November 6, 2018 - 4:05 PM EST
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/C O R R E C T I O N -- Cimarex Energy Co./

In the news release, Cimarex Reports Third Quarter 2018 Results, issued 06-Nov-2018 by Cimarex Energy Co. over PR Newswire, we are advised by the company that the figure in the third paragraph regarding the number of wells brought into production has been updated from 44 to 46. The paragraph titled Operations Update has been updated with new figures. The WELLS BROUGHT ON PRODUCTION BY REGION table has been updated with new figures. The Permian Region section and the Mid-Continent Region section have been updated with new figures. The complete, corrected release follows:

Cimarex Reports Third Quarter 2018 Results

DENVER, Nov. 6, 2018 /PRNewswire/ --

  • Daily production averaged 218.6 MBOE; oil production averaged 63,909 barrels per day
  • 2018 capital guidance unchanged; targeting mid point
  • Fourth quarter oil production expected to average 73.0 - 78.0 MBbls per day

Cimarex Energy Co. (NYSE: XEC) today reported third quarter 2018 net income of $148.4 million, or $1.56 per share, compared to $91.4 million, or $0.96 per share, in the same period a year ago.  Third quarter adjusted net income (non-GAAP) was $189.6 million, or $1.99 per share, compared to third quarter 2017 adjusted net income (non-GAAP) of $103.6 million, or $1.09 per share1.  Net cash provided by operating activities was $453.5 million in the third quarter of 2018 compared to $251.0 million in the same period a year ago.  Adjusted cash flow from operations (non-GAAP) was $388.7 million in the third quarter of 2018 compared to $283.9 million in the third quarter a year ago1.

On August 31, Cimarex closed on the previously announced transaction for the sale of its Ward County assets for $544.5 million.  Reported production volumes for the third quarter reflect this closing date.

Total company volumes for the quarter averaged 218.6 thousand barrels of oil equivalent (MBOE) per day.  Oil production averaged 63,909 barrels (bbls) per day, up 13 percent from the same period a year ago (17 percent on a pro forma basis) and up four percent from second quarter 2018 levels (eight percent on a pro forma basis). Driven by the 80 wells expected to be brought on production in the second half of 2018 (including 46 wells brought on production in the third quarter) and pro forma for the sale of assets in Ward County, Texas, Cimarex continues to expect oil production growth of 21-23 percent year-over-year.  (See Pro Forma Production Reconciliation table below.)

Realized oil prices averaged $58.25 per barrel, up 31 percent from the $44.38 per barrel received in the third quarter of 2017.  Realized natural gas prices averaged $1.84 per thousand cubic feet (Mcf) down 31 percent from the third quarter 2017 average of $2.65 per Mcf.  NGL prices averaged $25.72 per barrel, up 19 percent from the $21.63 per barrel received in the third quarter of 2017 and up 15 percent sequentially.  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.   Our realized Permian oil differential to WTI Cushing averaged $(14.34) per barrel in the quarter, compared to $(8.05) per barrel in the second quarter of 2018 and $(4.06) per barrel in the third quarter of 2017. Cimarex's average differential on its Permian natural gas production was $(1.25) per Mcf below Henry Hub in the third quarter of 2018 compared to $(0.29) per Mcf lower in the third quarter of 2017.   In the Mid-Continent region, realized gas prices were $(0.94) per Mcf below the Henry Hub index versus $(0.38) per Mcf below Henry Hub in the third quarter of 2017.

Cimarex invested $501 million in exploration and development (E&D) during the third quarter, of which $400 million is attributable to drilling and completion activities.  Third quarter investments were funded with cash flow from operations and cash on the balance sheet.  Total debt at September 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 $864 million.  Debt was 33 percent of total capitalization2.

2018 Outlook
Fourth quarter 2018 production volumes are expected to average 238 - 247 MBOE per day with oil volumes estimated to average 73.0 - 78.0 MBbls per day, or 29 - 38 percent higher than the pro forma fourth quarter 2017 average. The total 2018 daily production volumes are now expected to average 218 - 221 MBOE per day with annual oil volumes estimated to average 66.0 - 67.2 MBbls 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 17-18 percent and 21-23 percent over 2017 volumes.  See Pro Forma Production Reconciliation table below. 


Pro Forma Production Reconciliation










(excludes Ward volumes for all periods)












2018E


2017


% Growth


Daily Production (MBOE/d)


213

-

216


183.1


 17-18%


Daily Oil Production (MBbls/d)


62.6

-

63.8


51.8


 21-23%

Estimated 2018 exploration and development investment is  $1.6 – 1.7 billion, unchanged. from original guidance given in February.

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


Production expense

$3.35 - 3.80


Transportation, processing and other expense*

2.40 - 3.00


DD&A and ARO accretion

7.00 - 7.60


General and administrative expense

1.10 - 1.40


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 $501 million in E&D during the third quarter, 74 percent in the Permian Basin and 26 percent in the Mid-Continent.  Cimarex brought 120 gross (46 net) wells on production during the quarter.  At September 30, 98 gross (41 net) wells were waiting on completion.  Cimarex currently is operating 16 drilling rigs.

WELLS BROUGHT ON PRODUCTION BY REGION












Three Months Ended
September 30,


Nine Months Ended
September 30,



2018


2017


2018


2017










Gross wells









Permian Basin


40



29



89



65


Mid-Continent


80



48



174



133




120



77



263



198


Net wells









Permian Basin


26



16



48



42


Mid-Continent


20



14



36



32




46



30



84



74


Permian Region
Production from the Permian region averaged 120,822 BOE per day in the third quarter, a 15 percent increase from third quarter 2017 (19 percent on a pro forma basis). Oil volumes averaged 49,001 barrels per day, a 12 percent increase from third quarter 2017 (17 percent on a pro forma basis).

Cimarex completed 40 gross (26 net) wells in the Permian region during the third quarter.  There were 45 gross (32 net) wells waiting on completion at September 30.

In Lea County, New Mexico, Cimarex is pleased to announce results from five new wells including the Red Hills Unit 17H, a long lateral Upper Wolfcamp well that had average peak 30-day initial production of 5,164 BOE (3,611 barrels of oil) per day.   Cimarex drilled three additional 10,000-foot lateral wells in the Red Hills area on the Vaca Draw 20-17 lease including one well in each of the Avalon, Leonard and Upper Wolfcamp formations (see company presentation for details).  A 5,000-foot lateral in the Third Bone Spring was brought on line in Northern Lea County that had a 30-day initial production rate of 2,638 BOE (2,165 barrels of oil) per day.

Cimarex currently is operating 12 drilling rigs and three completion crews in the region.

Mid-Continent Region
Production from the Mid-Continent averaged 97,346 BOE per day for the third quarter, up 14 percent from third quarter 2017 and up ten percent sequentially.

During the third quarter, Cimarex completed 80 gross (20 net) wells in the Mid-Continent region including multi-well pads at the Steve-O Meramec development (six wells) and the Shelly (eight wells) and J.D. Hoppinscotch (four wells) spacing pilots in the Woodford formation in the Lone Rock area.  At the end of the quarter, 53 gross (9 net) wells were waiting on completion.  Cimarex currently is operating four 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
September 30,


Nine Months Ended
September 30,



2018


2017


2018


2017










Permian Basin









Gas (MMcf)


239.4



217.9



239.3



212.9


Oil (Bbls)


49,001



43,735



49,211



43,544


NGL (Bbls)


31,919



24,659



29,863



23,771


Total Equivalent (BOE)


120,822



104,703



118,952



102,798











Mid-Continent









Gas (MMcf)


317.9



296.8



303.6



292.4


Oil (Bbls)


14,755



12,846



14,149



11,937


NGL (Bbls)


29,603



23,142



27,829



22,999


Total Equivalent (BOE)


97,346



85,451



92,569



83,676











Total Company









Gas (MMcf)


558.8



515.9



544.4



506.7


Oil (Bbls)


63,909



56,687



63,586



55,596


NGL (Bbls)


61,560



47,840



57,748



46,806


Total Equivalent (BOE)


218,595



190,518



212,069



186,858


 

AVERAGE REALIZED PRICE BY REGION












Three Months Ended
September 30,


Nine Months Ended
September 30,



2018*


2017


2018*


2017










Permian Basin









Gas ($ per Mcf)


1.66



2.70



1.79



2.78


Oil ($ per Bbl)


55.16



44.14



58.24



45.33


NGL ($ per Bbl)


27.53



20.58



23.95



18.50











Mid-Continent









Gas ($ per Mcf)


1.97



2.61



2.01



2.85


Oil ($ per Bbl)


68.42



45.21



64.82



45.33


NGL ($ per Bbl)


23.75



22.75



21.77



21.70











Total Company









Gas ($ per Mcf)


1.84



2.65



1.92



2.82


Oil ($ per Bbl)


58.25



44.38



59.70



45.33


NGL ($ per Bbl)


25.72



21.63



22.90



20.07



*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:



4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

Gas Collars:

PEPL(3)









Volume (MMBtu/d)

123,261


120,000


120,000


90,000


60,000


30,000




Wtd Avg Floor

$

2.09


$

2.05


$

2.05


$

1.93


$

1.93


$

1.97


$



Wtd Avg Ceiling

$

2.43


$

2.42


$

2.42


$

2.34


$

2.42


$

2.51


$













El Paso Perm(3)










Volume (MMBtu/d)

86,630


80,000


80,000


60,000


30,000


10,000




Wtd Avg Floor

$

1.78


$

1.69


$

1.69


$

1.48


$

1.37


$

1.40


$



Wtd Avg Ceiling

$

2.01


$

1.92


$

1.92


$

1.74


$

1.60


$

1.70


$













Waha (3)










Volume (MMBtu/d)

26,630


30,000


30,000


30,000


30,000


20,000




Wtd Avg Floor

$

1.38


$

1.38


$

1.38


$

1.38


$

1.38


$

1.40


$



Wtd Avg Ceiling

$

1.67


$

1.67


$

1.67


$

1.67


$

1.67


$

1.73


$












Oil Collars:

WTI(4)










Volume (Bbl/d)

37,000


31,000


31,000


24,000


16,000


8,000




Wtd Avg Floor

$

52.97


$

53.94


$

53.94


$

55.67


$

58.50


$

60.00


$



Wtd Avg Ceiling

$

64.79


$

66.88


$

66.88


$

70.03


$

71.94


$

75.85


$












Oil Basis Swaps:

WTI Midland(5)










Volume (Bbl/d)

29,000


29,000


29,000


24,000


16,000


7,000


7,000



Weighted Avg Differential

$

(5.01)


$

(5.46)


$

(5.46)


$

(6.50)


$

(7.79)


$

(0.40)


$

(0.40)



Conference call and webcast
Cimarex will host a conference call tomorrow, November 7, 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 third 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 Permian Basin and Mid-Continent 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; 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.









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
September 30,


Nine Months Ended
September 30,


2018


2017


2018


2017


(in thousands, except per share data)









Net income

$

148,354



$

91,399



$

475,669



$

319,633


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

53,507



19,085



51,128



(53,003)


Loss on early extinguishment of debt







28,169


Tax impact

(12,253)



(6,851)



(11,810)



9,213


Adjusted net income

$

189,608



$

103,633



$

514,987



$

304,012


Diluted earnings per share

$

1.56



$

0.96



$

5.00



$

3.36


Adjusted diluted earnings per share*

$

1.99



$

1.09



$

5.39



$

3.19










Weighted-average number of shares outstanding:








Adjusted diluted**

95,512



95,320



95,472



95,222


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
September 30,


Nine Months Ended
September 30,


2018


2017


2018


2017


(in thousands)

Net cash provided by operating activities

$

453,474



$

251,005



$

1,157,813



$

755,805


Change in operating assets and liabilities

(64,792)



32,901



(52,386)



72,728










Adjusted cash flow from operations

$

388,682



$

283,906



$

1,105,427



$

828,533


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
September 30,



2018


2017



Pre-ASC 606
Adoption


Post-ASC 606
Adoption


As Reported



(in thousands)

Oil sales


$

342,495



$

342,495



$

231,441


Gas sales


$

98,321



$

94,433



$

125,707


NGL sales


$

151,648



$

145,654



$

95,191







Nine Months Ended
September 30,



2018


2017



Pre-ASC 606
Adoption


Post-ASC 606
Adoption


As Reported



(in thousands)

Oil sales


$

1,036,402



$

1,036,402



$

687,960


Gas sales


$

295,725



$

284,941



$

390,126


NGL sales


$

382,387



$

361,066



$

256,503


 

AVERAGE REALIZED PRICE BY REGION




Three Months Ended
September 30,



2018


2017



Pre-ASC 606
Adoption


Post-ASC 606
Adoption


As Reported

Permian Basin







Gas ($ per Mcf)


1.78



1.66



2.70


Oil ($ per Bbl)


55.16



55.16



44.14


NGL ($ per Bbl)


29.08



27.53



20.58









Mid-Continent







Gas ($ per Mcf)


2.01



1.97



2.61


Oil ($ per Bbl)


68.42



68.42



45.21


NGL ($ per Bbl)


24.28



23.75



22.75









Total Company







Gas ($ per Mcf)


1.91



1.84



2.65


Oil ($ per Bbl)


58.25



58.25



44.38


NGL ($ per Bbl)


26.78



25.72



21.63







Nine Months Ended
September 30,



2018


2017



Pre-ASC 606
Adoption


Post-ASC 606
Adoption


As Reported

Permian Basin







Gas ($ per Mcf)


1.90



1.79



2.78


Oil ($ per Bbl)


58.24



58.24



45.33


NGL ($ per Bbl)


25.59



23.95



18.50









Mid-Continent







Gas ($ per Mcf)


2.05



2.01



2.85


Oil ($ per Bbl)


64.82



64.82



45.33


NGL ($ per Bbl)


22.82



21.77



21.70









Total Company







Gas ($ per Mcf)


1.99



1.92



2.82


Oil ($ per Bbl)


59.70



59.70



45.33


NGL ($ per Bbl)


24.26



22.90



20.07


 

TRANSPORTATION, PROCESSING, AND OTHER OPERATING EXPENSES




Three Months Ended
September 30,



2018


2017



Pre-ASC 606
Adoption


Post-ASC 606
Adoption


As Reported



(in thousands, except per BOE)

Transportation, processing, and other operating expenses


$

59,602



$

49,720



$

58,387


Per BOE


$

2.96



$

2.47



$

3.33







Nine Months Ended
September 30,



2018


2017



Pre-ASC 606
Adoption


Post-ASC 606
Adoption


As Reported



(in thousands, except per BOE)

Transportation, processing, and other operating expenses


$

178,923



$

146,818



$

172,034


Per BOE


$

3.09



$

2.54



$

3.37


 

OIL AND GAS CAPITALIZED EXPENDITURES








Three Months Ended
September 30,


Nine Months Ended
September 30,


2018


2017


2018


2017


(in thousands)

Acquisitions:








Proved

$



$



$

62



$

260


Unproved

10,015



438



12,251



4,263



10,015



438



12,313



4,523










Exploration and development:








Land and seismic

$

55,603



$

12,872



$

76,027



$

123,359


Exploration and development

445,429



322,651



1,113,898



813,693



501,032



335,523



1,189,925



937,052










Property sales:








Proved

$

(527,650)



$

1,807



$

(557,191)



$

(85)


Unproved

(12,022)



(780)



(17,323)



(8,051)



(539,672)



1,027



(574,514)



(8,136)











$

(28,625)



$

336,988



$

627,724



$

933,439


 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited)












Three Months Ended
September 30,


Nine Months Ended
September 30,



2018


2017


2018


2017



(in thousands, except per share information)

Revenues:









Oil sales


$

342,495



$

231,441



$

1,036,402



$

687,960


Gas and NGL sales


240,087



220,898



646,007



646,629


Gas gathering and other


8,906



11,342



32,487



32,720




591,488



463,681



1,714,896



1,367,309


Costs and expenses:









Depreciation, depletion, amortization, and accretion


138,195



112,893



417,555



319,173


Production


76,272



65,410



226,758



190,409


Transportation, processing, and other operating


49,720



58,387



146,818



172,034


Gas gathering and other


10,569



8,856



29,859



25,930


Taxes other than income


28,431



24,314



86,549



63,104


General and administrative


21,148



21,039



64,208



58,835


Stock compensation


6,437



7,038



16,262



19,619


Loss (gain) on derivative instruments, net


54,006



16,109



71,546



(50,261)


Other operating expense, net


10,015



95



15,470



977




394,793



314,141



1,075,025



799,820











Operating income


196,695



149,540



639,871



567,489











Other (income) and expense:









Interest expense


17,159



16,838



50,837



57,985


Capitalized interest


(5,457)



(5,373)



(15,117)



(17,456)


Loss on early extinguishment of debt








28,169


Other, net


(7,544)



(4,563)



(14,716)



(9,004)











Income before income tax


192,537



142,638



618,867



507,795


Income tax expense


44,183



51,239



143,198



188,162


Net income


$

148,354



$

91,399



$

475,669



$

319,633











Earnings per share to common stockholders:









Basic


$

1.56



$

0.96



$

5.00



$

3.36


Diluted


$

1.56



$

0.96



$

5.00



$

3.36











Dividends declared per share


$

0.18



$

0.08



$

0.50



$

0.24











Weighted-average number of shares outstanding:









Basic


93,845



93,501



93,758



93,431


Diluted


93,867



93,531



93,788



93,465











Comprehensive income:









Net income


$

148,354



$

91,399



$

475,669



$

319,633


Other comprehensive income:









Change in fair value of investments, net of tax


539



234



541



860


Total comprehensive income


$

148,893



$

91,633



$

476,210



$

320,493












 

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited)












Three Months Ended
September 30,


Nine Months Ended
September 30,



2018


2017


2018


2017



(in thousands)

Cash flows from operating activities:









Net income


$

148,354



$

91,399



$

475,669



$

319,633


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









Depreciation, depletion, amortization, and accretion


138,195



112,893



417,555



319,173


Deferred income taxes


43,083



51,239



142,815



188,168


Stock compensation


6,437



7,038



16,262



19,619


Loss (gain) on derivative instruments, net


54,006



16,109



71,546



(50,261)


Settlements on derivative instruments


(499)



2,975



(20,418)



(2,742)


Loss on early extinguishment of debt








28,169


Changes in non-current assets and liabilities


(1,957)



1,068



(1,244)



2,144


Other, net


1,063



1,185



3,242



4,630


Changes in operating assets and liabilities:









Accounts receivable


(26,784)



(67,776)



(11,772)



(128,921)


Other current assets


2,535



(8,268)



4,421



(19,372)


Accounts payable and other current liabilities


89,041



43,143



59,737



75,565


Net cash provided by operating activities


453,474



251,005



1,157,813



755,805


Cash flows from investing activities:









Oil and gas capital expenditures


(500,677)



(319,777)



(1,151,484)



(901,949)


Sales of oil and gas assets


538,525



(1,027)



573,367



8,136


Sales of other assets


465



116



990



510


Other capital expenditures


(18,925)



(13,123)



(75,037)



(31,332)


Net cash provided (used) by investing activities


19,388



(333,811)



(652,164)



(924,635)


Cash flows from financing activities:









Borrowings of long-term debt








748,110


Repayments of long-term debt








(750,000)


Call premium, financing, and underwriting fees




(159)





(29,194)


Dividends paid


(15,237)



(7,590)



(38,038)



(22,743)


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


(5,464)



(6,422)



(6,410)



(7,637)


Proceeds from exercise of stock options


962



190



2,211



226


Net cash used by financing activities


(19,739)



(13,981)



(42,237)



(61,238)


Net change in cash and cash equivalents


453,123



(96,787)



463,412



(230,068)


Cash and cash equivalents at beginning of period


410,823



519,595



400,534



652,876


Cash and cash equivalents at end of period


$

863,946



$

422,808



$

863,946



$

422,808


 

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)








September 30, 2018


December 31, 2017

Assets


(in thousands, except share and
per share information)

Current assets:





Cash and cash equivalents


$

863,946



$

400,534


Accounts receivable, net of allowance


471,423



460,174


Oil and gas well equipment and supplies


55,546



49,722


Derivative instruments


31,176



15,151


Other current assets


5,624



10,054


Total current assets


1,427,715



935,635


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





Proved properties


18,047,645



17,513,460


Unproved properties and properties under development, not being amortized


564,982



476,903




18,612,627



17,990,363


Less – accumulated depreciation, depletion, amortization, and impairment


(15,124,111)



(14,748,833)


Net oil and gas properties


3,488,516



3,241,530


Fixed assets, net of accumulated depreciation of $324,270 and $290,114, respectively


244,125



210,922


Goodwill


620,232



620,232


Derivative instruments


154



2,086


Other assets


37,693



32,234




$

5,818,435



$

5,042,639


Liabilities and Stockholders' Equity





Current liabilities:





Accounts payable


$

141,426



$

98,386


Accrued liabilities


412,747



351,849


Derivative instruments


97,480



42,066


Revenue payable


193,692



187,273


Total current liabilities


845,345



679,574


Long-term debt:





Principal


1,500,000



1,500,000


Less – unamortized debt issuance costs and discount


(11,853)



(13,080)


Long-term debt, net


1,488,147



1,486,920


Deferred income taxes


244,592



101,618


Derivative instruments


14,076



4,268


Other liabilities


200,453



201,981


Total liabilities


2,792,613



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, 95,602,550 and 95,437,434 shares issued, respectively


956



954


Additional paid-in capital


2,778,203



2,764,384


Retained earnings (accumulated deficit)


243,923



(199,259)


Accumulated other comprehensive income


2,740



2,199


Total stockholders' equity


3,025,822



2,568,278




$

5,818,435



$

5,042,639


 

Cision View original content:http://www.prnewswire.com/news-releases/cimarex-reports-third-quarter-2018-results-300745088.html

SOURCE Cimarex Energy Co.


Source: PR Newswire (November 6, 2018 - 4:05 PM EST)

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