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EnerCom The Oil and Gas Conference – Cimarex Energy Co.

Cimarex Energy Co. · Aug 15, 2017 · 33 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. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 1
    The Oil and Gas Conference August 15, 2017 1
  2. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 2
    Who is Cimarex Market Cap1 8.94 Billion Debt/Adj. EBITDA2 1.5x Production (2Q 17) 1,156 MMcfd/d Proved Reserves 2.9 Tcfe % Natural gas 51% % Proved Developed 79% R/P Ratio 8.2x Quarterly Dividend 0.08/share 1 As of August…
  3. EnerCom The Oil and Gas Conference – 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. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 4
    Production Growth Daily Production (MMcfe) +1618% 1,120 1,140 985 1000 963 Oil leads 2017 volume growth 869 Oil to grow 24 29% year 750 overyear 693 4Q 17 oil volume up 30 35% vs 4Q 16 500 55% 250 53% 52% 51% 50%…
  5. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 5
    Efficiency Gains Continue in LOE (/Mcfe) 1.08 0.21 0.83 0.14 0.33 0.66 0.65 0.59 0.24 0.12 0.18 0.06 0.14 0.19 0.19 0.10 0.17 0.05 0.06 0.27 0.05 0.25 0.22 0.21 0.18 0.13 0.10 0.08 0.07 0.07 2014 2015 2016 1Q17…
  6. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 6
    2017 Capital Plans Drilling & Completion Capital Estimated 2017 E&D Capital (Millions) unchanged at 1.1 1.2 billion 1,531 Up 56% from 2016 level Includes D&C capital of 850 1,251 25% 900mm 76% of E&D capital Generates 17%…
  7. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 7
    2017 Drilling & Completion Capital 850900 million Drilling & Completion Capital Multiple projects & zones Avalon Delaware Basin Wolfcamp delineation & infill Woodford Bone Spring & Avalon development Test of new concepts…
  8. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 8
    2017 Net Well Completions by Quarter 44 28 26 24 18 1QA 2QA 3QE 4QE Wells Drilling & WOC at Permian Basin MidContinent 12/31/17 9 9
  9. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 9
    Completion Evolution Pounds of Sand per Lateral Ft Jul Jan Jul Jan Jul 2015 2016 2016 2017 2017 Culberson Upper Wolfcamp 1,650 1,650 2,500 2,500 2,500 Culberson Lower Wolfcamp 1,250 1,250 2,500 2,500 2,500 Reeves Upper Wolfcamp…
  10. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 10
    Permian Region Oil Gravity Oil Production by County* County API Gravity* Ward Eddy 11% 14% Eddy 44.6 Lea Lea 41.9 19% Reeves 30% Culberson 49.5 Reeves 44.5 Culberson 22% Ward 41.9 *June 2017 Gravity deducts possible…
  11. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 11
    Biggest Opportunity Delaware Basin Wolfcamp 225,000 net acres in the fairway Multiple Wolfcamp Targets Culberson/White City Area 100,000+ net acres Upper & Lower Wolfcamp JDA with Chevron Reeves County Lower Wolfcamp well 70,000…
  12. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 12
    Culberson Area Wolfcamp Details Lower Wolfcamp well Upper Wolfcamp well SWD operated well 100,000+ net acres 100,000+ 2013 mainnet acres; JDA with objectives Chevron in Culberson County Drilling to hold acreage 26 Wolfcamp Lower…
  13. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 13
    Long Lateral Performance Culberson Lower Wolfcamp Cumulative Production (MBOE) Sixteen 10,000 ft laterals 800 Average 30day peak IP of 2,316 33% Increase BOE/d (25% oil; 45% gas; 30% 600 NGL) Flying Ebony 400 Average 30day peak IP…
  14. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 14
    Improving Upper Wolfcamp Completion Design Culberson Upper Wolfcamp Average Cumulative Production (MBOE) Nine 10,000 ft laterals 700 completed to date 22% Increase 600 Wells with new frac have 500 1,650+ lb/ft of sand 30day peak IP of…
  15. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 15
    Resilient Long Lateral Returns Culberson County Wolfcamp 10,000 ft lateral BTax IRR* 300% 250% 200% 150% 100% 50% 0% 30 40 50 60 70 Realized Oil Price Upper Wolfcamp 3/Mcf Lower Wolfcamp 3/Mcf Upper Wolfcamp…
  16. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 16
    Culberson County Tim Tam Infill Development Cumulative Production (MBOE) Five 10,000 ft infill wells 500 Testing six wells per section Infills have surpassed parent 400 wells in both landing zones Good returns in both landings 300…
  17. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 17
    Culberson County Upper Wolfcamp Pilot Extrapolated Average Cumulative Production per 7,500ft well (MBOE) Similar perwell results with 6 or 8 wells per section 500 Seattle Slew testing 12 wells 400 per section 300 Sixwell pilot 200…
  18. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 18
    Reeves County Focus Area Targeting Upper Wolfcamp 25 10,000 ft laterals producing Average 30day peak IP of 1,750 BOE/d 47% oil; 30% gas; 23% NGL) Best wells to date 10,000 ft: Big Timber peak IP30 of 3,309 BOE/d (49% oil; 27%…
  19. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 19
    Reeves County Infill Well Results Cumulative Production (MBOE) Upper Wolfcamp 500 10,000 ft laterals Wood State: 6 wells testing 12 400 wells per section Best long lateral to date sits right 300 next door (Big Timber) Pagoda State: 4…
  20. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 20
    MidContinent Overview Meramec and Woodford Stacked Targets Meramec: 116,500 net prospective acres 90,000 derisked 100% HBP by YE17 Woodford: 136,500 net undeveloped acres (88% HBP) Meramec play outline Woodford play…
  21. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 21
    Meramec: The Big Picture 42 wells producing with average lateral length of 6,700 ft Average 30day IP of 1,596 BOE/d (40% oil; 40% gas; 20% NGL) Four 10,000 ft lateral wells brought online in 2Q Leon Gundy Average 30day IP of 2,073…
  22. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 22
    Leon Gundy Pilot Results Cumulative Production Mcfe Stacked/Staggered Pilot 2,000 Eight total wells Four Meramec wells 1,600 Stacked/staggered spacing Testing ten wells per section 1,200 Four Woodford wells 800 Testing nine wells…
  23. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 23
    Woodford Shale Activity Long history of activity Participated in 882 gross wells Operated well since 2007 Nonoperated well Eastern core infill wells completed Long lateral LeotaJacobs infill Nonop drilling late 2017 LeotaJacobs…
  24. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 24
    Wellpositioned for 2017 and Beyond Diverse asset portfolio with solid returns Strong financial position 520 million of cash on the balance sheet at 6/30/17 Emphasis on idea generation Infill well spacing Completion design Field…
  25. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 25
    Appendix 26 26
  26. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 26
    2017 Guidance Third Quarter Full Year Production Total Equivalent (MMcfe/d) 1,100 1,140 1,120 1,140 Total Equivalent (BOE/D) 183.3 190.0 186.7 190.0 % Liquids 55% 55% Capital Expenditures (Billion) 1.1 1.2 Expenses /Mcfe /BOE…
  27. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 27
    Hedges as of August 8, 2017 2017 2018 Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter OIL WTI Oil Collars1 Volume (Bbl/d) 23,978 21,000 16,000 10,000 6,000 Weighted Average Floor 45.86 46.29 46.69 46.30…
  28. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 28
    Cana Area Production Daily Production (MMcfe) 419 427 417 406 400 384 385 390 375 350 353 333 322 310 300 200 100 0 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Gas NGL Oil 29…
  29. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 29
    Permian Basin Production Daily Production (MBOE) 107 99 100 96 94 87 86 85 85 81 80 74 75 68 65 50 25 0 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Oil NGL Gas 30 30
  30. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 30
    NonGAAP Reconciliation Reconciliation of Net Income to EBITDA and Adjusted EBITDA1 LTM ( in Millions) 2014 2015 2016 6/30/17 Net income (loss) 526 (2,580) (409) 265 Income tax expense (benefit) 310 (1,472) (214) 177 Interest expense,…
  31. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 31
    NonGAAP Reconciliation Reconciliation of cash flow from operations1 Debt/Cap calculation Three months Jun 30, Ended June 30 ( in Millions) 2017 ( in Millions) 2017 2016 Longterm debt (principal) 1,500 Net cash provided by operating…
  32. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 32
    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 33
  33. EnerCom The Oil and Gas Conference – Cimarex Energy Co. – slide 33
    Woodford: Completion Evolution Continues Average Cumulative Production Per Well Armacost section developed (MMcfe) 2,400 using larger completion Per well production inline with earlier sections 2,000 Tighter spacing means more…

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