call and webcast
Cimarex will host a conference call tomorrow, May 9, at 11:00 a.m. EDT (9:00 a.m. MT). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
Investor Presentation
For more details on Cimarex's first quarter 2018 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the "2018 Outlook" contains projections for certain 2018 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; higher than expected costs and expenses, including the availability and cost of services and materials; compliance with environmental and other regulations; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; costs and availability of third party facilities for gathering, processing, refining and transportation; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
|
1 |
Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for reconciliations of the related GAAP amounts. |
|
2 |
Debt to total capitalization is calculated by dividing long-term debt by long-term debt plus stockholders' equity. |
|
3 |
PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index and El Paso Perm is El Paso Permian Basin index both as quoted in Platt's Inside FERC. |
|
4 |
WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. |
|
5 |
Index price on basis swaps is WTI Midland as quoted by Argus Americas Crude. |
|
6 |
Index price on basis swaps is WTI NYMEX less the weighted average differential shown in table. |
RECONCILIATION OF ADJUSTED NET INCOME
The following reconciles net income as reported under generally accepted accounting principles (GAAP) to adjusted net income (non-GAAP) for the periods indicated.
|
Three Months Ended | |||||||
|
2018 |
2017 | ||||||
|
(in thousands, except per share data) | |||||||
|
Net income |
$ |
186,318 |
$ |
130,972 |
|||
|
Mark-to-market gain on open derivative positions |
(16,548) |
(49,921) |
|||||
|
Tax impact |
3,872 |
18,671 |
|||||
|
Adjusted net income |
$ |
173,642 |
$ |
99,722 |
|||
|
Diluted earnings per share |
$ |
1.96 |
$ |
1.38 |
|||
|
Adjusted diluted earnings per share* |
$ |
1.82 |
$ |
1.05 |
|||
|
Weighted-average number of shares outstanding: |
|||||||
|
Adjusted diluted** |
95,475 |
95,166 |
|||||
Adjusted net income and adjusted diluted earnings per share exclude the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP measures because:
a) Management uses adjusted net income to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies.
b) Adjusted net income is more comparable to earnings estimates provided by research analysts.
* Does not include adjustments resulting from application of the "two-class method" used to determine earnings per share under GAAP.
** Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding stock options.
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) for the periods indicated.
|
Three Months Ended | |||||||
|
2018 |
2017 | ||||||
|
(in thousands) | |||||||
|
Net cash provided by operating activities |
$ |
383,093 |
$ |
249,514 |
|||
|
Change in operating assets and liabilities |
(15,859) |
16,320 |
|||||
|
Adjusted cash flow from operations |
$ |
367,234 |
$ |
265,834 |
|||
Management uses the non-GAAP financial measure of adjusted cash flow from operations as a means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities. Management believes this non-GAAP financial measure provides useful information to investors for the same reason, and that it is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.
IMPACT OF ASC 606
Effective January 1, 2018, Cimarex adopted the provisions of Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606"). Application of ASC 606 has no impact on our net income or cash flows from operations; however, certain costs classified as Transportation, processing, and other operating expenses in the statement of operations under prior accounting standards are now reflected as deductions from revenue under ASC 606. The following tables present certain Pre- and Post-ASC 606 amounts:
|
REVENUES | ||||||||||||||||||
|
Three Months Ended | ||||||||||||||||||
|
2018 |
2017 | |||||||||||||||||
|
Pre-ASC 606 |
Post-ASC 606 |
As Reported | ||||||||||||||||
|
(in thousands) | ||||||||||||||||||
|
Oil sales |
$ |
351,723 |
$ |
351,723 |
$ |
224,066 |
||||||||||||
|
Gas sales |
$ |
112,677 |
$ |
109,721 |
$ |
131,945 |
||||||||||||
|
NGL sales |
$ |
105,613 |
$ |
93,997 |
$ |
80,426 |
||||||||||||
|
AVERAGE REALIZED PRICE BY REGION | ||||||||||||||||||
|
Three Months Ended | ||||||||||||||||||
|
2018 |
2017 | |||||||||||||||||
|
Pre-ASC 606 Adoption |
Post-ASC 606 Adoption |
As Reported | ||||||||||||||||
|
Permian Basin |
||||||||||||||||||
|
Gas ($ per Mcf) |
2.33 |
2.23 |
2.89 |
|||||||||||||||
|
Oil ($ per Bbl) |
59.75 |
59.75 |
47.95 |
|||||||||||||||
|
NGL ($ per Bbl) |
23.36 |
20.76 |
18.22 |
|||||||||||||||
|
Mid-Continent |
||||||||||||||||||
|
Gas ($ per Mcf) |
2.35 |
2.31 |
3.09 |
|||||||||||||||
|
Oil ($ per Bbl) |
60.53 |
60.53 |
46.81 |
|||||||||||||||
|
NGL ($ per Bbl) |
22.07 |
19.67 |
22.53 |
|||||||||||||||
|
Total Company |
||||||||||||||||||
|
Gas ($ per Mcf) |
2.34 |
2.28 |
3.01 |
|||||||||||||||
|
Oil ($ per Bbl) |
59.93 |
59.93 |
47.71 |
|||||||||||||||
|
NGL ($ per Bbl) |
22.69 |
20.19 |
20.40 |
|||||||||||||||
|
TRANSPORTATION, PROCESSING, AND OTHER OPERATING EXPENSES | ||||||||||||||||||
|
Three Months Ended | ||||||||||||||||||
|
2018 |
2017 | |||||||||||||||||
|
Pre-ASC 606 |
Post-ASC 606 |
As Reported | ||||||||||||||||
|
(in thousands, except per BOE) | ||||||||||||||||||
|
Transportation, processing, and other operating expenses |
$ |
59,737 |
$ |
45,165 |
$ |
55,023 |
||||||||||||
|
Per BOE |
$ |
3.22 |
$ |
2.44 |
$ |
3.45 |
||||||||||||
|
OIL AND GAS CAPITALIZED EXPENDITURES | ||||||||||||||||||
|
Three Months Ended | ||||||||||||||||||
|
2018 |
2017 | |||||||||||||||||
|
(in thousands) | ||||||||||||||||||
|
Acquisitions: |
||||||||||||||||||
|
Proved |
$ |
62 |
$ |
5 |
||||||||||||||
|
Unproved |
2,159 |
3,033 |
||||||||||||||||
|
2,221 |
3,038 |
|||||||||||||||||
|
Exploration and development: |
||||||||||||||||||
|
Land and seismic |
$ |
10,097 |
$ |
77,185 |
||||||||||||||
|
Exploration and development |
303,372 |
228,467 |
||||||||||||||||
|
313,469 |
305,652 |
|||||||||||||||||
|
Sales proceeds: |
||||||||||||||||||
|
Proved |
$ |
(24,964) |
$ |
65 |
||||||||||||||
|
Unproved |
(4,860) |
(4,966) |
||||||||||||||||
|
(29,824) |
(4,901) |
|||||||||||||||||
|
$ |
285,866 |
$ |
303,789 |
|||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited) | ||||||||
|
Three Months Ended | ||||||||
|
2018 |
2017 | |||||||
|
(in thousands, except per share | ||||||||
|
Revenues: |
||||||||
|
Oil sales |
$ |
351,723 |
$ |
224,066 |
||||
|
Gas and NGL sales |
203,718 |
212,371 |
||||||
|
Gas gathering and other |
11,693 |
10,739 |
||||||
|
567,134 |
447,176 |
|||||||
|
Costs and expenses: |
||||||||
|
Depreciation, depletion, amortization, and accretion |
133,919 |
97,436 |
||||||
|
Production |
71,271 |
62,421 |
||||||
|
Transportation, processing, and other operating |
45,165 |
55,023 |
||||||
|
Gas gathering and other |
9,823 |
8,427 |
||||||
|
Taxes other than income |
30,188 |
21,313 |
||||||
|
General and administrative |
23,321 |
18,034 |
||||||
|
Stock compensation |
6,730 |
6,288 |
||||||
|
Loss (gain) on derivative instruments, net |
(4,159) |
(43,861) |
||||||
|
Other operating expense, net |
203 |
616 |
||||||
|
316,461 |
225,697 |
|||||||
|
Operating income |
250,673 |
221,479 |
||||||
|
Other (income) and expense: |
||||||||
|
Interest expense |
16,783 |
21,052 |
||||||
|
Capitalized interest |
(4,810) |
(6,641) |
||||||
|
Other, net |
(4,567) |
(2,210) |
||||||
|
Income before income tax |
243,267 |
209,278 |
||||||
|
Income tax expense |
56,949 |
78,306 |
||||||
|
Net income |
$ |
186,318 |
$ |
130,972 |
||||
|
Earnings per share to common stockholders: |
||||||||
|
Basic |
$ |
1.96 |
$ |
1.38 |
||||
|
Diluted |
$ |
1.96 |
$ |
1.38 |
||||
|
Dividends declared per share |
$ |
0.16 |
$ |
0.08 |
||||
|
Weighted-average number of shares outstanding: |
||||||||
|
Basic |
93,699 |
93,389 |
||||||
|
Diluted |
93,737 |
93,428 |
||||||
|
Comprehensive income: |
||||||||
|
Net income |
$ |
186,318 |
$ |
130,972 |
||||
|
Other comprehensive income: |
||||||||
|
Change in fair value of investments, net of tax |
(190) |
402 |
||||||
|
Total comprehensive income |
$ |
186,128 |
$ |
131,374 |
||||
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited) | ||||||||
|
Three Months Ended | ||||||||
|
2018 |
2017 | |||||||
|
(in thousands) | ||||||||
|
Cash flows from operating activities: |
||||||||
|
Net income |
$ |
186,318 |
$ |
130,972 |
||||
|
Adjustments to reconcile net income to net cash |
||||||||
|
provided by operating activities: |
||||||||
|
Depreciation, depletion, amortization, and accretion |
133,919 |
97,436 |
||||||
|
Deferred income taxes |
56,949 |
78,312 |
||||||
|
Stock compensation |
6,730 |
6,288 |
||||||
|
Loss (gain) on derivative instruments, net |
(4,159) |
(43,861) |
||||||
|
Settlements on derivative instruments |
(12,389) |
(6,060) |
||||||
|
Changes in non-current assets and liabilities |
(900) |
1,019 |
||||||
|
Other, net |
766 |
1,728 |
||||||
|
Changes in operating assets and liabilities: |
||||||||
|
Accounts receivable |
44,722 |
(44,662) |
||||||
|
Other current assets |
1,603 |
(2,965) |
||||||
|
Accounts payable and other current liabilities |
(30,466) |
31,307 |
||||||
|
Net cash provided by operating activities |
383,093 |
249,514 |
||||||
|
Cash flows from investing activities: |
||||||||
|
Oil and gas capital expenditures |
(323,455) |
(311,841) |
||||||
|
Sales of oil and gas assets |
29,824 |
4,901 |
||||||
|
Sales of other assets |
432 |
45 |
||||||
|
Other capital expenditures |
(19,056) |
(8,082) |
||||||
|
Net cash used by investing activities |
(312,255) |
(314,977) |
||||||
|
Cash flows from financing activities: |
||||||||
|
Financing fees |
— |
(26) |
||||||
|
Dividends paid |
(7,602) |
(7,577) |
||||||
|
Employee withholding taxes paid upon the net settlement of equity-classified stock awards |
(305) |
(938) |
||||||
|
Proceeds from exercise of stock options |
345 |
36 |
||||||
|
Net cash used by financing activities |
(7,562) |
(8,505) |
||||||
|
Net change in cash and cash equivalents |
63,276 |
(73,968) |
||||||
|
Cash and cash equivalents at beginning of period |
400,534 |
652,876 |
||||||
|
Cash and cash equivalents at end of period |
$ |
463,810 |
$ |
578,908 |
||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
|
March 31, |
December 31, | |||||||
|
Assets |
(in thousands, except share and | |||||||
|
Current assets: |
||||||||
|
Cash and cash equivalents |
$ |
463,810 |
$ |
400,534 |
||||
|
Accounts receivable, net of allowance |
415,248 |
460,174 |
||||||
|
Oil and gas well equipment and supplies |
54,223 |
49,722 |
||||||
|
Derivative instruments |
36,157 |
15,151 |
||||||
|
Other current assets |
8,552 |
10,054 |
||||||
|
Total current assets |
977,990 |
935,635 |
||||||
|
Oil and gas properties at cost, using the full cost method of accounting: |
||||||||
|
Proved properties |
17,795,832 |
17,513,460 |
||||||
|
Unproved properties and properties under development, not being amortized |
475,665 |
476,903 |
||||||
|
18,271,497 |
17,990,363 |
|||||||
|
Less – accumulated depreciation, depletion, amortization, and impairment |
(14,869,223) |
(14,748,833) |
||||||
|
Net oil and gas properties |
3,402,274 |
3,241,530 |
||||||
|
Fixed assets, net of accumulated depreciation of $301,407 and $290,114, respectively |
216,873 |
210,922 |
||||||
|
Goodwill |
620,232 |
620,232 |
||||||
|
Derivative instruments |
9,441 |
2,086 |
||||||
|
Other assets |
33,554 |
32,234 |
||||||
|
$ |
5,260,364 |
$ |
5,042,639 |
|||||
|
Liabilities and Stockholders' Equity |
||||||||
|
Current liabilities: |
||||||||
|
Accounts payable |
$ |
100,417 |
$ |
98,386 |
||||
|
Accrued liabilities |
309,018 |
351,849 |
||||||
|
Derivative instruments |
54,168 |
42,066 |
||||||
|
Revenue payable |
194,695 |
187,273 |
||||||
|
Total current liabilities |
658,298 |
679,574 |
||||||
|
Long-term debt: |
||||||||
|
Principal |
1,500,000 |
1,500,000 |
||||||
|
Less – unamortized debt issuance costs and discount |
(12,670) |
(13,080) |
||||||
|
Long-term debt, net |
1,487,330 |
1,486,920 |
||||||
|
Deferred income taxes |
158,511 |
101,618 |
||||||
|
Derivative instruments |
3,980 |
4,268 |
||||||
|
Other liabilities |
200,652 |
201,981 |
||||||
|
Total liabilities |
2,508,771 |
2,474,361 |
||||||
|
Stockholders' equity: |
||||||||
|
Preferred stock, $0.01 par value, 15,000,000 shares authorized, no shares issued |
— |
— |
||||||
|
Common stock, $0.01 par value, 200,000,000 shares authorized, 95,433,321 and 95,437,434 shares issued, respectively |
954 |
954 |
||||||
|
Additional paid-in capital |
2,761,567 |
2,764,384 |
||||||
|
Retained earnings (accumulated deficit) |
(12,937) |
(199,259) |
||||||
|
Accumulated other comprehensive income |
2,009 |
2,199 |
||||||
|
Total stockholders' equity |
2,751,593 |
2,568,278 |
||||||
|
$ |
5,260,364 |
$ |
5,042,639 |
|||||
View original content with multimedia:http://www.prnewswire.com/news-releases/cimarex-reports-first-quarter-2018-results-300644826.html
SOURCE Cimarex Energy Co.
Article Date
5/8/2018Cimarex Schedules First Quarter 2018 Earnings Release and Conference Call
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DENVER, April 5, 2018 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced it plans to report first quarter 2018 financial results on Tuesday, May 8, 2018, after market close. The company will host its quarterly conference call at 11:00 AM ET on Wednesday, May 9, 2018.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
View original content with multimedia:http://www.prnewswire.com/news-releases/cimarex-schedules-first-quarter-2018-earnings-release-and-conference-call-300625345.html
SOURCE Cimarex Energy Co.
Article Date
4/5/20182/23/2018 - Cimarex Energy Declares Quarterly Cash Dividend
Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DENVER, Feb. 23, 2018 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.16 per share. This represents a 100 percent increase in the company's quarterly dividend, restoring the amount paid to the previous annualized payout of $0.64 per share. The dividend was reduced in February 2016, a result of the company's diminished cash flow due to the collapse in oil prices.
Chairman and CEO, Tom Jorden said, "We are pleased to be able to increase our dividend to its previous high water mark. Cimarex generated excellent returns in 2017, which were manifested in our $1.2 billion of adjusted cash flow from operations."
The dividend is payable on June 1, 2018, to stockholders of record on May 15, 2018.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
View original content with multimedia:http://www.prnewswire.com/news-releases/cimarex-energy-declares-quarterly-cash-dividend-300603191.html
SOURCE Cimarex Energy Co.
Article Date
2/23/2018Cimarex Releases 2018 Capital Investment Plans; Gives Production and Expense Guidance
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DENVER, Feb. 14, 2018 /PRNewswire/ --
Cimarex Energy Co. (NYSE: XEC) today announced projected 2018 exploration and development capital of $1.6 – 1.7 billion, a 29 percent increase from 2017 levels at the midpoint. An additional $80-90 million is earmarked for midstream and other infrastructure.
For 2018, total company production is projected to average 211-221 thousand barrels of oil equivalent (MBOE) per day, an increase of 14 percent at the midpoint from 2017 production levels with oil production expected to lead year-over-year growth and be up 21-26 percent. Fourth quarter 2018 oil production is projected to increase 29-34 percent over fourth quarter 2017 levels.
First quarter 2018 output is expected to average 198-207 MBOE per day. Oil production in the first quarter is expected to increase approximately three percent from fourth quarter 2017 levels, with natural gas and NGL expected to be flat.
Tom Jorden, Cimarex Chairman and CEO, said, "We generated strong full-cycle returns for shareholders in 2017. The capital program we are releasing today for 2018 is expected to continue that trend. It will be funded through cash available including operating cash flow and some portion of cash on the balance sheet. We have stress tested this program and we will be able to execute our plans well within our available cash. Our enviable asset base and the talented organization we have assembled at Cimarex make that possible." Mr. Jorden went on to say, "We generated significant capital efficiencies through the down cycle. The challenge now is to maintain them. Some of those efficiencies have proven to be lasting, some will require hard work to maintain and those tied to commodity prices may go away. As is always the case in our industry, success will be the result of thorough evaluation, careful planning and solid execution—a challenge our organization is prepared to undertake."
Cimarex intends to invest $1.3-1.4 billion on the drilling and completion of 127 net wells during 2018. Nearly 70 percent of the capital will be invested in the Permian region with the remainder in the Mid-Continent. Permian activities will continue to focus on our long lateral Wolfcamp programs in Culberson and Reeves counties in Texas, and in Lea County, New Mexico, as well. Avalon and Bone Spring activities round out the remainder of our investments in the region. In the Mid-Continent, Cimarex's 2018 investments are focused on the drilling and completion of Woodford wells in the Lone Rock area and in further delineation and initial development of the Meramec play. We will continue to test new concepts across our acreage in both of our operating regions.
Below are the 2018 expected net completions by region:
|
1Q18 |
2Q18 |
3Q18 |
4Q18 |
Total | |||||||||
|
Net Completions |
|||||||||||||
|
Permian Basin |
8 |
23 |
30 |
23 |
84 | ||||||||
|
Mid-Continent |
5 |
9 |
21 |
8 |
43 | ||||||||
|
Total |
13 |
32 |
51 |
31 |
127 |
At year-end 2018 Cimarex estimates that 81 gross (47 net) wells will be drilling or waiting on completion. This includes 36 gross (12 net) in Mid-Continent region and 45 gross (35 net) in the Permian Basin.
Expenses for 2018 are expected to fall within the following ranges:
|
($/BOE) |
||
|
Production expense |
$3.75 - $4.35 | |
|
Transportation and other operating expense |
3.20 - 3.80 | |
|
DD&A and ARO accretion |
7.50 - 8.10 | |
|
General and administrative expense |
1.20 - 1.50 | |
|
Taxes other than income (% of oil and gas revenue) |
5.0% - 5.5% | |
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This communication contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including statements regarding 2018 planned capital expenditures and estimated production. These statements are based on current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are more fully described in SEC reports filed by Cimarex. While Cimarex makes these forward-looking statements in good faith, management cannot guarantee that anticipated future results will be achieved. Cimarex assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law. Actual results may differ materially from Cimarex projections and can be affected by a variety of factors outside the company's control including the risks and uncertainties described in the company's SEC reports.
View original content with multimedia:http://www.prnewswire.com/news-releases/cimarex-releases-2018-capital-investment-plans-gives-production-and-expense-guidance-300598915.html
SOURCE Cimarex Energy Co.
Article Date
2/14/2018Cimarex Reports Fourth-Quarter and Full-Year 2017 Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DENVER, Feb. 14, 2018 /PRNewswire/ --
Cimarex Energy Co. (NYSE: XEC) today reported fourth quarter 2017 net income of $174.7 million, or $1.83 per share, compared to fourth quarter 2016 net income of $47.8 million, or $0.50 per share. Adjusted fourth quarter net income (non-GAAP) was $140.0 million, or $1.47 per share, compared to fourth quarter 2016 adjusted net income (non-GAAP) of $66.4 million, or $0.70 per share1. Cash flow from operations was $340.8 million in the fourth quarter compared to $185.1 million in the fourth quarter of 2016. Adjusted cash flow from operations (non-GAAP) totaled $357.1 million in the fourth quarter, a 63 percent increase from 2016 levels1.
For the year, net income totaled $494.3 million, or $5.19 per share. The adjusted net income (non-GAAP) for the full year was $443.2 million, or $4.65 per share1. Cash flow from operations totaled $1,096.6 million in 2017 compared to $625.8 million in 2016. Adjusted cash flow from operations (non-GAAP) totaled $1,185.6 million in 2017, an 88 percent increase from 2016 levels1. Revenues in 2017 totaled $1.9 billion, a 53 percent increase from 2016. The increase in revenues and cash flow was the result of higher production and higher realized product prices.
In the fourth quarter, total company production volumes averaged 1,204 million cubic feet equivalent (MMcfe) per day (201 thousand barrels of oil equivalent (MBOE) per day), up 25 percent from a year ago. Fourth quarter oil production averaged 61,771 barrels per day, an increase of 36 percent from 2016 levels. For the full year, Cimarex reported daily production volumes of 1,142 MMcfe per day (190 MBOE per day), up 19 percent from our 2016 average daily output of 963 MMcfe per day.
Cimarex invested $1.28 billion in exploration and development (E&D) in 2017, including $344 million in the fourth quarter. Investments made in 2017 were funded with cash flow and cash on hand. E&D capital exceeded the company's estimate for 2017 of $1.2 billion due to higher infrastructure spending, higher working interest and costs in outside operated wells, land acquisition and acceleration of activity.
Proved reserves at December 31, 2017 were 3.4 trillion cubic feet equivalent (Tcfe) or 559 million barrels of oil equivalent (MMBOE), up 16 percent year over year. Proved developed reserves increased 21 percent to 2.8 Tcfe. Cimarex added 941 Bcfe through extensions and discoveries and deducted 60 Bcfe through net revisions resulting in reserve replacement of 211 percent of 2017 production. Proved reserves are 83 percent proved developed.
Realized oil prices averaged $51.68 per barrel in the fourth quarter, 16 percent higher than the same period a year ago. Realized natural gas prices were lower in the fourth quarter and averaged $2.58 per Mcf versus $2.86 a year ago. Realized NGL prices averaged $25.88 per barrel up 43 percent compared to fourth quarter 2016. For the full year, realized oil prices averaged $47.06, up 23 percent from 2016. Realized natural gas prices averaged $2.76 per Mcf, a 19 percent increase from 2016. Realized NGL prices averaged $21.61 per barrel, up 54 percent from 2016 levels.
Total debt at December 31, 2017 consisted of $1.5 billion of long-term notes, with $750 million maturing in 2024 and $750 million maturing in 2027. Cimarex had no borrowings under its revolving credit facility and had a cash balance of $401 million. Debt was 37 percent of total capitalization2.
Operations Update
Cimarex invested $1.28 billion in exploration and development in 2017, 59 percent in the Permian region and 39 percent in the Mid-Continent. An additional $45 million was invested in midstream operations in 2017. During 2017, Cimarex participated in the drilling and completion of 319 gross (98 net) wells.
At year-end, 91 gross (34 net) wells were waiting on completion, of which 60 gross (16 net) are in the Mid-Continent and 31 gross (18 net) in the Permian. Cimarex currently is operating 14 drilling rigs.
|
WELLS COMPLETED BY REGION | |||||||
|
For the Three Months Ended |
For the Twelve Months Ended | ||||||
|
December 31, |
December 31, | ||||||
|
2017 |
2016 |
2017 |
2016 | ||||
|
Gross wells |
|||||||
|
Permian Basin |
32 |
11 |
97 |
48 | |||
|
Mid-Continent |
85 |
44 |
222 |
105 | |||
|
117 |
55 |
319 |
153 | ||||
|
Net wells |
|||||||
|
Permian Basin |
14 |
8 |
55 |
30 | |||
|
Mid-Continent |
10 |
17 |
43 |
31 | |||
|
24 |
25 |
98 |
61 | ||||
Permian Basin
Production from the Permian Basin averaged 673 MMcfe per day in the fourth quarter, a 32 percent increase over fourth quarter 2016, and a seven percent increase sequentially. Oil volumes averaged 47,642 barrels per day and represented 42 percent of the region's total equivalent production. For the full year, production averaged 631 MMcfe per day, up 25 percent year over year.
Cimarex brought 32 gross (14 net) wells on production in the Permian region during the fourth quarter, bringing the total for the year to 97 gross (55 net) wells. Cimarex currently operates ten rigs in the Permian region.
Activity in the Permian region in the fourth quarter included the completion of 14 wells in the Wolfcamp, Avalon and Bone Spring formations. Cimarex also began drilling operations on two multi-well Wolfcamp developments. The Animal Kingdom project, located in Culberson County, Texas, consists of eight wells targeting multiple landings in the Lower Wolfcamp and the Snowshoe project, located in Reeves County, Texas, is an eight-well project targeting multiple landings in the Upper Wolfcamp. Both are long lateral developments with first production expected during the third quarter of 2018.
As of year-end, Cimarex has completed 70 10,000-foot lateral Wolfcamp wells including 23 in the Lower Wolfcamp and 47 in the Upper Wolfcamp. In addition to the multiple spacing pilots drilled in the Wolfcamp in 2017, another highlight of the year's program was the completion of four 10,000-foot lateral Upper Wolfcamp wells on the western half of our Culberson County acreage, an area that was previously untested. These wells had an average 30-day peak initial production of 2,587 BOE per day (56 percent oil, 26 percent gas, 18 percent NGL). A fifth well is currently flowing back. Cimarex has additional activity planned in this area in 2018 including a development project with drilling scheduled to begin in the third quarter.
Mid-Continent
Production from the Mid-Continent region averaged 529 MMcfe per day in the fourth quarter, a 19 percent increase over fourth-quarter 2016, and a three percent increase sequentially. Oil volumes averaged 13,999 barrels per day and represented 16 percent of the region's total equivalent production. For the full year, production averaged 509 MMcfe per day, up 11 percent year over year.
Wells brought on production during the fourth quarter totaled 85 gross (10 net) in the Mid-Continent region, bringing the total wells in 2017 to 222 gross (43 net). As planned, drilling to hold company's Meramec acreage was completed in 2017.
Activity in the region continues to focus on the Woodford and Meramec shale plays in western Oklahoma. Recent highlights include the completion of a three-well, stacked Woodford/Meramec test in the 14N-10W township in Canadian County, Oklahoma. This test confirms results of our previous wells in the area. Cimarex operates nearly all of the 24,000 gross acres leased in the 14N-10W area with an average 62 percent working interest. Drilling activity continues in the high return Lone Rock area where Cimarex has six long lateral Woodford wells on production with average 30-day peak initial production of 1,806 BOE per day (35 percent oil, 36 percent gas, 29 percent NGL). The company is currently drilling the Shelly spacing pilot in Lone Rock with first production expected mid-summer.
Cimarex currently operates four rigs in the Mid-Continent.
Please see the latest Corporate Presentation on our website www.cimarex.com for further details.
Production by Region
Cimarex's average daily production and commodity price by region is summarized below:
|
DAILY PRODUCTION BY REGION | ||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | |||||||
|
December 31, |
December 31, | |||||||
|
2017 |
2016 |
2017 |
2016 | |||||
|
Permian Basin |
||||||||
|
Gas (MMcf) |
232.6 |
179.3 |
217.9 |
178.1 | ||||
|
Oil (Bbls) |
47,642 |
36,253 |
44,577 |
36,018 | ||||
|
NGL (Bbls) |
25,747 |
19,114 |
24,269 |
18,244 | ||||
|
Total Equivalent (MMcfe) |
672.9 |
511.5 |
630.9 |
503.7 | ||||
|
Total Equivalent (BOE) |
112,157 |
85,250 |
105,157 |
83,945 | ||||
|
Mid-Continent |
||||||||
|
Gas (MMcf) |
300.3 |
276.3 |
294.4 |
280.1 | ||||
|
Oil (Bbls) |
13,999 |
9,205 |
12,457 |
8,969 | ||||
|
NGL (Bbls) |
24,176 |
19,036 |
23,296 |
20,513 | ||||
|
Total Equivalent (MMcfe) |
529.3 |
445.8 |
508.9 |
456.9 | ||||
|
Total Equivalent (BOE) |
88,225 |
74,291 |
84,822 |
76,165 | ||||
|
Total Company |
||||||||
|
Gas (MMcf) |
534.0 |
457.2 |
513.6 |
459.6 | ||||
|
Oil (Bbls) |
61,771 |
45,567 |
57,153 |
45,158 | ||||
|
NGL (Bbls) |
49,954 |
38,184 |
47,600 |
38,797 | ||||
|
Total Equivalent (MMcfe) |
1,204.4 |
959.7 |
1,142.1 |
963.4 | ||||
|
Total Equivalent (BOE) |
200,729 |
159,951 |
190,354 |
160,555 | ||||
|
AVERAGE REALIZED PRICE BY REGION | ||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | |||||||
|
December 31, |
December 31, | |||||||
|
2017 |
2016 |
2017 |
2016 | |||||
|
Permian Basin |
||||||||
|
Gas ($ per Mcf) |
2.56 |
2.85 |
2.72 |
2.35 | ||||
|
Oil ($ per Bbl) |
51.38 |
44.75 |
46.96 |
38.45 | ||||
|
NGL ($ per Bbl) |
25.07 |
15.71 |
20.25 |
12.32 | ||||
|
Mid-Continent |
||||||||
|
Gas ($ per Mcf) |
2.60 |
2.86 |
2.78 |
2.29 | ||||
|
Oil ($ per Bbl) |
52.72 |
44.36 |
47.42 |
37.65 | ||||
|
NGL ($ per Bbl) |
26.73 |
20.58 |
23.02 |
15.59 | ||||
|
Total Company |
||||||||
|
Gas ($ per Mcf) |
2.58 |
2.86 |
2.76 |
2.31 | ||||
|
Oil ($ per Bbl) |
51.68 |
44.67 |
47.06 |
38.30 | ||||
|
NGL ($ per Bbl) |
25.88 |
18.15 |
21.61 |
14.05 | ||||
Other
The following table summarizes the company's current open hedge positions:
|
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 |
3Q19 | ||
|
Gas Collars: |
PEPL³ |
|||||||
|
Volume (MMBtu/d) |
130,000 |
120,000 |
90,000 |
60,000 |
50,000 |
50,000 |
20,000 | |
|
Wtd Avg Floor |
2.57 |
2.39 |
2.33 |
2.28 |
2.23 |
2.23 |
1.98 | |
|
Wtd Avg Ceiling |
2.93 |
2.70 |
2.56 |
2.49 |
2.46 |
2.46 |
2.16 | |
|
El Paso Perm³ |
||||||||
|
Volume (MMBtu/d) |
90,000 |
90,000 |
70,000 |
50,000 |
40,000 |
40,000 |
20,000 | |
|
Wtd Avg Floor |
2.52 |
2.22 |
2.14 |
2.06 |
1.98 |
1.98 |
1.65 | |
|
Wtd Avg Ceiling |
2.84 |
2.48 |
2.32 |
2.23 |
2.14 |
2.14 |
1.80 | |
|
Oil Collars: |
WTI⁴ |
|||||||
|
Volume (Bbl/d) |
29,000 |
29,000 |
25,000 |
19,000 |
13,000 |
13,000 |
6,000 | |
|
Wtd Avg Floor |
47.28 |
47.83 |
47.48 |
48.63 |
48.92 |
48.92 |
50.00 | |
|
Wtd Avg Ceiling |
56.33 |
57.93 |
57.76 |
58.80 |
61.04 |
61.04 |
66.82 | |
|
Oil Basis Swaps: |
WTI Midland⁵ |
|||||||
|
Volume (Bbl/d) |
13,000 |
14,000 |
14,000 |
9,000 |
6,000 |
6,000 |
1,000 | |
|
Weighted Avg Differential⁶ |
(0.72) |
(0.72) |
(0.72) |
(0.59) |
(0.51) |
(0.51) |
(0.70) |
Conference call and webcast
Cimarex will host a conference call tomorrow, February 15, at 11:00 a.m. EST (9:00 a.m. MST). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To participate in the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216). A replay will be available on the company's website.
Investor Presentation
For more details on Cimarex's 2017 results, please refer to the company's investor presentation available at www.cimarex.com.
This press release contains forward-looking statements, including statements regarding projected results and future events. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K/A for the year ended December 31, 2016, filed with the SEC, in the 2017 Annual Report and Form 10-K to be filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; higher than expected costs and expenses, including the availability and cost of services and materials; compliance with environmental and other regulations; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; costs and availability of third party facilities for gathering, processing, refining and transportation; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
|
___________________________ | |
|
1 |
Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for reconciliations of the related GAAP amounts. |
|
2 |
Debt to total capitalization is calculated by dividing long-term debt by long-term debt plus stockholders' equity. |
|
3 |
PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index and El Paso Perm is El Paso Permian Basin index both as quoted in Platt's Inside FERC. |
|
4 |
WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. |
|
5 |
Index price on basis swaps is WTI Midland as quoted by Argus Americas Crude. |
|
6 |
Index price on basis swaps is WTI NYMEX less the weighted average differential shown in table. |
|
RECONCILIATION OF ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE | ||||||||||||
|
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net income (loss) and earnings (loss) per share to adjusted net income and adjusted earnings per share (non-GAAP) for the periods indicated. | ||||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | |||||||||||
|
December 31, |
December 31, | |||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||
|
(in thousands, except per share data) | ||||||||||||
|
Net income (loss) |
$ |
174,696 |
$ |
47,783 |
$ |
494,329 |
$ |
(408,803) | ||||
|
Impairment of oil and gas properties |
— |
— |
— |
757,670 | ||||||||
|
Mark-to-market (gain) loss on open derivative positions |
30,160 |
30,417 |
(22,843) |
63,186 | ||||||||
|
Loss on early extinguishment of debt |
18 |
— |
28,187 |
— | ||||||||
|
Asset Retirement Obligation |
10,460 |
— |
10,460 |
— | ||||||||
|
Impact of reduction in Federal statutory tax rate |
(61,146) |
— |
(61,146) |
— | ||||||||
|
Tax impact* |
(14,142) |
(11,832) |
(5,768) |
(298,867) | ||||||||
|
Adjusted net income |
$ |
140,046 |
$ |
66,368 |
$ |
443,219 |
$ |
113,186 | ||||
|
Diluted earnings (loss) per share** |
$ |
1.83 |
$ |
0.50 |
$ |
5.19 |
$ |
(4.38) | ||||
|
Adjusted diluted earnings per share** |
$ |
1.47 |
$ |
0.70 |
$ |
4.65 |
$ |
1.19 | ||||
|
Diluted shares attributable to common stockholders and participating securities |
||||||||||||
|
95,363 |
95,175 |
95,265 |
95,176 | |||||||||
|
Adjusted net income and adjusted diluted earnings per share excludes the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP earnings because: | ||||||||||||
|
a) Management uses adjusted net income to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies. | ||||||||||||
|
b) Adjusted net income is more comparable to earnings estimates provided by research analysts. | ||||||||||||
|
* |
The tax impact of the 2016 periods is calculated using a tax rate that excludes the effects of tax adjustments recorded in the fourth quarter primarily related to the revision of previous tax balances. | |||||||||||
|
** |
Earnings (loss) per share are based on actual figures rather than the rounded figures presented. | |||||||||||
|
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS | ||||||||||||
|
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) for the periods indicated. | ||||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | |||||||||||
|
December 31, |
December 31, | |||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||
|
(in thousands) | ||||||||||||
|
Net cash provided by operating activities |
$ |
340,759 |
$ |
185,061 |
$ |
1,096,564 |
$ |
625,849 | ||||
|
Change in operating assets and liabilities |
16,339 |
33,679 |
89,067 |
3,289 | ||||||||
|
Adjusted cash flow from operations |
$ |
357,098 |
$ |
218,740 |
$ |
1,185,631 |
$ |
629,138 | ||||
|
Management uses the non-GAAP financial measure of adjusted cash flow from operations as a means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities. Management believes this non-GAAP financial measure provides useful information to investors for the same reason, and that it is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry. | ||||||||||||
|
PROVED RESERVES | ||||||||||
|
Gas |
Oil |
NGL |
Total |
Total | ||||||
|
(Bcf) |
(MBbls) |
(MBbls) |
(Bcfe) |
(MBOE) | ||||||
|
December 31, 2016 |
1,471 |
105,878 |
130,633 |
2,890.5 |
481,748 | |||||
|
Revisions of previous estimates |
(40) |
(1,225) |
(2,099) |
(59.7) |
(9,951) | |||||
|
Extensions and discoveries |
364 |
53,464 |
42,692 |
940.7 |
156,786 | |||||
|
Purchase of reserves |
1 |
42 |
78 |
1.4 |
227 | |||||
|
Production |
(187) |
(20,861) |
(17,374) |
(416.9) |
(69,479) | |||||
|
Sale of properties |
(1) |
(60) |
(70) |
(1.8) |
(294) | |||||
|
December 31, 2017 |
1,608 |
137,238 |
153,860 |
3,354.2 |
559,037 | |||||
|
Proved developed reserves |
||||||||||
|
Year-end 2016 |
1,145 |
92,032 |
99,176 |
2,292.0 |
381,995 | |||||
|
Year-end 2017 |
1,335 |
114,116 |
126,227 |
2,776.6 |
462,761 | |||||
|
2017 |
2016 |
% Change |
||||||||
|
Pre-tax PV-10 ($ in millions) * |
3,725 |
2,122 |
76 % |
|||||||
|
Standardized Measure ($ in millions) |
3,285 |
1,893 |
74 % |
|||||||
|
Average prices used in Standardized Measure |
2017 |
2016 |
% Change |
|||||||
|
Gas ($ per Mcf) |
2.98 |
2.48 |
20 % |
|||||||
|
Oil ($ per Bbl) |
51.34 |
42.75 |
20 % |
|||||||
|
NGL ($ per Bbl) |
19.09 |
14.37 |
33 % |
|||||||
|
* Pre-tax PV-10 is a non-GAAP financial measure. Pre-tax PV-10 is comparable to the standardized measure, which is the most directly comparable GAAP financial measure. Pre-tax PV-10 is computed on the same basis as the standardized measure but without deducting future income taxes. As of December 31, 2017 and 2016, Cimarex's discounted future income taxes were $439.8 million and $229.3 million, respectively. Cimarex's standardized measure of discounted future net cash flows was $3,285.0 million at year-end 2017 and $1,892.6 million at year-end 2016. Management uses pre-tax PV-10 as one measure of the value of the company's proved reserves and to compare relative values of proved reserves to other exploration and production companies without regard to income taxes. Management believes pre-tax PV-10 is a useful measure for comparison of proved reserve values among companies because, unlike standardized measure, it excludes future income taxes that often depend on the unique income tax characteristics of the owner of the reserves rather than on the nature, location and quality of the reserves themselves. Management further believes that professional research analysts and rating agencies use pre-tax PV-10 in similar ways. However, pre-tax PV-10 is not a substitute for the standardized measure of discounted future net cash flows. Cimarex's pre-tax PV-10 and the standardized measure of discounted future net cash flows do not purport to present the fair value of its oil and natural gas reserves. | ||||||||||
|
PROVED RESERVES BY REGION |
||||||||||
|
Gas |
Oil |
NGL |
Total |
Total | ||||||
|
(Bcf) |
(MBbls) |
(MBbls) |
(Bcfe) |
(MBOE) | ||||||
|
Mid-Continent |
1,033 |
31,853 |
85,292 |
1,735.6 |
289,261 | |||||
|
Permian Basin |
574 |
105,198 |
68,530 |
1,616.1 |
269,354 | |||||
|
Other |
1 |
187 |
38 |
2.5 |
422 | |||||
|
1,608 |
137,238 |
153,860 |
3,354.2 |
559,037 | ||||||
|
OIL AND GAS CAPITALIZED EXPENDITURES | |||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | ||||||||||
|
December 31, |
December 31, | ||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||
|
(in thousands) | |||||||||||
|
Acquisitions: |
|||||||||||
|
Proved |
$ |
678 |
$ |
60 |
$ |
938 |
$ |
2,678 | |||
|
Unproved |
2,590 |
319 |
6,853 |
11,865 | |||||||
|
3,268 |
379 |
7,791 |
14,543 | ||||||||
|
Exploration and development: |
|||||||||||
|
Land and seismic |
17,157 |
16,260 |
140,516 |
61,870 | |||||||
|
Exploration and development |
326,855 |
229,603 |
1,140,548 |
672,882 | |||||||
|
344,012 |
245,863 |
1,281,064 |
734,752 | ||||||||
|
Sale proceeds: |
|||||||||||
|
Proved |
(1,947) |
(2,473) |
(2,032) |
(15,078) | |||||||
|
Unproved |
(1,597) |
(1) |
(9,648) |
(9,609) | |||||||
|
(3,544) |
(2,474) |
(11,680) |
(24,687) | ||||||||
|
$ |
343,736 |
$ |
243,768 |
$ |
1,277,175 |
$ |
724,608 | ||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) | |||||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | ||||||||||||
|
December 31, |
December 31, | ||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||
|
(in thousands, except per share data) | |||||||||||||
|
Revenues: |
|||||||||||||
|
Oil sales |
$ |
293,686 |
$ |
187,277 |
$ |
981,646 |
$ |
632,934 | |||||
|
Gas sales |
126,810 |
120,285 |
516,936 |
388,786 | |||||||||
|
NGL sales |
118,918 |
63,743 |
375,421 |
199,498 | |||||||||
|
Gas gathering and other, net |
11,526 |
10,850 |
44,246 |
36,127 | |||||||||
|
550,940 |
382,155 |
1,918,249 |
1,257,345 | ||||||||||
|
Costs and expenses: |
|||||||||||||
|
Impairment of oil and gas properties |
— |
— |
— |
757,670 | |||||||||
|
Depreciation, depletion, amortization, and accretion |
142,482 |
91,096 |
461,655 |
400,176 | |||||||||
|
Production |
71,771 |
51,111 |
262,180 |
232,002 | |||||||||
|
Transportation, processing, and other operating |
59,606 |
51,140 |
231,640 |
190,725 | |||||||||
|
Gas gathering and other |
9,910 |
8,308 |
35,840 |
31,785 | |||||||||
|
Taxes other than income |
26,760 |
18,067 |
89,864 |
61,946 | |||||||||
|
General and administrative |
21,161 |
18,462 |
79,996 |
73,901 | |||||||||
|
Stock compensation |
6,637 |
5,741 |
26,256 |
24,523 | |||||||||
|
(Gain) loss on derivative instruments, net |
29,051 |
32,699 |
(21,210) |
55,749 | |||||||||
|
Other operating expense, net |
337 |
462 |
1,314 |
755 | |||||||||
|
367,715 |
277,086 |
1,167,535 |
1,829,232 | ||||||||||
|
Operating income (loss) |
183,225 |
105,069 |
750,714 |
(571,887) | |||||||||
|
Other (income) and expense: |
|||||||||||||
|
Interest expense |
16,836 |
20,712 |
74,821 |
83,272 | |||||||||
|
Capitalized interest |
(5,492) |
(5,290) |
(22,948) |
(21,248) | |||||||||
|
Loss on early extinguishment of debt |
18 |
— |
28,187 |
— | |||||||||
|
Other, net |
(2,338) |
(3,218) |
(11,342) |
(10,707) | |||||||||
|
Income (loss) before income tax |
174,201 |
92,865 |
681,996 |
(623,204) | |||||||||
|
Income tax expense (benefit) |
(495) |
45,082 |
187,667 |
(214,401) | |||||||||
|
Net income (loss) |
$ |
174,696 |
$ |
47,783 |
$ |
494,329 |
$ |
(408,803) | |||||
|
Earnings (loss) per share to common stockholders: |
|||||||||||||
|
Basic |
$ |
1.83 |
$ |
0.50 |
$ |
5.19 |
$ |
(4.38) | |||||
|
Diluted |
$ |
1.83 |
$ |
0.50 |
$ |
5.19 |
$ |
(4.38) | |||||
|
Dividends declared per share |
$ |
0.08 |
$ |
0.08 |
$ |
0.32 |
$ |
0.32 | |||||
|
Shares attributable to common stockholders: |
|||||||||||||
|
Unrestricted common shares outstanding |
93,569 |
93,379 |
93,466 |
93,379 | |||||||||
|
Diluted common shares |
93,612 |
93,422 |
93,509 |
93,379 | |||||||||
|
Comprehensive income (loss): |
|||||||||||||
|
Net income (loss) |
$ |
174,696 |
$ |
47,783 |
$ |
494,329 |
$ |
(408,803) | |||||
|
Other comprehensive income: |
|||||||||||||
|
Change in fair value of investments, net of tax |
394 |
(64) |
1,254 |
504 | |||||||||
|
Total comprehensive income (loss) |
$ |
175,090 |
$ |
47,719 |
$ |
495,583 |
$ |
(408,299) | |||||
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited) | ||||||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | |||||||||||||
|
December 31, |
December 31, | |||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||
|
(in thousands) | ||||||||||||||
|
Cash flows from operating activities: |
||||||||||||||
|
Net income (loss) |
$ |
174,696 |
$ |
47,783 |
$ |
494,329 |
$ |
(408,803) | ||||||
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||||||||
|
Impairment of oil and gas properties |
— |
— |
— |
757,670 | ||||||||||
|
Depreciation, depletion, amortization, and accretion |
142,482 |
91,096 |
461,655 |
400,176 | ||||||||||
|
Deferred income taxes |
2,311 |
45,082 |
190,479 |
(213,286) | ||||||||||
|
Stock compensation |
6,637 |
5,741 |
26,256 |
24,523 | ||||||||||
|
(Gain) loss on derivative instruments, net |
29,051 |
32,699 |
(21,210) |
55,749 | ||||||||||
|
Settlements on derivative instruments |
1,109 |
(2,281) |
(1,633) |
7,437 | ||||||||||
|
Loss on early extinguishment of debt |
18 |
— |
28,187 |
— | ||||||||||
|
Changes in non-current assets and liabilities |
(253) |
(254) |
1,891 |
3,867 | ||||||||||
|
Other, net |
1,047 |
(1,126) |
5,677 |
1,805 | ||||||||||
|
Changes in operating assets and liabilities: |
||||||||||||||
|
Receivables |
(57,236) |
(47,617) |
(186,157) |
(49,340) | ||||||||||
|
Other current assets |
1,441 |
(2,154) |
(17,931) |
20,880 | ||||||||||
|
Accounts payable and other current liabilities |
39,456 |
16,092 |
115,021 |
25,171 | ||||||||||
|
Net cash provided by operating activities |
340,759 |
185,061 |
1,096,564 |
625,849 | ||||||||||
|
Cash flows from investing activities: |
||||||||||||||
|
Oil and gas capital expenditures |
(331,177) |
(214,444) |
(1,233,126) |
(699,558) | ||||||||||
|
Sales of oil and gas assets |
3,544 |
2,474 |
11,680 |
21,487 | ||||||||||
|
Sales of other assets |
391 |
2,171 |
901 |
7,889 | ||||||||||
|
Other capital expenditures |
(14,020) |
1,785 |
(45,352) |
(22,228) | ||||||||||
|
Net cash used by investing activities |
(341,262) |
(208,014) |
(1,265,897) |
(692,410) | ||||||||||
|
Cash flows from financing activities: |
||||||||||||||
|
Borrowings of long-term debt |
— |
— |
748,110 |
— | ||||||||||
|
Repayments of long-term debt |
— |
— |
(750,000) |
— | ||||||||||
|
Call premium, financing, and underwriting fees |
(118) |
(100) |
(29,312) |
(101) | ||||||||||
|
Dividends paid |
(7,789) |
(7,781) |
(30,532) |
(38,024) | ||||||||||
|
Employee withholding taxes paid upon the net settlement of equity-classified stock awards |
(14,032) |
(15,167) |
(21,669) |
(26,624) | ||||||||||
|
Proceeds from exercise of stock options |
168 |
181 |
394 |
4,804 | ||||||||||
|
Net cash used by financing activities |
(21,771) |
(22,867) |
(83,009) |
(59,945) | ||||||||||
|
Net change in cash and cash equivalents |
(22,274) |
(45,820) |
(252,342) |
(126,506) | ||||||||||
|
Cash and cash equivalents at beginning of period |
422,808 |
698,696 |
652,876 |
779,382 | ||||||||||
|
Cash and cash equivalents at end of period |
$ |
400,534 |
$ |
652,876 |
$ |
400,534 |
$ |
652,876 | ||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||
|
December 31, |
December 31, | ||||||
|
2017 |
2016 | ||||||
|
Assets |
(in thousands, except share and per | ||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
400,534 |
$ |
652,876 | |||
|
Receivables, net of allowance |
460,174 |
274,570 | |||||
|
Oil and gas well equipment and supplies |
49,722 |
33,342 | |||||
|
Derivative instruments |
15,151 |
— | |||||
|
Other current assets |
10,054 |
8,516 | |||||
|
Total current assets |
935,635 |
969,304 | |||||
|
Oil and gas properties at cost, using the full cost method of accounting: |
|||||||
|
Proved properties |
17,513,460 |
16,225,495 | |||||
|
Unproved properties and properties under development, not being amortized |
476,903 |
478,277 | |||||
|
17,990,363 |
16,703,772 | ||||||
|
Less – accumulated depreciation, depletion, amortization, and impairment |
(14,748,833) |
(14,349,505) | |||||
|
Net oil and gas properties |
3,241,530 |
2,354,267 | |||||
|
Fixed assets, net of accumulated depreciation of $290,114 and $246,901, respectively |
210,922 |
205,465 | |||||
|
Goodwill |
620,232 |
620,232 | |||||
|
Derivative instruments |
2,086 |
— | |||||
|
Deferred income taxes |
— |
55,835 | |||||
|
Other assets |
32,234 |
32,621 | |||||
|
$ |
5,042,639 |
$ |
4,237,724 | ||||
|
Liabilities and Stockholders' Equity |
|||||||
|
Current liabilities: |
|||||||
|
Accounts payable |
$ |
98,386 |
$ |
74,486 | |||
|
Accrued liabilities |
351,849 |
278,781 | |||||
|
Derivative instruments |
42,066 |
49,370 | |||||
|
Revenue payable |
187,273 |
119,715 | |||||
|
Total current liabilities |
679,574 |
522,352 | |||||
|
Long-term debt: |
|||||||
|
Principal |
1,500,000 |
1,500,000 | |||||
|
Less – unamortized debt issuance costs and discount |
(13,080) |
(12,061) | |||||
|
Long-term debt, net |
1,486,920 |
1,487,939 | |||||
|
Deferred income taxes |
101,618 |
— | |||||
|
Derivative Instruments |
4,268 |
2,570 | |||||
|
Other liabilities |
201,981 |
181,874 | |||||
|
Total liabilities |
2,474,361 |
2,194,735 | |||||
|
Stockholders' equity: |
|||||||
|
Preferred stock, $0.01 par value, 15,000,000 shares authorized, no shares issued |
— |
— | |||||
|
Common stock, $0.01 par value, 200,000,000 shares authorized, 95,437,434 and 95,123,525 shares issued, respectively |
954 |
951 | |||||
|
Additional paid-in capital |
2,764,384 |
2,763,452 | |||||
|
Retained earnings (accumulated deficit) |
(199,259) |
(722,359) | |||||
|
Accumulated other comprehensive income |
2,199 |
945 | |||||
|
Total stockholders' equity |
2,568,278 |
2,042,989 | |||||
|
$ |
5,042,639 |
$ |
4,237,724 | ||||
View original content with multimedia:http://www.prnewswire.com/news-releases/cimarex-reports-fourth-quarter-and-full-year-2017-results-300599015.html
SOURCE Cimarex Energy Co.
Article Date
2/14/2018Cimarex Schedules Fourth Quarter 2017 Earnings Release and Conference Call
Source: PR Newswire
DENVER, Jan. 4, 2018 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced it plans to report fourth quarter 2017 financial results on Wednesday, February 14, 2018, after market close. The company will host its quarterly conference call at 11:00 AM EST on Thursday, February 15, 2018.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
View original content with multimedia:http://www.prnewswire.com/news-releases/cimarex-schedules-fourth-quarter-2017-earnings-release-and-conference-call-300577805.html
SOURCE Cimarex Energy Co.
Article Date
1/4/201812/8/2017 - Cimarex Energy Declares Quarterly Cash Dividend
Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DENVER, Dec. 8, 2017 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.08 per share. The dividend is payable on March 1, 2018, to stockholders of record on February 15, 2018.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
View original content with multimedia:http://www.prnewswire.com/news-releases/cimarex-energy-declares-quarterly-cash-dividend-300569082.html
SOURCE Cimarex Energy Co.
Article Date
12/8/201711/7/2017 - Cimarex Reports Third Quarter 2017 Results
Cimarex Reports Third Quarter 2017 Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DENVER, Nov. 7, 2017 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today reported third quarter 2017 net income of $91.4 million, or $0.96 per share, compared to a net loss of $10.7 million, or $0.12 per share, in the same period a year ago. Third quarter adjusted net income (non-GAAP) was $103.6 million, or $1.09 per share, compared to third quarter 2016 adjusted net income (non-GAAP) of $50.3 million, or $0.53 per share.1 Net cash provided by operating activities was $251.0 million in the third quarter of 2017 compared to $223.0 million in the same period a year ago. Adjusted cash flow from operations (non-GAAP) was $283.9 million in the third quarter of 2017 compared to $181.9 million in the third quarter a year ago1.
Total company production for the quarter came in slightly above the high end of our forecast, averaging 1,143 million cubic feet equivalent (MMcfe) per day (190.5 thousand barrels of oil equivalent (MBoe) per day). Oil production averaged 56,687 barrels per day, in line with the company's estimate. Natural gas production exceeded previous estimates due to timing of completions in our Woodford downspacing pilot.
Realized oil prices averaged $44.38 per barrel versus $40.54 per barrel in the third quarter of 2016. Realized natural gas prices averaged $2.65 per thousand cubic feet (Mcf) versus the third quarter 2016 average of $2.66 per Mcf. NGL prices were up 53 percent and averaged $21.63 per barrel from the $14.14 per barrel received in the same period of 2016 (see table of Average Realized Price by Region below).
Cimarex invested $335 million in exploration and development (E&D) during the third quarter, of which $280 million is attributable to drilling and completion activities. This brings year-to-date E&D expenditures to $937 million. Third quarter investments were funded with cash flow from operations and cash on hand. Total debt at September 30, 2017 consisted of $1.5 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $423 million. Debt was 38 percent of total capitalization2.
2017 Outlook
Fourth quarter 2017 production volumes are expected to average 1,175 - 1,225 MMcfe (195.8 - 204.2 Mboe) per day, up 3 – 7 percent from third quarter volumes, as a result of the increase in well completions late in the third quarter. Oil production is expected to grow 32 - 37 percent in fourth quarter 2017 versus fourth quarter 2016. Total daily production volumes for full year 2017 are now estimated to average 1,134 – 1,147 MMcfe (189.0 – 191.2 Mboe), up 18 percent from 2016 levels at the midpoint. Since giving 2017 production guidance in February, Cimarex has increased its midpoint 2017 daily production forecast by five percent.
Cimarex estimates full-year E&D capital investment will be approximately $1.2 billion, compared to its previous forecast of $1.1 – 1.2 billion. This capital investment is allocated 61 percent to the Permian and 37 percent to the Mid-Continent.
Expenses per Mcfe of production for the remainder of 2017 are estimated to be:
|
Production expense |
$0.60 - 0.70 | |
|
Transportation, processing and other expense |
0.50 - 0.60 | |
|
DD&A and ARO accretion |
1.05 - 1.15 | |
|
General and administrative expense |
0.20 - 0.25 | |
|
Taxes other than income (% of oil and gas revenue) |
5.0 - 5.5% | |
Operations Update
Cimarex invested $335 million in E&D during the third quarter, 60 percent in the Permian Basin and 39 percent in the Mid-Continent. Cimarex completed 77 gross (30 net) wells during the quarter. At September 30, 131 gross (32 net) wells were waiting on completion. Cimarex currently is operating 14 drilling rigs.
|
WELLS COMPLETED BY REGION | ||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | |||||||||
|
September 30, |
September 30, | |||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||
|
Gross wells |
||||||||||
|
Permian Basin |
29 |
17 |
65 |
37 | ||||||
|
Mid-Continent |
48 |
25 |
133 |
61 | ||||||
|
77 |
42 |
198 |
98 | |||||||
|
Net wells |
||||||||||
|
Permian Basin |
16 |
10 |
42 |
22 | ||||||
|
Mid-Continent |
14 |
7 |
32 |
14 | ||||||
|
30 |
17 |
74 |
36 | |||||||
Permian Region
Production from the Permian region averaged 628.2 MMcfe per day in the third quarter, a 21 percent increase from third quarter 2016. Oil volumes averaged 43,735 barrels per day and represented 42 percent of the region's total equivalent production.
Cimarex completed 29 gross (16 net) wells in the Permian region during the third quarter. There were 42 gross (16 net) wells waiting on completion at September 30. Cimarex currently operates nine rigs in the Permian region.
Mid-Continent
Production from the Mid-Continent averaged 512.7 MMcfe per day for the third quarter, up 20 percent versus third quarter 2016. Sequentially, crude oil volumes were up eight percent.
During the third quarter, Cimarex completed 48 gross (14 net) wells in the Mid-Continent region. At the end of the quarter, 89 gross (16 net) wells were waiting on completion. Cimarex currently is operating five rigs in the region.
Of note, Cimarex is announcing drilling results from several Woodford shale wells in its Lone Rock area. These wells were brought on production over the past several quarters and show some of the best returns the company has seen to date in the Woodford shale. Cimarex has approximately 16,000 net acres in the Lone Rock area and has completed seven wells in 2017 including the Hines Federal #1H, the company's best well to date in the area. The Hines had 30-day average peak production of 15.2 MMcfe per day (40% oil, 23% NGL, 37% gas). Additional drilling, including a downspacing test, is underway.
Also during the third quarter, Cimarex began producing from eight Woodford shale wells drilled as part of an increased density pilot. The project tested both 16- and 20-well spacing per section. Preliminary results show no significant difference in well performance between the two spacing tests, indicating that Woodford wells can be drilled closer together in future infill projects than they have been historically. More information is available in our most recent corporate presentation, which is available on our website at www.cimarex.com.
Production by Region
Cimarex's average daily production and commodity price by region is summarized below:
|
DAILY PRODUCTION BY REGION | ||||||||
|
For the Three Months Ended |
For the Nine Months Ended | |||||||
|
September 30, |
September 30, | |||||||
|
2017 |
2016 |
2017 |
2016 | |||||
|
Permian Basin |
||||||||
|
Gas (MMcf) |
217.9 |
178.4 |
212.9 |
177.7 | ||||
|
Oil (Bbls) |
43,735 |
35,930 |
43,544 |
35,939 | ||||
|
NGL (Bbls) |
24,659 |
20,549 |
23,771 |
17,952 | ||||
|
Total Equivalent (Mmcfe) |
628.2 |
517.2 |
616.8 |
501.1 | ||||
|
Total Equivalent (Boe) |
104,703 |
86,212 |
102,798 |
83,508 | ||||
|
Mid-Continent |
||||||||
|
Gas (MMcf) |
296.8 |
266.7 |
292.4 |
281.3 | ||||
|
Oil (Bbls) |
12,846 |
8,486 |
11,937 |
8,889 | ||||
|
NGL (Bbls) |
23,142 |
18,194 |
22,999 |
21,009 | ||||
|
Total Equivalent (Mmcfe) |
512.7 |
426.8 |
502.1 |
460.7 | ||||
|
Total Equivalent (Boe) |
85,451 |
71,130 |
83,676 |
76,784 | ||||
|
Total Company |
||||||||
|
Gas (MMcf) |
515.9 |
446.7 |
506.7 |
460.5 | ||||
|
Oil (Bbls) |
56,687 |
44,532 |
55,596 |
45,020 | ||||
|
NGL (Bbls) |
47,840 |
38,786 |
46,806 |
39,002 | ||||
|
Total Equivalent (Mmcfe) |
1,143.1 |
946.6 |
1,121.1 |
964.6 | ||||
|
Total Equivalent (Boe) |
190,518 |
157,768 |
186,858 |
160,765 | ||||
|
AVERAGE REALIZED PRICE BY REGION | ||||||||
|
For the Three Months Ended |
For the Nine Months Ended | |||||||
|
September 30, |
September 30, | |||||||
|
2017 |
2016 |
2017 |
2016 | |||||
|
Permian Basin |
||||||||
|
Gas ($ per Mcf) |
2.70 |
2.69 |
2.78 |
2.18 | ||||
|
Oil ($ per Bbl) |
44.14 |
40.65 |
45.33 |
36.32 | ||||
|
NGL ($ per Bbl) |
20.58 |
12.49 |
18.50 |
11.11 | ||||
|
Mid-Continent |
||||||||
|
Gas ($ per Mcf) |
2.61 |
2.63 |
2.85 |
2.10 | ||||
|
Oil ($ per Bbl) |
45.21 |
40.07 |
45.33 |
35.31 | ||||
|
NGL ($ per Bbl) |
22.75 |
16.00 |
21.70 |
14.07 | ||||
|
Total Company |
||||||||
|
Gas ($ per Mcf) |
2.65 |
2.66 |
2.82 |
2.13 | ||||
|
Oil ($ per Bbl) |
44.38 |
40.54 |
45.33 |
36.13 | ||||
|
NGL ($ per Bbl) |
21.63 |
14.14 |
20.07 |
12.70 | ||||
Other
The following table summarizes the company's current open hedge positions:
|
4Q17 |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 | ||
|
Gas Collars: |
PEPL(3) |
|||||||
|
Volume (MMBtu/d) |
120,000 |
120,000 |
90,000 |
60,000 |
30,000 |
20,000 |
20,000 | |
|
Wtd Avg Floor |
2.65 |
2.58 |
2.48 |
2.43 |
2.43 |
2.40 |
2.40 | |
|
Wtd Avg Ceiling |
3.07 |
2.94 |
2.82 |
2.66 |
2.64 |
2.64 |
2.64 | |
|
El Paso Perm(3) |
||||||||
|
Volume (MMBtu/d) |
80,000 |
80,000 |
60,000 |
40,000 |
20,000 |
10,000 |
10,000 | |
|
Wtd Avg Floor |
2.64 |
2.55 |
2.40 |
2.35 |
2.35 |
2.30 |
2.30 | |
|
Wtd Avg Ceiling |
3.04 |
2.88 |
2.69 |
2.52 |
2.50 |
2.42 |
2.42 | |
|
Oil Collars: |
WTI(4) |
|||||||
|
Volume (Bbl/d) |
21,000 |
28,000 |
22,000 |
18,000 |
12,000 |
6,000 |
6,000 | |
|
Wtd Avg Floor |
46.29 |
47.25 |
47.23 |
46.61 |
48.00 |
48.00 |
48.00 | |
|
Wtd Avg Ceiling |
56.64 |
56.15 |
55.35 |
54.55 |
54.58 |
55.21 |
55.21 | |
|
Oil Basis Swaps: |
WTI Midland(5) |
|||||||
|
Volume (Bbl/d) |
5,000 |
13,000 |
13,000 |
13,000 |
8,000 |
5,000 |
5,000 | |
|
Weighted Avg Differential(6) |
0.94 |
0.72 |
0.72 |
0.72 |
0.58 |
0.47 |
0.47 | |
Conference call and webcast
Cimarex will host a conference call tomorrow at 11:00 a.m. EDT (9:00 a.m. MDT). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
Investor Presentation
For more details on Cimarex's third quarter 2017 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the "2017 Outlook" contains projections for certain 2017 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K/A for the year ended December 31, 2016, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; higher than expected costs and expenses, including the availability and cost of services and materials; compliance with environmental and other regulations; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; costs and availability of third party facilities for gathering, processing, refining and transportation; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
|
1 |
Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for reconciliations of the related GAAP amounts. | ||||||
|
2 |
Debt to total capitalization is calculated by dividing long-term debt ($1.5 billion) by long-term debt ($1.5 billion) plus stockholders' equity ($2.4 billion). | ||||||
|
3 |
PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index and El Paso Perm is El Paso Permian Basin index both as quoted in Platt's Inside FERC. | ||||||
|
4 |
WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. | ||||||
|
5 |
Index price on basis swaps is WTI Midland as quoted by Argus Americas Crude. | ||||||
|
6 |
Index price on basis swaps is WTI NYMEX less the weighted average differential shown in table. | ||||||
|
RECONCILIATION OF ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE | ||||||||||||
|
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net income (loss) and earnings (loss) per share to adjusted net income and adjusted earnings per share (non-GAAP) for the periods indicated. | ||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | |||||||||||
|
September 30, |
September 30, | |||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||
|
(in thousands, except per share data) | ||||||||||||
|
Net income (loss) |
$ |
91,399 |
$ |
(10,673) |
$ |
319,633 |
$ |
(456,586) | ||||
|
Impairment of oil and gas properties |
— |
105,593 |
— |
757,670 | ||||||||
|
Mark-to-market (gain) loss on open derivative positions |
19,085 |
(8,967) |
(53,003) |
32,769 | ||||||||
|
Loss on early extinguishment of debt |
— |
— |
28,169 |
— | ||||||||
|
Tax impact |
(6,851) |
(35,612) |
9,213 |
(288,108) | ||||||||
|
Adjusted net income |
$ |
103,633 |
$ |
50,341 |
$ |
304,012 |
$ |
45,745 | ||||
|
Diluted earnings (loss) per share* |
$ |
0.96 |
$ |
(0.12) |
$ |
3.36 |
$ |
(4.90) | ||||
|
Adjusted diluted earnings per share* |
$ |
1.09 |
$ |
0.53 |
$ |
3.19 |
$ |
0.48 | ||||
|
Diluted shares attributable to common stockholders and participating securities |
||||||||||||
|
95,320 |
95,018 |
95,222 |
95,018 | |||||||||
|
Adjusted net income and adjusted diluted earnings per share excludes the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP earnings because: | |||||||||||||
|
a) Management uses adjusted net income to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies. | |||||||||||||
|
b) Adjusted net income is more comparable to earnings estimates provided by research analysts. | |||||||||||||
|
* |
Earnings (loss) per share are based on actual figures rather than the rounded figures presented. | ||||||||||||
|
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS | ||||||||||||
|
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) for the periods indicated. | ||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | |||||||||||
|
September 30, |
September 30, | |||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||
|
(in thousands) | ||||||||||||
|
Net cash provided by operating activities |
$ |
251,005 |
$ |
223,002 |
$ |
755,805 |
$ |
440,788 | ||||
|
Change in operating assets and liabilities |
32,901 |
(41,059) |
72,728 |
(30,390) | ||||||||
|
Adjusted cash flow from operations |
$ |
283,906 |
$ |
181,943 |
$ |
828,533 |
$ |
410,398 | ||||
|
Management uses the non-GAAP financial measure of adjusted cash flow from operations as a means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities. Management believes this non-GAAP financial measure provides useful information to investors for the same reason, and that it is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry. | ||||||||||||
|
OIL AND GAS CAPITALIZED EXPENDITURES | |||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | ||||||||||
|
September 30, |
September 30, | ||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||
|
(in thousands) | |||||||||||
|
Acquisitions: |
|||||||||||
|
Proved |
$ |
— |
$ |
— |
$ |
260 |
$ |
2,618 | |||
|
Unproved |
438 |
3,200 |
4,263 |
11,546 | |||||||
|
438 |
3,200 |
4,523 |
14,164 | ||||||||
|
Exploration and development: |
|||||||||||
|
Land and seismic |
12,872 |
16,974 |
123,359 |
45,610 | |||||||
|
Exploration and development |
322,651 |
157,571 |
813,693 |
443,279 | |||||||
|
335,523 |
174,545 |
937,052 |
488,889 | ||||||||
|
Sale proceeds: |
|||||||||||
|
Proved |
1,807 |
(376) |
(85) |
(12,605) | |||||||
|
Unproved |
(780) |
(9,207) |
(8,051) |
(9,608) | |||||||
|
1,027 |
(9,583) |
(8,136) |
(22,213) | ||||||||
|
$ |
336,988 |
$ |
168,162 |
$ |
933,439 |
$ |
480,840 | ||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) | |||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | ||||||||||||
|
September 30, |
September 30, | ||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||
|
(in thousands, except per share data) | |||||||||||||
|
Revenues: |
|||||||||||||
|
Oil sales |
$ |
231,441 |
$ |
166,079 |
$ |
687,960 |
$ |
445,657 | |||||
|
Gas sales |
125,707 |
109,278 |
390,126 |
268,501 | |||||||||
|
NGL sales |
95,191 |
50,464 |
256,503 |
135,755 | |||||||||
|
Gas gathering and other, net |
11,342 |
9,896 |
32,720 |
25,277 | |||||||||
|
463,681 |
335,717 |
1,367,309 |
875,190 | ||||||||||
|
Costs and expenses: |
|||||||||||||
|
Impairment of oil and gas properties |
— |
105,593 |
— |
757,670 | |||||||||
|
Depreciation, depletion, amortization, and accretion |
112,893 |
92,310 |
319,173 |
309,080 | |||||||||
|
Production |
65,410 |
52,976 |
190,409 |
180,891 | |||||||||
|
Transportation, processing, and other operating |
58,387 |
48,706 |
172,034 |
139,585 | |||||||||
|
Gas gathering and other |
8,856 |
7,905 |
25,930 |
23,477 | |||||||||
|
Taxes other than income |
24,314 |
15,974 |
63,104 |
43,879 | |||||||||
|
General and administrative |
21,039 |
20,118 |
58,835 |
55,439 | |||||||||
|
Stock compensation |
7,038 |
5,764 |
19,619 |
18,782 | |||||||||
|
(Gain) loss on derivative instruments, net |
16,109 |
(9,758) |
(50,261) |
23,050 | |||||||||
|
Other operating expense, net |
95 |
179 |
977 |
293 | |||||||||
|
314,141 |
339,767 |
799,820 |
1,552,146 | ||||||||||
|
Operating income (loss) |
149,540 |
(4,050) |
567,489 |
(676,956) | |||||||||
|
Other (income) and expense: |
|||||||||||||
|
Interest expense |
16,838 |
20,931 |
57,985 |
62,560 | |||||||||
|
Capitalized interest |
(5,373) |
(5,421) |
(17,456) |
(15,958) | |||||||||
|
Loss on early extinguishment of debt |
— |
— |
28,169 |
— | |||||||||
|
Other, net |
(4,563) |
(3,828) |
(9,004) |
(7,489) | |||||||||
|
Income (loss) before income tax |
142,638 |
(15,732) |
507,795 |
(716,069) | |||||||||
|
Income tax expense (benefit) |
51,239 |
(5,059) |
188,162 |
(259,483) | |||||||||
|
Net income (loss) |
$ |
91,399 |
$ |
(10,673) |
$ |
319,633 |
$ |
(456,586) | |||||
|
Earnings (loss) per share to common stockholders: |
|||||||||||||
|
Basic |
$ |
0.96 |
$ |
(0.12) |
$ |
3.36 |
$ |
(4.90) | |||||
|
Diluted |
$ |
0.96 |
$ |
(0.12) |
$ |
3.36 |
$ |
(4.90) | |||||
|
Dividends declared per share |
$ |
0.08 |
$ |
0.08 |
$ |
0.24 |
$ |
0.24 | |||||
|
Shares attributable to common stockholders: |
|||||||||||||
|
Unrestricted common shares outstanding |
93,501 |
93,221 |
93,431 |
93,221 | |||||||||
|
Diluted common shares |
93,531 |
93,221 |
93,465 |
93,221 | |||||||||
|
Shares attributable to common stockholders and participating securities: |
|||||||||||||
|
Basic shares outstanding |
95,290 |
N/A* |
95,188 |
N/A* | |||||||||
|
Fully diluted shares |
95,320 |
N/A* |
95,222 |
N/A* | |||||||||
|
Comprehensive income (loss): |
|||||||||||||
|
Net income (loss) |
$ |
91,399 |
$ |
(10,673) |
$ |
319,633 |
$ |
(456,586) | |||||
|
Other comprehensive income: |
|||||||||||||
|
Change in fair value of investments, net of tax |
234 |
287 |
860 |
567 | |||||||||
|
Total comprehensive income (loss) |
$ |
91,633 |
$ |
(10,386) |
$ |
320,493 |
$ |
(456,019) | |||||
|
* |
Due to the net loss in the period ended September 30, 2016, shares of 94,973, which include participating securities, are not considered in the loss per share calculations. | ||||||||||||
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited) | ||||||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | |||||||||||||||
|
September 30, |
September 30, | |||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||
|
(in thousands) | ||||||||||||||||
|
Cash flows from operating activities: |
||||||||||||||||
|
Net income (loss) |
$ |
91,399 |
$ |
(10,673) |
$ |
319,633 |
$ |
(456,586) | ||||||||
|
Adjustments to reconcile net income (loss) to net cash |
||||||||||||||||
|
provided by operating activities: |
||||||||||||||||
|
Impairment of oil and gas properties |
— |
105,593 |
— |
757,670 | ||||||||||||
|
Depreciation, depletion, amortization, and accretion |
112,893 |
92,310 |
319,173 |
309,080 | ||||||||||||
|
Deferred income taxes |
51,239 |
(3,944) |
188,168 |
(258,368) | ||||||||||||
|
Stock compensation |
7,038 |
5,764 |
19,619 |
18,782 | ||||||||||||
|
(Gain) loss on derivative instruments, net |
16,109 |
(9,758) |
(50,261) |
23,050 | ||||||||||||
|
Settlements on derivative instruments |
2,975 |
791 |
(2,742) |
9,718 | ||||||||||||
|
Loss on early extinguishment of debt |
— |
— |
28,169 |
— | ||||||||||||
|
Changes in non-current assets and liabilities |
1,068 |
1,573 |
2,144 |
4,121 | ||||||||||||
|
Other, net |
1,185 |
287 |
4,630 |
2,931 | ||||||||||||
|
Changes in operating assets and liabilities: |
||||||||||||||||
|
Receivables |
(67,776) |
2,604 |
(128,921) |
(1,723) | ||||||||||||
|
Other current assets |
(8,268) |
5,706 |
(19,372) |
23,034 | ||||||||||||
|
Accounts payable and other current liabilities |
43,143 |
32,749 |
75,565 |
9,079 | ||||||||||||
|
Net cash provided by operating activities |
251,005 |
223,002 |
755,805 |
440,788 | ||||||||||||
|
Cash flows from investing activities: |
||||||||||||||||
|
Oil and gas capital expenditures |
(319,777) |
(160,056) |
(901,949) |
(485,114) | ||||||||||||
|
Sales of oil and gas assets |
(1,027) |
6,383 |
8,136 |
19,013 | ||||||||||||
|
Sales of other assets |
116 |
5,494 |
510 |
5,718 | ||||||||||||
|
Other capital expenditures |
(13,123) |
(6,239) |
(31,332) |
(24,013) | ||||||||||||
|
Net cash used by investing activities |
(333,811) |
(154,418) |
(924,635) |
(484,396) | ||||||||||||
|
Cash flows from financing activities: |
||||||||||||||||
|
Borrowings of long-term debt |
— |
— |
748,110 |
— | ||||||||||||
|
Repayments of long-term debt |
— |
— |
(750,000) |
— | ||||||||||||
|
Call premium, financing, and underwriting fees |
(159) |
— |
(29,194) |
(1) | ||||||||||||
|
Dividends paid |
(7,590) |
(7,588) |
(22,743) |
(30,243) | ||||||||||||
|
Employee withholding taxes paid upon the net settlement of equity-classified stock awards |
||||||||||||||||
|
(6,422) |
(7,375) |
(7,637) |
(11,457) | |||||||||||||
|
Proceeds from exercise of stock options |
190 |
3,336 |
226 |
4,623 | ||||||||||||
|
Net cash used by financing activities |
(13,981) |
(11,627) |
(61,238) |
(37,078) | ||||||||||||
|
Net change in cash and cash equivalents |
(96,787) |
56,957 |
(230,068) |
(80,686) | ||||||||||||
|
Cash and cash equivalents at beginning of period |
519,595 |
641,739 |
652,876 |
779,382 | ||||||||||||
|
Cash and cash equivalents at end of period |
$ |
422,808 |
$ |
698,696 |
$ |
422,808 |
$ |
698,696 | ||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||||||
|
September 30, |
December 31, | ||||||||||
|
2017 |
2016 | ||||||||||
|
Assets |
(in thousands, except share data) | ||||||||||
|
Current assets: |
|||||||||||
|
Cash and cash equivalents |
$ |
422,808 |
$ |
652,876 | |||||||
|
Receivables, net of allowance |
403,197 |
274,597 | |||||||||
|
Oil and gas well equipment and supplies |
54,545 |
33,342 | |||||||||
|
Derivative instruments |
6,924 |
— | |||||||||
|
Other current assets |
6,658 |
8,489 | |||||||||
|
Total current assets |
894,132 |
969,304 | |||||||||
|
Oil and gas properties at cost, using the full cost method of accounting: |
|||||||||||
|
Proved properties |
17,071,532 |
16,225,495 | |||||||||
|
Unproved properties and properties under development, |
|||||||||||
|
not being amortized |
572,651 |
478,277 | |||||||||
|
17,644,183 |
16,703,772 | ||||||||||
|
Less – accumulated depreciation, depletion, amortization, and impairment |
(14,629,884) |
(14,349,505) | |||||||||
|
Net oil and gas properties |
3,014,299 |
2,354,267 | |||||||||
|
Fixed assets, net of accumulated depreciation |
208,320 |
205,465 | |||||||||
|
Goodwill |
620,232 |
620,232 | |||||||||
|
Derivative instruments |
129 |
— | |||||||||
|
Deferred income taxes |
— |
55,835 | |||||||||
|
Other assets |
31,942 |
32,621 | |||||||||
|
$ |
4,769,054 |
$ |
4,237,724 | ||||||||
|
Liabilities and Stockholders' Equity |
|||||||||||
|
Current liabilities: |
|||||||||||
|
Accounts payable |
$ |
88,888 |
$ |
74,486 | |||||||
|
Accrued liabilities |
343,381 |
278,781 | |||||||||
|
Derivative instruments |
5,778 |
49,370 | |||||||||
|
Revenue payable |
154,578 |
119,715 | |||||||||
|
Total current liabilities |
592,625 |
522,352 | |||||||||
|
Long-term debt: |
|||||||||||
|
Principal |
1,500,000 |
1,500,000 | |||||||||
|
Less – unamortized debt issuance costs and discount |
(13,491) |
(12,061) | |||||||||
|
Long-term debt, net |
1,486,509 |
1,487,939 | |||||||||
|
Deferred income taxes |
99,695 |
— | |||||||||
|
Other liabilities |
188,162 |
184,444 | |||||||||
|
Total liabilities |
2,366,991 |
2,194,735 | |||||||||
|
Commitments and contingencies |
|||||||||||
|
Stockholders' equity: |
|||||||||||
|
Preferred stock, $0.01 par value, 15,000,000 shares authorized, no shares issued |
|||||||||||
|
— |
— | ||||||||||
|
Common stock, $0.01 par value, 200,000,000 shares authorized, 95,260,701 and 95,123,525 shares issued, respectively |
|||||||||||
|
953 |
951 | ||||||||||
|
Additional paid-in capital |
2,773,260 |
2,763,452 | |||||||||
|
Retained earnings (accumulated deficit) |
(373,955) |
(722,359) | |||||||||
|
Accumulated other comprehensive income |
1,805 |
945 | |||||||||
|
Total stockholders' equity |
2,402,063 |
2,042,989 | |||||||||
|
$ |
4,769,054 |
$ |
4,237,724 | ||||||||
View original content with multimedia:http://www.prnewswire.com/news-releases/cimarex-reports-third-quarter-2017-results-300551206.html
SOURCE Cimarex Energy Co.
Article Date
11/7/2017Cimarex Schedules Third Quarter 2017 Earnings Release and Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, Sept. 28, 2017 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that it plans to report third quarter 2017 financial results on Tuesday, November 7, 2017, after market close. The company will host its quarterly conference call at 11:00 AM EST on Wednesday, November 8, 2017.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
View original content with multimedia:http://www.prnewswire.com/news-releases/cimarex-schedules-third-quarter-2017-earnings-release-and-conference-call-300527727.html
SOURCE Cimarex Energy Co.
Article Date
9/28/2017Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, Sept. 1, 2017 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.08 per share. The dividend is payable on December 1, 2017, to stockholders of record on November 15, 2017.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
View original content with multimedia:http://www.prnewswire.com/news-releases/cimarex-energy-declares-quarterly-cash-dividend-300513006.html
SOURCE Cimarex Energy Co.
Article Date
9/1/20178/8/2017 - Cimarex Reports Second Quarter 2017 Results
Cimarex Reports Second Quarter 2017 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, Aug. 8, 2017 /PRNewswire/ --
Cimarex Energy Co. (NYSE: XEC) today reported second quarter 2017 net income of $97.3 million, or $1.02 per share compared to a net loss of $214.4 million, or $2.31 per share, in the same period a year ago. Second quarter adjusted net income (non-GAAP) was $101.0 million, or $1.06 per share, compared to second quarter 2016 adjusted income (non-GAAP) of $20.9 million, or $0.22 per share1. Net cash provided by operating activities was $255.3 million in the second quarter of 2017 compared to $132.4 million a year ago. Adjusted cash flow from operations (non-GAAP) was $278.8 million in the second quarter of 2017 compared to $146.9 million in the second quarter a year ago1.
Total company production came in above the high end of our guidance averaging 1,156 million cubic feet equivalent (MMcfe) per day (192.7 thousand barrels oil equivalent (MBoe) per day) during the second quarter. This was a 19 percent increase over second quarter 2016 and a nine percent increase sequentially. Oil production averaged 57,871 barrels per day, an 11 percent increase sequentially.
Commodity prices improved significantly from a year ago and had a positive impact on Cimarex's financial results for the quarter. Realized oil prices averaged $44.14 per barrel versus $40.07 per barrel in the second quarter of 2016, an increase of 10 percent. Realized natural gas prices averaged $2.82 per thousand cubic feet (Mcf), up 55 percent from the second quarter 2016 average of $1.82 per Mcf. NGL prices averaged $18.24 per barrel, up 31 percent from the $13.93 per barrel received in the same period one year ago (see table of Average Realized Price by Region below).
Cimarex invested $296 million in exploration and development (E&D) during the second quarter, of which $219 million is attributable to drilling and completion activities. This brings year-to-date E&D expenditures to $602 million. Second quarter investments were funded with cash flow from operations and cash on hand. Total debt at June 30, 2017, consisted of $1.5 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $520 million. Debt was 39 percent of total capitalization2.
2017 Outlook
Cimarex is maintaining its estimated full-year exploration and development capital investment of $1.1 – 1.2 billion for 2017. Estimated capital investment is allocated 62 percent to the Permian and 37 percent to the Mid-Continent. Daily production for 2017 is estimated to average 1,120 – 1,140 MMcfe (186.7 – 190.0 Mboe), up slightly from previous guidance. Oil volumes are expected to grow 24-29 percent year-over-year. Third quarter output is expected to average 1,100 – 1,140 MMcfe (183.3-190.0 Mboe) per day, down slightly from second quarter volumes. A pick up in well completions late in the third quarter is expected to drive production higher in the fourth quarter. Oil production is anticipated to grow 30-35 percent in fourth quarter 2017 versus fourth quarter 2016.
Expenses per Mcfe of production for the remainder of 2017 are estimated to be:
|
Production expense |
$0.60 - 0.70 | |
|
Transportation, processing and other expense |
0.50 - 0.60 | |
|
DD&A and ARO accretion |
1.05 - 1.15 | |
|
General and administrative expense |
0.20 - 0.25 | |
|
Taxes other than income (% of oil and gas revenue) |
4.5 - 5.5% | |
Operations Update
Cimarex invested $296 million in exploration and development during the second quarter, 53 percent in the Permian Basin and 45 percent in the Mid-Continent. Cimarex completed 51 gross (18 net) wells during the quarter. At June 30, 2017, 98 gross (29 net) wells were waiting on completion. Cimarex is currently operating 14 drilling rigs.
|
WELLS BROUGHT ON PRODUCTION BY REGION | ||||||||||||
|
For the Three Months Ended |
For the Six Months Ended | |||||||||||
|
June 30, |
June 30, | |||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||
|
Gross wells |
||||||||||||
|
Permian Basin |
11 |
13 |
36 |
20 | ||||||||
|
Mid-Continent |
40 |
21 |
85 |
36 | ||||||||
|
51 |
34 |
121 |
56 | |||||||||
|
Net wells |
||||||||||||
|
Permian Basin |
10 |
9 |
26 |
12 | ||||||||
|
Mid-Continent |
8 |
5 |
18 |
7 | ||||||||
|
18 |
14 |
44 |
19 | |||||||||
Permian Region
Production from the Permian Basin averaged 644.7 MMcfe per day in the second quarter, a 27 percent increase from second quarter 2016 and up 12 percent sequentially. Oil volumes represent 43 percent of the region's total production. Natural gas production increased nine percent and NGL production was up 16 percent, sequentially.
Of note, Cimarex completed a successful four-well downspacing project testing 16 wells per section in the Upper Wolfcamp. Located in Reeves County, the Pagoda State project was brought on production in late April. The four 10,000-foot lateral wells had an average peak 30-day initial production of 1,922 BOE per day of which 956 barrels per day (50 percent) is oil. Please see our latest presentation (posted at www.cimarex.com) for more detail.
Cimarex brought 11 gross (10 net) wells on production in the Permian region during the second quarter. There were 27 gross (13 net) wells waiting on completion on June 30. Cimarex currently operates eight rigs in the Permian region.
Mid-Continent
Production from the Mid-Continent averaged 509 MMcfe per day for the second quarter, up ten percent versus second quarter 2016. Sequentially, crude oil volumes were up eight percent, natural gas production grew four percent and NGL volumes increased seven percent.
During the second quarter, Cimarex completed and brought on production 40 gross (8 net) wells in the Mid-Continent. At the end of the quarter, 71 gross (16 net) wells were waiting on completion. Cimarex is currently operating six rigs in the region.
In addition to its continued delineation in the Meramec play, the company recently began completion of an increased density pilot in the Woodford formation. The project consists of eight wells that are testing both 16 and 20 Woodford wells per section. Results from this test are expected in the second half of 2017 and will help determine well spacing in upcoming Woodford developments.
Production by Region
Cimarex's average daily production and commodity price by region are summarized below:
|
DAILY PRODUCTION BY REGION | ||||||||||
|
For the Three Months Ended |
For the Six Months Ended | |||||||||
|
June 30, |
June 30, | |||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||
|
Permian Basin |
||||||||||
|
Gas (MMcf) |
219.8 |
181.2 |
210.4 |
177.4 | ||||||
|
Oil (Bbls) |
45,828 |
35,338 |
43,446 |
35,944 | ||||||
|
NGL (Bbls) |
24,996 |
19,219 |
23,319 |
16,639 | ||||||
|
Total Equivalent (Mmcfe) |
644.7 |
508.5 |
611.0 |
492.9 | ||||||
|
Total Equivalent (Boe) |
107,457 |
84,757 |
101,832 |
82,150 | ||||||
|
Mid-Continent |
||||||||||
|
Gas (MMcf) |
295.4 |
279.1 |
290.2 |
288.7 | ||||||
|
Oil (Bbls) |
11,893 |
8,933 |
11,475 |
9,093 | ||||||
|
NGL (Bbls) |
23,693 |
21,716 |
22,926 |
22,432 | ||||||
|
Total Equivalent (Mmcfe) |
509.0 |
463.0 |
496.6 |
477.9 | ||||||
|
Total Equivalent (Boe) |
84,819 |
77,166 |
82,768 |
79,642 | ||||||
|
Total Company |
||||||||||
|
Gas (MMcf) |
516.7 |
461.9 |
502.0 |
467.4 | ||||||
|
Oil (Bbls) |
57,871 |
44,424 |
55,042 |
45,267 | ||||||
|
NGL (Bbls) |
48,731 |
40,961 |
46,281 |
39,112 | ||||||
|
Total Equivalent (Mmcfe) |
1,156.3 |
974.2 |
1,110.0 |
973.7 | ||||||
|
Total Equivalent (Boe) |
192,719 |
162,368 |
184,990 |
162,279 | ||||||
|
AVERAGE REALIZED PRICE BY REGION | ||||||||||
|
For the Three Months Ended |
For the Six Months Ended | |||||||||
|
June 30, |
June 30, | |||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||
|
Permian Basin |
||||||||||
|
Gas ($ per Mcf) |
2.77 |
1.88 |
2.83 |
1.92 | ||||||
|
Oil ($ per Bbl) |
44.15 |
40.26 |
45.94 |
34.14 | ||||||
|
NGL ($ per Bbl) |
16.65 |
11.94 |
17.38 |
10.25 | ||||||
|
Mid-Continent |
||||||||||
|
Gas ($ per Mcf) |
2.85 |
1.79 |
2.97 |
1.85 | ||||||
|
Oil ($ per Bbl) |
44.10 |
39.28 |
45.39 |
33.07 | ||||||
|
NGL ($ per Bbl) |
19.90 |
15.70 |
21.16 |
13.27 | ||||||
|
Total Company |
||||||||||
|
Gas ($ per Mcf) |
2.82 |
1.82 |
2.91 |
1.87 | ||||||
|
Oil ($ per Bbl) |
44.14 |
40.07 |
45.82 |
33.94 | ||||||
|
NGL ($ per Bbl) |
18.24 |
13.93 |
19.26 |
11.98 | ||||||
Other
The following table summarizes the company's current open hedge positions:
|
3Q17 |
4Q17 |
1Q18 |
2Q18 |
3Q18 | |||
|
Gas |
PEPL(3) |
||||||
|
Volume (MMBtu/d) |
129,891 |
110,000 |
80,000 |
50,000 |
20,000 | ||
|
Wtd Avg Floor |
$ 2.59 |
$ 2.67 |
$ 2.66 |
$ 2.52 |
$ 2.45 | ||
|
Wtd Avg Ceiling |
$ 3.09 |
$ 3.10 |
$ 3.08 |
$ 2.94 |
$ 2.65 | ||
|
El Paso Perm(3) |
|||||||
|
Volume (MMBtu/d) |
89,891 |
80,000 |
60,000 |
40,000 |
20,000 | ||
|
Wtd Avg Floor |
$ 2.60 |
$ 2.64 |
$ 2.62 |
$ 2.43 |
$ 2.35 | ||
|
Wtd Avg Ceiling |
$ 3.07 |
$ 3.04 |
$ 3.00 |
$ 2.79 |
$ 2.55 | ||
|
Oil: |
WTI(4) |
||||||
|
Volume (Bbl/d) |
23,978 |
21,000 |
16,000 |
10,000 |
6,000 | ||
|
Wtd Avg Floor |
$ 45.86 |
$ 46.29 |
$ 46.69 |
$ 46.30 |
$ 43.83 | ||
|
Wtd Avg Ceiling |
$ 55.88 |
$ 56.64 |
$ 57.34 |
$ 56.27 |
$ 54.48 |
Conference call and webcast
Cimarex will host a conference call tomorrow at 11:00 a.m. EDT (9:00 a.m. MDT). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
Investor Presentation
For more details on Cimarex's second quarter 2017 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the "2017 Outlook" contains projections for certain 2017 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K/A for the year ended December 31, 2016, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; higher than expected costs and expenses, including the availability and cost of services and materials; compliance with environmental and other regulations; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; costs and availability of third party facilities for gathering, processing, refining and transportation; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
|
1 |
Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for reconciliations of the related GAAP amounts. |
|
2 |
Debt to total capitalization is calculated by dividing long-term debt ($1.5 billion) by long-term debt ($1.5 billion) plus stockholders' equity ($2.3 billion). |
|
3 |
PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index and El Paso Perm is El Paso Permian Basin index both as quoted in Platt's Inside FERC. |
|
4 |
WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. |
|
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED EARNINGS (LOSS) PER SHARE | ||||||||||||
|
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net income (loss) and earnings (loss) per share to adjusted net income (loss) and adjusted earnings (loss) per share (non-GAAP) for the periods indicated. | ||||||||||||
|
For the Three Months Ended |
For the Six Months Ended | |||||||||||
|
June 30, |
June 30, | |||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||
|
(in thousands, except per share data) | ||||||||||||
|
Net income (loss) |
$ |
97,262 |
$ |
(214,454) |
$ |
228,234 |
$ |
(445,913) | ||||
|
Impairment of oil and gas properties |
— |
333,291 |
— |
652,077 | ||||||||
|
Mark-to-market (gain) loss on open derivative positions |
(22,166) |
37,095 |
(72,087) |
41,735 | ||||||||
|
Loss on early extinguishment of debt |
28,169 |
— |
28,169 |
— | ||||||||
|
Tax impact |
(2,257) |
(134,983) |
16,469 |
(252,897) | ||||||||
|
Adjusted net income (loss) |
$ |
101,008 |
$ |
20,949 |
$ |
200,785 |
$ |
(4,998) | ||||
|
Diluted earnings (loss) per share* |
$ |
1.02 |
$ |
(2.31) |
$ |
2.40 |
$ |
(4.79) | ||||
|
Adjusted diluted earnings (loss) per share* |
$ |
1.06 |
$ |
0.22 |
$ |
2.11 |
$ |
(0.05) | ||||
|
Diluted shares attributable to common stockholders and participating securities |
95,179 |
95,045 |
95,172 |
93,075 | ||||||||
|
Adjusted net income (loss) and adjusted diluted earnings (loss) per share excludes the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP earnings because: | ||||||||||||
|
a) Management uses adjusted net income (loss) to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies. | ||||||||||||
|
b) Adjusted net income (loss) is more comparable to earnings estimates provided by research analysts. | ||||||||||||
|
* |
Earnings (loss) per share are based on actual figures rather than the rounded figures presented. | |||||||||||
|
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS | ||||||||||||
|
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) for the periods indicated. | ||||||||||||
|
For the Three Months Ended |
For the Six Months Ended | |||||||||||
|
June 30, |
June 30, | |||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||
|
(in thousands) | ||||||||||||
|
Net cash provided by operating activities |
$ |
255,286 |
$ |
132,381 |
$ |
504,800 |
$ |
217,786 | ||||
|
Change in operating assets and liabilities |
23,507 |
14,483 |
39,827 |
10,669 | ||||||||
|
Adjusted cash flow from operations |
$ |
278,793 |
$ |
146,864 |
$ |
544,627 |
$ |
228,455 | ||||
|
Management uses the non-GAAP financial measure of adjusted cash flow from operations as a means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities. Management believes this non-GAAP financial measure provides useful information to investors for the same reason, and that it is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry. | ||||||||||||
|
OIL AND GAS CAPITALIZED EXPENDITURES | ||||||||||||
|
For the Three Months Ended |
For the Six Months Ended | |||||||||||
|
June 30, |
June 30, | |||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||
|
(in thousands) | ||||||||||||
|
Acquisitions: |
||||||||||||
|
Proved |
$ |
250 |
$ |
— |
$ |
250 |
$ |
3,324 | ||||
|
Unproved |
792 |
— |
3,825 |
10,568 | ||||||||
|
Net purchase price adjustments |
5 |
34 |
10 |
(2,928) | ||||||||
|
1,047 |
34 |
4,085 |
10,964 | |||||||||
|
Exploration and development: |
||||||||||||
|
Land and seismic |
33,302 |
17,474 |
110,487 |
28,636 | ||||||||
|
Exploration and development |
262,575 |
138,686 |
491,042 |
285,708 | ||||||||
|
295,877 |
156,160 |
601,529 |
314,344 | |||||||||
|
Sale proceeds: |
||||||||||||
|
Proved |
(2,000) |
— |
(2,000) |
(12,500) | ||||||||
|
Unproved |
(2,305) |
(16) |
(7,271) |
(16) | ||||||||
|
Net purchase price adjustments |
43 |
357 |
108 |
(114) | ||||||||
|
(4,262) |
341 |
(9,163) |
(12,630) | |||||||||
|
$ |
292,662 |
$ |
156,535 |
$ |
596,451 |
$ |
312,678 | |||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) | |||||||||||||||||
|
For the Three Months Ended |
For the Six Months Ended | ||||||||||||||||
|
June 30, |
June 30, | ||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||||
|
(in thousands, except per share data) | |||||||||||||||||
|
Revenues: |
|||||||||||||||||
|
Oil sales |
$ |
232,453 |
$ |
162,005 |
$ |
456,519 |
$ |
279,578 | |||||||||
|
Gas sales |
132,474 |
76,615 |
264,419 |
159,223 | |||||||||||||
|
NGL sales |
80,886 |
51,939 |
161,312 |
85,291 | |||||||||||||
|
Gas gathering and other, net |
10,639 |
8,314 |
21,378 |
15,381 | |||||||||||||
|
456,452 |
298,873 |
903,628 |
539,473 | ||||||||||||||
|
Costs and expenses: |
|||||||||||||||||
|
Impairment of oil and gas properties |
— |
333,291 |
— |
652,077 | |||||||||||||
|
Depreciation, depletion, amortization, and accretion |
108,844 |
103,836 |
206,280 |
216,770 | |||||||||||||
|
Production |
62,578 |
57,213 |
124,999 |
127,915 | |||||||||||||
|
Transportation, processing, and other operating |
58,624 |
44,436 |
113,647 |
90,879 | |||||||||||||
|
Gas gathering and other |
8,647 |
7,492 |
17,074 |
15,572 | |||||||||||||
|
Taxes other than income |
17,477 |
14,066 |
38,790 |
27,905 | |||||||||||||
|
General and administrative |
19,762 |
21,424 |
37,796 |
35,321 | |||||||||||||
|
Stock compensation |
6,293 |
7,490 |
12,581 |
13,018 | |||||||||||||
|
(Gain) loss on derivative instruments, net |
(22,509) |
33,236 |
(66,370) |
32,808 | |||||||||||||
|
Other operating expense, net |
266 |
24 |
882 |
114 | |||||||||||||
|
259,982 |
622,508 |
485,679 |
1,212,379 | ||||||||||||||
|
Operating income (loss) |
196,470 |
(323,635) |
417,949 |
(672,906) | |||||||||||||
|
Other (income) and expense: |
|||||||||||||||||
|
Interest expense |
20,095 |
20,824 |
41,147 |
41,629 | |||||||||||||
|
Capitalized interest |
(5,442) |
(5,633) |
(12,083) |
(10,537) | |||||||||||||
|
Loss on early extinguishment of debt |
28,169 |
— |
28,169 |
— | |||||||||||||
|
Other, net |
(2,231) |
(2,011) |
(4,441) |
(3,661) | |||||||||||||
|
Income (loss) before income tax |
155,879 |
(336,815) |
365,157 |
(700,337) | |||||||||||||
|
Income tax expense (benefit) |
58,617 |
(122,361) |
136,923 |
(254,424) | |||||||||||||
|
Net income (loss) |
$ |
97,262 |
$ |
(214,454) |
$ |
228,234 |
$ |
(445,913) | |||||||||
|
Earnings (loss) per share to common stockholders: |
|||||||||||||||||
|
Basic |
$ |
1.02 |
$ |
(2.31) |
$ |
2.40 |
$ |
(4.79) | |||||||||
|
Diluted |
$ |
1.02 |
$ |
(2.31) |
$ |
2.40 |
$ |
(4.79) | |||||||||
|
Dividends declared per share |
$ |
0.08 |
$ |
0.08 |
$ |
0.16 |
$ |
0.16 | |||||||||
|
Shares attributable to common stockholders: |
|||||||||||||||||
|
Unrestricted common shares outstanding |
93,402 |
93,075 |
93,396 |
93,075 | |||||||||||||
|
Diluted common shares |
93,435 |
93,075 |
93,431 |
93,075 | |||||||||||||
|
Shares attributable to common stockholders and participating securities: |
|||||||||||||||||
|
Basic shares outstanding |
95,146 |
N/A* |
95,137 |
N/A* | |||||||||||||
|
Fully diluted shares |
95,179 |
N/A* |
95,172 |
N/A* | |||||||||||||
|
Comprehensive income (loss): |
|||||||||||||||||
|
Net income (loss) |
$ |
97,262 |
$ |
(214,454) |
$ |
228,234 |
$ |
(445,913) | |||||||||
|
Other comprehensive income: |
|||||||||||||||||
|
Change in fair value of investments, net of tax |
224 |
195 |
626 |
280 | |||||||||||||
|
Total comprehensive income (loss) |
$ |
97,486 |
$ |
(214,259) |
$ |
228,860 |
$ |
(445,633) | |||||||||
|
* |
Due to the net loss in the period ended June 30, 2016, shares of 94,996, which include participating securities, are not considered in the loss per share calculations. | ||||||||||||||||
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited) | ||||||||||||||||
|
For the Three Months Ended |
For the Six Months Ended | |||||||||||||||
|
June 30, |
June 30, | |||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||
|
(in thousands) | ||||||||||||||||
|
Cash flows from operating activities: |
||||||||||||||||
|
Net income (loss) |
$ |
97,262 |
$ |
(214,454) |
$ |
228,234 |
$ |
(445,913) | ||||||||
|
Adjustments to reconcile net income (loss) to net cash |
||||||||||||||||
|
provided by operating activities: |
||||||||||||||||
|
Impairment of oil and gas properties |
— |
333,291 |
— |
652,077 | ||||||||||||
|
Depreciation, depletion, amortization, and accretion |
108,844 |
103,836 |
206,280 |
216,770 | ||||||||||||
|
Deferred income taxes |
58,617 |
(122,361) |
136,929 |
(254,424) | ||||||||||||
|
Stock compensation |
6,293 |
7,490 |
12,581 |
13,018 | ||||||||||||
|
(Gain) loss on derivative instruments, net |
(22,509) |
33,236 |
(66,370) |
32,808 | ||||||||||||
|
Settlements on derivative instruments |
343 |
3,859 |
(5,717) |
8,927 | ||||||||||||
|
Loss on early extinguishment of debt |
28,169 |
— |
28,169 |
— | ||||||||||||
|
Changes in non-current assets and liabilities |
57 |
685 |
1,076 |
2,548 | ||||||||||||
|
Other, net |
1,717 |
1,282 |
3,445 |
2,644 | ||||||||||||
|
Changes in operating assets and liabilities: |
||||||||||||||||
|
Receivables |
(16,483) |
(37,474) |
(61,145) |
(4,327) | ||||||||||||
|
Other current assets |
(8,139) |
5,346 |
(11,104) |
17,328 | ||||||||||||
|
Accounts payable and other current liabilities |
1,115 |
17,645 |
32,422 |
(23,670) | ||||||||||||
|
Net cash provided by operating activities |
255,286 |
132,381 |
504,800 |
217,786 | ||||||||||||
|
Cash flows from investing activities: |
||||||||||||||||
|
Oil and gas expenditures |
(270,331) |
(148,663) |
(582,172) |
(325,058) | ||||||||||||
|
Sales of oil and gas assets |
4,262 |
(341) |
9,163 |
12,630 | ||||||||||||
|
Sales of other assets |
349 |
136 |
394 |
224 | ||||||||||||
|
Other capital expenditures |
(10,127) |
(8,297) |
(18,209) |
(17,774) | ||||||||||||
|
Net cash used by investing activities |
(275,847) |
(157,165) |
(590,824) |
(329,978) | ||||||||||||
|
Cash flows from financing activities: |
||||||||||||||||
|
Borrowings of long-term debt |
748,110 |
— |
748,110 |
— | ||||||||||||
|
Repayments of long-term debt |
(750,000) |
— |
(750,000) |
— | ||||||||||||
|
Call premium, financing, and underwriting fees |
(29,009) |
— |
(29,035) |
(1) | ||||||||||||
|
Dividends paid |
(7,576) |
(7,551) |
(15,153) |
(22,655) | ||||||||||||
|
Employee withholding taxes paid upon the net |
||||||||||||||||
|
settlement of equity-classified stock awards |
(277) |
(3,737) |
(1,215) |
(4,082) | ||||||||||||
|
Proceeds from exercise of stock options and other |
— |
1,172 |
36 |
1,287 | ||||||||||||
|
Net cash used by financing activities |
(38,752) |
(10,116) |
(47,257) |
(25,451) | ||||||||||||
|
Net change in cash and cash equivalents |
(59,313) |
(34,900) |
(133,281) |
(137,643) | ||||||||||||
|
Cash and cash equivalents at beginning of period |
578,908 |
676,639 |
652,876 |
779,382 | ||||||||||||
|
Cash and cash equivalents at end of period |
$ |
519,595 |
$ |
641,739 |
$ |
519,595 |
$ |
641,739 | ||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||
|
June 30, |
December 31, | ||||||
|
2017 |
2016 | ||||||
|
Assets |
(in thousands, except share data) | ||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
519,595 |
$ |
652,876 | |||
|
Receivables, net of allowance |
335,543 |
274,597 | |||||
|
Oil and gas well equipment and supplies |
45,486 |
33,342 | |||||
|
Derivative instruments |
19,803 |
— | |||||
|
Other current assets |
7,449 |
8,489 | |||||
|
Total current assets |
927,876 |
969,304 | |||||
|
Oil and gas properties at cost, using the full cost method of accounting: |
|||||||
|
Proved properties |
16,769,915 |
16,225,495 | |||||
|
Unproved properties and properties under development, |
|||||||
|
not being amortized |
535,779 |
478,277 | |||||
|
17,305,694 |
16,703,772 | ||||||
|
Less – accumulated depreciation, depletion, amortization, and impairment |
(14,530,251) |
(14,349,505) | |||||
|
Net oil and gas properties |
2,775,443 |
2,354,267 | |||||
|
Fixed assets, net of accumulated depreciation |
206,114 |
205,465 | |||||
|
Goodwill |
620,232 |
620,232 | |||||
|
Derivative instruments |
442 |
— | |||||
|
Deferred income taxes |
— |
55,835 | |||||
|
Other assets |
32,873 |
32,621 | |||||
|
$ |
4,562,980 |
$ |
4,237,724 | ||||
|
Liabilities and Stockholders' Equity |
|||||||
|
Current liabilities: |
|||||||
|
Accounts payable |
$ |
87,833 |
$ |
74,486 | |||
|
Accrued liabilities |
295,347 |
278,781 | |||||
|
Derivative instruments |
98 |
49,370 | |||||
|
Revenue payable |
142,943 |
119,715 | |||||
|
Total current liabilities |
526,221 |
522,352 | |||||
|
Long-term debt: |
|||||||
|
Principal |
1,500,000 |
1,500,000 | |||||
|
Less – unamortized debt issuance costs and discount |
(13,903) |
(12,061) | |||||
|
Long-term debt, net |
1,486,097 |
1,487,939 | |||||
|
Deferred income taxes |
48,322 |
— | |||||
|
Other liabilities |
190,585 |
184,444 | |||||
|
Total liabilities |
2,251,225 |
2,194,735 | |||||
|
Commitments and contingencies |
|||||||
|
Stockholders' equity: |
|||||||
|
Preferred stock, $0.01 par value, 15,000,000 shares |
|||||||
|
authorized, no shares issued |
— |
— | |||||
|
Common stock, $0.01 par value, 200,000,000 shares authorized, |
|||||||
|
95,341,554 and 95,123,525 shares issued, respectively |
953 |
951 | |||||
|
Additional paid-in capital |
2,774,597 |
2,763,452 | |||||
|
Retained earnings (accumulated deficit) |
(465,366) |
(722,359) | |||||
|
Accumulated other comprehensive income |
1,571 |
945 | |||||
|
Total stockholders' equity |
2,311,755 |
2,042,989 | |||||
|
$ |
4,562,980 |
$ |
4,237,724 | ||||
View original content:http://www.prnewswire.com/news-releases/cimarex-reports-second-quarter-2017-results-300501507.html
SOURCE Cimarex Energy Co.
Article Date
8/8/2017Cimarex Schedules Second Quarter 2017 Earnings Release and Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, July 10, 2017 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that it plans to report second quarter 2017 financial results on Tuesday, August 8, 2017, after market close. The company will host its quarterly conference call at 11:00 AM EDT on Wednesday, August 9, 2017.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
View original content:http://www.prnewswire.com/news-releases/cimarex-schedules-second-quarter-2017-earnings-release-and-conference-call-300485554.html
SOURCE Cimarex Energy Co.
Article Date
7/10/2017Cimarex Energy to Present at J.P. Morgan Energy Equity Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, June 20, 2017 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Chairman and Chief Executive Officer, Tom Jorden, will present at the J.P. Morgan Energy Equity Conference in New York on Tuesday, June 27, 2017, at 8:40 am EDT.
The presentation will be webcast and available on the Cimarex website at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
SOURCE Cimarex Energy Co.
Article Date
6/20/20175/12/2017 - Cimarex Energy Declares Quarterly Cash Dividend
Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, May 12, 2017 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.08 per share. The dividend is payable on September 1, 2017, to stockholders of record on August 15, 2017.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
SOURCE Cimarex Energy Co.
Article Date
5/12/20175/10/2017 - Cimarex Reports First Quarter 2017 Results
Cimarex Reports First Quarter 2017 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, May 10, 2017 /PRNewswire/ --
Total Production up 11% sequentially
Oil Production up 15% sequentially
Upper Wolfcamp well in Eddy County further delineates play
Cimarex Energy Co. (NYSE: XEC) today reported first quarter 2017 net income of $131.0 million, or $1.38 per share. Adjusted first quarter net income (non-GAAP) was $99.7 million, or $1.05 per share, compared to first quarter 2016 adjusted net loss (non-GAAP) of $25.9 million, or $0.28 per share(1). Net cash provided by operating activities was $249.5 million in the first quarter of 2017 compared to $85.4 million in the first quarter of 2016. Adjusted cash flow from operations (non-GAAP) was $265.8 million in the first quarter of 2017 compared to $81.6 million in the first quarter a year ago(1).
Total company production came in above the high end of our guidance and averaged 1,063 million cubic feet equivalent (MMcfe) per day during the first quarter. This was a nine percent increase over first quarter 2016 and a 11 percent increase sequentially. Oil production averaged 52,181 barrels per day, a 15 percent increase sequentially.
Commodity prices improved significantly from a year ago and had a positive impact on Cimarex's financial results for the quarter. Realized oil prices averaged $47.71 per barrel versus $28.02 per barrel in the first quarter of 2016, an increase of 70 percent. Realized natural gas prices averaged $3.01 per Mcf, up 57 percent from the first quarter 2016 average of $1.92 per Mcf. NGL prices averaged $20.40 per barrel, up 107 percent from the $9.84 per barrel received in the same period one year ago. (See table of Average Realized Price by Region below.)
Cimarex invested $306 million in exploration and development during the first quarter, of which $197 million is attributable to drilling and completion activities. First quarter investments were funded with cash flow from operations and cash on hand. Total debt at March 31, 2017, consisted of $1.5 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $579 million. Debt was 40 percent of total capitalization(2).
2017 Outlook
Cimarex is increasing its full-year production estimate for 2017 to 1.09 – 1.13 Bcfe per day, a midpoint increase of 15 percent over 2016 volumes. Second quarter output is expected to average 1.08 – 1.13 Bcfe per day, with oil production expected to outpace total company volume growth and rise 6 - 10 percent sequentially. Exploration and development capital for 2017 remains unchanged at $1.1 – 1.2 billion.
Expenses per Mcfe of production for the remainder of 2017 are estimated to be:
|
Production expense |
$0.60 - 0.70 |
|
Transportation, processing and other expense |
0.50 - 0.60 |
|
DD&A and ARO accretion* |
1.05 - 1.15 |
|
General and administrative expense |
0.20 - 0.25 |
|
Taxes other than income (% of oil and gas revenue) |
5.0 - 6.0% |
|
*Adjusted for the impact of the previously announced corrections to the ceiling test impairment. |
Operations Update
Cimarex invested $306 million in exploration and development during the first quarter, 69 percent in the Permian Basin and 30 percent in the Mid-Continent. We completed 70 gross (26 net) wells during the quarter. At March 31, 2017, 82 gross (26 net) wells were awaiting completion, of which 14 gross (11 net) were in the Permian and 68 gross (15 net) were in the Mid-Continent. Cimarex is currently operating 14 drilling rigs.
|
WELLS BROUGHT ON PRODUCTION BY REGION | |||||
|
For the Three Months Ended | |||||
|
March 31, | |||||
|
2017 |
2016 | ||||
|
Gross wells |
|||||
|
Permian Basin |
25 |
7 | |||
|
Mid-Continent |
45 |
15 | |||
|
70 |
22 | ||||
|
Net wells |
|||||
|
Permian Basin |
16 |
3 | |||
|
Mid-Continent |
10 |
2 | |||
|
26 |
5 | ||||
Permian Region
Production from the Permian Basin averaged 577 MMcfe per day in the first quarter, a 21 percent increase from first quarter 2016 and 13 percent sequentially. Oil volumes represent 43 percent of the region's total production in the quarter. Oil volumes in the region were up 13 percent from the fourth quarter of 2016. Natural gas production increased 12 percent and NGL production was up 13 percent sequentially.
Cimarex brought 25 gross (16 net) wells on production in the Permian region during the first quarter. Of note, Cimarex completed an Upper Wolfcamp well in its White City area in Eddy County, New Mexico. The Pintail 23-26 Fed Com 10H had average peak 30-day initial production of 1,557 BOE (9.3 MMcfe) per day of which 1,000 barrels per day (64 percent) was oil. This well further delineates the Upper Wolfcamp to the north of Culberson County and represents our first test of the Upper Wolfcamp play in Eddy County.
In Reeves County, Texas, the Wood State project, a six-well infill project testing 12 wells per section in the Upper Wolfcamp, was recently brought on production. Five of the six wells are producing at an average peak 30-day initial production of 1,973 BOE (11.8 MMcfe) per day of which 902 barrels per day (46 percent) is oil. The sixth well is currently shut-in and waiting on remediation.
There were 14 gross (11 net) wells waiting on completion on March 31. Cimarex is currently operating eight rigs in the Permian region.
Mid-Continent
Production from the Mid-Continent averaged 484 MMcfe per day for the first quarter, down two percent versus first quarter 2016. Sequentially, crude oil volumes were up 20 percent, natural gas production grew three percent and NGL volumes increased 16 percent.
During the first quarter Cimarex completed and brought on production 45 gross (10 net) wells in the Mid-Continent. At the end of the quarter, 68 gross (15 net) wells were waiting on completion. We currently operate six rigs in the region.
Production by Region
Cimarex's average daily production and commodity price by region are summarized below:
|
DAILY PRODUCTION BY REGION | ||||
|
For the Three Months Ended | ||||
|
March 31, | ||||
|
2017 |
2016 | |||
|
Permian Basin |
||||
|
Gas (MMcf) |
200.9 |
173.6 | ||
|
Oil (Bbls) |
41,039 |
36,549 | ||
|
NGL (Bbls) |
21,624 |
14,059 | ||
|
Total Equivalent (MMcfe) |
576.8 |
477.3 | ||
|
Mid-Continent |
||||
|
Gas (MMcf) |
285.0 |
298.4 | ||
|
Oil (Bbls) |
11,053 |
9,253 | ||
|
NGL (Bbls) |
22,151 |
23,148 | ||
|
Total Equivalent (MMcfe) |
484.2 |
492.8 | ||
|
Total Company |
||||
|
Gas (MMcf) |
487.2 |
472.9 | ||
|
Oil (Bbls) |
52,181 |
46,110 | ||
|
NGL (Bbls) |
43,804 |
37,263 | ||
|
Total Equivalent (MMcfe) |
1,063.1 |
973.1 | ||
|
AVERAGE REALIZED PRICE BY REGION | ||||
|
For the Three Months Ended | ||||
|
March 31, | ||||
|
2017 |
2016 | |||
|
Permian Basin |
||||
|
Gas ($ per Mcf) |
2.89 |
1.96 | ||
|
Oil ($ per Bbl) |
47.95 |
28.22 | ||
|
NGL ($ per Bbl) |
18.22 |
7.93 | ||
|
Mid-Continent |
||||
|
Gas ($ per Mcf) |
3.09 |
1.91 | ||
|
Oil ($ per Bbl) |
46.81 |
27.07 | ||
|
NGL ($ per Bbl) |
22.53 |
10.99 | ||
|
Total Company |
||||
|
Gas ($ per Mcf) |
3.01 |
1.92 | ||
|
Oil ($ per Bbl) |
47.71 |
28.02 | ||
|
NGL ($ per Bbl) |
20.40 |
9.84 | ||
Other
The following table summarizes the company's current open hedge positions:
|
2Q17 |
3Q17 |
4Q17 |
1Q18 |
2Q18 |
Average | ||
|
Gas: |
PEPL(3) |
||||||
|
Volume (MMBtu/d) |
140,000 |
120,000 |
90,000 |
60,000 |
30,000 |
88,100 | |
|
Wtd Avg Floor |
$ 2.53 |
$ 2.60 |
$ 2.72 |
$ 2.73 |
$ 2.57 |
$ 2.62 | |
|
Wtd Avg Ceiling |
$ 3.06 |
$ 3.12 |
$ 3.20 |
$ 3.23 |
$ 3.14 |
$ 3.13 | |
|
El Paso Perm(3) |
|||||||
|
Volume (MMBtu/d) |
103,000 |
80,000 |
60,000 |
40,000 |
20,000 |
60,800 | |
|
Wtd Avg Floor |
$ 2.58 |
$ 2.63 |
$ 2.74 |
$ 2.75 |
$ 2.50 |
$ 2.64 | |
|
Wtd Avg Ceiling |
$ 3.09 |
$ 3.13 |
$ 3.20 |
$ 3.22 |
$ 3.04 |
$ 3.13 | |
|
Oil: |
WTI(4) |
||||||
|
Volume (Bbl/d) |
24,000 |
20,000 |
15,000 |
10,000 |
4,000 |
14,600 | |
|
Wtd Avg Floor |
$ 44.23 |
$ 46.08 |
$ 47.27 |
$ 48.40 |
$ 50.00 |
$ 46.25 | |
|
Wtd Avg Ceiling |
$ 53.91 |
$ 56.19 |
$ 57.51 |
$ 59.05 |
$ 58.96 |
$ 56.26 |
Conference call and webcast
Cimarex will host a conference call today at 11:00 a.m. EDT (9:00 a.m. MDT). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website and via the Cimarex App.
Investor Presentation
For more details on Cimarex's first quarter 2017 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the company is providing revised "2017 Outlook", which contains projections for certain 2017 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K/A for the year ended December 31, 2016, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; higher than expected costs and expenses, including the availability and cost of services and materials; compliance with environmental and other regulations; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; costs and availability of third party facilities for gathering, processing, refining and transportation; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
|
____________________________ | |
|
(1) |
Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for reconciliations of the related GAAP amounts. |
|
(2) |
Debt to total capitalization is calculated by dividing long-term debt ($1.5 billion) by long-term debt ($1.5 billion) plus stockholders' equity ($2.2 billion). |
|
(3) |
PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index and El Paso Perm is El Paso Permian Basin index both as quoted in Platt's Inside FERC. |
|
(4) |
WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. |
|
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED EARNINGS (LOSS) PER SHARE | |||||||
|
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net income (loss) and earnings (loss) per share to adjusted net income (loss) and adjusted earnings (loss) per share (non-GAAP) for the periods indicated. | |||||||
|
For the Three Months Ended | |||||||
|
March 31, | |||||||
|
2017 |
2016 | ||||||
|
(in thousands, except per share data) | |||||||
|
Net income (loss) |
$ |
130,972 |
$ |
(231,459) | |||
|
Impairment of oil and gas properties |
- |
318,786 | |||||
|
Mark-to-market (gain) loss on open derivative positions |
(49,921) |
4,640 | |||||
|
Tax impact |
18,671 |
(117,913) | |||||
|
Adjusted net income (loss) |
$ |
99,722 |
$ |
(25,946) | |||
|
Diluted earnings (loss) per share* |
$ |
1.38 |
$ |
(2.49) | |||
|
Adjusted diluted earnings (loss) per share* |
$ |
1.05 |
$ |
(0.28) | |||
|
Diluted shares attributable to common stockholders and participating securities |
95,166 |
93,000 | |||||
|
Adjusted net income (loss) and adjusted diluted earnings (loss) per share excludes the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP earnings because: | |||||||
|
a) Management uses adjusted net income (loss) to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies. | |||||||
|
b) Adjusted net income (loss) is more comparable to earnings estimates provided by research analysts. | |||||||
|
* |
Earnings (loss) per share are based on actual figures rather than the rounded figures presented. | ||||||
|
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS | ||||||
|
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) for the periods indicated. | ||||||
|
For the Three Months Ended | ||||||
|
March 31, | ||||||
|
2017 |
2016 | |||||
|
(in thousands) | ||||||
|
Net cash provided by operating activities |
$ |
249,514 |
$ |
85,405 | ||
|
Change in operating assets and liabilities |
16,320 |
(3,814) | ||||
|
Adjusted cash flow from operations |
$ |
265,834 |
$ |
81,591 | ||
|
Management uses the non-GAAP financial measure of adjusted cash flow from operations as a means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities. Management believes this non-GAAP financial measure provides useful information to investors for the same reason, and that it is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry. | ||||||
|
OIL AND GAS CAPITALIZED EXPENDITURES | ||||||
|
For the Three Months Ended | ||||||
|
March 31, | ||||||
|
2017 |
2016 | |||||
|
(in thousands) | ||||||
|
Acquisitions: |
||||||
|
Proved |
$ |
— |
$ |
3,324 | ||
|
Unproved |
3,033 |
10,568 | ||||
|
Net purchase price adjustments |
5 |
(2,962) | ||||
|
3,038 |
10,930 | |||||
|
Exploration and development: |
||||||
|
Land and seismic |
77,185 |
11,162 | ||||
|
Exploration and development |
228,467 |
147,022 | ||||
|
305,652 |
158,184 | |||||
|
Sale proceeds: |
||||||
|
Proved |
— |
(12,500) | ||||
|
Unproved |
(4,966) |
— | ||||
|
Net purchase price adjustments |
65 |
(471) | ||||
|
(4,901) |
(12,971) | |||||
|
$ |
303,789 |
$ |
156,143 | |||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) | |||||||
|
For the Three Months Ended | |||||||
|
March 31, | |||||||
|
2017 |
2016 | ||||||
|
(in thousands, except per share data) | |||||||
|
Revenues: |
|||||||
|
Oil sales |
$ |
224,066 |
$ |
117,573 | |||
|
Gas sales |
131,945 |
82,608 | |||||
|
NGL sales |
80,426 |
33,352 | |||||
|
Gas gathering and other, net |
10,739 |
7,067 | |||||
|
447,176 |
240,600 | ||||||
|
Costs and expenses: |
|||||||
|
Impairment of oil and gas properties |
— |
318,786 | |||||
|
Depreciation, depletion, amortization, and accretion |
97,436 |
112,934 | |||||
|
Production |
62,421 |
70,702 | |||||
|
Transportation, processing, and other operating |
55,023 |
46,443 | |||||
|
Gas gathering and other |
8,427 |
8,080 | |||||
|
Taxes other than income |
21,313 |
13,839 | |||||
|
General and administrative |
18,034 |
13,897 | |||||
|
Stock compensation |
6,288 |
5,528 | |||||
|
Gain on derivative instruments, net |
(43,861) |
(428) | |||||
|
Other operating expense, net |
616 |
90 | |||||
|
225,697 |
589,871 | ||||||
|
Operating income (loss) |
221,479 |
(349,271) | |||||
|
Other (income) and expense: |
|||||||
|
Interest expense |
21,052 |
20,805 | |||||
|
Capitalized interest |
(6,641) |
(4,904) | |||||
|
Other, net |
(2,210) |
(1,650) | |||||
|
Income (loss) before income tax |
209,278 |
(363,522) | |||||
|
Income tax expense (benefit) |
78,306 |
(132,063) | |||||
|
Net income (loss) |
$ |
130,972 |
$ |
(231,459) | |||
|
Earnings (loss) per share to common stockholders: |
|||||||
|
Basic |
$ |
1.38 |
$ |
(2.49) | |||
|
Diluted |
$ |
1.38 |
$ |
(2.49) | |||
|
Dividends declared per share |
$ |
0.08 |
$ |
0.08 | |||
|
Shares attributable to common stockholders: |
|||||||
|
Unrestricted common shares outstanding |
93,389 |
93,000 | |||||
|
Diluted common shares |
93,428 |
93,000 | |||||
|
Shares attributable to common stockholders and participating securities: |
|||||||
|
Basic shares outstanding |
95,128 |
N/A* | |||||
|
Fully diluted shares |
95,166 |
N/A* | |||||
|
Comprehensive income (loss): |
|||||||
|
Net income (loss) |
$ |
130,972 |
$ |
(231,459) | |||
|
Other comprehensive income: |
|||||||
|
Change in fair value of investments, net of tax |
402 |
85 | |||||
|
Total comprehensive income (loss) |
$ |
131,374 |
$ |
(231,374) | |||
|
* |
Due to the net loss in the period ended March 31, 2016, shares of 94,824, which include participating securities, are not considered in the loss per share calculations. | ||||||
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited) | ||||||||||
|
For the Three Months Ended | ||||||||||
|
March 31, | ||||||||||
|
2017 |
2016 | |||||||||
|
(in thousands) | ||||||||||
|
Cash flows from operating activities: |
||||||||||
|
Net income (loss) |
$ |
130,972 |
$ |
(231,459) | ||||||
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||||
|
Impairment of oil and gas properties |
— |
318,786 | ||||||||
|
Depreciation, depletion, amortization, and accretion |
97,436 |
112,934 | ||||||||
|
Deferred income taxes |
78,312 |
(132,063) | ||||||||
|
Stock compensation |
6,288 |
5,528 | ||||||||
|
Gain on derivative instruments, net |
(43,861) |
(428) | ||||||||
|
Settlements on derivative instruments |
(6,060) |
5,068 | ||||||||
|
Changes in non-current assets and liabilities |
1,019 |
1,863 | ||||||||
|
Other, net |
1,728 |
1,362 | ||||||||
|
Changes in operating assets and liabilities: |
||||||||||
|
Receivables |
(44,662) |
33,147 | ||||||||
|
Other current assets |
(2,965) |
11,982 | ||||||||
|
Accounts payable and other current liabilities |
31,307 |
(41,315) | ||||||||
|
Net cash provided by operating activities |
249,514 |
85,405 | ||||||||
|
Cash flows from investing activities: |
||||||||||
|
Oil and gas expenditures |
(311,841) |
(176,395) | ||||||||
|
Sales of oil and gas assets |
4,901 |
12,971 | ||||||||
|
Sales of other assets |
45 |
88 | ||||||||
|
Other capital expenditures |
(8,082) |
(9,477) | ||||||||
|
Net cash used by investing activities |
(314,977) |
(172,813) | ||||||||
|
Cash flows from financing activities: |
||||||||||
|
Dividends paid |
(7,577) |
(15,104) | ||||||||
|
Employee withholding taxes paid upon the net settlement of equity-classified stock awards |
(938) |
(345) | ||||||||
|
Proceeds from exercise of stock options and other |
10 |
114 | ||||||||
|
Net cash used by financing activities |
(8,505) |
(15,335) | ||||||||
|
Net change in cash and cash equivalents |
(73,968) |
(102,743) | ||||||||
|
Cash and cash equivalents at beginning of period |
652,876 |
779,382 | ||||||||
|
Cash and cash equivalents at end of period |
$ |
578,908 |
$ |
676,639 | ||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||
|
March 31, |
December 31, | ||||||
|
2017 |
2016 | ||||||
|
Assets |
(in thousands, except share data) | ||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
578,908 |
$ |
652,876 | |||
|
Receivables, net of allowance |
319,142 |
274,597 | |||||
|
Oil and gas well equipment and supplies |
37,487 |
33,342 | |||||
|
Derivative instruments |
6,381 |
— | |||||
|
Other current assets |
7,309 |
8,489 | |||||
|
Total current assets |
949,227 |
969,304 | |||||
|
Oil and gas properties at cost, using the full cost method of accounting: |
|||||||
|
Proved properties |
16,519,581 |
16,225,495 | |||||
|
Unproved properties and properties under development, not being amortized |
489,888 |
478,277 | |||||
|
17,009,469 |
16,703,772 | ||||||
|
Less – accumulated depreciation, depletion, amortization, and impairment |
(14,434,516) |
(14,349,505) | |||||
|
Net oil and gas properties |
2,574,953 |
2,354,267 | |||||
|
Fixed assets, net of accumulated depreciation |
203,917 |
205,465 | |||||
|
Goodwill |
620,232 |
620,232 | |||||
|
Derivative instruments |
2,438 |
— | |||||
|
Deferred income taxes |
10,424 |
55,835 | |||||
|
Other assets |
32,808 |
32,621 | |||||
|
$ |
4,393,999 |
$ |
4,237,724 | ||||
|
Liabilities and Stockholders' Equity |
|||||||
|
Current liabilities: |
|||||||
|
Accounts payable |
$ |
86,182 |
$ |
74,486 | |||
|
Accrued liabilities |
268,926 |
278,781 | |||||
|
Derivative instruments |
10,838 |
49,370 | |||||
|
Revenue payable |
141,376 |
119,715 | |||||
|
Total current liabilities |
507,322 |
522,352 | |||||
|
Long-term debt: |
|||||||
|
Principal |
1,500,000 |
1,500,000 | |||||
|
Less – unamortized debt issuance costs |
(11,500) |
(12,061) | |||||
|
Long-term debt, net |
1,488,500 |
1,487,939 | |||||
|
Other liabilities |
187,228 |
184,444 | |||||
|
Total liabilities |
2,183,050 |
2,194,735 | |||||
|
Commitments and contingencies |
|||||||
|
Stockholders' equity: |
|||||||
|
Preferred stock, $0.01 par value, 15,000,000 shares authorized, no shares issued |
— |
— | |||||
|
Common stock, $0.01 par value, 200,000,000 shares authorized, 95,116,764 and 95,123,525 shares issued, respectively |
951 |
951 | |||||
|
Additional paid-in capital |
2,771,296 |
2,763,452 | |||||
|
Retained earnings (accumulated deficit) |
(562,645) |
(722,359) | |||||
|
Accumulated other comprehensive income |
1,347 |
945 | |||||
|
Total stockholders' equity |
2,210,949 |
2,042,989 | |||||
|
$ |
4,393,999 |
$ |
4,237,724 | ||||
SOURCE Cimarex Energy Co.
Article Date
5/10/2017Cimarex First Quarter 2017 Earnings Release Scheduled for May 10th
Source: PR Newswire
DENVER, May 5, 2017 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today issued a reminder that it plans to report first quarter 2017 financial results on Wednesday, May 10, 2017, before market open. The company will host its quarterly conference call at 11:00 AM EDT that same day.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website and via the Cimarex App.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
SOURCE Cimarex Energy Co.
Article Date
5/5/20175/4/2017 - Cimarex to File Amended 2016 Annual Report to Correct Error in Ceiling Test Impairment Calculation
Cimarex to File Amended 2016 Annual Report to Correct Error in Ceiling Test Impairment Calculation
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, May 4, 2017 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced the discovery of an error in its full cost ceiling test impairment calculation. The calculation did not properly consider the company's tax net operating loss (NOL) carryforwards in the calculation of the capitalized costs of net oil and gas properties tested for impairment. The error was discovered during preparation of Cimarex's quarterly report on Form 10-Q for the quarter ended March 31, 2017. The corrected calculation did not result in a full cost ceiling impairment for the first quarter of 2017. The company reviewed its ceiling test calculations for each quarter going back to March 31, 2011, the year Cimarex recorded its first NOLs. Errors were identified in the amount of the impairment Cimarex recorded as far back as the fourth quarter of 2012.
Cimarex Chairman, President and Chief Executive Officer, Tom Jorden, stated, "Fortunately, the inaccuracy of our ceiling test calculation had no impact on our cash flows, our financial health, nor our ability to execute on our capital plans." He went on to say, "We will correct this error and be fully transparent in doing so. We look forward to discussing Cimarex's continued operational progress and results in our upcoming first quarter release."
Cimarex intends to file an amended 2016 Annual Report on Form 10-K to correct the errors for the years ended December 31, 2016, 2015. Cimarex now expects to report first quarter 2017 results before market open on Wednesday, May 10, 2017, followed by its quarterly conference call at 11:00 AM EDT that same day.
Preliminary estimates of the impact of the adjustments to selected line items on the consolidated balance sheet and statement of operations as of and for the years ended December 31, 2016, 2015, and 2014, are as follows (in thousands, unaudited):
|
2016 |
2015 |
2014 | ||||
|
Impairment of oil and gas properties |
||||||
|
Previously reported |
$ (719,142) |
$ (3,716,883) |
$ - | |||
|
Corrected |
(757,670) |
(4,033,295) |
- | |||
|
Understatement |
$ (38,528) |
$ (316,412) |
$ - | |||
|
5% |
9% |
0% | ||||
|
Depreciation, depletion and amortization |
||||||
|
Previously reported |
$ 465,936 |
$ 778,923 |
$ 806,021 | |||
|
Corrected |
392,348 |
731,460 |
775,577 | |||
|
Overstatement |
$ 73,588 |
$ 47,463 |
$ 30,444 | |||
|
16% |
6% |
4% | ||||
|
Net income (loss) |
||||||
|
Previously reported |
$ (431,049) |
$ (2,408,948) |
$ 507,204 | |||
|
Corrected |
(408,803) |
(2,579,604) |
526,498 | |||
|
Over(under)statement |
$ 22,246 |
$ (170,656) |
$ (19,294) | |||
|
5% |
-7% |
-4% | ||||
|
Net cash provided by operating activities |
||||||
|
Previously reported |
$ 599,225 |
$ 691,500 |
$ 1,619,365 | |||
|
Corrected |
599,225 |
691,500 |
1,619,365 | |||
|
Over(under)statement |
$ - |
$ - |
$ - | |||
|
0% |
0% |
0% | ||||
|
Stockholders' equity(1) |
||||||
|
Previously reported |
$ 2,360,064 |
$ 2,797,678 |
$ 4,500,632 | |||
|
Corrected |
2,042,989 |
2,458,357 |
4,331,966 | |||
|
Overstatement |
$ 317,075 |
$ 339,321 |
$ 168,666 | |||
|
13% |
12% |
4% | ||||
|
Debt |
$ 1,500,000 |
$ 1,500,000 |
$ 1,500,000 | |||
|
Debt to total capitalization(2) |
||||||
|
Reported |
39% |
35% |
25% | |||
|
Corrected |
42% |
38% |
26% |
The company's first quarter conference call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216). A replay will be available on the company's website and via the Cimarex App.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This communication contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the results of the corrections described above. These risks and uncertainties are more fully described in SEC reports filed by Cimarex. While Cimarex makes these forward-looking statements in good faith, management cannot guarantee that anticipated future results will be achieved. Specifically, Cimarex cannot assure you that the results of the financial statement corrections described above will not be different than our preliminary estimates. Cimarex assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law. Actual results may differ materially from Cimarex projections and can be affected by a variety of factors outside Cimarex's control, including the risks and uncertainties described in Cimarex's SEC reports. Cimarex is not responsible for any changes made to this release by wire or Internet services.
|
(1) |
Corrected Stockholders' equity for each year includes a cumulative catchup of $188.0 million, which gives effect to corrections made to the 2013 and 2012 periods. |
|
(2) |
The reconciliation of debt to total capitalization, which is a non-GAAP measure, is: long-term debt of $1.5 billion for all periods divided by the sum of long-term debt of $1.5 billion plus stockholders' equity of $2.04 billion, $2.46 billion and $4.33 billion for 2016, 2015 and 2014, respectively. Management uses this non-GAAP measure as one indicator of our financial condition. Management believes professional research analysts and rating agencies use this non-GAAP measure for this purpose and to compare our financial condition to other companies' financial conditions. In addition, the company's revolving credit agreement requires us to maintain a total debt to capitalization ratio (as defined in the credit agreement) of not more than 65%. |
SOURCE Cimarex Energy Co.
Article Date
5/4/2017Cimarex Schedules First Quarter 2017 Earnings Release and Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, April 11, 2017 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that it plans to report first quarter 2017 financial results on Monday, May 8, 2017, before market open. The company will host its quarterly conference call at 11:00 AM EDT that same day.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).
A replay will be available on the company's website and via the Cimarex App.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
SOURCE Cimarex Energy Co.
Article Date
4/11/2017Cimarex Announces the Expiration of the Tender Offer for Any and All of its 5.875% Senior Notes Due 2022
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, April 7, 2017 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) ("Cimarex") today announced that its previously announced cash tender offer to purchase any and all of the outstanding aggregate principal amount of its 5.875% Senior Notes due 2022 (the "Notes") expired at 5:00 p.m., New York City time, on April 7, 2017 (the "Expiration Time"). As of the Expiration Time, $253,423,000 aggregate principal amount of the Notes (34%) were validly tendered, which excludes $194,000 aggregate principal amount of the Notes that remain subject to guaranteed delivery procedures. Cimarex expects to accept for payment all Notes validly tendered and not validly withdrawn in the tender offer and expects to make payment for the Notes on April 10, 2017. Pursuant to the terms of the tender offer, Notes not tendered in the tender offer will remain outstanding. On April 12, 2017, Cimarex expects to deliver a redemption notice for any and all outstanding Notes pursuant to the terms of the indenture, as amended and supplemented, governing the Notes, and all remaining outstanding Notes will be redeemed (subject to the terms thereof) on May 12, 2017.
This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. This announcement shall not constitute a notice of redemption under the indenture governing the Notes.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This communication contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the consummation of the proposed transactions described above. These risks and uncertainties are more fully described in SEC reports filed by Cimarex. While Cimarex makes these forward-looking statements in good faith, management cannot guarantee that anticipated future results will be achieved. Specifically, Cimarex cannot assure you that the proposed transactions described above will be consummated on the terms Cimarex currently contemplates, if at all. Cimarex assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law. Actual results may differ materially from Cimarex projections and can be affected by a variety of factors outside Cimarex's control, including the risks and uncertainties described in Cimarex's SEC reports. Cimarex is not responsible for any changes made to this release by wire or Internet services.
SOURCE Cimarex Energy Co.
Article Date
4/7/2017Cimarex Announces Pricing of Senior Unsecured Notes
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, April 3, 2017 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) ("Cimarex") announced today that it has priced an offering of $750 million aggregate principal amount of senior unsecured notes due 2027, which will carry an interest rate of 3.90%. The notes were sold to the public at 99.748% for a yield to maturity of 3.93%. Cimarex intends to use the net proceeds from the offering, together with cash on hand, to fund the purchase price and accrued and unpaid interest payable with respect to all notes validly tendered and accepted for payment pursuant to the separately announced tender offer for any or all of the outstanding $750 million aggregate principal amount of Cimarex's 5.875% Senior Notes due 2022 (the "2022 Notes") and the redemption of any 2022 Notes that remain outstanding after completion or termination of the tender offer.
Interest is payable May 15 and November 15 of each year. The first interest payment will be made November 15, 2017, and interest will accrue from April 10, 2017. The offering is expected to close on April 10, 2017, subject to the satisfaction of customary closing conditions.
J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, Deutsche Bank Securities Inc. and MUFG Securities Americas Inc. have acted as joint book-running managers for the offering. The offering is being made pursuant to an effective registration statement previously filed with the Securities and Exchange Commission ("SEC") on Form S-3 and available for review on the SEC's website at www.sec.gov. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of the senior notes referred to above. An offering of any such securities will be made only by means of a prospectus forming a part of the effective registration statement, the preliminary prospectus supplement thereto and other related documents. Any such documents shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. You may obtain copies of these documents without charge from the SEC at www.sec.gov. Alternatively, copies of these documents can be obtained from J.P. Morgan Securities LLC at 383 Madison Avenue, New York, NY 10179, Attention: Investment Grade Syndicate Desk – 3rd Floor, or via phone, collect, at 1-212-834-4533; or Wells Fargo Securities, LLC at 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, Attention: WFS Customer Service, or via phone at 1-800-645-3751, or by email at wfscustomerservice@wellsfargo.com; or Deutsche Bank Securities Inc. at 60 Wall Street, New York, NY 10005, Attention: Prospectus Group, or via phone at 1-800-503-4611, or by email at prospectus.cpdg@db.com; or MUFG Securities Americas Inc. at 1221 Avenue of the Americas, 6th Floor, New York, NY 10020, Attention: Capital Markets Group, or via phone at 1-212 405-7440, or toll-free at 1-877-649-6848.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This communication contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including a successful closing of the offering. These risks and uncertainties are more fully described in SEC reports filed by Cimarex. While Cimarex makes these forward-looking statements in good faith, management cannot guarantee that anticipated future results will be achieved. Cimarex assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law. Actual results may differ materially from Cimarex projections and can be affected by a variety of factors outside Cimarex's control, including the risks and uncertainties described in Cimarex's SEC reports.
SOURCE Cimarex Energy Co.
Article Date
4/3/2017Cimarex Launches Tender Offer for Any and All of its 5.875% Senior Notes Due 2022
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, April 3, 2017 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) ("Cimarex") today announced that it has commenced a cash tender offer to purchase any and all of its 5.875% Senior Notes due 2022 (the "2022 Notes"). As of April 3, 2017, Cimarex had $750 million aggregate principal amount of the 2022 Notes outstanding. The tender offer is being made pursuant to an Offer to Purchase and a related Letter of Transmittal, each dated as of April 3, 2017, and a Notice of Guaranteed Delivery. The tender offer will expire at 5:00 p.m., New York City time, on April 7, 2017, unless extended (the "Expiration Time"). Tendered notes may be withdrawn at any time before the Expiration Time unless extended.
Holders of notes that are validly tendered and accepted at or prior to the Expiration Time, or who deliver to the depositary and information agent a properly completed and duly executed Notice of Guaranteed Delivery and subsequently deliver such notes, each in accordance with the instructions described in the Offer to Purchase, will receive total cash consideration of $1,031.67 per $1,000 principal amount of notes, plus any accrued and unpaid interest up to, but not including, the settlement date, which is expected to occur on April 10, 2017.
The tender offer is contingent upon, among other things, Cimarex's successful completion of a proposed debt financing transaction. The tender offer is not conditioned on any minimum amount of notes being tendered. Cimarex may amend, extend or terminate the tender offer in its sole discretion, subject to applicable law. Cimarex currently intends to redeem any and all notes that are not validly tendered and purchased by Cimarex in the tender offer and that remain outstanding.
The tender offer is being made pursuant to the terms and conditions contained in the Offer to Purchase, related Letter of Transmittal and Notice of Guaranteed Delivery, copies of which may be obtained from D.F. King & Co., Inc., the information agent for the offer, by telephone at (800) 791-3320 (toll-free) or, for banks and brokers, at (212) 269-5550 or the following web address: www.dfking.com/xec.
Persons with questions regarding the tender offer should contact the following dealer managers: J.P. Morgan Securities LLC, by telephone at (866) 834-4666 (U.S. toll-free) or (212) 834-3424 (call collect); or Wells Fargo Securities, LLC, by telephone at (866) 309-6316 (U.S. toll-free) or (704) 410-4760 (call collect).
This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. This announcement is not a solicitation of tenders with respect to the 2022 Notes and shall not constitute a notice of redemption under the indenture governing the 2022 Notes.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This communication contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the consummation of the proposed transactions described above. These risks and uncertainties are more fully described in SEC reports filed by Cimarex. While Cimarex makes these forward-looking statements in good faith, management cannot guarantee that anticipated future results will be achieved. Specifically, Cimarex cannot assure you that the proposed transactions (including the proposed debt financing transaction) described above will be consummated on the terms Cimarex currently contemplates, if at all. Cimarex assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law. Actual results may differ materially from Cimarex projections and can be affected by a variety of factors outside Cimarex's control, including the risks and uncertainties described in Cimarex's SEC reports. Cimarex is not responsible for any changes made to this release by wire or Internet services.
SOURCE Cimarex Energy Co.
Article Date
4/3/20172/24/2017 - Cimarex Energy Declares Quarterly Cash Dividend
Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, Feb. 24, 2017 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.08 per share. The dividend is payable on June 1, 2017, to stockholders of record on May 15, 2017.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
SOURCE Cimarex Energy Co.
Article Date
2/24/2017Cimarex Updates 2017 Capital Plans; Gives Production and Expense Guidance
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, Feb. 15, 2017 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced projected 2017 exploration and development capital of $1.1 – 1.2 billion, a 56 percent increase from 2016 levels at the midpoint. An additional $60 million is earmarked for midstream and other infrastructure. Using current strip commodity prices, the capital program at the midpoint is expected to be funded primarily with cash flow from operating activities.
For 2017, total company production is projected to average 1.06 - 1.11 billion cubic feet equivalent (Bcfe) per day, an increase of 13 percent at the midpoint from 2016 production levels with oil production expected to lead year-over-year growth and be up 22-27% percent. Fourth quarter 2017 oil production is projected to increase 30-35 percent over fourth quarter 2016 levels, with total production up 18-22 percent from fourth quarter 2016 levels. First quarter 2017 output is expected to average 1.01 – 1.05 Bcfe per day. Oil production in the first quarter is expected to increase approximately ten percent from fourth quarter 2016 levels, with natural gas and NGL production expected to increase four to five percent sequentially.
Tom Jorden, Cimarex Chairman and CEO, said, "The capital program we are releasing today anticipates investing our operating cash flow and some portion of the cash on the balance sheet. Our enviable asset base and talented group of geoscientists at Cimarex generated improved full-cycle returns for shareholders in 2016. We want to continue that trend. As our program shifts to larger pads of long-lateral wells, capital efficiencies will continue, but only with thorough evaluation, careful planning and solid execution. Our organization is ready for the challenges ahead."
Cimarex intends to invest $850 - 900 million on drilling and completion during 2017. Approximately 66 percent of the 2017 capital will be invested in the Permian region and the remainder in the Mid-Continent. Permian activities will continue to focus on holding acreage through drilling long lateral Wolfcamp wells in Culberson and Reeves counties in Texas as well as testing new concepts across our acreage and development of a portion of our Bone Spring and Avalon inventory. In the Mid-Continent, the majority of the investment is focused on the drilling and completion of wells to hold and further delineate our Meramec acreage position and to test well spacing for future development in both the Woodford and Meramec plays.
Below are the 2017 expected completions by region:
|
Quarterly D&C Capital, Well Count |
|||||
|
1Q17 |
2Q17 |
3Q17 |
4Q17 |
Total | |
|
Net completions |
|||||
|
Permian Basin |
12 |
17 |
18 |
13 |
60 |
|
Mid-Continent |
7 |
10 |
13 |
7 |
37 |
|
Total |
19 |
27 |
31 |
20 |
97 |
At year-end 2017 Cimarex estimates that 86 gross (47 net) wells will be drilling or waiting on completion. This includes 50 gross (23 net) in Mid-Continent region and 36 gross (24 net) in the Permian Basin.
Expenses for 2017 are expected to fall within the following ranges:
|
($/Mcfe) |
||
|
Production expense |
$0.60 - $0.70 | |
|
Transportation and other operating expense |
0.50 - 0.60 | |
|
DD&A and ARO accretion* |
1.25 - 1.35 | |
|
General and administrative expense |
0.20 - 0.25 | |
|
Taxes other than income (% of oil and gas revenue) *Excludes the impact of any potential ceiling test writedowns. |
5.0% - 6.0%
| |
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This communication contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including statements regarding 2016 planned capital expenditures and estimated production. These statements are based on current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are more fully described in SEC reports filed by Cimarex. While Cimarex makes these forward-looking statements in good faith, management cannot guarantee that anticipated future results will be achieved. Cimarex assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law. Actual results may differ materially from Cimarex projections and can be affected by a variety of factors outside the company's control including the risks and uncertainties described in the company's SEC reports.
SOURCE Cimarex Energy Co.
Article Date
2/15/2017Cimarex Reports Fourth-Quarter and Full-Year 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, Feb. 15, 2017 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today reported fourth quarter 2016 net income of $38.2 million, or $0.40 per share, compared to fourth quarter 2015 net loss of $630.5 million, or $6.78 per share(1). Adjusted fourth quarter net income (non-GAAP) was $56.7 million, or $0.60 per share, compared to fourth quarter 2015 adjusted net loss (non-GAAP) of $23.0 million, or $0.25 per share(1). Cash flow from operations was $169.9 million in the fourth quarter compared to $115.0 million in the fourth quarter of 2015. Adjusted cash flow from operations (non-GAAP) totaled $218.7 million in the fourth quarter, a 74 percent increase from 2015 levels(1).
For the year, Cimarex recorded a net loss of $431.0 million, or $4.62 per share. The adjusted net income (non-GAAP) for the full year was $0.70 per share(1). Cash flow from operations totaled $599.2 million in 2016 compared to $691.5 million in 2015. Adjusted cash flow from operations (non-GAAP) totaled $629.1 million in 2016, a 15 percent drop from 2015 levels(1). Revenues in 2016 totaled $1.3 billion, a 13 percent decrease from 2015. The decrease in revenues and cash flow was the result of lower production and lower product prices received. (See table of Average Realized Price by Region below.)
Total company production volumes averaged 960 million cubic feet equivalent (MMcfe) per day in the fourth quarter, down three percent from a year ago and within company guidance. For the full year, Cimarex reported daily production volumes of 963 MMcfe per day, down two percent from our 2015 average daily output of 985 MMcfe per day and within guidance.
Cimarex invested $735 million in exploration and development in 2016. This was down 16 percent from the $877 million Cimarex invested in 2015. Investments made in 2016 were funded with cash flow and cash on hand.
Proved reserves at December 31, 2016 were 2.9 trillion cubic feet equivalent (Tcfe), essentially flat with reserves reported a year ago. Proved developed reserves increased five percent to 2.3 Tcfe. Cimarex added 324.0 Bcfe through extensions and discoveries and 126.2 Bcfe through net performance revisions resulting in reserve replacement of 128 percent of 2016 production. Proved reserves are 79 percent proved developed. (See table of Proved Reserves below.)
Volatility in oil and natural gas prices had an impact on the company's financial results for both the fourth quarter and full year. In the fourth quarter, Cimarex benefited from higher prices relative to the same period a year ago. Realized oil prices averaged $44.67 per barrel, 20 percent higher than the same period a year ago. Natural gas prices were also up in the fourth quarter and averaged $2.86 per Mcf versus $2.20 a year ago. NGL prices were particularly strong in the fourth quarter averaging $18.15 per barrel up 43 percent from fourth quarter 2015. For the full year, however, realized oil prices averaged $38.30, down 12 percent from 2015. Natural gas prices averaged $2.31 per Mcf and NGL prices averaged $14.05 per barrel compared to $2.53 and $13.75, respectively, in 2015.
Total debt at December 31, 2016 consisted of $1.5 billion of long-term notes, with $750 million maturing in 2022 and $750 million maturing in 2024. Cimarex had no borrowings under its revolving credit facility and had a cash balance of $653 million. Debt was 39 percent of total capitalization (non-GAAP)(2).
Operations Update
During 2016, Cimarex participated in the drilling and completion of 153 gross (61 net) wells. We operated 73 of those wells. Total exploration and development investment was $735 million. Of the total, 59 percent was invested in Permian projects and 40 percent in the Mid-Continent.
At year-end, 93 gross (27 net) wells were drilled and awaiting completion, of which 70 gross (12 net) are in the Mid-Continent and 22 gross (14 net) in the Permian.
|
Wells Brought on Production by Region: | |||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | ||||||||||
|
December 31, |
December 31, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
Gross wells |
|||||||||||
|
Permian Basin |
11 |
13 |
48 |
85 | |||||||
|
Mid-Continent |
44 |
52 |
105 |
134 | |||||||
|
55 |
65 |
153 |
219 | ||||||||
|
Net wells |
|||||||||||
|
Permian Basin |
8 |
8 |
30 |
60 | |||||||
|
Mid-Continent |
17 |
20 |
31 |
39 | |||||||
|
25 |
28 |
61 |
99 | ||||||||
Permian Basin
Production from the Permian Basin averaged 511 MMcfe per day in the fourth quarter, a two percent decrease over fourth-quarter 2015 and a decrease of one percent sequentially. Quarterly oil volumes averaged 36,253 barrels per day, down six percent year-over-year and flat sequentially.
Cimarex completed and brought on production 11 gross (eight net) Permian Basin wells during the fourth quarter, bringing the total for 2016 to 48 gross (30 net) wells.
In Culberson County, Texas, Cimarex has completed 42 long lateral Wolfcamp wells to date including 21 in the Lower Wolfcamp and 21 in the Upper Wolfcamp. One highlight of the 2016 Permian program was the drilling and completion of five 10,000-foot lateral Upper Wolfcamp wells in Culberson County using upsized completions. These wells had an average 30-day peak initial production of 2,077 BOE per day (56 percent oil, 27 percent gas, 17 percent NGL).
Mid-Continent
Cimarex drilled and completed 105 gross (31 net) wells in the Mid-Continent area in 2016. The majority of the activity was in the Woodford and Meramec shale plays in western Oklahoma. At the end of the fourth quarter, 70 gross (12 net) wells were awaiting completion, including 28 gross (eight net) wells associated with the multi-well infill in the East Cana Core area. Mid-Continent production averaged 446 MMcfe per day for the fourth quarter of 2016 and 457 MMcfe per day for the full year.
Production by Region
Cimarex's average daily production and commodity price by region is summarized below:
|
Daily Production by Region: | ||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | |||||||||
|
December 31, |
December 31, | |||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||
|
Permian Basin |
||||||||||
|
Gas (MMcf) |
179.3 |
185.4 |
178.1 |
180.8 | ||||||
|
Oil (Bbls) |
36,253 |
38,423 |
36,018 |
43,067 | ||||||
|
NGL (Bbls) |
19,114 |
17,350 |
18,244 |
17,042 | ||||||
|
Total Equivalent (MMcfe) |
511.5 |
520.0 |
503.7 |
541.5 | ||||||
|
Mid-Continent |
||||||||||
|
Gas (MMcf) |
276.3 |
286.8 |
280.1 |
276.2 | ||||||
|
Oil (Bbls) |
9,205 |
8,490 |
8,969 |
7,523 | ||||||
|
NGL (Bbls) |
19,036 |
20,561 |
20,513 |
18,513 | ||||||
|
Total Equivalent (MMcfe) |
445.8 |
461.1 |
456.9 |
432.4 | ||||||
|
Total Company |
||||||||||
|
Gas (MMcf) |
457.2 |
475.2 |
459.6 |
463.0 | ||||||
|
Oil (Bbls) |
45,567 |
47,133 |
45,158 |
51,132 | ||||||
|
NGL (Bbls) |
38,184 |
37,964 |
38,797 |
35,789 | ||||||
|
Total Equivalent (MMcfe) |
959.7 |
985.7 |
963.4 |
984.5 | ||||||
|
Average Realized Price by Region: | ||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | |||||||||
|
December 31, |
December 31, | |||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||
|
Permian Basin |
||||||||||
|
Gas ($ per Mcf) |
2.85 |
2.24 |
2.35 |
2.55 | ||||||
|
Oil ($ per Bbl) |
44.75 |
37.64 |
38.45 |
43.58 | ||||||
|
NGL ($ per Bbl) |
15.71 |
10.97 |
12.32 |
11.94 | ||||||
|
Mid-Continent |
||||||||||
|
Gas ($ per Mcf) |
2.86 |
2.16 |
2.29 |
2.51 | ||||||
|
Oil ($ per Bbl) |
44.36 |
35.80 |
37.65 |
41.90 | ||||||
|
NGL ($ per Bbl) |
20.58 |
14.19 |
15.59 |
15.41 | ||||||
|
Total Company |
||||||||||
|
Gas ($ per Mcf) |
2.86 |
2.20 |
2.31 |
2.53 | ||||||
|
Oil ($ per Bbl) |
44.67 |
37.32 |
38.30 |
43.38 | ||||||
|
NGL ($ per Bbl) |
18.15 |
12.72 |
14.05 |
13.75 | ||||||
|
Other | |||||||
|
The following table summarizes the company's current open hedge positions: | |||||||
|
Weighted | |||||||
|
Gas: |
1Q17 |
2Q17 |
3Q17 |
4Q17 |
1Q18 |
Average | |
|
PEPL Collars (3) |
|||||||
|
Volume (MMBtu/d) |
110,000 |
110,000 |
90,000 |
60,000 |
30,000 |
80,022 | |
|
Wtd Avg Floor |
$ 2.52 |
$ 2.52 |
$ 2.61 |
$ 2.79 |
$ 2.90 |
$ 2.61 | |
|
Wtd Avg Ceiling |
$ 3.04 |
$ 3.04 |
$ 3.12 |
$ 3.22 |
$ 3.32 |
$ 3.11 | |
|
Perm EP Collars (3) |
|||||||
|
Volume (MMBtu/d) |
90,000 |
90,000 |
60,000 |
40,000 |
20,000 |
59,978 | |
|
Wtd Avg Floor |
$ 2.59 |
$ 2.59 |
$ 2.68 |
$ 2.86 |
$ 3.00 |
$ 2.67 | |
|
Wtd Avg Ceiling |
$ 3.10 |
$ 3.10 |
$ 3.16 |
$ 3.28 |
$ 3.41 |
$ 3.15 | |
|
Total Natural Gas Collars |
|||||||
|
Volume (MMBtu/d) |
200,000 |
200,000 |
150,000 |
100,000 |
50,000 |
140,000 | |
|
Oil: |
|||||||
|
WTI Collars (4) |
|||||||
|
Volume (Bbl/d) |
20,000 |
20,000 |
16,000 |
11,000 |
6,000 |
14,602 | |
|
Wtd Avg Floor |
$ 43.08 |
$ 43.08 |
$ 45.09 |
$ 46.27 |
$ 47.33 |
$ 44.36 | |
|
Wtd Avg Ceiling |
$ 52.90 |
$ 52.90 |
$ 55.50 |
$ 56.98 |
$ 59.11 |
$ 54.60 | |
|
Total Crude Oil Collars |
|||||||
|
Volume (Bbl/d) |
20,000 |
20,000 |
16,000 |
11,000 |
6,000 |
14,602 | |
Conference call and webcast
Cimarex will host a conference call tomorrow, February 16, at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To participate in the live, interactive call, please dial 866-367-3053 five minutes before the scheduled start time (international callers dial 1-412-902-4216). The replay will be available on the Cimarex website or via the Cimarex App.
Investor Presentation
For more details on Cimarex's 2016 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2016, to be filed with the SEC, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; higher than expected costs and expenses, including the availability and cost of services and materials; compliance with environmental and other regulations; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; costs and availability of third party facilities for gathering, processing, refining and transportation; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
|
(1) |
Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for a reconciliation of the GAAP measure to the non-GAAP measure. | |||
|
(2) |
Reconciliation of debt to total capitalization, which is a non-GAAP measure, is: long-term debt of $1.5 billion divided by long-term debt of $1.5 billion plus stockholders' equity of $2.3 billion. Management uses this non-GAAP measure as an indicator of the financial condition of the company and believes professional research analysts and rating agencies use this measure for similar purposes. | |||
|
(3) |
PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index and El Paso Perm is El Paso Permian Basin index both as quoted in Platt's Inside FERC. | |||
|
(4) |
WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. | |||
|
Reconciliation of Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share: | ||||||||||||
|
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net income (loss) and earnings (loss) per share to adjusted net income (loss) and adjusted earnings (loss) per share (non-GAAP) for the periods indicated. | ||||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | |||||||||||
|
December 31, |
December 31, | |||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||
|
(in thousands, except per share data) | ||||||||||||
|
Net income (loss) |
$ |
38,190 |
$ |
(630,508) |
$ |
(431,049) |
$ |
(2,408,948) | ||||
|
Impairment of oil and gas properties |
- |
965,348 |
719,142 |
3,716,883 | ||||||||
|
Mark-to-market (gain) loss on open derivative positions |
30,417 |
(9,278) |
63,186 |
(11,246) | ||||||||
|
Tax impact** |
(11,924) |
(348,598) |
(284,883) |
(1,351,395) | ||||||||
|
Adjusted net income (loss) |
$ |
56,683 |
$ |
(23,036) |
$ |
66,396 |
$ |
(54,706) | ||||
|
Diluted earnings (loss) per share* |
$ |
0.40 |
$ |
(6.78) |
$ |
(4.62) |
$ |
(25.92) | ||||
|
Adjusted diluted earnings (loss) per share* |
$ |
0.60 |
$ |
(0.25) |
$ |
0.70 |
$ |
(0.60) | ||||
|
Diluted shares attributable to common stockholders and participating securities |
95,175 |
92,992 |
95,176 |
92,992 | ||||||||
|
Adjusted net income (loss) and adjusted diluted earnings (loss) per share excludes the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP earnings because: | ||||||||||||
|
a) Management uses adjusted net income (loss) to evaluate the company's financial performance between periods and to compare the company's performance to other oil and gas exploration and production companies. | ||||||||||||
|
b) Adjusted net income (loss) is more comparable to earnings estimates provided by research analysts. | ||||||||||||
|
* |
Earnings (loss) per share are based on actual figures rather than the rounded figures presented. | |||||||||||
|
** |
The tax impact of the 2016 periods is calculated using a tax rate that excludes the effects of tax adjustments recorded in the fourth quarter primarily related to the revision of previous tax balances. | |||||||||||
|
Reconciliation of Adjusted Cash Flow from Operations: | ||||||||||||
|
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) for the periods indicated. | ||||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | |||||||||||
|
December 31, |
December 31, | |||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||
|
(in thousands) | ||||||||||||
|
Net cash provided by operating activities |
$ |
169,894 |
$ |
114,954 |
$ |
599,225 |
$ |
691,500 | ||||
|
Change in operating assets and liabilities |
48,846 |
10,772 |
29,913 |
52,082 | ||||||||
|
Adjusted cash flow from operations |
$ |
218,740 |
$ |
125,726 |
$ |
629,138 |
$ |
743,582 | ||||
|
Management uses the non-GAAP measure of adjusted cash flow from operations as a means of measuring the company's ability to fund its capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of cash flow from operating activities. Management believes this non-GAAP measure provides useful information to investors for the same reasons, and that it is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry. |
|
Proved Reserves: | ||||||||||||
|
Gas |
Oil |
NGL |
Total | |||||||||
|
(Bcf) |
(MBbls) |
(MBbls) |
(Bcfe) | |||||||||
|
December 31, 2015 |
1,517.0 |
107,798 |
124,277 |
2,909.4 | ||||||||
|
Revisions of previous estimates |
5.7 |
(4,357) |
6,670 |
19.7 | ||||||||
|
Extensions and discoveries |
123.2 |
19,419 |
14,050 |
324.0 | ||||||||
|
Purchase of reserves |
1.0 |
1 |
— |
1.0 | ||||||||
|
Production |
(168.2) |
(16,528) |
(14,200) |
(352.6) | ||||||||
|
Sale of properties |
(7.3) |
(455) |
(164) |
(11.0) | ||||||||
|
December 31, 2016 |
1,471.4 |
105,878 |
130,633 |
2,890.5 | ||||||||
|
Proved developed reserves |
||||||||||||
|
Year-end 2015 |
1,129.5 |
89,189 |
87,549 |
2,189.9 | ||||||||
|
Year-end 2016 |
1,144.7 |
92,032 |
99,176 |
2,292.0 | ||||||||
|
2016 |
2015 |
% Change |
||||||||||
|
Pre-tax PV-10 ($ in millions) ** |
$2,121.9 |
$2,279.0 |
-7% |
|||||||||
|
Standardized Measure ($ in millions) |
$1,892.6 |
$1,934.1 |
-2% |
|||||||||
|
Average prices used in Standardized Measure |
2016 |
2015 |
% Change |
|||||||||
|
Gas Price per Mcf |
$2.48 |
$2.59 |
-4% |
|||||||||
|
Oil price per barrel |
$42.75 |
$50.28 |
-15% |
|||||||||
|
NGL price per barrel |
$14.37 |
$14.41 |
0% |
|||||||||
|
** Pre-tax PV-10 is a non-GAAP financial measure. Pre-tax PV-10 is comparable to the standardized measure, which is the most directly comparable GAAP financial measure. Pre-tax PV-10 is computed on the same basis as the standardized measure but without deducting future income taxes. As of December 31, 2016 and 2015, Cimarex's discounted future income taxes were $229.3 million and $344.9 million, respectively. Cimarex's standardized measure of discounted future net cash flows was $1,892.6 million at year-end 2016 and $1,934.1 million at year-end 2015. Management uses pre-tax PV-10 as one measure of the value of the company's proved reserves and to compare relative values of proved reserves to other exploration and production companies without regard to income taxes. Management believes pre-tax PV-10 is a useful measure for comparison of proved reserve values among companies because, unlike standardized measure, it excludes future income taxes that often depend on the unique income tax characteristics of the owner of the reserves rather than on the nature, location and quality of the reserves themselves. Management further believes that professional research analysts and rating agencies use pre-tax PV-10 in similar ways. However, pre-tax PV-10 is not a substitute for the standardized measure of discounted future net cash flows. Cimarex's pre-tax PV-10 and the standardized measure of discounted future net cash flows do not purport to present the fair value of its oil and natural gas reserves. |
|
Proved Reserves by Region: | |||||||||||
|
Gas |
Oil |
NGL |
Total | ||||||||
|
(Bcf) |
(MBbls) |
(MBbls) |
(Bcfe) | ||||||||
|
Mid-Continent |
1,095.2 |
31,399 |
89,615 |
1,821.3 | |||||||
|
Permian Basin |
372.4 |
74,295 |
40,977 |
1,064.0 | |||||||
|
Other |
3.8 |
184 |
41 |
5.2 | |||||||
|
1,471.4 |
105,878 |
130,633 |
2,890.5 | ||||||||
|
Oil and Gas Capitalized Expenditures: | |||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | ||||||||||
|
December 31, |
December 31, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
(in thousands) | |||||||||||
|
Acquisitions: |
|||||||||||
|
Proved |
$ |
— |
$ |
30 |
$ |
3,324 |
$ |
30 | |||
|
Unproved |
319 |
2,400 |
14,087 |
6,666 | |||||||
|
Net purchase price adjustments (*) |
60 |
350 |
(2,868) |
(11,653) | |||||||
|
379 |
2,780 |
14,543 |
(4,957) | ||||||||
|
Exploration and development: |
|||||||||||
|
Land and Seismic |
16,260 |
14,084 |
61,870 |
52,049 | |||||||
|
Exploration and development |
229,603 |
180,107 |
672,882 |
824,903 | |||||||
|
245,863 |
194,191 |
734,752 |
876,952 | ||||||||
|
Sale proceeds: |
|||||||||||
|
Proved |
(2,653) |
— |
(15,342) |
(27,804) | |||||||
|
Unproved |
(1) |
(2,819) |
(9,226) |
(15,231) | |||||||
|
Net purchase price adjustments |
180 |
291 |
(119) |
1,759 | |||||||
|
(2,474) |
(2,528) |
(24,687) |
(41,276) | ||||||||
|
$ |
243,768 |
$ |
194,443 |
$ |
724,608 |
$ |
830,719 | ||||
|
* |
The net 2015 purchase price adjustments relate to activity in prior periods. |
|
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited): | ||||||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | |||||||||||||
|
December 31, |
December 31, | |||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||
|
(in thousands, except per share data) | ||||||||||||||
|
Revenues: |
||||||||||||||
|
Oil sales |
$ |
187,277 |
$ |
161,814 |
$ |
632,934 |
$ |
809,664 | ||||||
|
Gas sales |
120,285 |
96,242 |
388,786 |
428,227 | ||||||||||
|
NGL sales |
63,743 |
44,411 |
199,498 |
179,647 | ||||||||||
|
Gas gathering and other, net |
10,850 |
8,812 |
36,127 |
35,081 | ||||||||||
|
382,155 |
311,279 |
1,257,345 |
1,452,619 | |||||||||||
|
Costs and expenses: |
||||||||||||||
|
Impairment of oil and gas properties |
— |
965,348 |
719,142 |
3,716,883 | ||||||||||
|
Depreciation, depletion, amortization and accretion |
106,363 |
161,768 |
473,764 |
788,044 | ||||||||||
|
Production |
51,111 |
77,229 |
232,002 |
299,374 | ||||||||||
|
Transportation, processing, and other operating |
51,140 |
52,717 |
190,725 |
182,362 | ||||||||||
|
Gas gathering and other |
8,308 |
9,539 |
31,785 |
38,138 | ||||||||||
|
Taxes other than income |
18,067 |
17,086 |
61,946 |
84,764 | ||||||||||
|
General and administrative |
18,462 |
24,283 |
73,901 |
74,688 | ||||||||||
|
Stock compensation |
5,741 |
4,679 |
24,523 |
19,559 | ||||||||||
|
(Gain) loss on derivative instruments, net |
32,699 |
(9,278) |
55,749 |
(11,246) | ||||||||||
|
Other operating, net |
462 |
12 |
755 |
856 | ||||||||||
|
292,353 |
1,303,383 |
1,864,292 |
5,193,422 | |||||||||||
|
Operating income (loss) |
89,802 |
(992,104) |
(606,947) |
(3,740,803) | ||||||||||
|
Other (income) and expense: |
||||||||||||||
|
Interest expense |
19,825 |
19,811 |
79,679 |
80,447 | ||||||||||
|
Amortization of deferred financing costs |
887 |
1,966 |
3,593 |
5,299 | ||||||||||
|
Capitalized interest |
(5,290) |
(5,502) |
(21,248) |
(30,589) | ||||||||||
|
Other, net |
(3,218) |
(3,762) |
(10,707) |
(13,576) | ||||||||||
|
Income (loss) before income tax |
77,598 |
(1,004,617) |
(658,264) |
(3,782,384) | ||||||||||
|
Income tax expense (benefit) |
39,408 |
(374,109) |
(227,215) |
(1,373,436) | ||||||||||
|
Net income (loss) |
$ |
38,190 |
$ |
(630,508) |
$ |
(431,049) |
$ |
(2,408,948) | ||||||
|
Earnings (loss) per share to common stockholders: |
||||||||||||||
|
Basic |
$ |
0.40 |
$ |
(6.78) |
$ |
(4.62) |
$ |
(25.92) | ||||||
|
Diluted |
$ |
0.40 |
$ |
(6.78) |
$ |
(4.62) |
$ |
(25.92) | ||||||
|
Dividends per share |
$ |
0.08 |
$ |
0.16 |
$ |
0.32 |
$ |
0.64 | ||||||
|
Shares attributable to common stockholders: |
||||||||||||||
|
Unrestricted common shares outstanding |
93,379 |
92,992 |
93,379 |
92,992 | ||||||||||
|
Diluted common shares |
93,422 |
92,992 |
93,379 |
92,992 | ||||||||||
|
Shares attributable to common stockholders and participating securities: |
||||||||||||||
|
Basic shares outstanding |
95,132 |
N/A* |
N/A* |
N/A* | ||||||||||
|
Fully diluted shares |
95,175 |
N/A* |
N/A* |
N/A* | ||||||||||
|
Comprehensive income (loss): |
||||||||||||||
|
Net income (loss) |
$ |
38,190 |
$ |
(630,508) |
$ |
(431,049) |
$ |
(2,408,948) | ||||||
|
Other comprehensive income (loss): |
||||||||||||||
|
Change in fair value of investments, net of tax |
(64) |
138 |
504 |
(661) | ||||||||||
|
Total comprehensive income (loss) |
$ |
38,126 |
$ |
(630,370) |
$ |
(430,545) |
$ |
(2,409,609) | ||||||
|
* |
Due to the net loss in the periods ended December 31, 2016 and 2015, shares of 95,132 and 94,829, respectively, which include participating securities, are not considered in the loss per share calculations. | |||||||||||||
|
Condensed Consolidated Cash Flow Statements (unaudited): | ||||||||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | |||||||||||||||
|
December 31, |
December 31, | |||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||
|
(in thousands) | ||||||||||||||||
|
Cash flows from operating activities: |
||||||||||||||||
|
Net income (loss) |
$ |
38,190 |
$ |
(630,508) |
$ |
(431,049) |
$ |
(2,408,948) | ||||||||
|
Adjustment to reconcile net income (loss) to net cash provided by operating activities: |
||||||||||||||||
|
Impairment of oil and gas properties |
— |
965,348 |
719,142 |
3,716,883 | ||||||||||||
|
Depreciation, depletion, amortization and accretion |
106,363 |
161,768 |
473,764 |
788,044 | ||||||||||||
|
Deferred income taxes |
39,408 |
(373,882) |
(226,100) |
(1,388,146) | ||||||||||||
|
Stock compensation |
5,741 |
4,679 |
24,523 |
19,559 | ||||||||||||
|
(Gain) loss on derivative instruments |
32,699 |
(9,278) |
55,749 |
(11,246) | ||||||||||||
|
Settlements on derivative instruments |
(2,281) |
— |
7,437 |
— | ||||||||||||
|
Changes in non-current assets and liabilities |
(254) |
6,887 |
3,867 |
23,230 | ||||||||||||
|
Amortization of deferred financing costs and other, net |
(1,126) |
712 |
1,805 |
4,206 | ||||||||||||
|
Changes in operating assets and liabilities: |
||||||||||||||||
|
Receivables, net |
(47,617) |
34,916 |
(49,340) |
186,699 | ||||||||||||
|
Other current assets |
(2,154) |
8,320 |
20,880 |
37,954 | ||||||||||||
|
Accounts payable and other current liabilities |
925 |
(54,008) |
(1,453) |
(276,735) | ||||||||||||
|
Net cash provided by operating activities |
169,894 |
114,954 |
599,225 |
691,500 | ||||||||||||
|
Cash flows from investing activities: |
||||||||||||||||
|
Oil and gas expenditures |
(214,444) |
(208,015) |
(699,558) |
(979,044) | ||||||||||||
|
Sales of oil and gas assets |
2,474 |
1,510 |
21,487 |
39,853 | ||||||||||||
|
Sales of other assets |
2,171 |
121 |
7,889 |
1,178 | ||||||||||||
|
Other capital expenditures |
1,785 |
(12,507) |
(22,228) |
(70,592) | ||||||||||||
|
Net cash used by investing activities |
(208,014) |
(218,891) |
(692,410) |
(1,008,605) | ||||||||||||
|
Cash flows from financing activities: |
||||||||||||||||
|
Proceeds from sale of common stock |
— |
— |
— |
752,100 | ||||||||||||
|
Financing and underwriting fees |
(100) |
(1,970) |
(101) |
(24,633) | ||||||||||||
|
Dividends paid |
(7,781) |
(15,070) |
(38,024) |
(58,281) | ||||||||||||
|
Proceeds from exercise of stock options and other |
181 |
1,047 |
4,804 |
21,439 | ||||||||||||
|
Net cash provided by (used in) financing activities |
(7,700) |
(15,993) |
(33,321) |
690,625 | ||||||||||||
|
Net change in cash and cash equivalents |
(45,820) |
(119,930) |
(126,506) |
373,520 | ||||||||||||
|
Cash and cash equivalents at beginning of period |
698,696 |
899,312 |
779,382 |
405,862 | ||||||||||||
|
Cash and cash equivalents at end of period |
$ |
652,876 |
$ |
779,382 |
$ |
652,876 |
$ |
779,382 | ||||||||
|
Condensed Consolidated Balance Sheets (unaudited): | ||||||||
|
December 31, |
December 31, | |||||||
|
2016 |
2015 | |||||||
|
Assets |
(in thousands, except share data) | |||||||
|
Current assets: |
||||||||
|
Cash and cash equivalents |
$ |
652,876 |
$ |
779,382 | ||||
|
Receivables, net |
274,597 |
225,398 | ||||||
|
Oil and gas well equipment and supplies |
33,342 |
54,579 | ||||||
|
Derivative instruments |
— |
10,745 | ||||||
|
Other current assets |
8,489 |
7,826 | ||||||
|
Total current assets |
969,304 |
1,077,930 | ||||||
|
Oil and gas properties at cost, using the full cost method of accounting: |
||||||||
|
Proved properties |
16,225,495 |
15,546,948 | ||||||
|
Unproved properties and properties under development, not being amortized |
478,277 |
440,166 | ||||||
|
16,703,772 |
15,987,114 | |||||||
|
Less – accumulated depreciation, depletion, amortization and impairment |
(13,849,701) |
(12,710,968) | ||||||
|
Net oil and gas properties |
2,854,071 |
3,276,146 | ||||||
|
Fixed assets, net |
205,465 |
230,009 | ||||||
|
Goodwill |
620,232 |
620,232 | ||||||
|
Derivative instruments |
— |
501 | ||||||
|
Other assets, net |
32,621 |
38,468 | ||||||
|
$ |
4,681,693 |
$ |
5,243,286 | |||||
|
Liabilities and Stockholders' Equity |
||||||||
|
Current liabilities: |
||||||||
|
Accounts payable |
$ |
74,486 |
$ |
66,815 | ||||
|
Accrued liabilities |
278,781 |
247,508 | ||||||
|
Derivative instruments |
49,370 |
— | ||||||
|
Revenue payable |
119,715 |
95,744 | ||||||
|
Total current liabilities |
522,352 |
410,067 | ||||||
|
Long-term debt: |
||||||||
|
Principal |
1,500,000 |
1,500,000 | ||||||
|
Less – unamortized debt issuance costs |
(12,061) |
(14,380) | ||||||
|
Long-term debt, net |
1,487,939 |
1,485,620 | ||||||
|
Deferred income taxes |
126,894 |
352,705 | ||||||
|
Other liabilities |
184,444 |
197,216 | ||||||
|
Total liabilities |
2,321,629 |
2,445,608 | ||||||
|
Commitments and contingencies |
||||||||
|
Stockholders' equity: |
||||||||
|
Preferred stock, $0.01 par value, 15,000,000 shares authorized, no shares issued |
— |
— | ||||||
|
Common stock, $0.01 par value, 200,000,000 shares authorized, 95,123,525 and 94,820,570 shares issued, respectively |
951 |
948 | ||||||
|
Paid-in capital |
2,763,452 |
2,762,976 | ||||||
|
Retained earnings (Accumulated deficit) |
(405,284) |
33,313 | ||||||
|
Accumulated other comprehensive income |
945 |
441 | ||||||
|
Total shareholders' equity |
2,360,064 |
2,797,678 | ||||||
|
$ |
4,681,693 |
$ |
5,243,286 | |||||
SOURCE Cimarex Energy Co.
Article Date
2/15/201712/22/2016 - Cimarex Schedules 2016 Fourth Quarter and Full Year Earnings Release and Conference Call
Cimarex Schedules 2016 Fourth Quarter and Full Year Earnings Release and Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, Dec. 22, 2016 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that it plans to report fourth quarter and full year 2016 financial results on Wednesday, February 15, 2017, after market close. The company will host its quarterly conference call at 11:00 AM EST on Thursday, February 16, 2017.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 1-866-367-3053 ten minutes before the scheduled start time (international callers dial 1-412-902-4216).
A replay will be available on the company's website and via the Cimarex App.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
SOURCE Cimarex Energy Co.
Article Date
12/22/201612/9/2016 - Cimarex Energy Declares Quarterly Cash Dividend
Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, Dec. 9, 2016 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.08 per share. The dividend is payable on March 1, 2017, to stockholders of record on February 15, 2017.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
SOURCE Cimarex Energy Co.
Article Date
12/9/201611/2/2016 - Cimarex Reports Third Quarter 2016 Results
Cimarex Reports Third Quarter 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, Nov. 2, 2016 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today reported third quarter 2016 operational and financial results and provided guidance for the fourth quarter and full-year 2016. Cimarex also provided initial production guidance for 2017. Highlights include:
Tom Jorden, Cimarex Chairman and CEO said, "Our confidence in our well performance, Cimarex's operational excellence and the quality of our assets remains steadfast. During the third quarter, we faced delays in our completion schedule, driven mostly by stimulations that were upsized beyond our original plans. These upsized stimulations lengthened the time required for our pad completions. The resultant production ramps slipped later into the fourth quarter, with peak production moving into first quarter 2017. We will enter 2017 with great momentum."
Cimarex reported a third quarter 2016 net loss of $12.8 million, or $0.14 per diluted share, including a non-cash impairment of oil and gas properties. The adjusted third quarter net income (non-GAAP) was $38.2 million, or $0.41 per diluted share(1). Third quarter 2016 net cash provided by operating activities was $215.6 million versus $206.0 million a year ago. Adjusted cash flow from operations (non-GAAP) was $181.9 million versus $178.6 million a year ago(1).
Total company production averaged 947 million cubic feet equivalent (MMcfe) per day during the third quarter, slightly below the low end of company guidance of 950 – 980 MMcfe per day. Lower-than-expected third quarter production was caused by several factors including higher than anticipated ethane rejection, which accounted for seven MMcfe per day, and the timing of new well completions and subsequent production as well as production shut in during completion operations (13 MMcfe per day). Natural gas production averaged 447 MMcf per day (47 percent of total), oil production averaged 44,532 barrels per day (28 percent of total) and natural gas liquids (NGL) production averaged 38,786 barrels per day (25 percent of total). Compared to the same period in 2015, year-over-year natural gas volumes decreased four percent, oil volumes decreased 11 percent and NGL volumes were up eight percent. In total, third quarter production was three percent lower than third quarter 2015 production.
Oil prices continued to negatively impact Cimarex's year-over-year quarterly financial results. Realized oil prices averaged $40.54 per barrel, down three percent versus a year ago. Natural gas prices were essentially flat year-over-year and averaged $2.66 per thousand cubic feet (Mcf) compared to $2.68 per Mcf a year ago. Higher NGL prices partially offset lower oil prices and averaged $14.14 per barrel, up 16 percent from the third quarter of 2015. (See table of Average Realized Price by Region below.)
Cimarex invested $489 million in exploration and development year-to-date, including $175 million during the third quarter, which was funded with cash flow from operations. Total debt at September 30, 2016 remained at $1.5 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $699 million at September 30, 2016. Debt was 39 percent of total capitalization (non-GAAP)(2).
Outlook
The aforementioned timing of completions continues to have an impact on our production, with first production from significant infill projects in both the Permian Basin and Mid-Continent region now projected to come on later in the fourth quarter than previously planned. As such, we have lowered our estimated fourth quarter production to 945 – 985 MMcfe per day to reflect these delays, resulting in projected average production for the full year of 960 - 970 MMcfe per day, down slightly from both our previous guidance of 980 – 1,000 MMcfe and from 2015 production of 985 MMcfe per day. Our current completion schedule moves 10 net well completions previously scheduled for the fourth quarter into early 2017 which brings the total net wells completed in 2016 to 62 from our previous expectation of 72 net wells.
Capital investment for exploration and development in 2016 is now estimated to be approximately $785 million, up $35 million from previous guidance. The increase is primarily the result of higher planned drilling activity in the fourth quarter and acreage purchases made in the third quarter. Cimarex has recently added three operated drilling rigs bringing the total gross operated rigs working in its core areas to eight with plans to increase that number to nine by yearend.
|
Expenses per Mcfe of production for the fourth quarter of 2016 are estimated to be: | ||
|
Production expense |
$0.60 - $0.70 | |
|
Transportation, processing and other expense |
0.50 - 0.60 | |
|
DD&A and ARO accretion* |
1.15 - 1.35 | |
|
General and administrative expense |
0.20 - 0.25 | |
|
Taxes other than income (% of oil and gas revenue) |
5.3 - 5.8% | |
|
*Excludes the potential impact of any future ceiling test writedown. |
||
In 2017, capital investment associated with drilling and completions is currently expected to be approximately $600 million (compared to the estimated $600 million in 2016) and is estimated to generate average production of 1,050 – 1,100 MMcfe per day in 2017.
Operations Update
Cimarex invested $175 million in exploration and development during the third quarter, bringing the year-to-date total to $489 million. Year-to-date, 61 percent has been invested in the Permian Basin and 38 percent in the Mid-Continent. Companywide, we completed 42 gross (17 net) wells during the quarter. At September 30, 104 gross (45 net) wells were waiting on completion.
|
Wells Brought on Production by Region: | |||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | ||||||||||
|
September 30, |
September 30, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
Gross wells |
|||||||||||
|
Permian Basin |
17 |
4 |
37 |
72 | |||||||
|
Mid-Continent |
25 |
52 |
61 |
82 | |||||||
|
42 |
56 |
98 |
154 | ||||||||
|
Net wells |
|||||||||||
|
Permian Basin |
10 |
4 |
22 |
52 | |||||||
|
Mid-Continent |
7 |
10 |
14 |
19 | |||||||
|
17 |
14 |
36 |
71 | ||||||||
Permian Region
Production from the Permian region averaged 517 MMcfe per day in the third quarter, an eight percent decrease compared to third quarter 2015 and a two percent increase sequentially. Quarterly oil volumes decreased 15 percent year-over-year to 35,930 barrels per day and accounted for 42 percent of the region's total production for the quarter.
Cimarex completed and brought on production 17 gross (ten net) wells in the Permian region during the third quarter. The gross operated wells completed include 13 Wolfcamp wells (ten in Culberson County and three in Reeves County) and two New Mexico Bone Spring wells.
On September 30, there were 25 gross (18 net) wells waiting on completion in the Delaware Basin including 11 gross (nine net) wells associated with multi-well infill and spacing projects that are expected to be completed in the fourth quarter of 2016. Cimarex currently is operating five drilling rigs in the Delaware Basin.
Mid-Continent
Production from the Mid-Continent region averaged 427 MMcfe per day for the third quarter, a five percent increase over third quarter 2015 and an eight percent decrease sequentially. Natural gas production grew two percent year-over-year, and crude oil volumes were up 22 percent over third quarter 2015. NGL volumes increased six percent over third quarter 2015.
During the third quarter, Cimarex completed and brought on production 25 gross (seven net) wells in the Mid-Continent. At the end of the quarter, 79 gross (27 net) wells were waiting on completion including 47 gross (22 net) wells associated with the multi-well infill in the East Cana Core. Cimarex currently is operating three drilling rigs in the Mid-Continent region with plans to go to four rigs by yearend.
|
Daily Production by Region: | ||||||||
|
For the Three Months Ended |
For the Nine Months Ended | |||||||
|
September 30, |
September 30, | |||||||
|
2016 |
2015 |
2016 |
2015 | |||||
|
Permian Basin |
||||||||
|
Gas (MMcf) |
178.4 |
197.6 |
177.7 |
179.3 | ||||
|
Oil (Bbls) |
35,930 |
42,367 |
35,939 |
44,632 | ||||
|
NGL (Bbls) |
20,549 |
18,430 |
17,952 |
16,938 | ||||
|
Total Equivalent (MMcfe) |
517.2 |
562.4 |
501.1 |
548.7 | ||||
|
Mid-Continent |
||||||||
|
Gas (MMcf) |
266.7 |
260.8 |
281.3 |
272.6 | ||||
|
Oil (Bbls) |
8,486 |
6,981 |
8,889 |
7,197 | ||||
|
NGL (Bbls) |
18,194 |
17,093 |
21,009 |
17,823 | ||||
|
Total Equivalent (MMcfe) |
426.8 |
405.3 |
460.7 |
422.7 | ||||
|
Total Company |
||||||||
|
Gas (MMcf) |
446.7 |
464.3 |
460.5 |
458.9 | ||||
|
Oil (Bbls) |
44,532 |
49,951 |
45,020 |
52,480 | ||||
|
NGL (Bbls) |
38,786 |
35,815 |
39,002 |
35,056 | ||||
|
Total Equivalent (MMcfe) |
946.6 |
978.9 |
964.6 |
984.1 | ||||
|
Average Realized Price by Region: | ||||||||
|
For the Three Months Ended |
For the Nine Months Ended | |||||||
|
September 30, |
September 30, | |||||||
|
2016 |
2015 |
2016 |
2015 | |||||
|
Permian Basin |
||||||||
|
Gas ($ per Mcf) |
2.69 |
2.75 |
2.18 |
2.66 | ||||
|
Oil ($ per Bbl) |
40.65 |
42.04 |
36.32 |
45.31 | ||||
|
NGL ($ per Bbl) |
12.49 |
10.80 |
11.11 |
12.28 | ||||
|
Mid-Continent |
||||||||
|
Gas ($ per Mcf) |
2.63 |
2.63 |
2.10 |
2.63 | ||||
|
Oil ($ per Bbl) |
40.07 |
40.74 |
35.31 |
44.32 | ||||
|
NGL ($ per Bbl) |
16.00 |
13.66 |
14.07 |
15.88 | ||||
|
Total Company |
||||||||
|
Gas ($ per Mcf) |
2.66 |
2.68 |
2.13 |
2.65 | ||||
|
Oil ($ per Bbl) |
40.54 |
41.89 |
36.13 |
45.22 | ||||
|
NGL ($ per Bbl) |
14.14 |
12.19 |
12.70 |
14.13 | ||||
|
Other | |||||||
|
The following table summarizes the company's current open hedge positions: | |||||||
|
Gas: |
4Q16 |
1Q17 |
2Q17 |
3Q17 |
4Q17 |
Total | |
|
PEPL Collars (3) |
|||||||
|
Volume (MMBtu/d) |
90,000 |
80,000 |
80,000 |
60,000 |
30,000 |
67,921 | |
|
Wtd Avg Floor |
$ 2.42 |
$ 2.38 |
$ 2.38 |
$ 2.47 |
$ 2.68 |
$ 2.43 | |
|
Wtd Avg Ceiling |
$ 2.93 |
$ 2.94 |
$ 2.94 |
$ 3.02 |
$ 3.13 |
$ 2.96 | |
|
Perm EP Collars (3) |
|||||||
|
Volume (MMBtu/d) |
70,000 |
70,000 |
70,000 |
40,000 |
20,000 |
53,895 | |
|
Wtd Avg Floor |
$ 2.47 |
$ 2.47 |
$ 2.47 |
$ 2.51 |
$ 2.73 |
$ 2.50 | |
|
Wtd Avg Ceiling |
$ 2.96 |
$ 3.01 |
$ 3.01 |
$ 3.04 |
$ 3.15 |
$ 3.01 | |
|
Total Natural Gas Collars |
|||||||
|
Volume (MMBtu/d) |
160,000 |
150,000 |
150,000 |
100,000 |
50,000 |
121,816 | |
|
Oil: |
|||||||
|
WTI Three-Way Collars (4) |
|||||||
|
Volume (Bbl/d) |
3,000 |
- |
- |
- |
- |
604 | |
|
Floor sold (put) |
$ 40.00 |
$ - |
$ - |
$ - |
$ - |
$ 40.00 | |
|
Floor purchased (put) |
$ 50.00 |
$ - |
$ - |
$ - |
$ - |
$ 50.00 | |
|
Ceiling sold (call) |
$ 60.00 |
- |
- |
- |
- |
$ 60.00 | |
|
WTI Collars (4) |
|||||||
|
Volume (Bbl/d) |
14,000 |
14,000 |
14,000 |
10,000 |
5,000 |
11,383 | |
|
Wtd Avg Floor |
$ 41.25 |
$ 41.25 |
$ 41.25 |
$ 43.75 |
$ 45.00 |
$ 42.02 | |
|
Wtd Avg Ceiling |
$ 50.24 |
$ 50.24 |
$ 50.24 |
$ 53.34 |
$ 54.42 |
$ 51.16 | |
|
Total Crude Oil Collars |
|||||||
|
Volume (Bbl/d) |
17,000 |
14,000 |
14,000 |
10,000 |
5,000 |
11,987 | |
Conference call and webcast
Cimarex will host a conference call Thursday, November 3, 2016, at 11:00 a.m. EDT. The call will be webcast and accessible on the company's website at www.cimarex.com. To participate in the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (international callers dial 1-412-902-4216). The replay will be available on the Cimarex website or via the Cimarex App.
Investor Presentation
For more details on Cimarex's third quarter 2016 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the company is providing a revised "2016 Outlook", which contains projections for certain 2016 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a description of certain risk factors and other disclosures that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including, among other things: oil, NGL and natural gas price volatility; declines in the values of our oil and gas properties resulting in impairments; costs and availability of third party facilities for gathering, processing, refining and transportation; the potential for production decline rates to be greater than expected; development drilling and testing results; performance of acquired properties and newly drilled wells; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to air quality, produced water disposal and hydraulic fracturing; higher than expected costs and expenses, including the availability and cost of services and materials; unexpected future capital expenditures; the ability to receive drilling and other permits and rights-of-way in a timely manner; economic and competitive conditions; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; compliance with environmental and other regulations; environmental liabilities; derivative and hedging activities; risks associated with operating in one major geographic area; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
_________________________________
|
(1) |
Adjusted net income (loss) and adjusted cash flow from operations are non-GAAP financial measures. See below for a reconciliation of the related amounts. |
|
(2) |
Reconciliation of debt to total capitalization, which is a non-GAAP measure, is: long-term debt of $1.5 billion divided by long-term debt of $1.5 billion plus stockholders' equity of $2.3 billion. Management believes this non-GAAP measure is useful information as it is a common statistic used in the investment community to assist with analysis of the financial condition of an entity. |
|
(3) |
PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index. Perm EP refers to El Paso Natural Gas Company, Permian Basin Index as quoted in Platt's Inside FERC. |
|
(4) |
WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. |
|
Reconciliation of Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share: | ||||||||||||
|
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net income (loss) and earnings (loss) per share to adjusted net income (loss) and adjusted earnings (loss) per share (non-GAAP) for the periods indicated | ||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | |||||||||||
|
September 30, |
September 30, | |||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||
|
(in thousands, except per share data) | ||||||||||||
|
Net income (loss) |
$ |
(12,818) |
$ |
(763,284) |
$ |
(469,239) |
$ |
(1,778,440) | ||||
|
Impairment of oil and gas properties |
89,816 |
1,180,649 |
719,142 |
2,751,535 | ||||||||
|
Mark-to-market (gain) loss on open derivative positions |
(8,967) |
(1,968) |
32,769 |
(1,968) | ||||||||
|
Tax impact |
(29,824) |
(429,755) |
(274,061) |
(1,002,802) | ||||||||
|
Adjusted net income (loss) |
$ |
38,207 |
$ |
(14,358) |
$ |
8,611 |
$ |
(31,675) | ||||
|
Diluted earnings (loss) per share* |
$ |
(0.14) |
$ |
(8.21) |
$ |
(5.04) |
$ |
(19.14) | ||||
|
Adjusted diluted earnings (loss) per share* |
$ |
0.41 |
$ |
(0.15) |
$ |
0.09 |
$ |
(0.34) | ||||
|
Adjusted net income (loss) and adjusted diluted earnings (loss) per share excludes the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP earnings because: | |
|
a) |
Management uses adjusted net income (loss) to evaluate the company's operational trends and performance relative to other oil and gas exploration and production companies. |
|
b) |
Adjusted net income (loss) is more comparable to earnings estimates provided by research analysts. |
|
* |
Earnings (loss) per share are based on actual figures rather than the rounded figures presented |
|
Reconciliation of Adjusted Cash Flow from Operations: | ||||||||||||
|
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) for the periods indicated. | ||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | |||||||||||
|
September 30, |
September 30, | |||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||
|
(in thousands) | ||||||||||||
|
Net cash provided by operating activities |
$ |
215,627 |
$ |
206,001 |
$ |
429,331 |
$ |
576,546 | ||||
|
Change in operating assets and liabilities |
(33,684) |
(27,448) |
(18,933) |
41,310 | ||||||||
|
Adjusted cash flow from operations |
$ |
181,943 |
$ |
178,553 |
$ |
410,398 |
$ |
617,856 | ||||
|
Management believes that the non-GAAP measure of adjusted cash flow from operations is useful information for investors because it is used internally and is accepted by the investment community as a means of measuring the company's ability to fund its capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of cash flow from operating activities. It is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry. |
|
Oil and Gas Capitalized Expenditures: | ||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | |||||||||||
|
September 30, |
September 30, | |||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||
|
(in thousands) | ||||||||||||
|
Acquisitions: |
||||||||||||
|
Proved |
$ |
— |
$ |
— |
$ |
3,324 |
$ |
— | ||||
|
Unproved |
3,200 |
2,237 |
13,768 |
4,266 | ||||||||
|
Net purchase price adjustments (*) |
— |
2 |
(2,928) |
(12,003) | ||||||||
|
3,200 |
2,239 |
14,164 |
(7,737) | |||||||||
|
Exploration and development: |
||||||||||||
|
Land and Seismic |
16,974 |
10,000 |
45,610 |
37,965 | ||||||||
|
Exploration and development |
157,571 |
174,270 |
443,279 |
644,796 | ||||||||
|
174,545 |
184,270 |
488,889 |
682,761 | |||||||||
|
Sale proceeds: |
||||||||||||
|
Proved |
(189) |
(25,405) |
(12,689) |
(27,804) | ||||||||
|
Unproved |
(9,209) |
(6,201) |
(9,225) |
(12,412) | ||||||||
|
Net purchase price adjustments (*) |
(185) |
1,374 |
(299) |
1,468 | ||||||||
|
(9,583) |
(30,232) |
(22,213) |
(38,748) | |||||||||
|
$ |
168,162 |
$ |
156,277 |
$ |
480,840 |
$ |
636,276 | |||||
|
* |
The net purchase price adjustments relate to activity in prior periods. | |||||||||||
|
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited): | |||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | ||||||||||||
|
September 30, |
September 30, | ||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||
|
(in thousands, except per share data) | |||||||||||||
|
Revenues: |
|||||||||||||
|
Oil sales |
$ |
166,079 |
$ |
192,501 |
$ |
445,657 |
$ |
647,850 | |||||
|
Gas sales |
109,278 |
114,649 |
268,501 |
331,985 | |||||||||
|
NGL sales |
50,464 |
40,159 |
135,755 |
135,236 | |||||||||
|
Gas gathering and other, net |
9,896 |
8,746 |
25,277 |
26,269 | |||||||||
|
335,717 |
356,055 |
875,190 |
1,141,340 | ||||||||||
|
Costs and expenses: |
|||||||||||||
|
Impairment of oil and gas properties |
89,816 |
1,180,649 |
719,142 |
2,751,535 | |||||||||
|
Depreciation, depletion, amortization and accretion |
111,377 |
188,269 |
367,401 |
626,276 | |||||||||
|
Production |
52,976 |
69,334 |
180,891 |
222,145 | |||||||||
|
Transportation, processing, and other operating |
48,706 |
46,290 |
139,585 |
129,645 | |||||||||
|
Gas gathering and other |
7,905 |
8,429 |
23,477 |
28,599 | |||||||||
|
Taxes other than income |
15,974 |
19,717 |
43,879 |
67,678 | |||||||||
|
General and administrative |
20,118 |
20,413 |
55,439 |
50,405 | |||||||||
|
Stock compensation |
5,764 |
4,737 |
18,782 |
14,880 | |||||||||
|
(Gain) loss on derivative instruments, net |
(9,758) |
(1,968) |
23,050 |
(1,968) | |||||||||
|
Other operating, net |
179 |
60 |
293 |
844 | |||||||||
|
343,057 |
1,535,930 |
1,571,939 |
3,890,039 | ||||||||||
|
Operating income (loss) |
(7,340) |
(1,179,875) |
(696,749) |
(2,748,699) | |||||||||
|
Other (income) and expense: |
|||||||||||||
|
Interest expense |
20,037 |
20,313 |
59,854 |
60,636 | |||||||||
|
Amortization of deferred financing costs |
894 |
1,103 |
2,706 |
3,333 | |||||||||
|
Capitalized interest |
(5,421) |
(7,100) |
(15,958) |
(25,087) | |||||||||
|
Other, net |
(3,828) |
(2,375) |
(7,489) |
(9,814) | |||||||||
|
Income (loss) before income tax |
(19,022) |
(1,191,816) |
(735,862) |
(2,777,767) | |||||||||
|
Income tax expense (benefit) |
(6,204) |
(428,532) |
(266,623) |
(999,327) | |||||||||
|
Net income (loss) |
$ |
(12,818) |
$ |
(763,284) |
$ |
(469,239) |
$ |
(1,778,440) | |||||
|
Earnings (loss) per share to common stockholders: |
|||||||||||||
|
Basic |
$ |
(0.14) |
$ |
(8.21) |
$ |
(5.04) |
$ |
(19.14) | |||||
|
Diluted |
$ |
(0.14) |
$ |
(8.21) |
$ |
(5.04) |
$ |
(19.14) | |||||
|
Dividends per share |
$ |
0.08 |
$ |
0.16 |
$ |
0.24 |
$ |
0.48 | |||||
|
Shares attributable to common stockholders: |
|||||||||||||
|
Unrestricted common shares outstanding |
93,221 |
92,969 |
93,221 |
92,969 | |||||||||
|
Diluted common shares |
93,221 |
92,969 |
93,221 |
92,969 | |||||||||
|
Shares attributable to common stockholders and participating securities: |
|||||||||||||
|
Basic shares outstanding |
N/A* |
N/A* |
N/A* |
N/A* | |||||||||
|
Fully diluted shares |
N/A* |
N/A* |
N/A* |
N/A* | |||||||||
|
Comprehensive income (loss): |
|||||||||||||
|
Net income (loss) |
$ |
(12,818) |
$ |
(763,284) |
$ |
(469,239) |
$ |
(1,778,440) | |||||
|
Other comprehensive income (loss): |
|||||||||||||
|
Change in fair value of investments, net of tax |
287 |
(609) |
567 |
(800) | |||||||||
|
Total comprehensive income (loss) |
$ |
(12,531) |
$ |
(763,893) |
$ |
(468,672) |
$ |
(1,779,240) | |||||
|
* |
Due to the net loss in the periods ended September 30, 2016 and 2015, shares of 94,973 and 94,568, respectively, which include participating securities, are not considered in the loss per share calculations. | ||||||||||||
|
Condensed Consolidated Cash Flow Statements (unaudited): | ||||||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | |||||||||||||||
|
September 30, |
September 30, | |||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||
|
(in thousands) | ||||||||||||||||
|
Cash flows from operating activities: |
||||||||||||||||
|
Net income (loss) |
$ |
(12,818) |
$ |
(763,284) |
$ |
(469,239) |
$ |
(1,778,440) | ||||||||
|
Adjustment to reconcile net income (loss) to net cash |
||||||||||||||||
|
provided by operating activities: |
||||||||||||||||
|
Impairment of oil and gas properties |
89,816 |
1,180,649 |
719,142 |
2,751,535 | ||||||||||||
|
Depreciation, depletion, amortization and accretion |
111,377 |
188,269 |
367,401 |
626,276 | ||||||||||||
|
Deferred income taxes |
(5,089) |
(443,469) |
(265,508) |
(1,014,264) | ||||||||||||
|
Stock compensation |
5,764 |
4,737 |
18,782 |
14,880 | ||||||||||||
|
(Gain) loss on derivative instruments |
(9,758) |
(1,968) |
23,050 |
(1,968) | ||||||||||||
|
Settlements on derivative instruments |
791 |
— |
9,718 |
— | ||||||||||||
|
Changes in non-current assets and liabilities |
1,573 |
13,401 |
4,121 |
16,343 | ||||||||||||
|
Amortization of deferred financing costs |
||||||||||||||||
|
and other, net |
287 |
218 |
2,931 |
3,494 | ||||||||||||
|
Changes in operating assets and liabilities: |
||||||||||||||||
|
Receivables, net |
2,604 |
59,310 |
(1,723) |
151,783 | ||||||||||||
|
Other current assets |
5,706 |
13,513 |
23,034 |
29,634 | ||||||||||||
|
Accounts payable and other current liabilities |
25,374 |
(45,375) |
(2,378) |
(222,727) | ||||||||||||
|
Net cash provided by operating activities |
215,627 |
206,001 |
429,331 |
576,546 | ||||||||||||
|
Cash flows from investing activities: |
||||||||||||||||
|
Oil and gas expenditures |
(160,056) |
(171,807) |
(485,114) |
(771,029) | ||||||||||||
|
Sales of oil and gas assets |
6,383 |
29,827 |
19,013 |
38,343 | ||||||||||||
|
Sales of other assets |
5,494 |
340 |
5,718 |
1,057 | ||||||||||||
|
Other capital expenditures |
(6,239) |
(22,203) |
(24,013) |
(58,085) | ||||||||||||
|
Net cash used by investing activities |
(154,418) |
(163,843) |
(484,396) |
(789,714) | ||||||||||||
|
Cash flows from financing activities: |
||||||||||||||||
|
Proceeds from sale of common stock |
— |
— |
— |
752,100 | ||||||||||||
|
Financing and underwriting fees |
— |
(100) |
(1) |
(22,663) | ||||||||||||
|
Dividends paid |
(7,588) |
(15,082) |
(30,243) |
(43,211) | ||||||||||||
|
Proceeds from exercise of stock options and other |
3,336 |
15,456 |
4,623 |
20,392 | ||||||||||||
|
Net cash provided by (used in) financing activities |
(4,252) |
274 |
(25,621) |
706,618 | ||||||||||||
|
Net change in cash and cash equivalents |
56,957 |
42,432 |
(80,686) |
493,450 | ||||||||||||
|
Cash and cash equivalents at beginning of period |
641,739 |
856,880 |
779,382 |
405,862 | ||||||||||||
|
Cash and cash equivalents at end of period |
$ |
698,696 |
$ |
899,312 |
$ |
698,696 |
$ |
899,312 | ||||||||
|
Condensed Consolidated Balance Sheets (unaudited): | |||||||||||
|
September 30, |
December 31, | ||||||||||
|
2016 |
2015 | ||||||||||
|
Assets |
(in thousands, except share data) | ||||||||||
|
Current assets: |
|||||||||||
|
Cash and cash equivalents |
$ |
698,696 |
$ |
779,382 | |||||||
|
Receivables, net |
226,983 |
225,398 | |||||||||
|
Oil and gas well equipment and supplies |
34,909 |
54,579 | |||||||||
|
Derivative instruments |
1,147 |
10,745 | |||||||||
|
Other current assets |
4,768 |
7,826 | |||||||||
|
Total current assets |
966,503 |
1,077,930 | |||||||||
|
Oil and gas properties at cost, using the full cost method of accounting: |
|||||||||||
|
Proved properties |
16,013,316 |
15,546,948 | |||||||||
|
Unproved properties and properties under development, |
|||||||||||
|
not being amortized |
447,071 |
440,166 | |||||||||
|
16,460,387 |
15,987,114 | ||||||||||
|
Less – accumulated depreciation, depletion, amortization and impairment |
(13,756,311) |
(12,710,968) | |||||||||
|
Net oil and gas properties |
2,704,076 |
3,276,146 | |||||||||
|
Fixed assets, net |
214,448 |
230,009 | |||||||||
|
Goodwill |
620,232 |
620,232 | |||||||||
|
Derivative instruments |
3 |
501 | |||||||||
|
Other assets, net |
33,485 |
38,468 | |||||||||
|
$ |
4,538,747 |
$ |
5,243,286 | ||||||||
|
Liabilities and Stockholders' Equity |
|||||||||||
|
Current liabilities: |
|||||||||||
|
Accounts payable |
$ |
53,428 |
$ |
66,815 | |||||||
|
Accrued liabilities |
258,551 |
247,508 | |||||||||
|
Derivative instruments |
21,573 |
— | |||||||||
|
Revenue payable |
107,766 |
95,744 | |||||||||
|
Total current liabilities |
441,318 |
410,067 | |||||||||
|
Long-term debt: |
|||||||||||
|
Principal |
1,500,000 |
1,500,000 | |||||||||
|
Less – unamortized debt issuance costs |
(12,629) |
(14,380) | |||||||||
|
Long-term debt, net |
1,487,371 |
1,485,620 | |||||||||
|
Deferred income taxes |
87,523 |
352,705 | |||||||||
|
Other liabilities |
189,253 |
197,216 | |||||||||
|
Total liabilities |
2,205,465 |
2,445,608 | |||||||||
|
Commitments and contingencies |
|||||||||||
|
Stockholders' equity: |
|||||||||||
|
Preferred stock, $0.01 par value, 15,000,000 shares |
|||||||||||
|
authorized, no shares issued |
— |
— | |||||||||
|
Common stock, $0.01 par value, 200,000,000 shares authorized, |
|||||||||||
|
94,964,174 and 94,820,570 shares issued, respectively |
950 |
948 | |||||||||
|
Paid-in capital |
2,774,804 |
2,762,976 | |||||||||
|
Retained earnings (Accumulated deficit) |
(443,480) |
33,313 | |||||||||
|
Accumulated other comprehensive income |
1,008 |
441 | |||||||||
|
Total shareholders' equity |
2,333,282 |
2,797,678 | |||||||||
|
$ |
4,538,747 |
$ |
5,243,286 | ||||||||
SOURCE Cimarex Energy Co.
Article Date
11/2/2016Cimarex Schedules Third Quarter 2016 Earnings Release and Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, Oct. 4, 2016 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that it plans to report third quarter 2016 financial results on Wednesday, November 2, 2016, after market close. The company will host its quarterly conference call at 11:00 AM EDT on Thursday, November 3, 2016.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 1-866-367-3053 ten minutes before the scheduled start time (international callers dial 1-412-902-4216).
A replay will be available on the company's website and via the Cimarex App.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
SOURCE Cimarex Energy Co.
Article Date
10/4/20168/3/2016 - Cimarex Reports Second Quarter 2016 Results
Cimarex Reports Second Quarter 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, Aug. 3, 2016 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today reported a second quarter 2016 net loss of $270.3 million, or $2.91 per diluted share, including a non-cash impairment of oil and gas properties. The adjusted second quarter net income (non-GAAP) was $7.0 million, or $0.07 per diluted share(1). Second quarter 2016 net cash provided by operating activities was $128.6 million versus $257.4 million a year ago. Adjusted cash flow from operations (non-GAAP) was $146.9 million versus $252.4 million a year ago(1).
Total company production averaged 974 million cubic feet equivalent (MMcfe) per day during the second quarter, a five percent decrease from second quarter 2015. Year-over-year natural gas volumes decreased one percent, oil volumes decreased 21 percent and NGL volumes were up 10 percent.
Commodity prices continued to impact Cimarex's financial results for the quarter. Realized oil prices averaged $40.07 per barrel, down 21 percent versus a year ago but up 43 percent sequentially. Natural gas prices were down 27 percent year-over-year and averaged $1.82 per Mcf compared to $2.51 per Mcf. NGL prices averaged $13.93 per barrel, down five percent from the second quarter of 2015 and up 42 percent sequentially. (See table of Average Realized Price by Region below.)
Cimarex invested $314 million in exploration and development year-to-date, including $156 million during the second quarter, which was funded with cash flow from operations and cash on hand. Total debt at June 30, 2016, remained at $1.5 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $642 million. Debt was 39 percent of total capitalization(2).
2016 Outlook
Cimarex now estimates total production volumes for 2016 to average 980-1,000 MMcfe per day, up slightly from 2015 production of 985 MMcfe per day. Oil volumes are expected to be 28 percent of total volumes and gas 47 percent. Total company production for the third quarter 2016 is projected to average 950-980 MMcfe per day. Capital investment for exploration and development is now estimated to be $750 million in 2016, up from previous guidance of $650-$700 million. This additional capital will be used primarily to fund further drilling in the Meramec play and to accelerate well completions in both the Permian Basin and Mid-Continent region. As a result, the company has increased its operated rig count to five rigs for the remainder of 2016.
|
Expenses per Mcfe of production for the remainder of 2016 are estimated to be: | ||
|
Production expense |
$0.60 - $0.75 | |
|
Transportation, processing and other expense |
0.45 - 0.55 | |
|
DD&A and ARO accretion* |
1.15 - 1.35 | |
|
General and administrative expense** |
0.19 - 0.23 | |
|
Taxes other than income (% of oil and gas revenue) |
5.5 - 6.0% | |
|
*Excludes the potential impact of any future ceiling test writedown. |
||
|
**During the second quarter, a voluntary Early Retirement Incentive Program resulted in cash severance payments of $4.8 million ($0.05/Mcfe). | ||
Operations Update
Cimarex invested $156 million in exploration and development during the second quarter, bringing the total for the first half of 2016 to $314 million. We completed 34 gross (14 net) wells during the quarter. Year-to-date, 58 percent has been invested in the Permian Basin and 41 percent in the Mid-Continent. At June 30, 100 gross (46 net) wells were awaiting completion. Cimarex currently is operating five drilling rigs.
|
WELLS BROUGHT ON PRODUCTION BY REGION | ||||||||||||
|
For the Three Months Ended |
For the Six Months Ended | |||||||||||
|
June 30, |
June 30, | |||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||
|
Gross wells |
||||||||||||
|
Permian Basin |
13 |
26 |
20 |
68 | ||||||||
|
Mid-Continent |
21 |
19 |
36 |
30 | ||||||||
|
34 |
45 |
56 |
98 | |||||||||
|
Net wells |
||||||||||||
|
Permian Basin |
9 |
18 |
12 |
48 | ||||||||
|
Mid-Continent |
5 |
6 |
7 |
9 | ||||||||
|
14 |
24 |
19 |
57 | |||||||||
Permian Region
Production from the Permian region averaged 508.5 MMcfe per day in the second quarter, a 15 percent decrease over second quarter 2015. Quarterly oil volumes decreased 27 percent year-over-year to 35,338 barrels per day and accounted for 42 percent of the region's total production for the quarter.
Cimarex completed and brought on production 13 gross (nine net) wells in the Permian region during the second quarter. The 13 gross wells completed include eight Second Bone Spring wells and five Wolfcamp wells (two in Culberson area and three in Reeves County). On June 30, there were 26 gross (17 net) wells waiting on completion in the Delaware Basin including 16 gross (11 net) wells associated with multi-well infill and spacing projects that are expected to be completed in the second half of 2016. Cimarex currently is operating three drilling rigs in the Delaware Basin with plans to maintain this rig count for the remainder of 2016.
Cimarex now has 15 10,000-foot Lower Wolfcamp wells producing in Culberson County, Texas. These wells had an average 30-day initial gross peak production rate of 2,361 BOE per day (25 percent oil, 46 percent gas, 29 percent NGL). Of note in this group is the recently completed Flying Ebony 19 State A #5H, which was completed using a larger stimulation. Average 30-day gross peak production from this well was 3,127 BOE per day (23 percent oil, 47 percent gas, 30 percent NGL), which is 35 percent above the average of the previous 14 wells.
Mid-Continent
Production from the Mid-Continent averaged 463 MMcfe per day for the second quarter, a 10 percent increase over second quarter 2015 and a six percent decrease sequentially. Natural gas production grew three percent year-over-year, and crude oil volumes were up 24 percent over second quarter 2015. NGL volumes increased 23 percent over second quarter 2015.
During the second quarter, Cimarex completed and brought on production 21 gross (five net) wells in the Mid-Continent. At the end of the quarter, 74 gross (29 net) wells were waiting on completion including 62 gross (28 net) wells associated with multi-well infill and spacing projects that are expected to be completed in the second half of 2016. Cimarex now anticipates completion activities for Woodford wells in the six-section Eastern Core infill development to commence in September 2016. This was previously scheduled to commence in October.
Cimarex continues to make progress on the delineation of its 115,000 net Meramec acres. During the second quarter we completed two wells in particular that act as bookends to our acreage position. The Peterson 1H-2821X located in Blaine County, Oklahoma, in the Northwest part of our acreage, had average 30-day gross peak production of 19 MMcfe (54 percent oil, 30 percent gas, 16 percent NGL) and the Sims 1H-2017X located in Canadian County, Oklahoma, in the Southeast part of Cimarex's acreage had average 30-day gross peak production of 12.8 MMcfe (29 percent oil, 46 percent gas, 25 percent NGL).
|
DAILY PRODUCTION BY REGION | ||||||||||
|
For the Three Months Ended |
For the Six Months Ended | |||||||||
|
June 30, |
June 30, | |||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||
|
Permian Basin |
||||||||||
|
Gas (MMcf) |
181.2 |
189.4 |
177.4 |
170.0 | ||||||
|
Oil (Bbls) |
35,338 |
48,448 |
35,944 |
45,783 | ||||||
|
NGL (Bbls) |
19,219 |
19,169 |
16,639 |
16,180 | ||||||
|
Total Equivalent (MMcfe) |
508.5 |
595.1 |
492.9 |
541.8 | ||||||
|
Mid-Continent |
||||||||||
|
Gas (MMcf) |
279.1 |
270.2 |
288.7 |
278.6 | ||||||
|
Oil (Bbls) |
8,933 |
7,181 |
9,093 |
7,308 | ||||||
|
NGL (Bbls) |
21,716 |
17,633 |
22,432 |
18,194 | ||||||
|
Total Equivalent (MMcfe) |
463.0 |
419.1 |
477.9 |
431.6 | ||||||
|
Total Company |
||||||||||
|
Gas (MMcf) |
461.9 |
466.3 |
467.4 |
456.1 | ||||||
|
Oil (Bbls) |
44,424 |
56,261 |
45,267 |
53,765 | ||||||
|
NGL (Bbls) |
40,961 |
37,070 |
39,112 |
34,670 | ||||||
|
Total Equivalent (MMcfe) |
974.2 |
1,026.2 |
973.7 |
986.7 | ||||||
|
AVERAGE REALIZED PRICE BY REGION | ||||||||||
|
For the Three Months Ended |
For the Six Months Ended | |||||||||
|
June 30, |
June 30, | |||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||
|
Permian Basin |
||||||||||
|
Gas ($ per Mcf) |
1.88 |
2.50 |
1.92 |
2.61 | ||||||
|
Oil ($ per Bbl) |
40.26 |
50.69 |
34.14 |
46.85 | ||||||
|
NGL ($ per Bbl) |
11.94 |
12.88 |
10.25 |
13.13 | ||||||
|
Mid-Continent |
||||||||||
|
Gas ($ per Mcf) |
1.79 |
2.51 |
1.85 |
2.64 | ||||||
|
Oil ($ per Bbl) |
39.28 |
49.98 |
33.07 |
46.06 | ||||||
|
NGL ($ per Bbl) |
15.70 |
16.60 |
13.27 |
16.94 | ||||||
|
Total Company |
||||||||||
|
Gas ($ per Mcf) |
1.82 |
2.51 |
1.87 |
2.63 | ||||||
|
Oil ($ per Bbl) |
40.07 |
50.66 |
33.94 |
46.79 | ||||||
|
NGL ($ per Bbl) |
13.93 |
14.67 |
11.98 |
15.15 | ||||||
|
Other | |||||||
|
The following table summarizes the company's current open hedge positions: | |||||||
|
Gas: |
3Q16 |
4Q16 |
1Q17 |
2Q17 |
3Q17 |
Total | |
|
PEPL Collars (3) |
|||||||
|
Volume (MMBtu/d) |
60,000 |
60,000 |
50,000 |
50,000 |
30,000 |
50,000 | |
|
Wtd Avg Floor |
$ 2.28 |
$ 2.28 |
$ 2.20 |
$ 2.20 |
$ 2.25 |
$ 2.25 | |
|
Wtd Avg Ceiling |
$ 2.82 |
$ 2.82 |
$ 2.82 |
$ 2.82 |
$ 2.90 |
$ 2.83 | |
|
El Paso Perm Collars (3) |
|||||||
|
Volume (MMBtu/d) |
50,000 |
50,000 |
50,000 |
50,000 |
20,000 |
43,961 | |
|
Wtd Avg Floor |
$ 2.37 |
$ 2.37 |
$ 2.37 |
$ 2.37 |
$ 2.30 |
$ 2.36 | |
|
Wtd Avg Ceiling |
$ 2.89 |
$ 2.89 |
$ 2.95 |
$ 2.95 |
$ 2.93 |
$ 2.92 | |
|
Total Natural Gas Collars |
|||||||
|
Volume (MMBtu/d) |
110,000 |
110,000 |
100,000 |
100,000 |
50,000 |
93,961 | |
|
Oil: |
|||||||
|
WTI Three-Way Collars (4) |
|||||||
|
Volume (Bbl/d) |
3,000 |
3,000 |
- |
- |
- |
1,208 | |
|
Floor sold (put) |
$ 40.00 |
$ 40.00 |
$ - |
$ - |
$ - |
$ 40.00 | |
|
Floor purchased (put) |
$ 50.00 |
$ 50.00 |
$ - |
$ - |
$ - |
$ 50.00 | |
|
Ceiling sold (call) |
$ 60.00 |
$ 60.00 |
- |
- |
- |
$ 60.00 | |
|
WTI Collars (4) |
|||||||
|
Volume (Bbl/d) |
9,000 |
9,000 |
9,000 |
9,000 |
5,000 |
8,195 | |
|
Wtd Avg Floor |
$ 39.17 |
$ 39.17 |
$ 39.17 |
$ 39.17 |
$ 42.50 |
$ 39.58 | |
|
Wtd Avg Ceiling |
$ 47.92 |
$ 47.92 |
$ 47.92 |
$ 47.92 |
$ 52.26 |
$ 48.45 | |
|
Total Crude Oil Collars |
|||||||
|
Volume (Bbl/d) |
12,000 |
12,000 |
9,000 |
9,000 |
5,000 |
9,403 | |
Conference call and webcast
Cimarex will host a conference call Thursday, August 4, at 11:00 a.m. EDT. The call will be webcast and accessible on the company's website at www.cimarex.com. To participate in the live, interactive call, please dial 866-367-3053 five minutes before the scheduled start time (international callers dial 1-412-902-4216). The replay will be available on the Cimarex website or via the Cimarex App.
Investor Presentation
For more details on Cimarex's second quarter 2016 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the company is providing a revised "2016 Outlook", which contains projections for certain 2016 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including, among other things: oil, NGL and natural gas price volatility; declines in the values of our oil and gas properties resulting in impairments; costs and availability of third party facilities for gathering, processing, refining and transportation; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to air quality, produced water disposal and hydraulic fracturing; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; higher than expected costs and expenses, including the availability and cost of services and materials; unexpected future capital expenditures; economic and competitive conditions; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; compliance with environmental and other regulations; derivative and hedging activities; risks associated with operating in one major geographic area; the success of the company's risk management activities; title to properties; litigation; environmental liabilities; the ability to complete property sales or other transactions; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
_______________________________
|
(1) |
Adjusted net income (loss) and adjusted cash flow from operations are non-GAAP financial measures. See below for a reconciliation of the related amounts. |
|
(2) |
Reconciliation of debt to total capitalization, which is a non-GAAP measure, is: long-term debt of $1.5 billion divided by long-term debt of $1.5 billion plus stockholders' equity of $2.3 billion. Management believes this non-GAAP measure is useful information as it is a common statistic used in the investment community to assist with analysis of the financial condition of an entity. |
|
(3) |
PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index. |
|
(4) |
WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. |
|
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED EARNINGS (LOSS) PER SHARE | ||||||||||||
|
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net income (loss) and earnings (loss) per share to adjusted net income (loss) and adjusted earnings (loss) per share (non-GAAP) for the periods indicated. | ||||||||||||
|
For the Three Months Ended June 30, |
For the ThreeSix Ended June 30, | |||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||
|
(in thousands, net of tax, except per share data) | ||||||||||||
|
Net income (loss) |
$ |
(270,290) |
$ |
(600,215) |
$ |
(456,421) |
$ |
(1,015,156) | ||||
|
Impairment of oil and gas properties |
399,194 |
967,287 |
629,326 |
1,570,886 | ||||||||
|
Mark-to-market loss on open derivative positions |
37,095 |
— |
41,735 |
— | ||||||||
|
Tax impact |
(159,011) |
(352,673) |
(244,602) |
(573,047) | ||||||||
|
Adjusted net income (loss) |
$ |
6,988 |
$ |
14,399 |
$ |
(29,962) |
$ |
(17,317) | ||||
|
Diluted earnings (loss) per share* |
$ |
(2.91) |
$ |
(6.47) |
$ |
(4.91) |
$ |
(10.94) | ||||
|
Adjusted diluted earnings (loss) per share* |
$ |
0.07 |
$ |
0.15 |
$ |
(0.33) |
$ |
(0.19) | ||||
|
Adjusted net income (loss) and adjusted diluted earnings (loss) per share excludes the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP earnings because: | ||||||||||||
|
a) |
Management uses adjusted net income (loss) to evaluate the company's operational trends and performance relative to other oil and gas exploration and production companies. | |||||||||||
|
b) |
Adjusted net income (loss) is more comparable to earnings estimates provided by research analysts. | |||||||||||
|
* |
Earnings (loss) per share are based on actual figures rather than the rounded figures presented | |||||||||||
|
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS | ||||||||||||
|
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) for the periods indicated. | ||||||||||||
|
For the Three Months Ended |
For the Six Months Ended | |||||||||||
|
June 30, |
June 30, | |||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||
|
(in thousands) | ||||||||||||
|
Net cash provided by operating activities |
$ |
128,644 |
$ |
257,372 |
$ |
213,704 |
$ |
370,545 | ||||
|
Change in operating assets and liabilities |
18,220 |
(5,014) |
14,751 |
68,758 | ||||||||
|
Adjusted cash flow from operations |
$ |
146,864 |
$ |
252,358 |
$ |
228,455 |
$ |
439,303 | ||||
|
Management believes that the non-GAAP measure of adjusted cash flow from operations is useful information for investors because it is used internally and is accepted by the investment community as a means of measuring the company's ability to fund its capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of cash flow from operating activities. It is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry. | ||||||||||||
|
OIL AND GAS CAPITALIZED EXPENDITURES | |||||||||||
|
For the Three Months Ended |
For the Six Months Ended | ||||||||||
|
June 30, |
June 30, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
(in thousands) | |||||||||||
|
Acquisitions: |
|||||||||||
|
Proved |
$ |
— |
$ |
— |
$ |
3,324 |
$ |
— | |||
|
Unproved |
— |
160 |
10,568 |
2,029 | |||||||
|
Net purchase price adjustments (*) |
34 |
(12,035) |
(2,928) |
(12,005) | |||||||
|
34 |
(11,875) |
10,964 |
(9,976) | ||||||||
|
Exploration and development: |
|||||||||||
|
Land and Seismic |
17,474 |
5,275 |
28,636 |
27,965 | |||||||
|
Exploration and development |
138,686 |
184,999 |
285,708 |
470,526 | |||||||
|
156,160 |
190,274 |
314,344 |
498,491 | ||||||||
|
Sale proceeds: |
|||||||||||
|
Proved |
— |
(1,129) |
(12,500) |
(2,399) | |||||||
|
Unproved |
(16) |
(6,211) |
(16) |
(6,211) | |||||||
|
Net purchase price adjustments (*) |
357 |
(31) |
(114) |
94 | |||||||
|
341 |
(7,371) |
(12,630) |
(8,516) | ||||||||
|
$ |
156,535 |
$ |
171,028 |
$ |
312,678 |
$ |
479,999 | ||||
|
* |
The net purchase price adjustments relate to activity in prior periods. | |||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||
|
For the Three Months Ended |
For the Six Months Ended | ||||||||||||||||
|
June 30, |
June 30, | ||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||||
|
(in thousands, except per share data) | |||||||||||||||||
|
Revenues: |
|||||||||||||||||
|
Oil sales |
$ |
162,005 |
$ |
259,344 |
$ |
279,578 |
$ |
455,349 | |||||||||
|
Gas sales |
76,615 |
106,374 |
159,223 |
217,336 | |||||||||||||
|
NGL sales |
51,939 |
49,477 |
85,291 |
95,077 | |||||||||||||
|
Gas gathering and other, net |
8,314 |
9,088 |
15,381 |
17,523 | |||||||||||||
|
298,873 |
424,283 |
539,473 |
785,285 | ||||||||||||||
|
Costs and expenses: |
|||||||||||||||||
|
Impairment of oil and gas properties |
399,194 |
967,287 |
629,326 |
1,570,886 | |||||||||||||
|
Depreciation, depletion, amortization and accretion |
125,627 |
219,493 |
256,024 |
438,007 | |||||||||||||
|
Production |
57,213 |
70,600 |
127,915 |
152,811 | |||||||||||||
|
Transportation, processing, and other operating |
44,436 |
43,713 |
90,879 |
83,355 | |||||||||||||
|
Gas gathering and other |
7,492 |
11,306 |
15,572 |
20,170 | |||||||||||||
|
Taxes other than income |
14,066 |
25,980 |
27,905 |
47,961 | |||||||||||||
|
General and administrative |
21,424 |
14,054 |
35,321 |
29,992 | |||||||||||||
|
Stock compensation |
7,490 |
4,988 |
13,018 |
10,143 | |||||||||||||
|
(Gain) loss on derivative instruments, net |
33,236 |
— |
32,808 |
— | |||||||||||||
|
Other operating, net |
24 |
260 |
114 |
784 | |||||||||||||
|
710,202 |
1,357,681 |
1,228,882 |
2,354,109 | ||||||||||||||
|
Operating income (loss) |
(411,329) |
(933,398) |
(689,409) |
(1,568,824) | |||||||||||||
|
Other (income) and expense: |
|||||||||||||||||
|
Interest expense |
19,922 |
20,186 |
39,817 |
40,323 | |||||||||||||
|
Amortization of deferred financing costs |
902 |
1,111 |
1,812 |
2,230 | |||||||||||||
|
Capitalized interest |
(5,633) |
(8,570) |
(10,537) |
(17,987) | |||||||||||||
|
Other, net |
(2,011) |
(3,854) |
(3,661) |
(7,439) | |||||||||||||
|
Income (loss) before income tax |
(424,509) |
(942,271) |
(716,840) |
(1,585,951) | |||||||||||||
|
Income tax expense (benefit) |
(154,219) |
(342,056) |
(260,419) |
(570,795) | |||||||||||||
|
Net income (loss) |
$ |
(270,290) |
$ |
(600,215) |
$ |
(456,421) |
$ |
(1,015,156) | |||||||||
|
Earnings (loss) per share to common stockholders: |
|||||||||||||||||
|
Basic |
$ |
(2.91) |
$ |
(6.47) |
$ |
(4.91) |
$ |
(10.94) | |||||||||
|
Diluted |
$ |
(2.91) |
$ |
(6.47) |
$ |
(4.91) |
$ |
(10.94) | |||||||||
|
Dividends per share |
$ |
0.08 |
$ |
0.16 |
$ |
0.16 |
$ |
0.32 | |||||||||
|
Shares attributable to common stockholders: |
|||||||||||||||||
|
Unrestricted common shares outstanding |
93,075 |
92,831 |
93,075 |
92,831 | |||||||||||||
|
Diluted common shares |
93,075 |
92,831 |
93,075 |
92,831 | |||||||||||||
|
Shares attributable to common stockholders and participating securities: |
|||||||||||||||||
|
Basic shares outstanding |
N/A* |
N/A* |
N/A* |
N/A* | |||||||||||||
|
Fully diluted shares |
N/A* |
N/A* |
N/A* |
N/A* | |||||||||||||
|
Comprehensive income (loss): |
|||||||||||||||||
|
Net income (loss) |
$ |
(270,290) |
$ |
(600,215) |
$ |
(456,421) |
$ |
(1,015,156) | |||||||||
|
Other comprehensive income (loss): |
|||||||||||||||||
|
Change in fair value of investments, net of tax |
195 |
(292) |
280 |
(190) | |||||||||||||
|
Total comprehensive income (loss) |
$ |
(270,095) |
$ |
(600,507) |
$ |
(456,141) |
$ |
(1,015,346) | |||||||||
|
* |
Due to the net loss in the periods ended June 30, 2016 and 2015, shares of 94,996 and 94,465, respectively, which include participating securities, are not considered in the loss per share calculations. | ||||||||||||||||
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited) | |||||||||||||||||
|
For the Three Months Ended |
For the Six Months Ended | ||||||||||||||||
|
June 30, |
June 30, | ||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||||
|
(in thousands) | |||||||||||||||||
|
Cash flows from operating activities: |
|||||||||||||||||
|
Net income (loss) |
$(270,290) |
$(600,215) |
$(456,421) |
$(1,015,156) | |||||||||||||
|
Adjustment to reconcile net income (loss) to net cash |
|||||||||||||||||
|
provided by operating activities: |
|||||||||||||||||
|
Impairment of oil and gas properties |
399,194 |
967,287 |
629,326 |
1,570,886 | |||||||||||||
|
Depreciation, depletion, amortization and accretion |
125,627 |
219,493 |
256,024 |
438,007 | |||||||||||||
|
Deferred income taxes |
(154,219) |
(342,056) |
(260,419) |
(570,795) | |||||||||||||
|
Stock compensation |
7,490 |
4,988 |
13,018 |
10,143 | |||||||||||||
|
(Gain) loss on derivative instruments |
33,236 |
— |
32,808 |
— | |||||||||||||
|
Settlements on derivative instruments |
3,859 |
— |
8,927 |
— | |||||||||||||
|
Changes in non-current assets and liabilities |
685 |
1,896 |
2,548 |
2,942 | |||||||||||||
|
Amortization of deferred financing costs |
|||||||||||||||||
|
and other, net |
1,282 |
965 |
2,644 |
3,276 | |||||||||||||
|
Changes in operating assets and liabilities: |
|||||||||||||||||
|
Receivables, net |
(37,474) |
20,076 |
(4,327) |
92,473 | |||||||||||||
|
Other current assets |
5,346 |
6,227 |
17,328 |
16,121 | |||||||||||||
|
Accounts payable and other current liabilities |
13,908 |
(21,289) |
(27,752) |
(177,352) | |||||||||||||
|
Net cash provided by operating activities |
128,644 |
257,372 |
213,704 |
370,545 | |||||||||||||
|
Cash flows from investing activities: |
|||||||||||||||||
|
Oil and gas expenditures |
(148,663) |
(228,116) |
(325,058) |
(599,222) | |||||||||||||
|
Sales of oil and gas assets and other assets |
(205) |
8,053 |
12,854 |
9,233 | |||||||||||||
|
Other capital expenditures |
(8,297) |
(17,034) |
(17,774) |
(35,882) | |||||||||||||
|
Net cash used by investing activities |
(157,165) |
(237,097) |
(329,978) |
(625,871) | |||||||||||||
|
Cash flows from financing activities: |
|||||||||||||||||
|
Proceeds from sale of common stock |
— |
752,100 |
— |
752,100 | |||||||||||||
|
Financing and underwriting fees |
— |
(22,563) |
(1) |
(22,563) | |||||||||||||
|
Dividends paid |
(7,551) |
(14,182) |
(22,655) |
(28,129) | |||||||||||||
|
Proceeds from exercise of stock options and other |
1,172 |
318 |
1,287 |
4,936 | |||||||||||||
|
Net cash provided by (used in) financing activities |
(6,379) |
715,673 |
(21,369) |
706,344 | |||||||||||||
|
Net change in cash and cash equivalents |
(34,900) |
735,948 |
(137,643) |
451,018 | |||||||||||||
|
Cash and cash equivalents at beginning of period |
676,639 |
120,932 |
779,382 |
405,862 | |||||||||||||
|
Cash and cash equivalents at end of period |
$641,739 |
$856,880 |
$641,739 |
$856,880 | |||||||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||||||
|
June 30, |
December 31, | ||||||||||
|
2016 |
2015 | ||||||||||
|
Assets |
(in thousands, except share data) | ||||||||||
|
Current assets: |
|||||||||||
|
Cash and cash equivalents |
$ |
641,739 |
$ |
779,382 | |||||||
|
Receivables, net |
229,634 |
225,398 | |||||||||
|
Oil and gas well equipment and supplies |
37,852 |
54,579 | |||||||||
|
Derivative instruments |
1,119 |
10,745 | |||||||||
|
Other current assets |
7,263 |
7,826 | |||||||||
|
Total current assets |
917,607 |
1,077,930 | |||||||||
|
Oil and gas properties at cost, using the full cost method of accounting: |
|||||||||||
|
Proved properties |
15,845,260 |
15,546,948 | |||||||||
|
Unproved properties and properties under development, |
|||||||||||
|
not being amortized |
458,530 |
440,166 | |||||||||
|
16,303,790 |
15,987,114 | ||||||||||
|
Less – accumulated depreciation, depletion, amortization and impairment |
(13,569,032) |
(12,710,968) | |||||||||
|
Net oil and gas properties |
2,734,758 |
3,276,146 | |||||||||
|
Fixed assets, net |
224,056 |
230,009 | |||||||||
|
Goodwill |
620,232 |
620,232 | |||||||||
|
Derivative instruments |
— |
501 | |||||||||
|
Other assets, net |
35,170 |
38,468 | |||||||||
|
$ |
4,531,823 |
$ |
5,243,286 | ||||||||
|
Liabilities and Stockholders' Equity |
|||||||||||
|
Current liabilities: |
|||||||||||
|
Accounts payable |
$ |
55,564 |
$ |
66,815 | |||||||
|
Accrued liabilities |
220,154 |
247,508 | |||||||||
|
Derivative instruments |
28,399 |
— | |||||||||
|
Revenue payable |
99,209 |
95,744 | |||||||||
|
Total current liabilities |
403,326 |
410,067 | |||||||||
|
Long-term debt: |
|||||||||||
|
Principal |
1,500,000 |
1,500,000 | |||||||||
|
Less – unamortized debt issuance costs |
(13,205) |
(14,380) | |||||||||
|
Long-term debt, net |
1,486,795 |
1,485,620 | |||||||||
|
Deferred income taxes |
92,446 |
352,705 | |||||||||
|
Other liabilities |
202,454 |
197,216 | |||||||||
|
Total liabilities |
2,185,021 |
2,445,608 | |||||||||
|
Commitments and contingencies |
|||||||||||
|
Stockholders' equity: |
|||||||||||
|
Preferred stock, $0.01 par value, 15,000,000 shares |
|||||||||||
|
authorized, no shares issued |
— |
— | |||||||||
|
Common stock, $0.01 par value, 200,000,000 shares authorized, |
|||||||||||
|
94,986,852 and 94,820,570 shares issued, respectively |
950 |
948 | |||||||||
|
Paid-in capital |
2,775,805 |
2,762,976 | |||||||||
|
Retained earnings (Accumulated deficit) |
(430,674) |
33,313 | |||||||||
|
Accumulated other comprehensive income |
721 |
441 | |||||||||
|
Total shareholders' equity |
2,346,802 |
2,797,678 | |||||||||
|
$ |
4,531,823 |
$ |
5,243,286 | ||||||||
SOURCE Cimarex Energy Co.
Article Date
8/3/2016Cimarex Schedules Second Quarter 2016 Earnings Release and Conference Call
Source: PR Newswire
DENVER, July 5, 2016 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that it plans to report second quarter 2016 financial results on Wednesday, August 3, 2016, after market close. The company will host its quarterly conference call at 11:00 AM EDT on Thursday, August 4, 2016.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 1-866-367-3053 ten minutes before the scheduled start time (international callers dial 1-412-902-4216).
A replay will be available on the company's website and via the Cimarex App.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
SOURCE Cimarex Energy Co.
Article Date
7/5/20165/13/2016 - Cimarex Energy Declares Quarterly Cash Dividend
Cimarex Energy Declares Quarterly Cash Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, May 13, 2016 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.08 per share. The dividend is payable on September 1, 2016, to stockholders of record on August 15, 2016.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
SOURCE Cimarex Energy Co.
Article Date
5/13/20165/4/2016 - Cimarex Reports First Quarter 2016 Results
Cimarex Reports First Quarter 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, May 4, 2016 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today reported a first quarter 2016 net loss of $186.1 million, or $2.00 per share, primarily the result of a non-cash charge related to the impairment of oil and gas properties. The adjusted first quarter net loss was $36.9 million, or $0.40 per share(1). First quarter 2016 adjusted cash flow from operations was $81.6 million versus $186.9 million a year ago(1).
Total company production averaged 973 million cubic feet equivalent (MMcfe) per day during the first quarter, a three percent increase from first quarter 2015 and a one percent decrease sequentially. As anticipated, curtailments related to third party processing in the Permian Basin and weather negatively impacted first quarter volumes by 30 MMcfe per day.
Continued weakness in commodity prices impacted Cimarex's financial results for the quarter. Realized oil prices averaged $28.02 per barrel, down 34 percent versus a year ago and 25 percent sequentially. Realized natural gas prices were down 31 percent from first quarter 2015 and 13 percent sequentially to $1.92 per Mcf. NGL prices averaged $9.84 per barrel, down 37 percent from first quarter 2015 and down 23 percent sequentially. (See table of Average Realized Price by Region below.)
Cimarex invested $158 million in exploration and development during the first quarter which was funded with cash flow from operations and cash on hand. Total debt at March 31, 2016, consisted of $1.5 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $677 million. Debt was 36 percent of total capitalization(2).
2016 Outlook
Cimarex now estimates total production volumes for 2016 to average 940–970 MMcfe per day, a midpoint decrease of three percent over 2015 volumes. Second quarter output is expected to average 935-965 MMcfe per day.
Cimarex projects 2016 exploration and development capital of approximately $650-$700 million. The $50 million increase in capital from prior guidance is primarily related to the completion of a six-section development of Woodford wells previously scheduled for early 2017 that is now anticipated to commence in October 2016. To a lesser extent, larger completion design, more non-operated activity and carryover drilling capital from 2015 also contributed to the increase.
Expenses per Mcfe of production for the remainder of 2016 are estimated to be:
|
Production expense |
$0.80 - 0.90 | |
|
Transportation, processing and other expense |
0.45 - 0.55 | |
|
DD&A and ARO accretion* |
1.30 - 1.50 | |
|
General and administrative expense |
0.19 - 0.23 | |
|
Taxes other than income (% of oil and gas revenue) *Excludes the potential impact of any future ceiling test writedowns. |
5.5 - 6.0% |
Operations Update
Cimarex invested $158 million in exploration and development during the first quarter, 53 percent in the Permian Basin and 46 percent in the Mid-Continent. We completed 22 gross (5 net) wells during the quarter. At March 31, 2016, 93 gross (44 net) wells were awaiting completion including 27 net wells associated with multi-well infill and spacing projects that are expected be completed in the second half of 2016. Cimarex is currently operating nine drilling rigs with a reduction to four rigs planned by the end of the second quarter.
|
WELLS BROUGHT ON PRODUCTION BY REGION | |||||||
|
For the Three Months Ended |
|||||||
|
March 31, |
|||||||
|
2016 |
2015 |
||||||
|
Gross wells |
|||||||
|
Permian Basin |
7 |
42 |
|||||
|
Mid-Continent |
15 |
11 |
|||||
|
Other |
— |
— |
|||||
|
22 |
53 |
||||||
|
Net wells |
|||||||
|
Permian Basin |
3 |
30 |
|||||
|
Mid-Continent |
2 |
3 |
|||||
|
Other |
— |
— |
|||||
|
5 |
33 |
||||||
Permian Region
Production from the Permian Basin averaged 477 MMcfe per day in the first quarter, a two percent decrease from first quarter 2015 and eight percent sequentially. Quarterly oil volumes decreased 15 percent year-over-year and five percent sequentially to 36,549 barrels per day and accounted for 46 percent of the region's total production for the quarter. Natural gas production increased 15 percent year-over-year but decreased six percent sequentially. NGL production was up seven percent over first quarter 2015 and down 19 percent sequentially.
During the first quarter Cimarex completed and brought on production seven gross (three net) wells in the Permian region. There were 25 gross (16 net) wells waiting on completion on March 31.
Mid-Continent
Production from the Mid-Continent averaged 493 MMcfe per day for the first quarter, an 11 percent increase over first quarter 2015 and seven percent sequentially. Natural gas production grew four percent both year-over-year and sequentially while crude oil volumes were up 24 percent over first quarter 2015 and nine percent sequentially. NGL volumes increased 23 percent over first quarter 2015 and 13 percent sequentially.
During the first quarter Cimarex completed and brought on production 15 gross (two net) wells in the Mid-Continent. At the end of the quarter, 68 gross (28 net) wells were waiting on completion.
Production by Region
Cimarex's average daily production and commodity price by region are summarized below:
|
DAILY PRODUCTION BY REGION | |||||||
|
For the Three Months Ended |
|||||||
|
March 31, |
|||||||
|
2016 |
2015 |
||||||
|
Permian Basin |
|||||||
|
Gas (MMcf) |
173.6 |
150.4 |
|||||
|
Oil (Bbls) |
36,549 |
43,089 |
|||||
|
NGL (Bbls) |
14,059 |
13,156 |
|||||
|
Total Equivalent (MMcfe) |
477.3 |
487.8 |
|||||
|
Mid-Continent |
|||||||
|
Gas (MMcf) |
298.4 |
287.0 |
|||||
|
Oil (Bbls) |
9,253 |
7,436 |
|||||
|
NGL (Bbls) |
23,148 |
18,762 |
|||||
|
Total Equivalent (MMcfe) |
492.8 |
444.1 |
|||||
|
Total Company |
|||||||
|
Gas (MMcf) |
472.9 |
445.8 |
|||||
|
Oil (Bbls) |
46,110 |
51,241 |
|||||
|
NGL (Bbls) |
37,263 |
32,242 |
|||||
|
Total Equivalent (MMcfe) |
973.1 |
946.7 |
|||||
|
AVERAGE REALIZED PRICE BY REGION | |||||||
|
For the Three Months Ended |
|||||||
|
March 31, |
|||||||
|
2016 |
2015 |
||||||
|
Permian Basin |
|||||||
|
Gas ($ per Mcf) |
1.96 |
2.75 |
|||||
|
Oil ($ per Bbl) |
28.22 |
42.48 |
|||||
|
NGL ($ per Bbl) |
7.93 |
13.50 |
|||||
|
Mid-Continent |
|||||||
|
Gas ($ per Mcf) |
1.91 |
2.75 |
|||||
|
Oil ($ per Bbl) |
27.07 |
42.23 |
|||||
|
NGL ($ per Bbl) |
10.99 |
17.26 |
|||||
|
Total Company |
|||||||
|
Gas ($ per Mcf) |
1.92 |
2.77 |
|||||
|
Oil ($ per Bbl) |
28.02 |
42.50 |
|||||
|
NGL ($ per Bbl) |
9.84 |
15.71 |
|||||
Other
The following table summarizes the company's current open hedge positions:
|
Gas: |
2Q16 |
3Q16 |
4Q16 |
1Q17 |
2Q17 |
Total | |
|
PEPL Collars (3) |
|||||||
|
Volume (MMBtu) |
2,730,000 |
2,760,000 |
2,760,000 |
1,800,000 |
1,820,000 |
11,870,000 | |
|
Wtd Avg Floor |
$ 2.32 |
$ 2.32 |
$ 2.32 |
$ 2.13 |
$ 2.13 |
$ 2.26 | |
|
Wtd Avg Ceiling |
$ 2.75 |
$ 2.75 |
$ 2.75 |
$ 2.70 |
$ 2.70 |
$ 2.73 | |
|
El Paso Perm Collars (3) |
|||||||
|
Volume (MMBtu) |
3,030,000 |
2,760,000 |
2,760,000 |
2,700,000 |
2,730,000 |
13,980,000 | |
|
Wtd Avg Floor |
$ 2.45 |
$ 2.42 |
$ 2.42 |
$ 2.42 |
$ 2.42 |
$ 2.42 | |
|
Wtd Avg Ceiling |
$ 2.90 |
$ 2.87 |
$ 2.87 |
$ 2.97 |
$ 2.97 |
$ 2.91 | |
|
Oil: |
|||||||
|
WTI Three-Way Collars (4) |
|||||||
|
Volume (Bbl) |
273,000 |
276,000 |
276,000 |
- |
- |
825,000 | |
|
Floor sold (put) |
$ 40.00 |
$ 40.00 |
$ 40.00 |
$ - |
$ - |
$ 40.00 | |
|
Floor purchased (put) |
$ 50.00 |
$ 50.00 |
$ 50.00 |
$ - |
$ - |
$ 50.00 | |
|
Ceiling sold (call) |
$ 60.00 |
$ 60.00 |
$ 60.00 |
- |
- |
$ 60.00 | |
|
WTI Collars (4) |
|||||||
|
Volume (Bbl) |
364,000 |
368,000 |
368,000 |
360,000 |
364,000 |
1,824,000 | |
|
Wtd Avg Floor |
$ 35.00 |
$ 35.00 |
$ 35.00 |
$ 35.00 |
$ 35.00 |
$ 35.00 | |
|
Wtd Avg Ceiling |
$ 42.50 |
$ 42.50 |
$ 42.50 |
$ 42.50 |
$ 42.50 |
$ 42.50 |
Conference call and webcast
Cimarex will host a conference call tomorrow, May 5, at 11:00 a.m. EDT (9:00 a.m. MDT). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To participate in the live, interactive call, please dial 866-367-3053 five minutes before the scheduled start time (international callers dial 1-412-902-4216). The replay will be available on the Cimarex website or via the Cimarex App.
Investor Presentation
For more details on Cimarex's first quarter 2016 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the company is providing revised "2016 Outlook", which contains projections for certain 2016 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including, among other things: oil, NGL and natural gas price volatility; declines in the values of our oil and gas properties resulting in impairments; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; costs and availability of third party facilities for gathering, processing, refining and transportation; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing; higher than expected costs and expenses, including the availability and cost of services and materials; unexpected future capital expenditures; economic and competitive conditions; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; compliance with environmental and other regulations; derivative and hedging activities; risks associated with operating in one major geographic area; the success of the company's risk management activities; title to properties; litigation; environmental liabilities; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
|
(1) |
Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for reconciliations of the related amounts. | ||
|
(2) |
Reconciliation of debt to total capitalization, which is a non-GAAP measure, is: long-term debt of $1.5 billion divided by long-term debt of $1.5 billion plus stockholders' equity of $2.6 billion. | ||
|
(3) |
PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index and El Paso Perm is El Paso Permian Basin index both as quoted in Platt's Inside FERC. | ||
|
(4) |
WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. | ||
|
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) | |||||||
|
For the Three Months Ended |
|||||||
|
March 31, |
|||||||
|
2016 |
2015 |
||||||
|
(in thousands, net of tax, except per share data) |
|||||||
|
Net income (loss) |
$ |
(186,131) |
$ |
(414,941) |
|||
|
Impairment of oil and gas properties |
146,226 |
383,225 |
|||||
|
Mark-to-market loss on open derivative positions |
2,956 |
— |
|||||
|
Adjusted net income (loss) |
$ |
(36,949) |
$ |
(31,716) |
|||
|
Diluted earnings (loss) per share |
$ |
(2.00) |
$ |
(4.84) |
|||
|
Adjusted diluted earnings (loss) per share |
$ |
(0.40) |
$ |
(0.37) |
|||
|
Diluted shares attributable to common stockholders and participating securities |
93,000 |
* |
85,770 |
* | |||
|
Estimated tax rates utilized |
36.5% |
36.5% |
|||||
|
Adjusted net income (loss) and adjusted diluted earnings (loss) per share excludes the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP earnings because: |
||||||||
|
a) |
Management uses adjusted net income (loss) to evaluate the company's operational trends and performance relative to other oil and gas exploration and production companies. |
|||||||
|
b) |
Adjusted net income (loss) is more comparable to earnings estimates provided by research analysts. |
|||||||
|
* |
Participating securities and other dilutive shares are not included in the diluted share computation when a loss exists. |
|||||||
|
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS | |||||||
|
For the Three Months Ended |
|||||||
|
March 31, |
|||||||
|
2016 |
2015 |
||||||
|
(in thousands) | |||||||
|
Net cash provided by operating activities |
$ |
85,060 |
$ |
113,173 |
|||
|
Change in operating assets and liabilities |
(3,469) |
73,772 |
|||||
|
Adjusted cash flow from operations |
$ |
81,591 |
$ |
186,945 |
|||
|
Management believes that the non-GAAP measure of adjusted cash flow from operations is useful information for investors because it is used internally and is accepted by the investment community as a means of measuring the company's ability to fund its capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of cash flow from operating activities. It is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry. |
|||||||
|
OIL AND GAS CAPITALIZED EXPENDITURES | |||||||
|
For the Three Months Ended |
|||||||
|
March 31, |
|||||||
|
2016 |
2015 |
||||||
|
(in thousands) | |||||||
|
Acquisitions: |
|||||||
|
Proved |
$ |
2,584 |
$ |
30 |
|||
|
Unproved |
8,346 |
1,869 |
|||||
|
10,930 |
1,899 |
||||||
|
Exploration and development: |
|||||||
|
Land and Seismic |
11,162 |
22,690 |
|||||
|
Exploration and development |
147,022 |
285,527 |
|||||
|
158,184 |
308,217 |
||||||
|
Sale proceeds: |
|||||||
|
Proved |
(12,587) |
(1,145) |
|||||
|
Unproved |
(384) |
— |
|||||
|
(12,971) |
(1,145) |
||||||
|
$ |
156,143 |
$ |
308,971 |
||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||||
|
For the Three Months Ended | |||||||||||
|
March 31, | |||||||||||
|
2016 |
2015 | ||||||||||
|
(in thousands, except per share data) | |||||||||||
|
Revenues: |
|||||||||||
|
Oil sales |
$ |
117,573 |
$ |
196,005 | |||||||
|
Gas sales |
82,608 |
110,962 | |||||||||
|
NGL sales |
33,352 |
45,600 | |||||||||
|
Gas gathering and other, net |
7,067 |
8,435 | |||||||||
|
240,600 |
361,002 | ||||||||||
|
Costs and expenses: |
|||||||||||
|
Impairment of oil and gas properties |
230,132 |
603,599 | |||||||||
|
Depreciation, depletion, amortization and accretion |
130,397 |
218,514 | |||||||||
|
Production |
70,702 |
82,211 | |||||||||
|
Transportation, processing, and other operating |
46,443 |
39,642 | |||||||||
|
Gas gathering and other |
8,080 |
8,864 | |||||||||
|
Taxes other than income |
13,839 |
21,981 | |||||||||
|
General and administrative |
13,897 |
15,938 | |||||||||
|
Stock compensation |
5,528 |
5,155 | |||||||||
|
(Gain) loss on derivative instruments, net |
(428) |
— | |||||||||
|
Other operating, net |
90 |
524 | |||||||||
|
518,680 |
996,428 | ||||||||||
|
Operating income (loss) |
(278,080) |
(635,426) | |||||||||
|
Other (income) and expense: |
|||||||||||
|
Interest expense |
19,895 |
20,137 | |||||||||
|
Amortization of deferred financing costs |
910 |
1,119 | |||||||||
|
Capitalized interest |
(4,904) |
(9,417) | |||||||||
|
Other, net |
(1,650) |
(3,585) | |||||||||
|
Income (loss) before income tax |
(292,331) |
(643,680) | |||||||||
|
Income tax expense (benefit) |
(106,200) |
(228,739) | |||||||||
|
Net income (loss) |
$ |
(186,131) |
$ |
(414,941) | |||||||
|
Earnings (loss) per share to common stockholders: |
|||||||||||
|
Basic |
$ |
(2.00) |
$ |
(4.84) | |||||||
|
Diluted |
$ |
(2.00) |
$ |
(4.84) | |||||||
|
Dividends per share |
$ |
0.08 |
$ |
0.16 | |||||||
|
Shares attributable to common stockholders: |
|||||||||||
|
Unrestricted common shares outstanding |
93,000 |
85,770 | |||||||||
|
Diluted common shares |
93,000 |
85,770 | |||||||||
|
Shares attributable to common stockholders and participating securities: |
|||||||||||
|
Basic shares outstanding |
N/A* |
N/A* | |||||||||
|
Fully diluted shares |
N/A* |
N/A* | |||||||||
|
Comprehensive income (loss): |
|||||||||||
|
Net income (loss) |
$ |
(186,131) |
$ |
(414,941) | |||||||
|
Other comprehensive income (loss): |
|||||||||||
|
Change in fair value of investments, net of tax |
85 |
101 | |||||||||
|
Total comprehensive income (loss) |
$ |
(186,046) |
$ |
(414,840) | |||||||
|
* |
Due to the net loss in the periods ended March 31, 2016 and 2015, shares of 94,824 and 87,682, respectively, which include participating securities, are not considered in the loss per share calculations. | ||||||||||
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited) | ||||||||||||
|
For the Three Months Ended | ||||||||||||
|
March 31, | ||||||||||||
|
2016 |
2015 | |||||||||||
|
(in thousands) | ||||||||||||
|
Cash flows from operating activities: |
||||||||||||
|
Net income (loss) |
$ |
(186,131) |
$ |
(414,941) | ||||||||
|
Adjustment to reconcile net income (loss) to net cash |
||||||||||||
|
provided by operating activities: |
||||||||||||
|
Impairment of oil and gas properties |
230,132 |
603,599 | ||||||||||
|
Depreciation, depletion, amortization and accretion |
130,397 |
218,514 |
||||||||||
|
Deferred income taxes |
(106,200) |
(228,739) | ||||||||||
|
Stock compensation |
5,528 |
5,155 | ||||||||||
|
(Gain) loss on derivative instruments |
(428) |
— | ||||||||||
|
Settlements on derivative instruments |
5,068 |
— | ||||||||||
|
Changes in non-current assets and liabilities |
1,863 |
1,046 | ||||||||||
|
Amortization of deferred financing costs |
||||||||||||
|
and other, net |
1,362 |
2,311 | ||||||||||
|
Changes in operating assets and liabilities: |
||||||||||||
|
Receivables, net |
33,147 |
72,397 | ||||||||||
|
Other current assets |
11,982 |
9,894 | ||||||||||
|
Accounts payable and other current liabilities |
(41,660) |
(156,063) | ||||||||||
|
Net cash provided by operating activities |
85,060 |
113,173 | ||||||||||
|
Cash flows from investing activities: |
||||||||||||
|
Oil and gas expenditures |
(176,395) |
(371,106) | ||||||||||
|
Sales of oil and gas assets and other assets |
13,059 |
1,180 | ||||||||||
|
Other capital expenditures |
(9,477) |
(18,848) | ||||||||||
|
Net cash used by investing activities |
(172,813) |
(388,774) | ||||||||||
|
Cash flows from financing activities: |
||||||||||||
|
Dividends paid |
(15,104) |
(13,947) | ||||||||||
|
Proceeds from exercise of stock options and other |
114 |
4,618 | ||||||||||
|
Net cash used in financing activities |
(14,990) |
(9,329) | ||||||||||
|
Net change in cash and cash equivalents |
(102,743) |
(284,930) | ||||||||||
|
Cash and cash equivalents at beginning of period |
779,382 |
405,862 | ||||||||||
|
Cash and cash equivalents at end of period |
$ |
676,639 |
$ |
120,932 | ||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||||||
|
March 31, |
December 31, | ||||||||||
|
2016 |
2015 | ||||||||||
|
Assets |
(in thousands, except share data) | ||||||||||
|
Current assets: |
|||||||||||
|
Cash and cash equivalents |
$ |
676,639 |
$ |
779,382 | |||||||
|
Receivables, net |
192,160 |
225,398 | |||||||||
|
Oil and gas well equipment and supplies |
44,648 |
54,579 | |||||||||
|
Derivative instruments |
11,868 |
10,745 | |||||||||
|
Other current assets |
5,775 |
7,826 | |||||||||
|
Total current assets |
931,090 |
1,077,930 | |||||||||
|
Oil and gas properties at cost, using the full cost method of accounting: |
|||||||||||
|
Proved properties |
15,677,599 |
15,546,948 | |||||||||
|
Unproved properties and properties under development, |
|||||||||||
|
not being amortized |
466,497 |
440,166 | |||||||||
|
16,144,096 |
15,987,114 | ||||||||||
|
Less – accumulated depreciation, depletion, amortization and impairment |
(13,057,470) |
(12,710,968) | |||||||||
|
Net oil and gas properties |
3,086,626 |
3,276,146 | |||||||||
|
Fixed assets, net |
227,343 |
230,009 | |||||||||
|
Goodwill |
620,232 |
620,232 | |||||||||
|
Derivative instruments |
422 |
501 | |||||||||
|
Other assets, net |
35,548 |
38,468 | |||||||||
|
$ |
4,901,261 |
$ |
5,243,286 | ||||||||
|
Liabilities and Stockholders' Equity |
|||||||||||
|
Current liabilities: |
|||||||||||
|
Accounts payable |
$ |
39,241 |
$ |
66,815 | |||||||
|
Accrued liabilities |
229,787 |
247,508 | |||||||||
|
Derivative instruments |
3,812 |
— | |||||||||
|
Revenue payable |
84,252 |
95,744 | |||||||||
|
Total current liabilities |
357,092 |
410,067 | |||||||||
|
Long-term debt: |
|||||||||||
|
Principal |
1,500,000 |
1,500,000 | |||||||||
|
Less – unamortized debt issuance costs |
(13,789) |
(14,380) | |||||||||
|
Long-term debt, net |
1,486,211 |
1,485,620 | |||||||||
|
Deferred income taxes |
246,553 |
352,705 | |||||||||
|
Other liabilities |
197,074 |
197,216 | |||||||||
|
Total liabilities |
2,286,930 |
2,445,608 | |||||||||
|
Commitments and contingencies |
|||||||||||
|
Stockholders' equity: |
|||||||||||
|
Preferred stock, $0.01 par value, 15,000,000 shares |
|||||||||||
|
authorized, no shares issued |
— |
— | |||||||||
|
Common stock, $0.01 par value, 200,000,000 shares authorized, |
|||||||||||
|
94,815,010 and 94,820,570 shares issued, respectively |
948 |
948 | |||||||||
|
Paid-in capital |
2,773,254 |
2,762,976 | |||||||||
|
Retained earnings (Accumulated deficit) |
(160,397) |
33,313 | |||||||||
|
Accumulated other comprehensive income |
526 |
441 | |||||||||
|
2,614,331 |
2,797,678 | ||||||||||
|
$ |
4,901,261 |
$ |
5,243,286 | ||||||||
SOURCE Cimarex Energy Co.
Article Date
5/4/2016Cimarex Schedules First Quarter 2016 Earnings Release and Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, March 29, 2016 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that it plans to report first quarter 2016 financial results on Wednesday, May 4, 2016, after market close. The company will host its quarterly conference call at 11:00 AM EDT on Thursday, May 5, 2016.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 1-866-367-3053 ten minutes before the scheduled start time (international callers dial 1-412-902-4216).
A replay will be available on the company's website and via the Cimarex App.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
SOURCE Cimarex Energy Co.
Article Date
3/29/2016Cimarex Energy Declares Reduced Quarterly Cash Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, Feb. 23, 2016 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that its Board of Directors has declared a quarterly cash dividend on its common stock of $0.08 per share, an $0.08 reduction from the last declared dividend of $0.16 per share. The dividend is payable on June 1, 2016, to stockholders of record on May 13, 2016.
Tom Jorden, Cimarex Chairman and CEO said, "We believe the adjustment to our dividend is appropriate in light of the current commodity price environment. On an annualized basis, it will provide approximately $30 million of additional cash for investments that create shareholder value."
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This communication contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including statements regarding planned investments and shareholder value. These statements are based on current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are more fully described in SEC reports filed by Cimarex. While Cimarex makes these forward-looking statements in good faith, management cannot guarantee that anticipated future results will be achieved. Cimarex assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law. Actual results may differ materially from Cimarex projections and can be affected by a variety of factors outside the company's control including the risks and uncertainties described in the company's SEC reports.
SOURCE Cimarex Energy Co.
Article Date
2/23/2016Cimarex Reports Fourth-Quarter and Full-Year 2015 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, Feb. 16, 2016 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today reported a fourth quarter 2015 net loss of $630.5 million, or $6.78 per share. The adjusted fourth quarter net loss was $23.0 million, or $0.25 per share, compared to fourth-quarter 2014 adjusted net income of $76.4 million, or $0.87 per diluted share(1). For the year, Cimarex recorded a net loss of $2.4 billion, or $25.92 per share. The adjusted net loss for the full year was $0.60 per share(1). Adjusted cash flow from operations totaled $744 million in 2015, a 54 percent drop from 2014 levels(1). Revenues in 2015 totaled $1.5 billion, a 40 percent decrease from 2014. The decrease in revenues, earnings and cash flow was the result of substantially lower product prices received. (See table of Average Realized Price by Region below.)
Total company production volumes averaged 986 million cubic feet equivalent (MMcfe) per day in the fourth quarter, up four percent from a year ago. Weather and facilities disruptions negatively impacted fourth quarter production by approximately 30 MMcfe per day. For the full year, Cimarex reported daily production volumes of 985 MMcfe per day, up 13 percent from our 2014 average daily output of 869 MMcfe per day.
Cimarex invested $877 million in exploration and development in 2015. This was down significantly from the amount Cimarex invested in 2014 when E&D capital investment totaled $1.9 billion. Investments made in 2015 were funded with cash flow and cash on hand.
Proved reserves at December 31, 2015 were 2.9 trillion cubic feet equivalent (Tcfe), down seven percent year over year. Cimarex added 429 Bcfe through extensions and discoveries and had 142 Bcfe in net performance revisions. As a result, the company replaced 159 percent of 2015 production (excludes negative price and operating cost revisions of 399 Bcfe and 19 Bcfe, respectively). Proved reserves are 75 percent proved developed. Prices used for 2015 proved reserve reporting for oil, gas and NGLs were down 47 percent, 40 percent and 53 percent, respectively, from 2014. (See table of Proved Reserves below.)
Continued declines in oil and natural gas prices impacted the company's financial results for both the fourth quarter and full year. Realized oil prices averaged $37.32 per barrel in the fourth quarter and $43.38 per barrel for the full year, down 43 percent and 48 percent, versus the respective periods a year ago. In the fourth quarter, natural gas prices averaged $2.20 per Mcf and NGL prices averaged $12.72 per barrel compared to $3.95 and $25.32, respectively, in the fourth quarter of 2014. For the full year, natural gas prices averaged $2.53 per Mcf and NGL prices averaged $13.75 per barrel compared to $4.43 and $33.14, respectively, in 2014. Total debt at December 31, 2015 consisted of $1.5 billion of long-term notes, with $750 million maturing in 2022 and $750 million maturing in 2024. Cimarex had no borrowings under its revolving credit facility and had a cash balance of $779 million. Debt was 35 percent of total capitalization(2).
Operations Update
During 2015, Cimarex participated in the drilling and completion of 219 gross (99 net) wells, 123 of which we operate. Total exploration and development investment was $877 million. Of the total, 55 percent was invested in Permian projects and 45 percent in the Mid-Continent.
At year-end, 49 gross (20 net) wells were drilled and awaiting completion – 37 gross (13 net) in the Mid-Continent and 12 gross (seven net) in the Permian.
|
WELLS BROUGHT ON PRODUCTION BY REGION | |||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | ||||||||
|
December 31, |
December 31, | ||||||||
|
2015 |
2014 |
2015 |
2014 | ||||||
|
Gross wells |
|||||||||
|
Permian Basin |
13 |
54 |
85 |
171 | |||||
|
Mid-Continent |
52 |
33 |
134 |
139 | |||||
|
Other |
— |
— |
— |
2 | |||||
|
65 |
87 |
219 |
312 | ||||||
|
Net wells |
|||||||||
|
Permian Basin |
8 |
39 |
60 |
117 | |||||
|
Mid-Continent |
20 |
14 |
39 |
57 | |||||
|
Other |
— |
— |
— |
1 | |||||
|
28 |
53 |
99 |
175 | ||||||
Permian Basin
Production from the Permian Basin averaged 520 MMcfe per day in the fourth quarter, a 16 percent increase over fourth-quarter 2014 and a decrease of eight percent sequentially. Quarterly oil volumes averaged 38,423 barrels per day, flat year-over-year, and accounted for 44 percent of the region's total production for the quarter.
Cimarex completed and brought on production 13 gross (eight net) Permian Basin wells during the fourth quarter, bringing the total for 2015 to 85 gross (60 net) wells.
One highlight of the 2015 Permian program was the drilling and completion of 19 gross (13 net) New Mexico Bone Spring wells. Average 30-day gross peak production from these wells was 1,404 barrels of oil equivalent (BOE) per day (63 percent oil).
In Culberson County, Texas, Cimarex has completed 27 long lateral Wolfcamp wells to date including 18 in the Wolfcamp D (Lower Wolfcamp) and nine in the Wolfcamp A (Upper Wolfcamp). Of note were two 7,500-foot Upper Wolfcamp laterals completed during the fourth quarter using a larger stimulation. Average 30-day gross peak production from these two wells was 1,879 BOE per day (51 percent oil, 30 percent gas, 19 percent NGL).
Mid-Continent
Cimarex drilled and completed 134 gross (39 net) wells in the Mid-Continent area in 2015. The majority of the activity was in the Cana-Woodford and Meramec shale plays in western Oklahoma. At the end of the fourth quarter, 37 gross (13 net) wells were awaiting completion; 30 gross (10 net) Cana-Woodford wells and seven gross (three net) Meramec wells. Mid-Continent production averaged 461.1 MMcfe per day for the fourth quarter of 2015 and 432.4 MMcfe per day for the full year.
Cimarex completed its second 10,000-foot lateral well in the Meramec formation in the fourth quarter. Initial gross 30-day peak production from the first two long lateral Meramec wells averaged 15.0 MMcfe per day (53 percent gas, 24 percent oil, 23 percent NGL). A third Meramec long lateral is flowing back. In addition, Cimarex now has 17 5,000-foot Meramec wells on production that have an average 30-day initial peak production rate of 8.4 MMcfe per day (33 percent oil, 44 percent gas, 23 percent NGL) with oil yields ranging from 11 bbl/MMcf to 486 bbl/MMcf.
Production by Region
Cimarex's average daily production and commodity price by region is summarized below:
|
DAILY PRODUCTION BY REGION | ||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | |||||||||
|
December 31, |
December 31, | |||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||
|
Permian Basin |
||||||||||
|
Gas (MMcf) |
185.4 |
142.2 |
180.8 |
123.8 | ||||||
|
Oil (Bbls) |
38,423 |
38,246 |
43,067 |
34,390 | ||||||
|
NGL (Bbls) |
17,350 |
12,444 |
17,042 |
11,471 | ||||||
|
Total Equivalent (MMcfe) |
520.0 |
446.4 |
541.5 |
399.0 | ||||||
|
Mid-Continent |
||||||||||
|
Gas (MMcf) |
286.8 |
314.5 |
276.2 |
292.4 | ||||||
|
Oil (Bbls) |
8,490 |
7,889 |
7,523 |
7,348 | ||||||
|
NGL (Bbls) |
20,561 |
21,044 |
18,513 |
19,122 | ||||||
|
Total Equivalent (MMcfe) |
461.1 |
488.0 |
432.4 |
451.2 | ||||||
|
Total Company |
||||||||||
|
Gas (MMcf) |
475.2 |
464.6 |
463.0 |
425.0 | ||||||
|
Oil (Bbls) |
47,133 |
46,990 |
51,132 |
42,846 | ||||||
|
NGL (Bbls) |
37,964 |
33,830 |
35,789 |
31,078 | ||||||
|
Total Equivalent (MMcfe) |
985.7 |
949.5 |
984.5 |
868.6 | ||||||
|
AVERAGE REALIZED PRICE BY REGION | ||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | |||||||||
|
December 31, |
December 31, | |||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||
|
Permian Basin |
||||||||||
|
Gas ($ per Mcf) |
2.24 |
3.96 |
2.55 |
4.48 | ||||||
|
Oil ($ per Bbl) |
37.64 |
64.38 |
43.58 |
82.44 | ||||||
|
NGL ($ per Bbl) |
10.97 |
22.23 |
11.94 |
30.04 | ||||||
|
Mid-Continent |
||||||||||
|
Gas ($ per Mcf) |
2.16 |
3.94 |
2.51 |
4.42 | ||||||
|
Oil ($ per Bbl) |
35.80 |
66.91 |
41.90 |
88.23 | ||||||
|
NGL ($ per Bbl) |
14.19 |
27.18 |
15.41 |
35.03 | ||||||
|
Total Company |
||||||||||
|
Gas ($ per Mcf) |
2.20 |
3.95 |
2.53 |
4.43 | ||||||
|
Oil ($ per Bbl) |
37.32 |
64.94 |
43.38 |
83.70 | ||||||
|
NGL ($ per Bbl) |
12.72 |
25.32 |
13.75 |
33.14 | ||||||
Other
The following table summarizes the company's current open hedge positions:
|
First |
Second |
Third |
Fourth |
|||
|
Quarter |
Quarter |
Quarter |
Quarter |
Total | ||
|
Gas: |
||||||
|
2016 |
||||||
|
PEPL Collars (3) |
||||||
|
Volume (MMBtu) |
910,000 |
2,730,000 |
2,760,000 |
2,760,000 |
9,160,000 | |
|
Wtd Avg Floor |
$ 2.70 |
$ 2.32 |
$ 2.32 |
$ 2.32 |
$ 2.35 | |
|
Wtd Avg Ceiling |
$ 2.85 |
$ 2.75 |
$ 2.75 |
$ 2.75 |
$ 2.76 | |
|
El Paso Perm Collars (3) |
||||||
|
Volume (MMBtu) |
1,820,000 |
3,030,000 |
2,760,000 |
2,760,000 |
10,370,000 | |
|
Wtd Avg Floor |
$ 2.75 |
$ 2.45 |
$ 2.42 |
$ 2.42 |
$ 2.48 | |
|
Wtd Avg Ceiling |
$ 3.12 |
$ 2.90 |
$ 2.87 |
$ 2.87 |
$ 2.92 | |
|
2017 |
||||||
|
PEPL Collars (3) |
||||||
|
Volume (MMBtu) |
1,800,000 |
1,820,000 |
- |
- |
3,620,000 | |
|
Wtd Avg Floor |
$ 2.13 |
$ 2.13 |
$ - |
$ - |
$ 2.13 | |
|
Wtd Avg Ceiling |
$ 2.70 |
$ 2.70 |
$ - |
$ - |
$ 2.70 | |
|
El Paso Perm Collars(3) |
||||||
|
Volume (MMBtu) |
2,700,000 |
2,730,000 |
- |
- |
5,430,000 | |
|
Wtd Avg Floor |
$ 2.42 |
$ 2.42 |
$ - |
$ - |
$ 2.42 | |
|
Wtd Avg Ceiling |
$ 2.97 |
$ 2.97 |
$ - |
$ - |
$ 2.97 | |
|
First |
Second |
Third |
Fourth |
|||
|
Oil: |
Quarter |
Quarter |
Quarter |
Quarter |
Total | |
|
2016 |
||||||
|
WTI Oil Three-Way Collars (4) |
||||||
|
Volume (Bbl) |
273,000 |
273,000 |
276,000 |
276,000 |
1,098,000 | |
|
Floor sold (put) $ |
$ 40.00 |
$ 40.00 |
$ 40.00 |
$ 40.00 |
$ 40.00 | |
|
Floor purchased (put) $ |
$ 50.00 |
$ 50.00 |
$ 50.00 |
$ 50.00 |
$ 50.00 | |
|
Ceiling sold (call) $ |
$ 60.00 |
$ 60.00 |
$ 60.00 |
$ 60.00 |
$ 60.00 |
Conference call and webcast
Cimarex will host a conference call tomorrow, February 17, at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To participate in the live, interactive call, please dial 866-367-3053 five minutes before the scheduled start time (international callers dial 1-412-902-4216). The replay will be available on the Cimarex website or via the Cimarex App.
Investor Presentation
For more details on Cimarex's 2015 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2015, to be filed with the SEC, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including, among other things: oil, NGL and natural gas price volatility; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; costs and availability of third party facilities for gathering, processing, refining and transportation; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; higher than expected costs and expenses, including the availability and cost of services and materials; unexpected future capital expenditures; economic and competitive conditions; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; compliance with environmental and other regulations; derivative and hedging activities; risks associated with operating in one major geographic area; the success of the company's risk management activities; title to properties; litigation; environmental liabilities; the ability to complete property sales or other transactions; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
|
(1) |
Adjusted net income and adjusted cash flow from operations are non-GAAP financial measures. See below for a reconciliation of the related amounts. |
|
(2) |
Reconciliation of debt to total capitalization, which is a non-GAAP measure, is: long-term debt of $1.5 billion divided by long-term debt of $1.5 billion plus stockholders' equity of $2.8 billion. |
|
(3) |
PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index and El Paso Perm is El Paso Permian Basin index both as quoted in Platt's Inside FERC. |
|
(4) |
WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange. |
|
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) | ||||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | |||||||||||
|
December 31, |
December 31, | |||||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||||
|
(in thousands, net of tax, except per share data) | ||||||||||||
|
Net income (loss) |
$ |
(630,508) |
$ |
75,792 |
$ |
(2,408,948) |
$ |
507,204 | ||||
|
Impairment of oil and gas properties |
613,382 |
— |
2,361,406 |
— | ||||||||
|
Mark-to-market (gain) loss on open derivative positions |
(5,910) |
587 |
(7,164) |
2,440 | ||||||||
|
Gain on sale of midstream assets |
— |
— |
— |
(4,276) | ||||||||
|
Adjusted net income (loss) |
$ |
(23,036) |
$ |
76,379 |
$ |
(54,706) |
$ |
505,368 | ||||
|
Diluted earnings (loss) per share*,** |
$ |
(6.78) |
$ |
0.86 |
$ |
(25.92) |
$ |
5.78 | ||||
|
Adjusted diluted earnings (loss) per share *,** |
$ |
(0.25) |
$ |
0.87 |
$ |
(0.60) |
$ |
5.76 | ||||
|
Diluted shares attributable to common stockholders and participating securities |
92,992 |
** |
87,695 |
92,992 |
** |
87,732 | ||||||
|
Estimated tax rates utilized |
36.5% |
37.1% |
36.5% |
37.1% | ||||||||
|
Adjusted net income (loss) and adjusted diluted earnings (loss) per share excludes the noted item because management believes this item affects the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP earnings because: |
|
a) Management uses adjusted net income (loss) to evaluate the company's operational trends and performance relative to other oil and gas exploration and production companies. | |||||||||
|
b) Adjusted net income (loss) is more comparable to earnings estimates provided by research analysts. | |||||||||
|
* |
Earnings (loss) per share are based on actual figures rather than the rounded figures presented | ||||||||
|
** |
Participating securities and other dilutive shares are not included in the diluted share computation when a loss exists. | ||||||||
|
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS | |||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | ||||||||
|
December 31, |
December 31, | ||||||||
|
2015 |
2014 |
2015 |
2014 | ||||||
|
(in thousands) | |||||||||
|
Net cash provided by operating activities |
$ |
114,954 |
$ |
347,395 |
$ |
691,500 |
$ |
1,619,365 | |
|
Change in operating assets and liabilities |
10,772 |
(4,935) |
52,082 |
14,847 | |||||
|
Adjusted cash flow from operations |
$ |
125,726 |
$ |
342,460 |
$ |
743,582 |
$ |
1,634,212 | |
|
Adjusted net income (loss) and adjusted diluted earnings (loss) per share excludes the noted item because management believes this item affects the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP earnings because: |
|
a) Management uses adjusted net income (loss) to evaluate the company's operational trends and performance relative to other oil and gas exploration and production companies. | ||||||||||
|
b) Adjusted net income (loss) is more comparable to earnings estimates provided by research analysts. | ||||||||||
|
* |
Earnings (loss) per share are based on actual figures rather than the rounded figures presented | |||||||||
|
** |
Participating securities and other dilutive shares are not included in the diluted share computation when a loss exists. | |||||||||
|
Management believes that the non-GAAP measure of adjusted cash flow from operations is useful information for investors because it is used internally and is accepted by the investment community as a means of measuring the company's ability to fund its capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of cash flow from operating activities. It is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry. |
|
PROVED RESERVES | ||||||||||
|
Gas |
Oil |
NGL |
Total | |||||||
|
(Bcf) |
(MBbls) |
(MBbls) |
(Bcfe) | |||||||
|
December 31, 2014 |
1,666.7 |
118,992 |
125,273 |
3,132.3 | ||||||
|
Revisions of previous estimates |
(154.3) |
(14,632) |
(5,667) |
(276.2) | ||||||
|
Extensions and discoveries |
183.1 |
22,859 |
18,079 |
428.7 | ||||||
|
Purchase of reserves |
— |
— |
— |
— | ||||||
|
Production |
(169.0) |
(18,663) |
(13,063) |
(359.3) | ||||||
|
Sale of properties |
(9.5) |
(758) |
(345) |
(16.1) | ||||||
|
December 31, 2015 |
1,517.0 |
107,798 |
124,277 |
2,909.4 | ||||||
|
Proved developed reserves |
||||||||||
|
Year-end 2014 |
1,264.0 |
100,050 |
89,630 |
2,402.0 | ||||||
|
Year-end 2015 |
1,129.5 |
89,189 |
87,549 |
2,189.9 | ||||||
|
2015 |
2014 |
% Change |
||||||||
|
Pre-tax PV-10 ($ in millions) * |
$2,279.0 |
$6,389.5 |
-64% |
|||||||
|
Standardized Measure ($ in millions) |
$1,934.1 |
$4,352.8 |
-56% |
|||||||
|
Average prices used in Standardized Measure |
||||||||||
|
Gas Price per Mcf |
$2.59 |
$4.35 |
-40% |
|||||||
|
Oil price per barrel |
$50.28 |
$94.99 |
-47% |
|||||||
|
NGL price per barrel |
$14.41 |
$30.89 |
-53% |
|||||||
|
*Pre-tax PV-10 is a non-GAAP financial measure. Pre-tax PV-10 is comparable to the standardized measure, which is the most directly comparable GAAP financial measure. Pre-tax PV-10 is computed on the same basis as the standardized measure but without deducting future income taxes. As of December 31, 2015 and 2014, Cimarex's discounted future income taxes were $344.9 million and $2,036.6 million, respectively. Cimarex's standardized measure of discounted future net cash flows was $1,934.1 million at year-end 2015 and $4,352.8 million at year-end 2014. Cimarex believes pre-tax PV-10 is a useful measure for investors for evaluating the relative monetary significance of its oil and natural gas properties. Cimarex further believes investors may utilize its pre-tax PV-10 as a basis for comparison of the relative size and value of its reserves to other companies because many factors that are unique to each individual company impact the amount of future income taxes to be paid. However, pre-tax PV-10 is not a substitute for the standardized measure of discounted future net cash flows. Cimarex's pre-tax PV-10 and the standardized measure of discounted future net cash flows do not purport to present the fair value of its oil and natural gas reserves. |
|
PROVED RESERVES BY REGION | ||||||||||
|
Gas |
Oil |
NGL |
Total | |||||||
|
(Bcf) |
(MBbls) |
(MBbls) |
(Bcfe) | |||||||
|
Mid-Continent |
1,134.4 |
29,048 |
87,639 |
1,834.6 | ||||||
|
Permian Basin |
378.5 |
78,482 |
36,598 |
1,069.0 | ||||||
|
Other |
4.1 |
268 |
40 |
5.8 | ||||||
|
1,517.0 |
107,798 |
124,277 |
2,909.4 | |||||||
|
OIL AND GAS CAPITALIZED EXPENDITURES | ||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | |||||||||
|
December 31, |
December 31, | |||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||
|
(in thousands) | ||||||||||
|
Acquisitions: |
||||||||||
|
Proved |
$ |
30 |
$ |
125 |
$ |
30 |
$ |
138,508 | ||
|
Unproved |
2,400 |
314 |
6,666 |
111,225 | ||||||
|
Net purchase price adjustments* |
350 |
— |
(11,653) |
- | ||||||
|
2,780 |
439 |
(4,957) |
249,733 | |||||||
|
Exploration and development: |
||||||||||
|
Land and Seismic |
14,084 |
28,349 |
52,049 |
176,061 | ||||||
|
Exploration and development |
180,107 |
421,241 |
824,903 |
1,704,961 | ||||||
|
194,191 |
449,590 |
876,952 |
1,881,022 | |||||||
|
Sale proceeds: |
||||||||||
|
Proved |
— |
(1,038) |
(26,045) |
(270,766) | ||||||
|
Unproved |
(2,528) |
(38) |
(15,231) |
(175,341) | ||||||
|
(2,528) |
(1,076) |
(41,276) |
(446,107) | |||||||
|
$ |
194,443 |
$ |
448,953 |
$ |
830,719 |
$ |
1,684,648 | |||
|
* |
The net purchase price adjustment amounts in 2015 reflect purchase price adjustments related to an acquisition in second quarter 2014. | |||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) | |||||||||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | ||||||||||||||||
|
December 31, |
December 31, | ||||||||||||||||
|
2015 |
2014 |
2015 |
2014 | ||||||||||||||
|
(in thousands, except per share data) | |||||||||||||||||
|
Revenues: |
|||||||||||||||||
|
Oil sales |
$ |
161,814 |
$ |
280,729 |
$ |
809,664 |
$ |
1,308,958 | |||||||||
|
Gas sales |
96,242 |
168,791 |
428,227 |
687,930 | |||||||||||||
|
NGL sales |
44,411 |
78,813 |
179,647 |
375,941 | |||||||||||||
|
Gas gathering and other, net |
8,812 |
10,218 |
35,081 |
51,347 | |||||||||||||
|
311,279 |
538,551 |
1,452,619 |
2,424,176 | ||||||||||||||
|
Costs and expenses: |
|||||||||||||||||
|
Impairment of oil and gas properties |
965,348 |
— |
3,716,883 |
— | |||||||||||||
|
Depreciation, depletion, amortization and accretion |
161,768 |
219,536 |
788,044 |
816,103 | |||||||||||||
|
Production |
77,229 |
91,994 |
299,374 |
342,304 | |||||||||||||
|
Transportation, processing, and other operating |
52,717 |
50,115 |
182,362 |
195,414 | |||||||||||||
|
Gas gathering and other |
9,539 |
7,700 |
38,138 |
35,113 | |||||||||||||
|
Taxes other than income |
17,086 |
29,339 |
84,764 |
128,793 | |||||||||||||
|
General and administrative |
24,283 |
23,637 |
74,688 |
81,160 | |||||||||||||
|
Stock compensation |
4,679 |
4,126 |
19,559 |
15,001 | |||||||||||||
|
(Gain) loss on derivative instruments, net |
(9,278) |
(12,722) |
(11,246) |
(3,762) | |||||||||||||
|
Other operating, net |
12 |
82 |
856 |
116 | |||||||||||||
|
1,303,383 |
413,807 |
5,193,422 |
1,610,242 | ||||||||||||||
|
Operating income (loss) |
(992,104) |
124,744 |
(3,740,803) |
813,934 | |||||||||||||
|
Other (income) and expense: |
|||||||||||||||||
|
Interest expense |
19,811 |
20,093 |
80,447 |
68,617 | |||||||||||||
|
Amortization of deferred financing costs |
1,966 |
1,127 |
5,299 |
4,248 | |||||||||||||
|
Capitalized interest |
(5,502) |
(10,055) |
(30,589) |
(35,925) | |||||||||||||
|
Other, net |
(3,762) |
(6,700) |
(13,576) |
(28,907) | |||||||||||||
|
Income (loss) before income tax |
(1,004,617) |
120,279 |
(3,782,384) |
805,901 | |||||||||||||
|
Income tax expense (benefit) |
(374,109) |
44,487 |
(1,373,436) |
298,697 | |||||||||||||
|
Net income (loss) |
$ |
(630,508) |
$ |
75,792 |
$ |
(2,408,948) |
$ |
507,204 | |||||||||
|
Earnings (loss) per share to common stockholders: |
|||||||||||||||||
|
Basic |
$ |
(6.78) |
$ |
0.87 |
$ |
(25.92) |
$ |
5.79 | |||||||||
|
Diluted |
$ |
(6.78)* |
$ |
0.86 |
$ |
(25.92)* |
$ |
5.78 | |||||||||
|
Dividends per share |
$ |
0.16 |
$ |
0.16 |
$ |
0.64 |
$ |
0.64 | |||||||||
|
Shares attributable to common stockholders: |
|||||||||||||||||
|
Unrestricted common shares outstanding |
92,992 |
85,679 |
92,992 |
85,679 | |||||||||||||
|
Diluted common shares |
92,992 |
85,773 |
92,992 |
85,810 | |||||||||||||
|
Shares attributable to common stockholders and participating securities: |
|||||||||||||||||
|
Basic shares outstanding |
N/A* |
87,601 |
N/A* |
87,601 | |||||||||||||
|
Fully diluted shares |
N/A* |
87,695 |
N/A* |
87,732 | |||||||||||||
|
Comprehensive income (loss): |
|||||||||||||||||
|
Net income (loss) |
$ |
(630,508) |
$ |
75,792 |
$ |
(2,408,948) |
$ |
507,204 | |||||||||
|
Other comprehensive income (loss): |
|||||||||||||||||
|
Change in fair value of investments, net of tax |
138 |
52 |
(661) |
(87) | |||||||||||||
|
Total comprehensive income (loss) |
$ |
(630,370) |
$ |
75,844 |
$ |
(2,409,609) |
$ |
507,117 | |||||||||
|
* |
Due to the net loss, shares of 94,829, which include participating securities, are not considered in the loss per share calculation | ||||||||||||||||
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited) | ||||||||||||||||||
|
For the Three Months Ended |
For the Twelve Months Ended | |||||||||||||||||
|
December 31, |
December 31, | |||||||||||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||||||||||
|
(in thousands) | ||||||||||||||||||
|
Cash flows from operating activities: |
||||||||||||||||||
|
Net income (loss) |
$ |
(630,508) |
$ |
75,792 |
$ |
(2,408,948) |
$ |
507,204 | ||||||||||
|
Adjustment to reconcile net income (loss) to net cash provided by operating activities: |
||||||||||||||||||
|
Impairment of oil and gas properties |
965,348 |
— |
3,716,883 |
— | ||||||||||||||
|
Depreciation, depletion, amortization and accretion |
161,768 |
219,536 |
788,044 |
816,103 | ||||||||||||||
|
Deferred income taxes |
(373,882) |
44,083 |
(1,388,146) |
298,293 | ||||||||||||||
|
Stock compensation |
4,679 |
4,126 |
19,559 |
15,001 | ||||||||||||||
|
(Gain) loss on derivative instruments |
(9,278) |
(12,722) |
(11,246) |
(3,762) | ||||||||||||||
|
Settlements on derivative instruments |
— |
13,656 |
— |
7,641 | ||||||||||||||
|
Changes in non-current assets and liabilities |
6,887 |
(567) |
23,230 |
(2,440) | ||||||||||||||
|
Amortization of deferred financing costs and other, net |
712 |
(1,444) |
4,206 |
(3,828) | ||||||||||||||
|
Changes in operating assets and liabilities: |
||||||||||||||||||
|
Receivables, net |
34,916 |
27,958 |
186,699 |
(35,133) | ||||||||||||||
|
Other current assets |
8,320 |
682 |
37,954 |
(25,428) | ||||||||||||||
|
Accounts payable and other current liabilities |
(54,008) |
(23,705) |
(276,735) |
45,714 | ||||||||||||||
|
Net cash provided by operating activities |
114,954 |
347,395 |
691,500 |
1,619,365 | ||||||||||||||
|
Cash flows from investing activities: |
||||||||||||||||||
|
Oil and gas expenditures |
(208,015) |
(477,321) |
(979,044) |
(2,108,250) | ||||||||||||||
|
Sales of oil and gas assets |
1,510 |
(1,729) |
39,853 |
449,981 | ||||||||||||||
|
Sales of other assets |
121 |
235 |
1,178 |
8,413 | ||||||||||||||
|
Other capital expenditures |
(12,507) |
(13,827) |
(70,592) |
(90,611) | ||||||||||||||
|
Net cash used by investing activities |
(218,891) |
(492,642) |
(1,008,605) |
(1,740,467) | ||||||||||||||
|
Cash flows from financing activities: |
||||||||||||||||||
|
Net bank debt borrowings |
— |
— |
— |
(174,000) | ||||||||||||||
|
Proceeds from other long-term debt |
— |
— |
— |
750,000 | ||||||||||||||
|
Proceeds from sale of common stock |
— |
— |
752,100 |
— | ||||||||||||||
|
Financing and underwriting fees |
(1,970) |
— |
(24,633) |
(11,616) | ||||||||||||||
|
Dividends paid |
(15,070) |
(13,917) |
(58,281) |
(53,849) | ||||||||||||||
|
Proceeds from exercise of stock options and other |
1,047 |
1,369 |
21,439 |
11,898 | ||||||||||||||
|
Net cash provided by (used in) financing activities |
(15,993) |
(12,548) |
690,625 |
522,433 | ||||||||||||||
|
Net change in cash and cash equivalents |
(119,930) |
(157,795) |
373,520 |
401,331 | ||||||||||||||
|
Cash and cash equivalents at beginning of period |
899,312 |
563,657 |
405,862 |
4,531 | ||||||||||||||
|
Cash and cash equivalents at end of period |
$ |
779,382 |
$ |
405,862 |
$ |
779,382 |
$ |
405,862 | ||||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||||||
|
December 31, |
December 31, | ||||||||||
|
2015 |
2014 | ||||||||||
|
Assets |
(in thousands, except share data) | ||||||||||
|
Current assets: |
|||||||||||
|
Cash and cash equivalents |
$ |
779,382 |
$ |
405,862 | |||||||
|
Receivables, net |
225,398 |
412,108 | |||||||||
|
Oil and gas well equipment and supplies |
54,579 |
89,780 | |||||||||
|
Deferred income taxes |
— |
13,475 | |||||||||
|
Derivative instruments |
10,745 |
— | |||||||||
|
Other current assets |
7,826 |
10,579 | |||||||||
|
Total current assets |
1,077,930 |
931,804 | |||||||||
|
Oil and gas properties at cost, using the full cost method of accounting: |
|||||||||||
|
Proved properties |
15,546,948 |
14,402,064 | |||||||||
|
Unproved properties and properties under development, not being amortized |
440,166 |
759,149 | |||||||||
|
15,987,114 |
15,161,213 | ||||||||||
|
Less – accumulated depreciation, depletion, amortization and impairment |
(12,710,968) |
(8,257,502) | |||||||||
|
Net oil and gas properties |
3,276,146 |
6,903,711 | |||||||||
|
Fixed assets, net |
230,009 |
211,031 | |||||||||
|
Goodwill |
620,232 |
620,232 | |||||||||
|
Derivative instruments |
501 |
— | |||||||||
|
Other assets, net * |
38,468 |
41,691 | |||||||||
|
$ |
5,243,286 |
$ |
8,708,469 | ||||||||
|
Liabilities and Stockholders' Equity |
|||||||||||
|
Current liabilities: |
|||||||||||
|
Accounts payable |
$ |
66,815 |
$ |
138,051 | |||||||
|
Accrued liabilities |
247,508 |
447,384 | |||||||||
|
Revenue payable |
95,744 |
190,892 | |||||||||
|
Total current liabilities |
410,067 |
776,327 | |||||||||
|
Long-term debt *: |
|||||||||||
|
Principal |
1,500,000 |
1,500,000 | |||||||||
|
Less – unamortized debt issuance costs |
(14,380) |
(16,824) | |||||||||
|
Long-term debt, net |
1,485,620 |
1,483,176 | |||||||||
|
Deferred income taxes |
352,705 |
1,754,706 | |||||||||
|
Other liabilities |
197,216 |
193,628 | |||||||||
|
Total liabilities |
2,445,608 |
4,207,837 | |||||||||
|
Commitments and contingencies |
|||||||||||
|
Stockholders' equity: |
|||||||||||
|
Preferred stock, $0.01 par value, 15,000,000 shares authorized, no shares issued |
— |
— | |||||||||
|
Common stock, $0.01 par value, 200,000,000 shares authorized, 94,820,570 and 87,592,535 shares issued, respectively |
948 |
876 | |||||||||
|
Paid-in capital |
2,762,976 |
1,997,080 | |||||||||
|
Retained earnings |
33,313 |
2,501,574 | |||||||||
|
Accumulated other comprehensive income |
441 |
1,102 | |||||||||
|
2,797,678 |
4,500,632 | ||||||||||
|
$ |
5,243,286 |
$ |
8,708,469 | ||||||||
|
* |
At December 31, 2015, we adopted the Financial Accounting Standards Board's (FASB) Accounting Standards Update (ASU) No. 2015-03, Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. The requirements are to be applied retrospectively to prior periods presented. These changes resulted in classifying debt issuance costs as a direct deduction from the carrying amount of the related debt liability (except for those related to revolving credit facilities), rather than as an asset. As of December 31, 2015 and 2014, other assets, net and long-term debt are reduced by $14,380 and $16,824, respectively. The adoption of this ASU did not impact the Statement of Operations and Comprehensive Income (Loss) or the Cash Flow Statements. | ||||||||||
SOURCE Cimarex Energy Co.
Article Date
2/16/2016Cimarex Announces 2016 Capital Plans, Gives Production and Expense Guidance
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, Feb. 16, 2016 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced projected 2016 exploration and development capital of approximately $600-650 million, a 29 percent reduction from 2015 levels at the midpoint. An additional $50 million is earmarked for midstream and other investments. The capital program is expected to be funded with cash flow from operating activities and a portion of the $779 million of cash on hand at December 31, 2015.
Tom Jorden, Cimarex Chairman and CEO said, "Our approach to our business has not changed. We are focused on long term value creation for shareholders through drilling and development. However, continued weakness in commodity prices has made us especially vigilant in protecting our balance sheet. As such, upon conclusion of the drilling of three multi-well projects currently underway, we will reduce our activity to a level that meets our acreage obligations but will not invest beyond that until we see market conditions improve." Cimarex increased activity in the fourth quarter of 2015 from seven rigs to the eleven rigs currently operated. The company plans to reduce that number to four operated rigs during the second quarter.
Mr. Jorden went on to say, "Our technically driven culture has provided us with enormous opportunities that we look forward to prosecuting when the time comes. For now, we will drill to hold our attractive acreage position while maintaining our strong financial position so that we are ready to move when market conditions improve."
Originally expected to begin mid-year, completion activity related to infill development in the Cana-Woodford shale is now projected to begin late in the fourth quarter and continue into the first quarter of 2017.
In 2016, total company production is projected to average 890-930 million cubic feet equivalent (MMcfe) per day. First quarter output is expected to average 925-955 MMcfe per day. Sequentially, both oil and gas production in the first quarter are expected to decline four to five percent. First quarter estimates include midstream processing curtailments of 30 MMcfe per day.
Cimarex intends to invest approximately 65 percent of its 2016 capital in the Permian region and 35 percent in the Mid-Continent. Permian activities will be focused on holding acreage through drilling long lateral Wolfcamp wells in Culberson and Reeves counties in Texas. In the Mid-Continent, the majority of the investment will be made on a six-section joint infill development program in the Cana-Woodford shale and holding Meramec acreage.
Expenses for 2016 are expected to fall within the following ranges:
|
($/Mcfe) |
||
|
Production expense |
$0.80 - $0.90 | |
|
Transportation and other operating expense |
0.45 - 0.55 | |
|
DD&A and ARO accretion* |
1.40 - 1.60 | |
|
General and administrative expense |
0.19 - 0.23 | |
|
Taxes other than income (% of oil and gas revenue) *Excludes the impact of any potential ceiling test writedowns.
|
5.5% - 6.0%
| |
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This communication contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including statements regarding 2016 planned capital expenditures and estimated production. These statements are based on current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are more fully described in SEC reports filed by Cimarex. While Cimarex makes these forward-looking statements in good faith, management cannot guarantee that anticipated future results will be achieved. Cimarex assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law. Actual results may differ materially from Cimarex projections and can be affected by a variety of factors outside the company's control including the risks and uncertainties described in the company's SEC reports.
SOURCE Cimarex Energy Co.
Article Date
2/16/20161/14/2016 - Cimarex Schedules 2015 Fourth Quarter and Full Year Earnings Release and Conference Call
Cimarex Schedules 2015 Fourth Quarter and Full Year Earnings Release and Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DENVER, Jan. 14, 2016 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that it plans to report fourth quarter and full year 2015 financial results on Tuesday, February 16, 2016, after market close. The company will host its quarterly conference call at 11:00 AM EST on Wednesday, February 17, 2016.
The call will be webcast and is accessible via the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 1-866-367-3053 ten minutes before the scheduled start time (international callers dial 1-412-902-4216).
A replay will be available on the company's website and via the Cimarex App.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Anadarko and Permian Basins of the U.S.
SOURCE Cimarex Energy Co.
Article Date
1/14/2016Projects & Assets
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