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October 2021
October 2021
September 2021
September 2021
September 2021
August 2021
July 2021
June 2021
May 2021
May 2021
N E W S | ||
Cimarex Energy Co. 1700 Lincoln Street, Suite 3700 Denver, CO 80203 Phone: (303) 295-3995 |
• | Q1 Oil production averaged 89.8 MBbls/d |
• | Invested $274 million in the first quarter |
Capital Investment ($MM) | Updated 2020E Guidance | ||
Drilling and Completion (D&C) | $300 - $400 | ||
Midstream/Saltwater Disposal (SWD) | ~ $40 | ||
Other* | ~ $160 | ||
Total Capital Investment | $500 - $600 |
WELLS BROUGHT ON PRODUCTION BY REGION | ||||||
Three Months Ended March 31, | ||||||
2020 | 2019 | |||||
Gross wells | ||||||
Permian Basin | 35 | 12 | ||||
Mid-Continent | 19 | 26 | ||||
54 | 38 | |||||
Net wells | ||||||
Permian Basin | 20 | 5 | ||||
Mid-Continent | — | 3 | ||||
20 | 8 |
DAILY PRODUCTION BY REGION | ||||||
Three Months Ended March 31, | ||||||
2020 | 2019 | |||||
Permian Basin | ||||||
Gas (MMcf) | 449.0 | 340.6 | ||||
Oil (Bbls) | 79,606 | 64,969 | ||||
NGL (Bbls) | 48,932 | 46,273 | ||||
Total Equivalent (MBOE) | 203.4 | 168.0 | ||||
Mid-Continent | ||||||
Gas (MMcf) | 244.1 | 297.2 | ||||
Oil (Bbls) | 9,941 | 14,224 | ||||
NGL (Bbls) | 22,110 | 26,630 | ||||
Total Equivalent (MBOE) | 72.7 | 90.4 | ||||
Total Company | ||||||
Gas (MMcf) | 694.3 | 639.1 | ||||
Oil (Bbls) | 89,791 | 79,415 | ||||
NGL (Bbls) | 71,099 | 72,956 | ||||
Total Equivalent (MBOE) | 276.6 | 258.9 |
AVERAGE REALIZED PRICE BY REGION | ||||||
Three Months Ended March 31, | ||||||
2020 | 2019 | |||||
Permian Basin | ||||||
Gas ($ 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 |
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 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
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. |
Three Months Ended March 31, | |||||||
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. |
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. |
Three Months Ended March 31, | |||||||
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 | ) |
OIL AND GAS CAPITALIZED EXPENDITURES | |||||||
Three Months Ended March 31, | |||||||
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 March 31, | ||||||||
2020 | 2019 | |||||||
(in thousands, except per share information) | ||||||||
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 March 31, | ||||||||
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, 2020 | December 31, 2019 | |||||||
Assets | (in thousands, except share and per share information) | |||||||
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 |
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Cimarex Energy Co's Definitive Proxy Statement (Form DEF 14A) filed after their 2020 10-K Annual Report includes:
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Ticker: XECEvents:
CIK: 1168054
Form Type: 8-K Corporate News
Accession Number: 0001168054-20-000007
Submitted to the SEC: Wed May 06 2020 4:33:39 PM EST
Accepted by the SEC: Wed May 06 2020
Period: Wednesday, May 6, 2020
Industry: Crude Petroleum And Natural Gas