DENVER, Aug. 8, 2017 /PRNewswire/ --
- 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
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.