Skip to main content Q2 2016 Earnings Presentation – Cimarex Energy Co. | Shale Experts
Loading...
Pm

Q2 2016 Earnings Presentation – Cimarex Energy Co.

Cimarex Energy Co. · Aug 4, 2016 · 34 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. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 1
    August 2016 1
  2. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 2
    Who is Cimarex Market cap......... 11.0B Debt/Adj. EBITDA1........ 2.8x Production (2Q16)..... 974 MMcfe/d Proved reserves..... 2.9 Tcfe % Natural gas..... 52% % Proved developed..... 75% R/P Ratio..... 8.1x Quarterly…
  3. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 3
    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…
  4. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 4
    Reserves Growth Proved Reserves (Tcfe) 3.5 3.3 3.1 2.9 0.4 3.0 2.5 2.5 2.3 2.0 1.5 1.0 0.5 0.0 2012 2013 2014 2015 2015* Oil NGL Gas *Adjusted for negative price revisions. 5 5
  5. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 5
    Production Growth Daily Production Net Debt Adjusted Production/Share (MMcfe) (MMcfe) 4 3.55 985 9801,000 1,000 3.28 869 3 2.56 750 693 2.34 627 2 500 53% 53% 1 250 51% 48% 51% 0 0 2012 2013 2014 2015 2016E…
  6. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 6
    Hedge Strategy Hedged Volumes as of 6/30/16 Target volume is 50% of oil MMcfe/d and 50% of gas production 200 Methodical approach Five quarter duration 150 Bias toward costless collars Downside protection Some upside price…
  7. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 7
    2016 E&D Investment Drilling & Completion Capital 750mm (up from previous 650 600 million 700mm guidance) Multiple projects/multiple zones Delaware Basin Acreage obligations Upper & Lower Wolfcamp in Culberson County Reeves infill…
  8. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 8
    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…
  9. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 9
    Culberson Area Wolfcamp Details 100,000+ 100,000 net netacres; acres JDA with Chevron 2013 main objectives 20 Drilling longlateral to hold Lower acreage Wolfcampwells Wolfcamp C & Dproducing Two rigs; 20 wells 11 Upper…
  10. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 10
    Resilient Long Lateral Returns Culberson County Wolfcamp 10,000ft. lateral BTax IRR* 200% 175% 150% 125% 100% 75% 50% Upper Wolfcamp 25% Lower Wolfcamp 0% 20 30 40 50 60 Oil Price *Assumes 2.00/Mcf…
  11. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 11
    Long Lateral Performance Culberson Lower Wolfcamp Fifteen 10,000foot laterals 600 Cumulative Production Average 30day peak IP of (MBOE) 2,361 BOE/d (25% oil; 46% 500 gas; 29% NGL) Flying Ebony 70% Increase 400 Average 30day peak…
  12. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 12
    Improving Upper Wolfcamp Completion Design Culberson County Four 10,000ft. laterals 250 Cumulative Production completed to date (MBOE) 22% Increase Wells with new frac have 200 1,650 lb/ft of sand 30day peak IP of 2,098 BOE/d…
  13. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 13
    Culberson County Upper Wolfcamp Pilot Sixwell downspacing pilot 7,500foot laterals Stacked/staggered well pattern Sunnys Halo section testing eight wells/section Gato del Sol testing six Sunnys Halo Gato del Sol wells/section…
  14. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 14
    Culberson County Tim Tam Infill Development First Lower Wolfcamp Infill Five 10,000foot laterals Six wells per twosection unit Staggered well pattern Waiting on 4Q Completion D Barbaro Lower Wolfcamp Tim Tam 878 878…
  15. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 15
    Reeves County Focus Area Targeting Upper Wolfcamp Nine long laterals producing Cabinet State Average 30day peak IP of 1,577 BOE/d (51% oil; 28% gas; 21% NGL) Best wells to date 10kft: Big Timber has avg. 30day peak IP of 3,309…
  16. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 16
    Bigger Completion Improves Avalon Results Lea County 250 13,700 net acres Cumulative Production 250 locations (MBOE) 119% Increase Includes Avalon and Leonard 200 Assumes 80acre spacing Triste Draw 25 7H 150 100 50…
  17. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 17
    MidContinent Overview Meramec and Woodford Stacked Targets Meramec: 115,000 net prospective acres 90,000 derisked Woodford: 135,000 net undeveloped acres (88% HBP) Meramec play outline Woodford play outline Cana core…
  18. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 18
    Meramec: The Big Picture 19 5,000ft laterals have avg. Peterson 30day peak IP of 8.4 MMcfe/d 42% gas; 36% oil; 22% NGL Five10,000ft laterals with avg. 30day peak IP of 13.3 MMcfe/d Sims 44% gas; 34% oil; 22% NGL Oil yield ranges…
  19. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 19
    Meramec Long Lateral Performance 61% uplift after 120 days 1,400 Cumulative Production Five 10,000ft laterals have 30 (MMCFE) day peak IP of 13.3 MMcfe/d 1,200 44% gas; 34% oil; 22% NGL Oil yields range from 37 to 278 1,000…
  20. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 20
    Meramec Spacing Pilots Stacked/Staggered Pilot Meramec Eight total wells Four Meramec wells Osage Stacked/staggered spacing Testing 10 wells per section Four Woodford wells Testing 9 wells per section Woodford Completions in 2H16…
  21. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 21
    Woodford Shale Activity CanaWoodford Activity Map Long history of activity Participated in 817 gross wells since 2007 Operated Well Nonoperated Well Eastern core infill underway 6 sections; 2 operated 47 gross (22 net) wells…
  22. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 22
    Woodford: Completion Evolution Continues Cumulative Production Armacost section developed 2,400 using larger completion Per Well Average (MMcfe) Per well production inline with earlier sections 2,000 Tighter spacing means more…
  23. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 23
    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…
  24. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 24
    Appendix 25 25
  25. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 25
    2016 Guidance 2016 Production, Unit Expense and Capital Guidance Third Quarter FullYear Production Total Equivalent (Mmcfe/d) 950980 9801,000 % Liquids 53% 53% Capital Expenditures 750 million Expenses (/Mcfe): Remainder of…
  26. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 26
    Hedges 2016 2017 Average Third Fourth First Second Third Oil: Quarter Quarter Quarter Quarter Quarter WTI Oil Collars (1) Volume (Bbl/d) 9,000 9,000 9,000 9,000 5,000 8,195 Wtd Avg Floor Purchased (put) 39.17 39.17 39.17 39.17…
  27. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 27
    Cana Area Production MMcfe/day 450 Row 4 Drilling Commenced 419 406 Row 4 Completions Began 400 384 385 390 350 350 333 322 310 300 255 250 229 226 216 217 200 150 100 50 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14…
  28. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 28
    Permian Basin Production MBOE/day 100 99 94 90 87 85 81 80 80 74 70 68 65 60 59 58 55 53 50 46 40 30 20 10 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Oil NGL…
  29. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 29
    Completion Evolution Continues Pounds of Sand per Lateral Foot Jan. '15 July '15 Jan. '16 July '16 Culberson Upper Wolfcamp 1,250 1,650 1,650 2,500 Culberson Lower Wolfcamp 1,250 1,250 1,250 2,400 Reeves Upper Wolfcamp 1,300…
  30. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 30
    Permian Region Provides Multiple Opportunities Multiple projects/multiple zones Wolfcamp shale (oil & gas) Bone Spring sands (oil) Avalon Shale (oil window) 2016 Focus Wolfcamp Long Laterals Meeting acreage obligations 31
  31. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 31
    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…
  32. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 32
    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…
  33. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 33
    NonGAAP Reconciliation Reconciliation of Net Income to EBITDA and Adjusted EBITDA1 ( in Millions) 2013 2014 2015 LTM Net income (loss) 565 507 (2,409) (1,850) Income tax expense (benefit) 329 299 (1,373) (1,063) Interest expense,…
  34. Q2 2016 Earnings Presentation – Cimarex Energy Co. – slide 34
    NonGAAP Reconciliation Reconciliation of cash flow from operations1 Debt/Cap Calculation2 Three months June 30, Ended June 30, 2016 2016 2015 (in millions) (in millions) Long-term debt (principal) 1,500 Net cash provided by…

From the store

Browse maps, data & reports in the Shale Experts store