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.
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SOURCE Cimarex Energy Co.