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Credit Suisse Annual Energy Summit – Cimarex Energy Co.

Cimarex Energy Co. · Mar 3, 2020 · 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. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 1
    CREDIT SUISSE 25TH ANNUAL ENERGY SUMMIT March 2020
  2. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 2
    Cimarex Energy Snapshot NYSE SYMBOL: XEC MARKET CAP1: 4.0 BILLION ENTERPRISE VALUE1: 6.0 BILLION DEBT/EBITDA2: 1.4X QUARTERLY DIVIDEND: 0.22/SHARE 1 As of February 14, 2020 CIMAREX ENERGY SNAPSHOT 3 2 As of and for the…
  3. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 3
    Cimarex Energy: Pillars of Successful Strategy PLANNING COST CONTROL EXPLORATION DIGITAL INNOVATION ENVIRONMENT CIMAREX ENERGY: PILLARS OF SUCCESSFUL STRATEGY 4
  4. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 4
    2019 Highlights GENERATED 141 MILLION IN FREE CASH FLOW, EXITED 2019 WITH 95 MILLION CASH YOY 2019A ADJUSTED CASH FLOW FROM OPERATIONS Change TOTAL 1.5 BILLION Oil Production (MBbls/d) 86.2 27% 1.32 BILLION OF TOTAL CAPITAL INVESTMENT,…
  5. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 5
    Capital Investment TOTAL COMPANY MILLION 2019A 2020E 1 DRILLING & COMPLETION (D&C) 944 950 1,050 MIDSTREAM/SWD 149 100 OTHER 2 222 200 TOTAL CAPITAL INVESTMENT 1,315 1,250 1,350 1 Includes well facilities, flow back and…
  6. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 6
    Permian Region Well Cost Improvements WELL COST PER LATERAL FOOT (OPERATED) 1,600 1,468 TOTAL CAPITAL* ASSOCIATED WELL COST PER 1,400 LATERAL FOOT = WITH COMPLETED WELLS /COMPLETED LATERAL FEET -24% LATERAL FEET COMPLETED…
  7. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 7
    2019 Growth in Production and Reserves PROVED RESERVES (MMBOE) 620 591 600 559 400 200 0 2017 2018 2019 OIL NGL NATURAL GAS YE19 PROVED RESERVES: 620 MMBOE Increase of 5% Y/Y Oil reserves up 16% PDP now 86% of…
  8. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 8
    Long-Term Strategy, Near-Term Priorities STRATEGY PRIORITIES Capital discipline, consistent Optimize capital allocation investment across cycles and development program Focused execution Maximize project returns and financial…
  9. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 9
    2020 Free Cash Flow Generation 2020E FREE CASH FLOW SENSITIVITY 500 12% 2020 PLAN HIGHLIGHTS 10% 400 1.25 - 1.35 billion total capital investment FREE CASH FLOW (MM) FREE CASH FLOW YIELD 8% 300 950 1,050 million total D&C…
  10. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 10
    Three Year Free Cash Flow Outlook FREE CASH FLOW SENSITIVITY 2020E - 2022E 2,500 RATABLE ACTIVITY LEADS TO 10% OIL GROWTH IN CUMULATIVE FREE CASH FLOW (MM) 2,000 EACH OF THE NEXT THREE YEARS 4 billion in capital over three…
  11. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 11
    2020 Capital Investment Program MID-CONTINENT MERAMEC & WOODFORD 10% TOTAL CAPITAL OF 1.25 1.35 BILLION BONE SPRING 17% D&C CAPITAL 950 1,050 MILLION 77% of total capital D&C CAPITAL Permian Basin 90% 950 1,050 MILLION…
  12. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 12
    2020 Delaware Basin Plans D&C WELLS ON LINE AVERAGE LATERAL CAPITAL BY COUNTY LENGTH BY COUNTY 10,000 8,000 WOLFCAMP EDDY 6,000 REEVES 4,000 77 855 945 MM NET WELLS 2,000 LEA 0 BONE EDDY CULBERSON LEA…
  13. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 13
    Delaware Basin 2020 15 New Developments NEW MEXICO 2020 DEVELOPMENT PROJECTS TEXAS ESTIMATED PROJECT NAME WELLS % WI ON LINE 1 ELECTRIC STATE 5 100 1Q 2 CARRY BACK* 2 80 1Q 11 10 3 RIVERBEND 5 81 1Q 3 4 15 4 VACA DRAW 6 57…
  14. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 14
    Culberson: Top-Tier Oil Wells DELAWARE BASIN CUMULATIVE OIL PRODUCTION BY COUNTY (8,500 LL, First Prod 2016, Upper Wolfcamp & Bone Spring Formations) 6 MONTH 12 MONTH 18 MONTH 24 MONTH 450 400 CUMULATIVE OIL (MBBLS) 350…
  15. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 15
    Culberson: Water Infrastructure Driving Efficiencies RISER: XEC-ENGINEERED ACCESS FOR WATER REUSE SALTWATER DISPOSAL (SWD) Own & operate the system Improves operating costs System redundancy reduces downtime System expanding…
  16. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 16
    Culberson: Strong Productivity, Low LOE FRAC GENERATIONS INCREASING PRODUCTIVITY 2019 CULBERSON VS PERMIAN BASIN PRODUCTION EXPENSE GEN 1 GEN 2 GEN 3 GEN 4 800 4.00 CUMULATIVE OIL PRODUCTION (MBBL) 700 PRODUCTION EXPENSE PER…
  17. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 17
    Mid-Continent 2020 326,000 NET ACRES OKLAHOMA WOODFORD: 135,625 NET UNDEVELOPED ACRES (HBP) MERAMEC: 116,500 NET ACRES (98% HBP) 1 10% OF 2020 D&C CAPITAL 2020 DEVELOPMENT PROJECTS ESTIMATED PROJECT NAME WELLS % WI 3 ON…
  18. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 18
    Strong Balance Sheet, Conservative Financial Position AMPLE LIQUIDITY, NO NEAR-TERM DEBT MATURITIES XEC DEBT/TTM EBITDA CASH CREDIT FACILITY DEBT 3.0x DEBT/TTM EBITDA AVERAGE 1,400 2.5x 1,200 2.0x 1.5x 1,000 1.0x 0.5x…
  19. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 19
    Cimarex Energy Overview PROVEN STRONG PREMIER ENDURING TRACK FINANCIAL PORTFOLIO CULTURE RECORD POSITION CREATING VALUE CORE POSITIONS IN MAXIMIZING FULL- LOW LEVERAGE AND AND GENERATING THE PERMIAN AND CYCLE RETURN ON…
  20. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 20
    APPENDIX APPENDIX 21
  21. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 21
    2020 Guidance 1Q20E 2020E Production (MBOE/d) 272 288 270 286 Oil Production (MBbls/d) 87.5 91.5 91 97 Capital Expenditures ( Million) D&C 950 - 1,050 Midstream & Saltwater Disposal (SWD) 100 Other 200 Total Capital 1,250…
  22. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 22
    Net Wells on Production 2020 BY QUARTER 92 TOTAL: 90 NET BROUGHT 23 NET WELLS ON NET WELL COUNT PRODUCTION IN 4Q19 54 12 wells ahead of schedule Added 1,200 Bbl/d to 4Q19 production 38 35 EXPECT TO BRING 90 NET WELLS ON…
  23. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 23
    Hedges as of February 19, 2020 2020 2021 OIL 1Q 2Q 3Q 4Q 1Q 2Q WTI OIL COLLARS1 Volume (Bbl/d) 39,000 31,000 23,000 23,000 15,000 5,000 Weighted Average Floor 52.40 50.43 49.80 49.80 49.70 50.00 Weighted Average Ceiling 64.48 61.55…
  24. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 24
    Permian Basin Takeaway SALES AGREEMENTS IN PLACE FOR OIL VOLUMES THROUGH 2020 88% of oil production on pipe STRATEGIC PARTNERSHIPS IN CORE AREAS Pipelines in place Purchase obligations Midland index pricing GAS SALES AGREEMENTS…
  25. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 25
    Permian Basin Water Management OWN AND OPERATE SALT WATER DISPOSAL (SWD) SYSTEMS IN CULBERSON, EDDY AND REEVES Improves operating costs RECYCLING PRODUCED WATER FOR COMPLETION OPERATIONS 63% of total water procured in 2019 was…
  26. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 26
    Non-GAAP Reconciliation ( IN MILLIONS) 2016 2017 2018 2019 Net income (loss) (409) 494 792 (125) Income tax expense (benefit) (214) 188 231 (26) Interest expense, net of capitalized 62 52 47 37 DD&A and ARO accretion 400 462 598…
  27. Credit Suisse Annual Energy Summit – Cimarex Energy Co. – slide 27
    Non-GAAP Reconciliation TWELVE MONTHS ENDED DECEMBER 31, ( IN MILLIONS) DECEMBER 31, 2019 ( IN MILLIONS) 2018 2019 Net cash provided by operating activities 1,551 1,344 Long-term debt (principal) 2,000 Change in operating assets…

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