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JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co.

Cimarex Energy Co. · Jun 11, 2012 · 30 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. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 1
    Corporate Update June 2012
  2. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 2
    Corporate Profile NYSE: XEC Shares outstanding 85.7 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' equity3…
  3. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 3
    Cimarex Strategy Grow through the drill-bit Portfolio approach Keep a mix of opportunitiesgas/oil; low- medium-higher risk projects; seek geologic and geographic diversity Rate of return based decisions Underpin with low/moderate…
  4. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 4
    Core Operating Areas YE 2011 Proved Reserves 2.05 Tcfe 82% Proved Developed By Region Mid-Continent Permian Gulf Coast By Product 5
  5. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 5
    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…
  6. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 6
    Permian Basin Summary Statistics Proved reserves (YE 11) 620.4 (Bcfe) 60% liquids; 99% proved developed Production (Q1 12) 240.3 (MMcfe/d) 60% liquids Net acres (YE 11) 438 (000s) Permian Capital Investment 2012E 2011A E&D…
  7. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 7
    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 -…
  8. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 8
    Permian Basin - Regional Setting Paddock Bone Spring Shelf Edge Shelf to Basin Midland Central Basin Basin Platform Delaware Basin Shale Deep Basin System Series Northern Shelf Delaware Basin Bone Spring Deep Basin
  9. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 9
    Permian Bone Spring Bone Spring Sandstones Depositional Model LOBE COMPLEX 3 miles Thick-bedded Lobe Sandstones Thin-bedded Lobe Fringe Deposits Basinal Mudstones 10
  10. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 10
    Permian Bone Spring New Mexico 2nd BSPG Type 0.3 DPHI -0.1 0.2 RS 2000 Log & Reservoir Data GR 0.3 NPHI XPHI -0.1 0.2 LLS LLD 2000 0 100 0.3 -0.1 0.2 2000 - Sand Reservoir 7450 - 11% Porosity / 0.1 md…
  11. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 11
    Permian Delaware Bone Spring 2011 Drilling: 80 Bone Spring wells First-quarter 2012 drilled and 63 New Mexico completed 18 gross (11 net) 17 Texas Bone Spring wells - 13 gross (6 net) in New Mexico - 5 gross (5 net) in Texas…
  12. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 12
    Permian Horizontal Wolfcamp Drilled and completed 20 horizontal Wolfcamp wells Triple Crown to date White City 34 miles 12 pipeline First 30-day production per well average: 6.6 MMcfe/d Comprised of : 47% gas, 23% oil and 30%…
  13. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 13
    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…
  14. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 14
    Mid-Continent Region Summary Statistics Proved reserves (YE 11) 1,375.7 (Bcfe) 32% liquids; 72% proved developed Production (Q1 12) 313.9 (MMcfe/d) 31% liquids Net acres (YE 11) 729 (000s) Mid-Continent Capital Investment 2012E…
  15. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 15
    Cana-Woodford Shale Strong land position with over 120,000 net acres with high net revenue interests (NRIs 81%) 75,000 Acres (Liquids Rich) Core Rich Area - Net acres: 75,000 45,000 Acres - Gross pay: 100 300 (Dry Area) - High…
  16. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 16
    Cana-Woodford Shale Drilled or participated in 366 wells through first-quarter 2012 Oil and liquids-rich gas play in an area with historical industry presence 2012 focus: Infill development in the liquids-rich core Expect to…
  17. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 17
    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 Began frac of infill wells late May-2012; finish last frac…
  18. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 18
    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 19
  19. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 19
    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…
  20. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 20
    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…
  21. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 21
    Cana-Woodford Production 180 161 158 160 139 140 120 115 104 99 MMcfe/d 100 84 80 75 67 60 40 20 - Q1A Q2A Q3A Q4A Q1A Q2A Q3A Q4A Q1A 2010A 2011A 2012 Gas (MMcf/d) NGL (MMcfe/d) Oil (MMcfe/d) 22
  22. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 22
    Cana-Woodford Summary Q1 2012 production: Gas (MMcf/d) 108.3 67% NGLs (b/d) 6,668 25% Oil (b/d) 2,175 8% Equivalent (MMcfe/d) 161.3 100% Significant resource potential: % Net Net Net Resource Potential Liquid Acres…
  23. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 23
    Gulf Coast Summary Statistics Proved reserves (YE 11) 49.0 (Bcfe) Production (Q1 12) 49.3 (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…
  24. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 24
    Production Growth 700 70000% +3-7% 612-632 596 592 600 34-39 60000% 175 105 578-593 500 50000% 487 MMcfe/d 400 421 40000% 300 30000% 200 20000% Year-over-year % growth 100 10000% 11% 16% 19-22% - 0% 2010A…
  25. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 25
    Permian Oil Production (Mbbl/d) 25.0 40% 35% 22-23 20.0 30% 16.8 25% 15.0 Mbbl/d 14.0 20% 10.0 15% 10% 5.0 Year-over-year % growth 5% 3% 20% 30-35% - 0% 2010A 2011A 2012E 26
  26. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 26
    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…
  27. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 27
    Appendix 28
  28. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 28
    Hedges Oil Average Price Daily (2) Period Index Type Volume(1) Floor Ceiling Mar - Dec 2012 WTI Collar 14,000 80.00 119.35 (1) Oil volume = bbls/d (2) WTI = NYMEX West Texas Intermediate price. 29
  29. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 29
    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,…
  30. JUNE 2012 INVESTOR UPDATE – Cimarex Energy Co. – slide 30
    Non-GAAP Reconciliation Reconciliation of cash flow from operations Debt/Cap Calculation Quarter ended YE March 31, 2012 2011 (in millions) (in millions) Pro Forma long-term debt 750 Net cash provided by operating activities…

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