Barclays CEO EnergyPower Conference September 56, 2017 1
Who is Cimarex Market Cap1 9.5 billion Debt/Adj. EBITDA2 1.5x Production (2Q 17) 1,156 MMcfe/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…
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…
Recent Acheivements Enhanced completion design Improved well performance Allows tighter development well spacing Four successful spacing pilots announced in 2017 Now prosecuting even tighter spacing tests 12wells/section Upper…
Production Growth Daily Production (MMcfe) +1618% 1,120 1,140 985 1000 963 Oil to lead 2017 volume 869 growth 750 Expected to grow 24 29% 693 yearoveryear 4Q 17 oil volume up 30 35% 500 vs 4Q 16 55% 250 53% 52% 51%…
2017 Capital Plans Drilling & Completion (D&C) 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 D&C is 76% of E&D capital…
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…
Completion Evolution Pounds of Sand per Lateral Foot 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…
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…
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…
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…
Improving Upper Wolfcamp Completion Design Culberson Long Lateral Upper Wolfcamp 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…
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…
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…
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%…
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…
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…
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…
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…
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 planned Nonop drilling late 2017…
Wellpositioned for 2017 and Beyond Diverse portfolio with solid returns Strong financial position 520 million of cash on the balance sheet at 6/30/17 Technical emphasis on idea generation Enhancements to completion design…
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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…
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…
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 28 28
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…
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,…
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…
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