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IPAA OGIS Toronto – Cimarex Energy Co.

Cimarex Energy Co. · Jun 30, 2014 · 27 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. IPAA OGIS Toronto – Cimarex Energy Co. – slide 1
    IPAA OGIS Toronto June 2014 1
  2. IPAA OGIS Toronto – Cimarex Energy Co. – slide 2
    Corporate Profile Shares outstanding 87.2 MM Proved reserves3.. 2.5 Tcfe Market cap1... 11.2 B % Natural gas 52% Long-term debt 2.. 1.0 B % Proved developed 80% Enterprise value 12.2 B R/P Ratio.. 9.9x Stockholders' equity2…
  3. IPAA OGIS Toronto – Cimarex Energy Co. – slide 3
    Whats New Daily Production Issued 750mm of senior (MMcfe) +20% unsecured notes at 4.375% 822-847 Expect 2014 production to grow 20% (midpoint) 249mm Mid-Continent 343 Acquisition (May 2014) 30,000 net acres in focus area 2014 E&D…
  4. IPAA OGIS Toronto – Cimarex Energy Co. – slide 4
    Production Profile 1Q 2014 Production Mix Revenue Contribution Oil 32% Natural Gas 48% NGL 20% 740 MMcfe per day; up 12% year-over-year Permian Basin oil production of 31,624 b/d up 22% year-over-year Strong prices…
  5. IPAA OGIS Toronto – Cimarex Energy Co. – slide 5
    2014 Capital Investment Plan Total Capital: 1.9 billion By Region: Facilities & Other 5% Land, Seismic & Cap. Overhead 14% Drilling 81% Robust Permian opportunity set commands 75% of capex Oil production growth of…
  6. IPAA OGIS Toronto – Cimarex Energy Co. – slide 6
    Permian Basin Region Delaware Basin focus Several zones producing 2nd & 3rd Bone Spring sands Multiple Wolfcamp zones Culberson area: D, C & A zones Reeves County: A & B/C Ward County: A Avalon Shale emerging 200-250 locations…
  7. IPAA OGIS Toronto – Cimarex Energy Co. – slide 7
    Delaware Basin - Bone Spring Activity Spend 375mm in 2014 to drill 100 gross (56 net) wells 25 gross (13 net) wells in Q1 Three areas New Mexico 2nd & 3rd Bone Spring (Eddy & Lea Counties) . 10 gross wells drilled in Q1 30-day…
  8. IPAA OGIS Toronto – Cimarex Energy Co. – slide 8
    Delaware Basin Avalon Shale Nine wells drilled to date 30-day peak rate of 1,003 BOE/d (77% oil) Upsized frac design unlocks oil window in the Avalon 13,700 net acres identified as prospective in Lea County 200+ engineered…
  9. IPAA OGIS Toronto – Cimarex Energy Co. – slide 9
    Delaware Basin Wolfcamp Fairway 225,000 net acres in the fairway Multiple Wolfcamp Targets Culberson/White City Area 94,000+ net acres Wolfcamp D, C & A producing JDA with Chevron Reeves County New focus area 77,000 net acres…
  10. IPAA OGIS Toronto – Cimarex Energy Co. – slide 10
    Thick, Multi-pay Wolfcamp Section Culberson Area Reeves County Ward County 94,000 net acres 77,000 net acres 42,000 net acres IIndicates producing zone. 11 11
  11. IPAA OGIS Toronto – Cimarex Energy Co. – slide 11
    Culberson Focus Area Wolfcamp 94,000 netnet 100,000+ acres acres Two10,000 Wolfcamp D wells 2013 main objectives Average 30-day Drilling to IP of 2,660 hold acreage BOE/d (40% gas, 27% oil, 33% Wolfcamp C & D NGL) Two rigs;…
  12. IPAA OGIS Toronto – Cimarex Energy Co. – slide 12
    Upsized Returns from Upsized Frac Culberson County Wolfcamp D Wells 1600 BOE/day 1400 Old Tim Tam Well Cost (MM) 8.0 8.7 1200 BT IRR 30% 77% NPV10 (MM) 4.0 10.7 1000 Assumptions: Oil - 90/bbl; Gas - 4/Mcf; NGL - 30/bbl (full…
  13. IPAA OGIS Toronto – Cimarex Energy Co. – slide 13
    Reeves & Ward Counties Emerging Wolfcamp Reeves County Wolfcamp A wells have average 30-day IP of 1,091 BOE/d; 594 bo/d (54%) First 10,000 ft. lateral had 30- day IP of 1,816 BOE/d; 1,016 bo/d (56%) First Wolfcamp B/C test has…
  14. IPAA OGIS Toronto – Cimarex Energy Co. – slide 14
    Culberson County Wolfcamp Pilots Stacked Lateral Test 80-acre Spacing Pilot Wolfcamp C & D Wolfcamp D Two wells Four wells Flowing back Flowing back 15 15
  15. IPAA OGIS Toronto – Cimarex Energy Co. – slide 15
    Reeves County Wolfcamp Pilots 80-acre Spacing Pilot Stacked/Staggered Spacing Pilot Wolfcamp A Wolfcamp A Four wells Six wells Currently completing Currently drilling 16 16
  16. IPAA OGIS Toronto – Cimarex Energy Co. – slide 16
    Mid-Continent Highlights Cana-Woodford Activity Map Total 2014 E&D capex for the region of 420mm Cana capex of 300mm Operated Well Non-operated Well Upsized frac yield upsized results Two operated rigs Field production expected…
  17. IPAA OGIS Toronto – Cimarex Energy Co. – slide 17
    Upsized Returns from Upsized Frac Golden Section Cana-Woodford Shale Mcfe/day 10,000 Old New Completion Completion 8,000 Well Cost MM 6.5 7.2 BT IRR 38% 86% NPV10 (MM) 5.5 14.0 Assumptions: Oil 90; Gas 4.00; NGL 29 - held flat…
  18. IPAA OGIS Toronto – Cimarex Energy Co. – slide 18
    Mid-Continent Acquisition Cana-Woodford Activity Map 249 million purchase 30,000 net acres in focus area Operated Well Non-operated Well Adds 35 MMcfe/d 140 Bcfe Cana-Woodford capex of 300mm Three operated rigs Several…
  19. IPAA OGIS Toronto – Cimarex Energy Co. – slide 19
    Summary Recap Well positioned for 2014 and beyond Focused on Permian projects & Cana-Woodford upside Continue generating new ideas Solid base of proved reserves and production 80% proved developed; 10-year reserve life Growing…
  20. IPAA OGIS Toronto – Cimarex Energy Co. – slide 20
    Appendix 21 21
  21. IPAA OGIS Toronto – Cimarex Energy Co. – slide 21
    Cana-Woodford Production 300 MMcfe/day 255 250 229 226 215 216 217 200 184 158 161 156 150 139 115 104 100 50 - Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Gas NGL Oil 22 22
  22. IPAA OGIS Toronto – Cimarex Energy Co. – slide 22
    Permian Production Growth MBOE/day 70 60 59 58 55 53 50 49 46 46 41 40 40 36 34 30 30 29 20 10 - Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Oil NGL Gas 23 23
  23. IPAA OGIS Toronto – Cimarex Energy Co. – slide 23
    Upsized Wolfcamp Frac Old Frac Design: 5,000-foot lateral; 12 stages; 4mm lbs of sand New Frac Design: 5,000-foot lateral; 20 stages; 6mm lbs of sand 24
  24. IPAA OGIS Toronto – Cimarex Energy Co. – slide 24
    2014 Guidance 2014 Production, Unit Expense and Capital Guidance Second Quarter Full-Year Production* Total Equivalent (Mmcfe/d) 810-830 822-847 % Liquids 52% 52% Expenses (/Mcfe): Production 1.12 - 1.18 Transportation,…
  25. IPAA OGIS Toronto – Cimarex Energy Co. – slide 25
    Hedges Oil Weighted Average Price (1) Period Index Type Bbl/d Floor Ceiling April - Dec. '14 WTI Collar 12,000 85.00 103.47 Gas Weighted Average Price (1) Period Index Type MMBTU/d Floor Ceiling April - Dec. '14 PEPL…
  26. IPAA OGIS Toronto – Cimarex Energy Co. – slide 26
    Non-GAAP Reconciliation Reconciliation of Net Income to EBITDA and Adjusted EBITDA ( in Millions) 2011 2012 2013 Net income (loss) 530 354 565 Income tax expense (benefit) 312 207 329 Interest expense, net of capitalized 7 14 23…
  27. IPAA OGIS Toronto – Cimarex Energy Co. – slide 27
    Non-GAAP Reconciliation Reconciliation of cash flow from operations Debt/Cap Calculation Twelve months December 31, Ended December 31, 2013 2013 2012 (in millions) (in millions) Long-term debt 924 Net cash provided by operating…

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