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.
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SOURCE Cimarex Energy Co.