Tuohy Brothers 3rd Annual Energy Conference August 7, 2012
Corporate Profile NYSE: XEC Shares outstanding 86.0 MM Proved reserves3.. 2.05 Tcfe Market cap1... 4.4 B % Natural gas 59% Long-term debt 2.. 0.8 B % Proved developed 82% Enterprise value 5.2 B R/P Ratio.. 9.5x Stockholders' equity2…
Cimarex Strategy Grow through the drill-bit Generate our own drilling inventory Portfolio approach Keep a mix of opportunitiesgas/oil; low- medium-higher risk projects; seek geologic and geographic diversity Rate of return based…
Core Operating Areas YE 2011 Proved Reserves 2.05 Tcfe 82% Proved Developed By Region Mid-Continent Permian Gulf Coast By Product 7
2012 Capital Investment 2011 E&D Capital 2012E E&D Capital 1.58 B 1.4-1.6 B E&D Well Count E&D Well Count Capital Gross Net Capital Gross Net ( MM) (Drilled & Completed) ( MM) (Drilled & Completed) (MidPt. Est.) PB 731 140 100…
Permian Basin Summary Statistics Proved reserves (YE 11) 620.4 (Bcfe) 60% liquids; 99% proved developed Production (Q2 12) 247.5 (MMcfe/d) 68% liquids Net acres (YE 11) 438 (000s) Permian Capital Investment 2012E 2011A E&D…
Permian Basin Prolific multi-pay Abo/Paddock basin Strong position in New Mexico Bone Spring multiple plays in the Delaware Basin: - New Mexico Bone Spring 65,000 net acres New Mexico Texas/New Mexico Texas Unconventional -…
Permian Delaware Bone Spring 2011 Drilling: First-half 2012 drilled and 80 Bone Spring wells 63 New Mexico completed 50 gross (28 net) 17 Texas Bone Spring wells - 31 gross (16 net) in New Mexico - 19 gross (12 net) in Texas…
NM Bone Springs EURs 50% Increase in EURs RESERVES MBOE 650 MBOE AVERAGE 400 MBOE AVERAGE 4-2009 Wells-Chronological 9-2011 6-2012 12
TX 3rd Bone Springs EURs 60% Increase in EURs 730 MBOE AVERAGE RESERVES MBOE 450 MBOE AVERAGE 5-2006 Wells-Chronological 9-2011 6-2012 13
Permian Horizontal Wolfcamp White City/northern Culberson Cty. Focus area 80,000 net acres Delaware Wolfcamp Stats: White City Organic-rich shale Triple Crown 34 miles 12 Gross thickness: 600 700 pipeline Total organic carbon: 2…
Permian Horizontal Wolfcamp 100 Drilling Days Reduced Over Time 90 80 Drilling Days Spud to Rig Release 70 60 50 40 30 20 10 0 15
Permian Horizontal Wolfcamp Significant investment in infrastructure in 2011/2012 - Support full development of Wolfcamp and other regional shale plays - No acreage dedications, flexibility to access markets Triple Crown…
Permian Horizontal Wolfcamp Net Operated Wolfcamp Production 40 (Assumes Full NGL Recovery) 35 New Pipeline In Place Average Daily Production, MMCFED 30 Drilling and 25 Completion Delays Due to Pipeline Constraints 20…
Mid-Continent Region Summary Statistics Proved reserves (YE 11) 1,375.7 (Bcfe) 32% liquids; 72% proved developed Production (Q2 12) 300.2 (MMcfe/d) 29% liquids Net acres (YE 11) 729 (000s) Mid-Continent Capital Investment 2012E…
Cana-Woodford Shale Drilled or non-op in 414 wells through Q2 2012 Strong land position: 120,000 net acres w/ 75,000 Acres NRIs 81% (Liquids Rich) Liquids Rich Area - Net acres: 75,000 45,000 Acres - Gross pay: 100 300 (Gas…
Cana-Woodford Infill Development Infill drilling in liquids- Canadian River rich core XEC River 4-7 operated rigs Access Drilling off two well pads XEC Infill Row with 9 wells/section Began frac of infill wells late…
Cana-Woodford Infill Development Program Drilling Infill row looking west to east Efficiencies Multi-well pad drilling Bi-Fuel for rigs Water management Proximity savings Equipment/personnel reductions Rig Competition 21
Cana-Woodford Infill Development Significant improvement Infill in row looking west to east drilling days Best of the Best well under 20 days - Composite of best performance of all wells XEC best well to date TDd in 26 days…
Cana-Woodford Infill Development Making significant investments for water sourcing, recycling, transporting and storage Water access permits for North and South Canadian River Built 40 acre pond with 5.5 MM bbl storage…
Gulf Coast Summary Statistics Proved reserves (YE 11) 49.0 (Bcfe) Production (Q2 12) 41.0 (MMcfe/d) Net acres (YE 11) 81 (000s) Capital Investment 2012E 2011A Gulf Coast E&D Capital ( MM) 80 95 Wells drilled - gross 8 11 net 6…
Key Investment Considerations Diversified drilling program - Well positioned in multi-pay Permian Basin and Mid-Continent areas which underpin long-term growth and value - Oil and NGLs focus - Quickly adaptable to economic…
Appendix
Hedges Oil Average Price Daily (2) Period Index Type Volume(1) Floor Ceiling Jul - Dec 2012 WTI Collar 14,000 80.00 119.35 (1) Oil volume = bbls/d
Non-GAAP Reconciliation Reconciliation of Net Income to EBITDA and Adjusted EBITDA ( in Millions) 2007 2008 2009 2010 2011 Net income (loss) 345 (902) (312) 575 530 Income tax expense (benefit) 197 (529) (177) 339 312 Interest expense,…
Non-GAAP Reconciliation Reconciliation of cash flow from operations Debt/Cap Calculation Quarter ended YE June 30, 2012 2011 (in millions) (in millions) Pro Forma long-term debt 750 Net cash provided by operating activities…
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