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BAML Global Energy Conference – Cimarex Energy Co.

Cimarex Energy Co. · Nov 13, 2012 · 25 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. BAML Global Energy Conference – Cimarex Energy Co. – slide 1
    Bank of America/ Merrill Lynch 2012 Global Energy Conference November 13, 2012
  2. BAML Global Energy Conference – 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. BAML Global Energy Conference – 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. BAML Global Energy Conference – 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. BAML Global Energy Conference – 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. BAML Global Energy Conference – 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. BAML Global Energy Conference – Cimarex Energy Co. – slide 7
    2012 Capital Investment 2011 E&D Capital 2012E E&D Capital 1.58 B 1.6 B E&D Well Count E&D Well Count Capital Gross Net Capital Gross Net ( MM) (Drilled & Completed) ( MM) (Drilled & Completed) (Est.) PB 731 140 100 PB 880 195…
  8. BAML Global Energy Conference – Cimarex Energy Co. – slide 8
    Permian Basin Summary Statistics Proved reserves (YE 11) 620.4 (Bcfe) 60% liquids; 99% proved developed Production (Q3 12) 274.5 (MMcfe/d) 71% liquids Net acres (YE 11) 438 (000s) Permian Capital Investment 2012E 2011A E&D…
  9. BAML Global Energy Conference – 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. BAML Global Energy Conference – Cimarex Energy Co. – slide 10
    Permian Delaware Bone Spring 2011 Drilling: YTD 9-30-12; drilled and 80 Bone Spring wells 63 New Mexico completed 76 gross (42 net) 17 Texas Bone Spring wells - 48 gross (24 net) in New Mexico - 28 gross (18 net) in Texas…
  11. BAML Global Energy Conference – Cimarex Energy Co. – slide 11
    Permian Horizontal Wolfcamp White City/northern Culberson Cty. Focus area 100,000 net acres Delaware Wolfcamp Stats: White City Organic-rich shale Triple Crown 34 miles 12 Gross thickness: 600 700 pipeline Total organic carbon: 2…
  12. BAML Global Energy Conference – Cimarex Energy Co. – slide 12
    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…
  13. BAML Global Energy Conference – Cimarex Energy Co. – slide 13
    Permian Horizontal Wolfcamp Net Operated Wolfcamp Production 50 (Assumes Full NGL Recovery) Average Monthly Production, MMCFED New 40 Drilling and Pipeline In Completion Place Delays Due to Pipeline 30 Constraints…
  14. BAML Global Energy Conference – Cimarex Energy Co. – slide 14
    Mid-Continent Region Summary Statistics Proved reserves (YE 11) 1,375.7 (Bcfe) 32% liquids; 72% proved developed Production (Q3 12) 324.3 (MMcfe/d) 31% liquids Net acres (YE 11) 729 (000s) Mid-Continent Capital Investment 2012E…
  15. BAML Global Energy Conference – Cimarex Energy Co. – slide 15
    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…
  16. BAML Global Energy Conference – Cimarex Energy Co. – slide 16
    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…
  17. BAML Global Energy Conference – Cimarex Energy Co. – slide 17
    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 18
  18. BAML Global Energy Conference – Cimarex Energy Co. – slide 18
    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…
  19. BAML Global Energy Conference – Cimarex Energy Co. – slide 19
    Cana-Woodford Summary Infill row looking east Q3-12 production:184 MMcfe/d (32% increase over Q3-11) Gas (MMcf/d) 121 66% NGLs (b/d) 7,996 26% Oil (b/d) 2,551 8% Equivalent (MMcfe/d) 184 100% Significant resource…
  20. BAML Global Energy Conference – Cimarex Energy Co. – slide 20
    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…
  21. BAML Global Energy Conference – Cimarex Energy Co. – slide 21
    Appendix
  22. BAML Global Energy Conference – Cimarex Energy Co. – slide 22
    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…
  23. BAML Global Energy Conference – Cimarex Energy Co. – slide 23
    Hedges Oil Average Price Daily (2) Period Index Type Volume(1) Floor Ceiling Oct - Dec 2012 WTI Collar 14,000 80.00 119.35 (1) Oil volume = bbls/d
  24. BAML Global Energy Conference – Cimarex Energy Co. – slide 24
    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,…
  25. BAML Global Energy Conference – Cimarex Energy Co. – slide 25
    Non-GAAP Reconciliation Reconciliation of cash flow from operations Debt/Cap Calculation Quarter ended YE Sept. 30, 2012 2011 (in millions) (in millions) Pro Forma long-term debt 830 Net cash provided by operating activities…

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