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CORPORATE UPDATE – Cimarex Energy Co.

Cimarex Energy Co. · Dec 1, 2013 · 23 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. CORPORATE UPDATE – Cimarex Energy Co. – slide 1
    Corporate Update December 2013 1
  2. CORPORATE UPDATE – Cimarex Energy Co. – slide 2
    Corporate Profile Shares outstanding 86.6 MM Proved reserves3.. 2.3 Tcfe Market cap1... 8.2 B % Natural gas 55% Long-term debt 2.. 0.9 B % Proved developed 80% Enterprise value 9.1 B R/P Ratio.. 9.9x Stockholders' equity2 3.8…
  3. CORPORATE UPDATE – Cimarex Energy Co. – slide 3
    Production Profile 3Q 2013 Production Mix Revenue Contribution Natural Gas Oil 21% Natural 33% Gas NGL 48% 11% Oil NGL 68% 19% 717MMcfe per day; up 13% year-over-year Led by strong oil production in the Permian Basin…
  4. CORPORATE UPDATE – Cimarex Energy Co. – slide 4
    2013 Capital Investment Plan Total Capital: 1.55 - 1.6bn By Region: Facilities 3% Other Land, 4% Seismic & Cap. Overhead Mid- Continent 16% 31% Permian 65% Drilling 81% Permian Mid-Continent Gulf Coast/Other Invest 1…
  5. CORPORATE UPDATE – Cimarex Energy Co. – slide 5
    Growth Driven by Permian Basin 800 Daily Production 717 700 (MMcfe) 687 661 626 592 600 500 400 300 200 100 - 2011 2012 Q1 13 Q2 13 Q3 13 Permian Mid-Continent Gulf Coast/Other 6
  6. CORPORATE UPDATE – Cimarex Energy Co. – slide 6
    Whats New Delaware Basin generating 800 MMcfe/d +11-12% more opportunities 695700* Daily Production Wolfcamp Shale expanding (MMcfe) 626 600 592 Positive Wolfcamp A result 324 329 Successful upsized frac Continue to add acreage…
  7. CORPORATE UPDATE – Cimarex Energy Co. – slide 7
    Permian Basin Region Delaware Basin focus Several zones producing 2nd & 3rd Bone Spring sands Multiple Wolfcamp zones Culberson area: D, C & A zones Wolfcamp A in Reeves Avalon Shale emerging 200-250 locations identified 8
  8. CORPORATE UPDATE – Cimarex Energy Co. – slide 8
    Delaware Basin - Bone Spring Activity 140 gross wells planned in 2013 Three areas New Mexico 2nd & 3rd Bone Spring (Eddy & Lea Counties) 60 gross wells drilled YTD . 30-day average IP: 670 BOE/d; 560 bo/d Texas 3rd Bone Spring…
  9. CORPORATE UPDATE – Cimarex Energy Co. – slide 9
    Delaware Basin Wolfcamp Fairway 180,000 net acres in the fairway Multiple Wolfcamp Targets Culberson/White City Area 100,000+ net acres Three benches producing JDA with Chevron Reeves County New focus area 40,000+ net acres…
  10. CORPORATE UPDATE – Cimarex Energy Co. – slide 10
    Reeves & Ward Counties Emerging Wolfcamp Reeves County First two wells had 30-day IP of 925 BOE/d; 583 bo/d (63%) First 10,000 ft. lateral had 30- day IP of 1,816 BOE/d; 1,016 bo/d (56%) Downspacing pilot planned Stacked laterals…
  11. CORPORATE UPDATE – Cimarex Energy Co. – slide 11
    Culberson Focus Area Wolfcamp 100,000+ 100,000+ net net acres acres 2013 2013 main main objectives objectives Drilling Drilling to to hold hold acreage acreage Wolfcamp Wolfcamp CC && DD Two Two rigs; rigs; 20 20…
  12. CORPORATE UPDATE – Cimarex Energy Co. – slide 12
    Culberson Infrastructure Invested 80mm to date Triple Crown Pipeline 34 miles of 12 trunkline 96 miles of gathering Central compression Multiple sales points JT Processing Facility 50 MMcf/d capacity Residue gas sales to El Paso…
  13. CORPORATE UPDATE – Cimarex Energy Co. – slide 13
    Wolfcamp Production Growth 70 67 MMcfe/day 60 59 17 54 50 15 50 47 19 15 12 17 12 40 36 15 15 14 8 30 27 27 25 11 6 7 5 20 16 8 8 8 12 2 30 11 5 23 24 27 10 2 22…
  14. CORPORATE UPDATE – Cimarex Energy Co. – slide 14
    Culberson Area Upside Multiple opportunities Five prospective horizons Large Wolfcamp Shale resource potential Per zone Wolfcamp development scenarios: 160-acre spacing: 1.7-2.1 Tcfe; 3.6bn of capital; 500 net wells 80-acre…
  15. CORPORATE UPDATE – Cimarex Energy Co. – slide 15
    Mid-Continent Highlights 2013 Capex 475mm for the 250 Cana-Woodford Production MMcfe/day region 221 Cana-Woodford infill 200 generating good returns & 179 driving production growth 150 Ethane rejection of 2,000 129 b/d of NGL in…
  16. CORPORATE UPDATE – Cimarex Energy Co. – slide 16
    Cana-Woodford Activity Map 2013 Capex of 400mm Well cost reduced to 6.5mm from 7.0mm Operated Well Non-operated Well Good returns 25-35% after tax IRR Driving production growth 13 rigs running; 3 operated Risked upside - 3.3…
  17. CORPORATE UPDATE – Cimarex Energy Co. – slide 17
    Summary Recap Well positioned for 2014 and beyond Primary focus on multiple Permian projects Continued Cana development Generating new ideas Solid base of proved reserves and production 80% proved developed; 10-year reserve…
  18. CORPORATE UPDATE – Cimarex Energy Co. – slide 18
    Appendix 19 19
  19. CORPORATE UPDATE – Cimarex Energy Co. – slide 19
    Cana-Woodford Production Growth 250 MMcfe/day 229 215 216 217 200 184 158 161 156 150 139 115 104 100 50 - Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Gas NGL Oil 20 20
  20. CORPORATE UPDATE – Cimarex Energy Co. – slide 20
    2013 Guidance 2013 Production, Unit Expense and Capital Guidance Fourth Quarter Full-Year Production* Total Equivalent (Mmcfe/d) 714-734 695-700 % Liquids 51% 51% Expenses (/Mcfe): Production 1.11 - 1.16 Transportation 0.40 -…
  21. CORPORATE UPDATE – Cimarex Energy Co. – slide 21
    Hedges Oil Weighted Average Price Period Index Type Bbl/d Floor Ceiling Swap Oct. - Dec. '13 WTI Swap 6,000 NA NA 96.13 Oct. - Dec. '13 WTI Collar 6,000 85.00 102.31 Jan. - Dec. '14 WTI Collar 6,000 85.00 105.68 Gas Weighted…
  22. CORPORATE UPDATE – Cimarex Energy Co. – slide 22
    Non-GAAP Reconciliation Reconciliation of Net Income to EBITDA and Adjusted EBITDA ( in Millions) 2008 2009 2010 2011 2012 Net income (loss) (902) (312) 575 530 354 Income tax expense (benefit) (529) (177) 339 312 207 Interest…
  23. CORPORATE UPDATE – Cimarex Energy Co. – slide 23
    Non-GAAP Reconciliation Reconciliation of cash flow from operations Debt/Cap Calculation September 30, September 30, 2013 2013 (in millions) (in millions) Net cash provided by operating activities 941 Long-term debt 900 Change in…

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