August 7, 2018 - 4:17 PM EDT
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Cimarex Reports Second Quarter 2018 Results

DENVER, Aug. 7, 2018 /PRNewswire/ -- 

  • Daily production averaged 211.4 MBOE; oil production up seven percent year-over-year
  • 2018 capital guidance unchanged
    • Oil production expected to grow 20-25 percent year-over-year
  • Ward County asset sale expected to close August 31, 2018

Cimarex Energy Co. (NYSE: XEC) today reported second quarter 2018 net income of $141.0 million, or $1.48 per share, compared to $97.3 million, or $1.02 per share, in the same period a year ago.  Second quarter adjusted net income (non-GAAP) was $151.9 million, or $1.59 per share, compared to second quarter 2017 adjusted net income (non-GAAP) of $101.0 million, or $1.06 per share1.  Net cash provided by operating activities was $321.2 million in the second quarter of 2018 compared to $255.3 million in the same period a year ago.  Adjusted cash flow from operations (non-GAAP) was $349.5 million in the second quarter of 2018 compared to $278.8 million in the second quarter a year ago1.

The previously announced sale of assets in Ward County, Texas, for $570 million (before any purchase price adjustments), is expected to close on August 31, 2018.  The impact of the sale has been factored into our production guidance starting in September.

Total company volumes for the quarter averaged 211.4 thousand barrels of oil equivalent (MBOE) per day.  Oil production averaged 61,651 barrels (bbl) per day, up seven percent from the same period a year ago and down five percent from first quarter 2018 levels. Driven by the number of wells expected to be brought on production in the second half of 2018 (86 wells versus 38 wells in the first half), and pro forma for the sale of assets in Ward County, Texas, Cimarex continues to expect oil production growth of 20-25 percent year-over-year.  (See Pro Forma Production Reconciliation table below.)

Realized oil prices averaged $60.99 per barrel, up 38 percent from the $44.14 per barrel received in the second quarter of 2017.  Realized natural gas prices averaged $1.65 per thousand cubic feet (Mcf) down 41 percent from the second quarter 2017 average of $2.82 per Mcf.  NGL prices averaged $22.29 per barrel, up 22 percent from the $18.24 per barrel received in the second quarter of 2017.  Realized prices for 2018 reflect the adoption of Accounting Standards Codification 606 (ASC 606).  See table below (Impact of ASC 606) for comparison of realized prices for 2018 for pre- and post-ASC 606.

Both oil and natural gas prices were negatively impacted by local price differentials.   Market conditions in the Permian Basin caused the realized differential for Midland priced oil and the differential for Permian Basin gas to widen.  Our realized Permian oil differential to WTI Cushing averaged $(8.05) per barrel in the quarter, compared to $(3.12) per barrel in the first quarter of 2018 and $(4.14) per barrel in the second quarter of 2017. Cimarex's average differential on its Permian natural gas production was $1.31 per Mcf below Henry Hub in the second quarter of 2018 compared to $0.42 per Mcf lower in the second quarter of 2017.   In the Mid-Continent region, realized gas prices were $1.03 per Mcf below the Henry Hub index versus $0.34 per Mcf below Henry Hub in the second quarter of 2017 due to abnormally wide differentials on the ONEOK index (OGT) where approximately 75 percent of the company's second quarter Mid-Continent gas volumes were priced.

As previously discussed, Cimarex has taken a number of steps to ensure the flow of our oil and natural gas volumes out of the Permian Basin with sales agreements in place for our projected oil and natural gas volumes through 2019.

Cimarex invested $375 million in exploration and development (E&D) during the second quarter, of which $322 million is attributable to drilling and completion activities.  Second quarter investments were funded with cash flow from operations and cash on the balance sheet.  Total debt at June 30, 2018 consisted of $1.5 billion of long-term notes.  Cimarex had no borrowings under its revolving credit facility and a cash balance of $411 million.  Debt was 34 percent of total capitalization2.

2018 Outlook
Adjusting for the previously announced sale of assets in Ward County, Texas (assuming an August 31 close), third quarter 2018 production volumes are expected to average 206 -215 MBOE per day with oil volumes estimated to average 61,500 - 64,500 barrels per day. The total 2018 daily production volumes are now expected to average 214 - 221 MBOE per day with annual oil volumes now estimated to average 66,000 - 68,000 barrels per day.

On a pro forma basis (excluding Ward volumes entirely), Cimarex expects 2018 total production (MBOE per day) and oil production (barrels per day) to grow 14-18 percent and 20-25 percent over 2017 volumes, respectively.  Additionally, the company expects oil volumes in the fourth quarter to average 75,000 - 81,000 barrels per day, or 33-43 percent higher than the pro forma fourth quarter 2017 average.  (See Pro Forma Production Reconciliation table below.)

Pro Forma Production Reconciliation

(excludes Ward volumes for all periods)


2018E


2017


% Growth

Daily Production (MBOE/d)

209

-

216


183.1


 14-18%

Daily Oil Production (MBbls/d)

62.4

-

64.6


51.8


 20-25%

Estimated 2018 exploration and development investment remains unchanged at $1.6 – 1.7 billion.

Expenses per BOE of production for the remainder of 2018 are estimated to be:

Production expense

$3.80 - 4.30

Transportation, processing and other expense*

2.40 - 3.00

DD&A and ARO accretion

7.50 - 8.10

General and administrative expense

1.15 - 1.45

Taxes other than income (% of oil and gas revenue)

  5.75 - 6.25%


*Reflects adoption of ASC 606 (see Impact of ASC 606 table below).

Operations Update
Cimarex invested $375 million in E&D during the second quarter, 59 percent in the Permian Basin and 41 percent in the Mid-Continent.  Cimarex brought 89 gross (23 net) wells on production during the quarter.  At June 30, 141 gross (57 net) wells were waiting on completion.  Cimarex currently is operating 13 drilling rigs.

WELLS BROUGHT ON PRODUCTION BY REGION



Three Months Ended
June 30,


Six Months Ended
June 30,


2018


2017


2018


2017









Gross wells








Permian Basin

32


11


49


36

Mid-Continent

57


40


94


85


89


51


143


121

Net wells








Permian Basin

13


10


22


26

Mid-Continent

10


8


16


18


23


18


38


44

Permian Region
Production from the Permian region averaged 121,744 BOE per day in the second quarter, a 13 percent increase from second quarter 2017. Oil volumes averaged 48,797 barrels per day, a six percent increase from second quarter 2017.  Total production increased seven percent sequentially, with oil production down two percent.

Cimarex completed 32 gross (13 net) wells in the Permian region during the second quarter.  There were 45 gross (32 net) wells waiting on completion at June 30.

Activity in the region for the quarter included twelve wells completed in the Wolfcamp and Bone Spring formations.  Of note, in Lea County, New Mexico, the six-well Hallertau 5 FED Upper Wolfcamp infill pilot was brought on-line during the quarter.  The infill pilot, which included six short laterals (4,230' average) testing 12 wells per section, had an average peak 30-day initial production rate of 1,295 BOE (783 barrels of oil) per day, with results ranging from 1,855 BOE (1,096 barrels of oil) per day to 937 BOE (564 barrels of oil) per day.

Cimarex currently is operating ten drilling rigs and five completion crews in the region.

Mid-Continent Region
Production from the Mid-Continent averaged 88,864 BOE per day for the second quarter, up five percent versus second quarter 2017 and down three percent sequentially.

During the second quarter, Cimarex completed 57 gross (10 net) wells in the Mid-Continent region.  At the end of the quarter, 96 gross (25 net) wells were waiting on completion.  Cimarex currently is operating three drilling rigs and one completion crew in the region.

Production by Region
Cimarex's average daily production and commodity price by region is summarized below:

DAILY PRODUCTION BY REGION










Three Months Ended
June 30,


Six Months Ended
June 30,


2018


2017


2018


2017









Permian Basin








Gas (MMcf)

240.5


219.8


239.2


210.4

Oil (Bbls)

48,797


45,828


49,318


43,446

NGL (Bbls)

32,865


24,996


28,817


23,319

Total Equivalent (BOE)

121,744


107,456


118,002


101,829









Mid-Continent








Gas (MMcf)

297.0


295.4


296.2


290.2

Oil (Bbls)

12,473


11,893


13,841


11,475

NGL (Bbls)

26,894


23,693


26,927


22,926

Total Equivalent (BOE)

88,864


84,827


90,142


82,774









Total Company








Gas (MMcf)

539.5


516.7


537.1


502.0

Oil (Bbls)

61,651


57,871


63,422


55,042

NGL (Bbls)

59,857


48,731


55,810


46,281

Total Equivalent (BOE)

211,424


192,720


208,752


184,998

 

AVERAGE REALIZED PRICE BY REGION










Three Months Ended
June 30,


Six Months Ended
June 30,


2018*


2017


2018*


2017









Permian Basin








Gas ($ per Mcf)

1.49


2.77


1.86


2.83

Oil ($ per Bbl)

59.83


44.15


59.79


45.94

NGL ($ per Bbl)

22.80


16.65


21.93


17.38









Mid-Continent








Gas ($ per Mcf)

1.77


2.85


2.04


2.97

Oil ($ per Bbl)

65.70


44.10


62.87


45.39

NGL ($ per Bbl)

21.66


19.90


20.67


21.16









Total Company








Gas ($ per Mcf)

1.65


2.82


1.96


2.91

Oil ($ per Bbl)

60.99


44.14


60.45


45.82

NGL ($ per Bbl)

22.29


18.24


21.32


19.26


*Realized prices for 2018 reflect the adoption of ASC 606. See Impact of ASC 606 table for a comparison of 2018 realized prices on a pre- and post-ASC 606 basis.

Other
The following table summarizes the company's current open hedge positions:



3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

Gas Collars:

PEPL(3)








Volume (MMBtu/d)

130,000

100,000

90,000

90,000

60,000

30,000


Wtd Avg Floor

$

2.19

$

2.12

$

2.08

$

2.08

$

1.92

$

1.90


Wtd Avg Ceiling

$

2.48

$

2.42

$

2.39

$

2.39

$

2.26

$

2.33










El Paso Perm(3)








Volume (MMBtu/d)

100,000

80,000

70,000

70,000

50,000

20,000


Wtd Avg Floor

$

1.92

$

1.81

$

1.73

$

1.73

$

1.50

$

1.35


Wtd Avg Ceiling

$

2.14

$

2.03

$

1.95

$

1.95

$

1.74

$

1.55










Waha (3)








Volume (MMBtu/d)

10,000

10,000

10,000

10,000

10,000

10,000


Wtd Avg Floor

$

1.35

$

1.35

$

1.35

$

1.35

$

1.35

$

1.35


Wtd Avg Ceiling

$

1.56

$

1.56

$

1.56

$

1.56

$

1.56

$

1.56









Oil Collars:

WTI(4)








Volume (Bbl/d)

35,000

29,000

23,000

23,000

16,000

8,000


Wtd Avg Floor

$

49.80

$

51.03

$

51.83

$

51.83

$

53.50

$

57.00


Wtd Avg Ceiling

$

60.49

$

61.74

$

63.77

$

63.77

$

67.13

$

68.04









Oil Basis Swaps:

WTI Midland(5)








Volume (Bbl/d)

27,000

22,000

19,000

19,000

14,000

6,000


Weighted Avg Differential

$

(3.89)

$

(4.56)

$

(5.17)

$

(5.17)

$

(6.84)

$

(10.73)

Conference call and webcast
Cimarex will host a conference call tomorrow, August 8, at 11:00 a.m. EDT (9:00 a.m. MT). 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 2018 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 "2018 Outlook" contains projections for certain 2018 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 for the year ended December 31, 2017, 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 by long-term debt plus 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.

RECONCILIATION OF ADJUSTED NET INCOME

The following reconciles net income as reported under generally accepted accounting principles (GAAP) to adjusted net income (non-GAAP) for the periods indicated.


Three Months Ended
June 30,


Six Months Ended
June 30,


2018


2017


2018


2017


(in thousands, except per share data)









Net income

$

140,997



$

97,262



$

327,315



$

228,234


Mark-to-market loss (gain) on open derivative positions

14,169



(22,166)



(2,379)



(72,087)


Loss on early extinguishment of debt



28,169





28,169


Tax impact

(3,259)



(2,257)



552



16,469


Adjusted net income

$

151,907



$

101,008



$

325,488



$

200,785


Diluted earnings per share

$

1.48



$

1.02



$

3.44



$

2.40


Adjusted diluted earnings per share*

$

1.59



$

1.06



$

3.41



$

2.11










Weighted-average number of shares outstanding:








Adjusted diluted**

95,428



95,179



95,451



95,172


Adjusted net income and adjusted diluted earnings per share exclude 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 measures because:

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.

* Does not include adjustments resulting from application of the "two-class method" used to determine earnings per share under GAAP.

** Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding stock options.

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.


Three Months Ended
June 30,


Six Months Ended
June 30,


2018


2017


2018


2017


(in thousands)

Net cash provided by operating activities

$

321,246



$

255,286



$

704,339



$

504,800


Change in operating assets and liabilities

28,265



23,507



12,406



39,827










Adjusted cash flow from operations

$

349,511



$

278,793



$

716,745



$

544,627


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.

IMPACT OF ASC 606

Effective January 1, 2018, Cimarex adopted the provisions of Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606").  Application of ASC 606 has no impact on our net income or cash flows from operations; however, certain costs classified as Transportation, processing, and other operating expenses in the statement of operations under prior accounting standards are now reflected as deductions from revenue under ASC 606.  The following tables present certain Pre- and Post-ASC 606 amounts:

REVENUES



Three Months Ended
June 30,



2018


2017



Pre-ASC 606
Adoption


Post-ASC 606
Adoption


As Reported



(in thousands)

Oil sales


$

342,184



$

342,184



$

232,453


Gas sales


$

84,727



$

80,787



$

132,474


NGL sales


$

125,126



$

121,415



$

80,886







Six Months Ended
June 30,



2018


2017



Pre-ASC 606
Adoption


Post-ASC 606
Adoption


As Reported



(in thousands)

Oil sales


$

693,907



$

693,907



$

456,519


Gas sales


$

197,404



$

190,508



$

264,419


NGL sales


$

230,739



$

215,412



$

161,312


 

AVERAGE REALIZED PRICE BY REGION



Three Months Ended
June 30,



2018


2017



Pre-ASC 606
Adoption


Post-ASC 606
Adoption


As Reported

Permian Basin







Gas ($ per Mcf)


1.62



1.49



2.77


Oil ($ per Bbl)


59.83



59.83



44.15


NGL ($ per Bbl)


23.81



22.80



16.65









Mid-Continent







Gas ($ per Mcf)


1.81



1.77



2.85


Oil ($ per Bbl)


65.70



65.70



44.10


NGL ($ per Bbl)


21.94



21.66



19.90









Total Company







Gas ($ per Mcf)


1.73



1.65



2.82


Oil ($ per Bbl)


60.99



60.99



44.14


NGL ($ per Bbl)


22.97



22.29



18.24





Six Months Ended
June 30,



2018


2017



Pre-ASC 606
Adoption


Post-ASC 606
Adoption


As Reported

Permian Basin







Gas ($ per Mcf)


1.97



1.86



2.83


Oil ($ per Bbl)


59.79



59.79



45.94


NGL ($ per Bbl)


23.62



21.93



17.38









Mid-Continent







Gas ($ per Mcf)


2.08



2.04



2.97


Oil ($ per Bbl)


62.87



62.87



45.39


NGL ($ per Bbl)


22.01



20.67



21.16









Total Company







Gas ($ per Mcf)


2.03



1.96



2.91


Oil ($ per Bbl)


60.45



60.45



45.82


NGL ($ per Bbl)


22.84



21.32



19.26


 

TRANSPORTATION, PROCESSING, AND OTHER OPERATING EXPENSES



Three Months Ended
June 30,



2018


2017



Pre-ASC 606
Adoption


Post-ASC 606
Adoption


As Reported



(in thousands, except per BOE)

Transportation, processing, and other operating expenses


$

59,584



$

51,933



$

58,624


Per BOE


$

3.10



$

2.70



$

3.34





Six Months Ended
June 30,



2018


2017



Pre-ASC 606
Adoption


Post-ASC 606
Adoption


As Reported



(in thousands, except per BOE)

Transportation, processing, and other operating expenses


$

119,321



$

97,098



$

113,647


Per BOE


$

3.16



$

2.57



$

3.39


 

OIL AND GAS CAPITALIZED EXPENDITURES








Three Months Ended
June 30,


Six Months Ended
June 30,


2018


2017


2018


2017


(in thousands)

Acquisitions:








Proved

$



$

255



$

62



$

260


Unproved

77



792



2,236



3,825



77



1,047



2,298



4,085










Exploration and development:








Land and seismic

$

10,327



$

33,302



$

20,424



$

110,487


Exploration and development

365,097



262,575



668,469



491,042



375,424



295,877



688,893



601,529










Sales proceeds:








Proved

$

(4,577)



$

(1,957)



$

(29,541)



$

(1,892)


Unproved

(441)



(2,305)



(5,301)



(7,271)



(5,018)



(4,262)



(34,842)



(9,163)











$

370,483



$

292,662



$

656,349



$

596,451


 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited)












Three Months Ended
June 30,


Six Months Ended
June 30,



2018


2017


2018


2017



(in thousands, except per share information)

Revenues:









Oil sales


$

342,184



$

232,453



$

693,907



$

456,519


Gas and NGL sales


202,202



213,360



405,920



425,731


Gas gathering and other


11,888



10,639



23,581



21,378




556,274



456,452



1,123,408



903,628


Costs and expenses:









Depreciation, depletion, amortization, and accretion


145,441



108,844



279,360



206,280


Production


79,215



62,578



150,486



124,999


Transportation, processing, and other operating


51,933



58,624



97,098



113,647


Gas gathering and other


9,467



8,647



19,290



17,074


Taxes other than income


27,930



17,477



58,118



38,790


General and administrative


19,739



19,762



43,060



37,796


Stock compensation


3,095



6,293



9,825



12,581


Loss (gain) on derivative instruments, net


21,699



(22,509)



17,540



(66,370)


Other operating expense, net


5,252



266



5,455



882




363,771



259,982



680,232



485,679











Operating income


192,503



196,470



443,176



417,949











Other (income) and expense:









Interest expense


16,895



20,095



33,678



41,147


Capitalized interest


(4,850)



(5,442)



(9,660)



(12,083)


Loss on early extinguishment of debt




28,169





28,169


Other, net


(2,605)



(2,231)



(7,172)



(4,441)











Income before income tax


183,063



155,879



426,330



365,157


Income tax expense


42,066



58,617



99,015



136,923


Net income


$

140,997



$

97,262



$

327,315



$

228,234











Earnings per share to common stockholders:









Basic


$

1.48



$

1.02



$

3.44



$

2.40


Diluted


$

1.48



$

1.02



$

3.44



$

2.40











Dividends declared per share


$

0.16



$

0.08



$

0.32



$

0.16











Weighted-average number of shares outstanding:









Basic


93,728



93,402



93,713



93,396


Diluted


93,759



93,435



93,748



93,431











Comprehensive income:









Net income


$

140,997



$

97,262



$

327,315



$

228,234


Other comprehensive income:









Change in fair value of investments, net of tax


192



224



2



626


Total comprehensive income


$

141,189



$

97,486



$

327,317



$

228,860


 

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited)












Three Months Ended
June 30,


Six Months Ended
June 30,



2018


2017


2018


2017



(in thousands)

Cash flows from operating activities:









Net income


$

140,997



$

97,262



$

327,315



$

228,234


Adjustments to reconcile net income to net cash provided by operating activities:









Depreciation, depletion, amortization, and accretion


145,441



108,844



279,360



206,280


Deferred income taxes


42,783



58,617



99,732



136,929


Stock compensation


3,095



6,293



9,825



12,581


Loss (gain) on derivative instruments, net


21,699



(22,509)



17,540



(66,370)


Settlements on derivative instruments


(7,530)



343



(19,919)



(5,717)


Loss on early extinguishment of debt




28,169





28,169


Changes in non-current assets and liabilities


1,613



57



713



1,076


Other, net


1,413



1,717



2,179



3,445


Changes in operating assets and liabilities:









Accounts receivable


(29,710)



(16,483)



15,012



(61,145)


Other current assets


283



(8,139)



1,886



(11,104)


Accounts payable and other current liabilities


1,162



1,115



(29,304)



32,422


Net cash provided by operating activities


321,246



255,286



704,339



504,800


Cash flows from investing activities:









Oil and gas capital expenditures


(327,352)



(270,331)



(650,807)



(582,172)


Sales of oil and gas assets


5,018



4,262



34,842



9,163


Sales of other assets


93



349



525



394


Other capital expenditures


(37,056)



(10,127)



(56,112)



(18,209)


Net cash used by investing activities


(359,297)



(275,847)



(671,552)



(590,824)


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)


Dividends paid


(15,199)



(7,576)



(22,801)



(15,153)


Employee withholding taxes paid upon the net settlement of equity-classified stock awards


(641)



(277)



(946)



(1,215)


Proceeds from exercise of stock options


904





1,249



36


Net cash used by financing activities


(14,936)



(38,752)



(22,498)



(47,257)


Net change in cash and cash equivalents


(52,987)



(59,313)



10,289



(133,281)


Cash and cash equivalents at beginning of period


463,810



578,908



400,534



652,876


Cash and cash equivalents at end of period


$

410,823



$

519,595



$

410,823



$

519,595


 

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)








June 30, 2018


December 31, 2017

Assets


(in thousands, except share and
per share information)

Current assets:





Cash and cash equivalents


$

410,823



$

400,534


Accounts receivable, net of allowance


444,655



460,174


Oil and gas well equipment and supplies


53,375



49,722


Derivative instruments


72,943



15,151


Other current assets


8,346



10,054


Total current assets


990,142



935,635


Oil and gas properties at cost, using the full cost method of accounting:





Proved properties


18,112,548



17,513,460


Unproved properties and properties under development, not being amortized


532,715



476,903




18,645,263



17,990,363


Less – accumulated depreciation, depletion, amortization, and impairment


(15,000,443)



(14,748,833)


Net oil and gas properties


3,644,820



3,241,530


Fixed assets, net of accumulated depreciation of $312,927 and $290,114, respectively


238,964



210,922


Goodwill


620,232



620,232


Derivative instruments


2,330



2,086


Other assets


34,905



32,234




$

5,531,393



$

5,042,639


Liabilities and Stockholders' Equity





Current liabilities:





Accounts payable


$

95,239



$

98,386


Accrued liabilities


370,371



351,849


Derivative instruments


90,480



42,066


Revenue payable


180,869



187,273


Total current liabilities


736,959



679,574


Long-term debt:





Principal


1,500,000



1,500,000


Less – unamortized debt issuance costs and discount


(12,261)



(13,080)


Long-term debt, net


1,487,739



1,486,920


Deferred income taxes


201,350



101,618


Derivative instruments


11,511



4,268


Other liabilities


207,336



201,981


Total liabilities


2,644,895



2,474,361







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, 95,392,547 and 95,437,434 shares issued, respectively


954



954


Additional paid-in capital


2,770,532



2,764,384


Retained earnings (accumulated deficit)


112,811



(199,259)


Accumulated other comprehensive income


2,201



2,199


Total stockholders' equity


2,886,498



2,568,278




$

5,531,393



$

5,042,639


 

Cision View original content:http://www.prnewswire.com/news-releases/cimarex-reports-second-quarter-2018-results-300693526.html

SOURCE Cimarex Energy Co.


Source: PR Newswire (August 7, 2018 - 4:17 PM EDT)

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