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Cimarex's Permian Spending Up ~50% YOY at MidCon's Expense; Drilling Activity Drops

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Cimarex Energy reported its Q1 2019 results. Here are the highlights from its report and presentation.

Q1 Summary: Permian Spending Up, Drilling / Rigs Down

- Q1 Spend: Cimarex invested $368 million in E&D during the first quarter, 77% in the Permian Basin and 23% in the Mid-Continent - this is up +18% YOY from $313 million in Q1 2018

• Permian spending increased +48% at the expense of the Midcontinent spending, which declined -29%

- Q1 Production: 259 MBOEPD - up +26% YOY

- Drilling Activity: Cimarex brought 38 gross (8 net) wells on production during the quarter - this is down from 54 gross (15 net) wells in Q1 2018

• At March 31, 131 gross (52 net) wells were waiting on completion

- Rigs: Cimarex currently is operating nine drilling rigs - down -31% from 13 in Q1 2018

Permian - Output Up +47% YOY; 5 Net Wells Drilled

Production from the Permian region averaged 168,008 BOE per day in the first quarter, a 47% increase from first quarter 2018. Oil volumes averaged 64,969 barrels per day, a 30% increase from first quarter 2018 and up 5% sequentially.

Cimarex completed 12 gross (5 net) wells in the Permian region during the first quarter. There were 56 gross (40 net) wells waiting on completion at March 31. Cimarex currently is operating eight drilling rigs and three completion crews in the region.

Mid-Continent - Output Relatively Flat YOY;  3 Net Wells Drilled

Production from the Mid-Continent averaged 90,386 BOE per day for the first quarter, down 1% YOY and down 13% sequentially.

During the first quarter, Cimarex completed 26 gross (3 net) wells in the Mid-Continent region. At the end of the quarter, 75 gross (12 net) wells were waiting on completion. Cimarex currently is operating one drilling rig and one completion crew in the region.