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2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co.

Cimarex Energy Co. · Sep 24, 2012 · 28 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. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 1
    2012 IPAA OGIS San Francisco September 24, 2012
  2. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 2
    Corporate Profile NYSE: XEC Shares outstanding 86.0 MM Proved reserves3.. 2.05 Tcfe Market cap1... 5.4 B % Natural gas 59% Long-term debt 2.. 0.8 B % Proved developed 82% Enterprise value 6.2 B R/P Ratio.. 9.5x Stockholders' equity2…
  3. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 3
    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…
  4. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 4
    Drill-Bit Production by Region Base Permian Mid-Continent Cana Gulf Coast/Other 700 Magnum 600 Hunter Acquisition 500 6/05 400 Cimarex Formed 80% 300 10/02 200 100 0 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05…
  5. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 5
    Growth in Oil and NGL Reserves Oil NGLs 80 72.3 65.8 60 63.7 56.8 MMBbls 40 44.3 41.3 20 0.9 1.3 0 2008 2009 2010 2011 6
  6. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 6
    Core Operating Areas YE 2011 Proved Reserves 2.05 Tcfe 82% Proved Developed By Region Mid-Continent Permian Gulf Coast By Product 7
  7. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 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…
  8. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 8
    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…
  9. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 9
    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 -…
  10. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 10
    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…
  11. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 11
    NM Bone Spring EURs 50% Increase in EURs RESERVES MBOE 650 MBOE AVERAGE 400 MBOE AVERAGE 4-2009 Wells-Chronological 9-2011 6-2012 12
  12. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 12
    TX 3rd Bone Spring EURs 60% Increase in EURs 730 MBOE AVERAGE RESERVES MBOE 450 MBOE AVERAGE 5-2006 Wells-Chronological 9-2011 6-2012 13
  13. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 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…
  14. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 14
    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
  15. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 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…
  16. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 16
    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…
  17. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 17
    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…
  18. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 18
    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…
  19. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 19
    Cana-Woodford Infill Development Infill drilling in liquids- Canadian River rich core XEC River 4-7 operated rigs Access Drilling off two well XEC Infill Row pads with 9 wells/section Began frac of infill XEC wells late…
  20. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 20
    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
  21. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 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…
  22. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 22
    Cana-Woodford Summary Infill row looking east Q2-12 production:156 MMcfe/d (36% increase over Q2-11) Gas (MMcf/d) 110 70% NGLs (b/d) 5,772 22% Oil (b/d) 1,915 7% Equivalent (MMcfe/d) 156 100% Significant resource…
  23. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 23
    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 NGL focus - Quickly adaptable to economic…
  24. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 24
    Appendix
  25. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 25
    Quarterly Dividend (cents/share) 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 Mar06 Jul06 Nov06 Mar07 Dividend Jul07 Nov07 Mar08 Jul08 Nov08 Mar09 Jul09 Nov09 Quarterly Dividend Per Share Mar10 Jul10 Nov10 Yield…
  26. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 26
    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
  27. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 27
    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,…
  28. 2012 IPAA OGIS SAN FRANCISCO – Cimarex Energy Co. – slide 28
    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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