CORPORATE PRESENTATION Barclays 2018 CEO Energy-Power Conference
Cimarex Energy Snapshot NYSE symbol: XEC Market Cap1: 8.1 billion Enterprise Value1: 9.6 billion Debt/EBITDA2: 1.1x Annual Dividend3: 0.72 (0.8% yield) Daily Production: 211 MBOE 61,651 barrels of oil per day 2018E Capex: 1.6-1.7…
Cimarex Energy Overview Enduring Maximizing full-cycle return on invested capital Culture Proven Track Creating value, generating top-tier returns Record Premier Core positions in the Permian and Anadarko Basins Portfolio…
The Culture of Cimarex Idea Generation Driven by Rigorous Technical Evaluation Lookback Acreage Evaluation Concentration Improves Economic Creating Economies of Returns, Operational Scale, Economic Gains Efficiencies…
Maximizing Fully-Burdened Returns Half-Cycle Fully- Cimarex culture built on Burdened 100% maximizing fully 90% burdened after-tax rate 80% of return on investment 70% 60% Rigorous technical 50% evaluation of all aspects 40% of E&D…
History of Outsized Returns Cash Return on Capital Employed (CROCE) XEC vs S&P 500 E&P Peers 50% 40% 30% 20% 10% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 XEC Peer Avg.*** 7
XEC Generating Top-Tier Returns 2018 Cash Return on Capital Employed (CROCE) XEC vs S&P 500 30% 25% 20% Average CROCE (%) 15% 10% 5% 0% Source: Stifel estimates E&P estimates based on Stifel estimates,…
Delaware Basin Overview 259,000 total net acres 70% of 2018 D&C Budget Stacked pay opportunities provides multi-zone development opportunities Upper and Lower Wolfcamp Second and Third Bone Spring Avalon Wolfcamp Wolfcamp…
Well Productivity Improvements Long Lateral Upper Wolfcamp Wells (Culberson and Reeves Counties) 49 10,000-ft. lateral Upper Completion Generation IP180 (BOE/d) Wolfcamp wells drilled in Permian Basin since 2013 2,000 Improvement in…
Permian Basin Oil Takeaway Sales agreements in place for oil volumes through 2019 Strategic partnerships in core areas Pipelines in place Purchase obligations Midland index pricing 70% of oil production on pipe; increasing to…
Permian Basin Residue Gas Takeaway Sales agreements in place 98% of forecasted production through December 2019 El Paso or Waha index pricing Own and operate two gas gathering systems Triple Crown Culberson/Eddy Counties Matterhorn…
Delaware Basin Culberson/White City 100,000+ net acres, JDA with Chevron in Culberson 30% of 2018 D&C capital Targeting Upper and Lower Owl Draw 12 Wolfcamp, Bone Spring 2,521 BOE/d (1,393 b/d) Western delineation continues to…
Delaware Basin Reeves County 59,400 net acres 20% of 2018 D&C capital Targeting Upper Wolfcamp Dixieland State 55-6 2,505 BOE/d Wood State: 12 well/section (1,464 b/d) Development wells 28% above parent wells Snowshoe Pagoda…
Delaware Basin Lea County Upper Wolfcamp Avalon Bone Spring 31,400 net acres 12% of 2018 D&C capital Targeting Upper Wolfcamp, Avalon, Bone Spring Triste Draw Hallertau (Upper Wolfcamp) Confirms 12 wells/section Red Tank Tristie…
Mid-Continent Overview 326,000 net acres 30% of 2018 D&C capital Woodford: 136,500 net Cana Core undeveloped acres 14N10W Participated in 950 wells (325 operated) since 2007 Meramec: 116,500 net acres Lone Rock Improving results…
Mid-Continent Meramec Dupree BIA 1H 1 Mile 2,877 BOE/d 116,500 net acres, (1,597 b/d) Lehman Steve O 100% HBP Mike Com 1H 2 Mile Miss Mary 15% of 2018 D&C capital 4,353 BOE/d (433 b/d) 40 industry development pilots active,…
Mid-Continent Woodford Operated well Non-operated well 136,500 net undeveloped acres 16% of 2018 D&C capital 14N 10W Lone Rock (16,000 net acres) yielding best Woodford results to date, completion optimization driving results…
2018 Program Overview Capital Program (mm) 2018E Production - MBOE/d E&D Capital 1,600 - 1,700 D&C Capital 1,300 - 1,400 242 211 211 206-215 214-221 218 Midstream/Other 80 - 90 206 190 D&C as % of E&D 82% Permian 70% Mid-Continent…
Disciplined Financial Positioning Significant 1.4 billion of liquidity, including 411mm of cash (2Q18) Liquidity Conservative 1.1x Debt/TTM EBITDA (2Q18) Leverage Investment 750 million 3.900% senior unsecured notes due in 2027 Grade…
Positioned for Success Enduring Maximizing full-cycle return on invested capital Culture Idea driven, technical emphasis Premier Generating strong returns Portfolio Decades of top-tier inventory Profitable 2018 Oil Production…
Hedges as of August 3, 2018 2018 2019 Third Fourth First Second Third Fourth Quarter Quarter Quarter Quarter Quarter Quarter OIL WTI Oil Collars1 Volume (Bbl/d) 35,000 29,000 23,000 23,000 16,000 8,000 Weighted Average Floor…
2018 Production Growth Daily Production Net Wells Online (MBOE) 49 214-221 211 206-215 206 190 38 37 23 15 2017A 1QA 2QA 3QE 4QE 2018E 1QA 2QA 3QE 4QE Wells Drilling or Oil Permian Mid-Continent WOC at 12/31/18 27
Permian Basin Water Management Saltwater Disposal System Own and operate salt water disposal (SWD) systems in Culberson, Eddy and Reeves Improves operating costs Recycling produced water for completion operations 40% of total…
Permian Basin Development Pilot Details Culberson Lower Wolfcamp - Animal Kingdom Animal Kingdom spacing Eight wells testing 14 wells per section Lower Wolfcamp 225 Waiting on completion 1,216 225 1,216 Red Hills (Lea)…
Non-GAAP Reconciliation Reconciliation of Net Income to EBITDA and Adjusted EBITDA1 LTM ( in Millions) 2015 2016 2017 6/30/18 Net income (loss) (2,580) (409) 494 593 Income tax expense (benefit) (1,472) (214) 188 150 Interest…
Non-GAAP Reconciliation Reconciliation of cash flow from operations1 Debt/Cap calculation Six Months Ended Jun 30, June 30, ( in Millions) 2018 ( in Millions) 2017 2018 Long-term debt (principal) 1,500 Net cash provided by operating…
Non-GAAP Reconciliation Cash Return on Capital Employed (CROCE) Cash Flow from Operating Activities+ After-tax Interest Expense Average Book Equity + Average Debt 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Cash flow from…
Loading...
