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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cimarex-updates-2017-capital-plans-gives-production-and-expense-guidance-300408189.html
SOURCE Cimarex Energy Co.