IPAA Oil & Gas Investment Symposium April 11, 2016 1
Who is Cimarex Market cap......... 8.9B Debt/Adj. EBITDA1........ 1.9x Production (4Q15)..... 986 MMcfe/d Proved reserves..... 2.9 Tcfe % Natural gas..... 52% % Proved developed..... 75% R/P Ratio..... 8.1x Quarterly…
Whats Important Returns drive decisions Balanced portfolio of assets Premier position in the Delaware Basin and MidCon region Flexibility through commodity cycles Idea generation and track record of strong execution Strong…
2016 E&D Investment Drilling & Completion Capital 600650mm 400460mm Multiple projects/multiple zones Delaware Basin Acreage obligations Upper & Lower Wolfcamp in Culberson County Reeves infill development MidContinent region…
Biggest Opportunity Delaware Basin Wolfcamp 230,000 net acres in the fairway Multiple Wolfcamp Targets Culberson/White City Area 100,000+ net acres Upper & Lower Wolfcamp JDA with Chevron Reeves County 80,000 net acres Upper…
Culberson Area Wolfcamp Details 100,000+ 100,000 net netacres; acres JDA with Chevron 2013 main objectives 18 Drilling longlateral to hold Lower acreage Wolfcampwells Wolfcamp C & Dproducing Two rigs; 20 wells Nine Upper…
Long Lateral Performance Culberson Lower Wolfcamp Thirteen 10,000foot lateral 600 Cumulative Production Average 30day peak IP of (MBOE) 2,308 BOE/d (25% oil; 46% 500 gas; 29% NGL) 70% Increase 400 300 200 100 0 0…
Improving Upper Wolfcamp Completion Design Culberson County Upper Wolfcamp Seven 7,500ft. laterals 250 Cumulative Production Two with larger completion (MBOE) Larger completion have 34% 34% Increase 200 production uplift (125…
Culberson County Upper Wolfcamp Pilot Sixwell downspacing pilot 7,500foot laterals Stacked/staggered well pattern Sunnys Halo section testing 8 wells/section Sunnys Halo Gato del Sol Gato del Sol testing 6 wells/section Wells…
Culberson County Tim Tam Infill Development First Lower Wolfcamp Infill Five 10,000foot laterals 107acre spacing (6 wells/section) Staggered well pattern Drilling began in first quarter First production expected in 4Q Barbaro Tim…
Reeves County Activity Targeting Upper Wolfcamp 8 long laterals producing Average 30day peak IP of 1,575 BOE/d (50% oil; 28% gas; 22% NGL) Best well to date Big Timber has avg. 30day peak IP of 3,309 BOE/d (49% oil; 27% gas; 24%…
MidContinent Woodford Shale Activity CanaWoodford Activity Map 128,000 net prospective acres (86% HBP) Participated in 817 gross Operated Well Nonoperated Well (318 net) wells since 2007 Production from Row 4 began in Q415…
Woodford: Consistent Results Across Acreage Phillips, Armacost Row 4 Infill 2,400 Cumulative Production (MMcfe) Golden Haley 2,000 Hartz 1,600 Eastern Core Infill First Year Cumulative Production (Bcfe) 1,200 2.1 2.1 2.1…
Meramec: The Big Picture 115,000 net prospective acres 60% downdip; 40% updip 70,000 derisked 17 5,000ft laterals have avg. 30day peak IP of 8.4 MMcfe/d Two 10,000ft laterals with avg. 30day peak IP of 15.0 MMcfe/d Variability in…
Meramec Long Lateral Performance 69% uplift after 120 days 1,400 Cumulative Production Two 10,000ft laterals have 30 (MMCFE) day peak IP of 15.0 MMcfe/d 1,200 53% gas, 24% oil, 23% NGL Oil yield rane of 37 & 104 1,000 Bbl/MMcf 69%…
Meramec Next Step: Spacing Pilots Stacked/Staggered Pilot Eight total wells; two rigs working Meramec Four Meramec wells Osage Stacked/staggered spacing Testing 10 wells per section Four Woodford wells Testing 9 wells per section…
Wellpositioned for 2016 and Beyond Diverse asset portfolio with solid returns Strong financial position Investment grade rating with stable outlook at both S&P and Moodys Flexibility to adapt to commodity environment Emphasis…
Appendix 22 22
2016 Guidance 2016 Production, Unit Expense and Capital Guidance First Quarter 2016 Production Total Equivalent (Mmcfe/d) 925955 890930 % Liquids 52% 52% Capital Expenditures 600650 million Expenses (/Mcfe): 2016 Production…
Hedges 2016 2017 First Second Third Fourth First Second Third Fourth Oil: Quarter Quarter Quarter Quarter Total Quarter Quarter Quarter Quarter Total WTI Oil Collars (1) Volume (Bbl) 364,000 368,000 368,000 1,100,000 360,000 364,000…
Permian Region Provides Multiple Opportunities Multiple projects/multiple zones Wolfcamp shale (oil & gas) Bone Spring sands (oil) Avalon Shale (oil window) 2015 Focus Wolfcamp Long Laterals Meeting acreage obligations White City…
Long Laterals Provide Upsized Returns Culberson County Lower Wolfcamp 3000 BOE/day 5,000 ft. lateral 10,000 ft. lateral Well Cost (MM) 7.1 11.2 2500 BTAX IRR 48% 75% NPV10 (MM) 4.6 12.5 2000 Realized prices: Oil 50/Bbl; Gas…
Upsized Frac Improves Second Bone Spring Results White City 5,000ft lateral 200 Cumulative Production (MBOE) Focus Area 180 160 140 70% Increase 120 100 80 15 stages from nine 60 100 locations identified 40 First 7,000 ft…
Culberson County Downspacing Pilot Results Two fourwell pilots; 5,000ft laterals Barbaro Pilot 80acre spacing (8 wells/section) 20stage completion; 1,200 lbs/foot PrewitOmaha Pilot 107acre spacing (6 wells/section) 16stage…
Strong Performance from Key Culberson Wolfcamp Wells Shallow Decline of Upsized Fracs (BOE/d) Lower Wolfcamp Upper Wolfcamp 3,000 1,600 30day IP Days 3060 2,450 2,500 Days 6090 2,500 1,200 1,250 1,095 90 day average 2,000 1,365…
Delaware Basin Avalon Shale: Spacing Pilots Four spacing pilots; 18 total wells Testing 6 & 8 wells/section Average 30day peak rate of 1,012 BOE/d (70% oil; 17% gas; 13% NGL) 250 locations Includes Avalon and Leonard Assumes…
NonGAAP Reconciliation Reconciliation of Net Income to EBITDA and Adjusted EBITDA ( in Millions) 2012 2013 2014 2015 Net income (loss) 354 565 507 (2,409) Income tax expense (benefit) 207 329 299 (1,373) Interest expense, net of…
NonGAAP Reconciliation Reconciliation of cash flow from operations Debt/Cap Calculation Dec. 31, Three months 2015 Ended Dec. 31 (in millions) 2015 2014 (in millions) Long-term debt (principal) 1,500 Net cash provided by…
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