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Credit Suisse Energy Summit – Cimarex Energy Co.

Cimarex Energy Co. · Feb 7, 2014 · 27 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. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 1
    Credit Suisse Energy Summit February 2014 1
  2. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 2
    Corporate Profile Shares outstanding 86.6 MM Proved reserves3.. 2.3 Tcfe Market cap1... 8.4 B % Natural gas 55% Long-term debt 2.. 0.9 B % Proved developed 80% Enterprise value 9.3 B R/P Ratio.. 9.9x Stockholders' equity2 3.8…
  3. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 3
    Whats New Daily Production 2014 Capex of 1.8 billion (MMcfe) +13% up 12% y-o-y 760-800 Expected production growth of 13% (midpoint) Delaware Basin generating more opportunities Wolfcamp Shale expanding Invest 600mm in 2014…
  4. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 4
    2014 Capital Investment Plan Total Capital: 1.8 billion By Region: Facilities 2% Land, Seismic & Mid- Cap. Continent Overhead 19% 16% Drilling Permian 78% 82% Robust Permian opportunity set commands 78% of capex Oil…
  5. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 5
    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…
  6. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 6
    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 7
  7. Credit Suisse Energy Summit – 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 Reeves County: A & B/C Avalon Shale emerging 200-250 locations identified 8
  8. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 8
    Delaware Basin - Bone Spring Activity 140 gross wells in 2013 Spend 375mm in 2014 Three areas New Mexico 2nd & 3rd Bone Spring (Eddy & Lea Counties) 60 gross wells YTD 9/30 30-day average IP*: 670 . BOE/d; 560 bo/d Texas 3rd Bone…
  9. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 9
    Delaware Basin Avalon Shale Upsized frac design unlocks oil window in the Avalon 13,700 net acres identified as prospective in Lea County 200+ engineered locations 15-20 net wells planned in 2014 175mm of capex First well had…
  10. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 10
    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…
  11. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 11
    Culberson Focus Area Wolfcamp 100,000+ 100,000+ net net acres acres Wolfcamp 2013 mainDobjectives &C 41 Drilling wellsto tohold date;acreage 30-day average IP of 6.5 MMcfe/d Wolfcamp C&D Product Twomix of 20 rigs; 45%…
  12. Credit Suisse Energy Summit – 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. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 13
    Reeves & Ward Counties Emerging Wolfcamp Reeves County Wolfcamp A wells have 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%) . First Wolfcamp B/C test yields 465…
  14. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 14
    Thick, Multi-pay Wolfcamp Section Culberson Area Reeves County Ward County 100,000 net acres 40,000 net acres 32,000 net acres IIndicates producing zone. 15 15
  15. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 15
    Culberson County Wolfcamp Pilots Stacked Lateral Test 80-acre Spacing Pilot Wolfcamp C & D Wolfcamp D Two wells Four wells Currently drilling Currently drilling 16 16
  16. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 16
    Reeves County Wolfcamp Pilots 80-acre Spacing Pilot Stacked/Staggered Spacing Pilot Wolfcamp A Wolfcamp A Four wells Six wells Currently drilling Currently drilling 17 17
  17. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 17
    Upsized Wolfcamp Frac Old Frac Design: 5,000-foot lateral; 12 stages; 4mm lbs of sand (400,000 lbs 100 mesh); pumped at 100 b/minute New Frac Design: 5,000-foot lateral; 20 stages; 7.2mm lbs of sand (2.4mm lbs 100 mesh);…
  18. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 18
    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…
  19. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 19
    Mid-Continent Highlights Cana-Woodford Activity Map Total 2014 capex of 350mm for the region Cana capex of 250mm Operated Well Non-operated Well Two operated rigs in 2014 Field production expected to grow 4% in 2014 Well cost…
  20. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 20
    Summary Recap Well positioned for 2014 and beyond Primary focus on multiple Permian projects Generating new ideas Solid base of proved reserves and production 80% proved developed; 10-year reserve life Growing oil and NGL…
  21. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 21
    Appendix 22 22
  22. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 22
    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…
  23. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 23
    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 24 24
  24. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 24
    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 -…
  25. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 25
    Hedges Oil Weighted Average Price Period Index Type Bbl/d Floor Ceiling Jan. - Dec. '14 WTI Collar 12,000 85.00 103.47 Gas Weighted Average Price Period Index Type MMBTU/d Floor Ceiling Jan. - Dec. '14 PEPL Collar 80,000…
  26. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 26
    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…
  27. Credit Suisse Energy Summit – Cimarex Energy Co. – slide 27
    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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