BARCLAYS CEO ENERGY-POWER CONFERENCE September 2020
Cimarex Energy: Pillars of Successful Strategy PLANNING COST CONTROL EXPLORATION DIGITAL INNOVATION ENVIRONMENT CIMAREX ENERGY: PILLARS OF SUCCESSFUL STRATEGY 3
Operational Highlights 2Q UPDATES FLARING UPDATE GENERATED CASH FROM OPERATING ACTIVITIES OF 145MM 2020 PERMIAN FLARING INTENSITY 26MM OF FREE CASH FLOW AFTER DIVIDEND TARGET: 1.44% STRETCH: 0.96% OIL PRODUCTION OF 78.0 MBBLS/D…
Adjusting to the Changing Environment OIL PRICES HAVE IMPROVED, HEADWINDS REMAIN EMPLOYEE HEALTH & SAFETY RESPONSE Multi-disciplinary approach to COVID-19 Focused on Free Cash Flow pandemic Reduced capital investment COVID-19…
Resuming Activity in 3Q NET WELLS ON PRODUCTION 46 Jul NET WELL COUNT 20 Aug 12.5 10 Sep 1Q20A 2Q20A 3Q20E 4Q20E IN PROGRESS AT 12/31/20 PERMIAN BASIN ANADARKO BASIN ADDING ONE DRILLING RIG PER MONTH AND BROUGHT 12.5…
Capital Investment Update UPDATED 2020E MILLION 1QA 2QA YTD GUIDANCE DRILLING & COMPLETION (D&C)1 214 49 263 430 MIDSTREAM/SWD 27 - 27 40 OTHER2 33 35 68 130 TOTAL CAPITAL INVESTMENT 274 84 358 600 1 Includes well facilities,…
Updated 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 4,000 40 REEVES 415 MM NET WELLS 2,000 LEA 0 EDDY CULBERSON LEA…
Delaware Basin 2020 Development Update NEW MEXICO CURRENTLY OPERATING THREE DRILLINGS RIGS 2020 DEVELOPMENTS ON LINE PROJECT NAME WELLS % WI ON LINE TEXAS 1 ELECTRIC STATE 5 100 1Q 2 CARRY BACK 2 80 1Q 3 RIVERBEND 5 86 1Q 4…
Delaware Basin Acreage NEW MEXICO 238,000 NET ACRES WITH THREE MAJOR PLAYS TEXAS 33% federal acreage, all in New Mexico DEVELOPMENT PLANS INCLUDE 5,000 FEDERAL ACRES THROUGH 2023 46 wells planned through 2023 FEDERAL PERMITS…
Permian Region Well Cost Improvements WELL COST PER COMPLETED LATERAL FOOT (OPERATED) 1,600 TOTAL CAPITAL ASSOCIATED 1,479 WELL COST PER 1,400 LATERAL FOOT = WITH COMPLETED WELLS2 LATERAL FEET COMPLETED /COMPLETED LATERAL FEET…
Delaware Basin Well Performance XEC vs Other Operators DELAWARE BASIN CUMULATIVE OIL PRODUCTION BY COUNTY (8,500 LL, First Prod 2016, Upper Wolfcamp & Bone Spring Formations) 450 CULBERSON REEVES LEA EDDY 400 350 CUMULATIVE…
Culberson County Stands Out RISER: XEC-ENGINEERED ACCESS FOR WATER REUSE 750-800 PER LATERAL FOOT OUR LOWEST DRILLING COST IN THE DELAWARE BASIN LOW PRODUCTION EXPENSE SWD INFRASTRUCTURE WOLFCAMP FRAC WATER Culberson: 1.85 per…
Mid-Continent OKLAHOMA 326,000 NET ACRES WOODFORD: 135,625 NET UNDEVELOPED ACRES (HBP) 13-8 AREA MERAMEC: 116,500 NET ACRES (98% HBP) LONE FOCUSING ON HIGH QUALITY INVENTORY SUBSET, ROCK LOWERING COSTS AND A RISING…
Long-Term Strategy, Near-Term Priorities STRATEGY PRIORITIES Capital discipline and Employee health and safety asset optimization Focused execution Financial strength Free cash flow generation and balance sheet strength…
Cash Flow Priority Framework CORPORATE OBJECTIVES: Target annual FCF of 20-30% of cash flow Target capital investment of 70-80% of cash flow Focus on high return investments and all aspects of cost structure Maximizing capital…
Free Cash Flow Outlook Strong 2020 2021 2021-2024 PROJECTING 150-200MM1 OF ASSUMING SIMILAR CAPITAL TARGETS INCLUDE: FCF AFTER THE DIVIDEND YEAR-OVER-YEAR: Grow dividend annually Production expected to decline Excess FCF after the…
Cimarex Energy Overview PROVEN STRONG PREMIER ENDURING TRACK FINANCIAL PORTFOLIO CULTURE RECORD POSITION CREATING VALUE CORE POSITIONS IN MAXIMIZING FULL- LIQUIDITY PROVIDES AND GENERATING THE PERMIAN AND CYCLE RETURN ON…
APPENDIX APPENDIX 20
Resuming 2020 Guidance 3Q20E 2020E Production (MBOE/d) 230 250 240 250 Oil Production (MBbls/d) 69 74 75 78 Capital Expenditures ( Million) D&C 430 Midstream & Saltwater Disposal (SWD) 40 Other 130 Total Capital 600 Expenses…
Permian Basin Takeaway OIL TRANSPORT AND SALES AGREEMENTS IN PLACE 89% of oil production on pipe Strategic partnerships in core producing areas provide strong flow assurance Oil sales arrangements with credit worthy counterparties…
Permian Basin Water Management OWN AND OPERATE SALTWATER 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…
Non-GAAP Reconciliation ( MILLIONS) 2017 2018 2019 LTM 6/30/20 TWELVE MONTHS ENDED DECEMBER 31, LTM ( MILLIONS) 2017 2018 2019 6/30/20 Net income (loss) 494 792 (125) (1,960) Long-term debt Income tax expense (benefit) 188 231 (26)…
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