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Year end 2011 Results – Cimarex Energy Co.

Cimarex Energy Co. · Feb 15, 2012 · 31 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. Year end 2011 Results – Cimarex Energy Co. – slide 1
    Year-end 2011 Results February 15, 2012
  2. Year end 2011 Results – Cimarex Energy Co. – slide 2
    Paul Korus SVP & CFO 3
  3. Year end 2011 Results – Cimarex Energy Co. – slide 3
    2011 Financial Highlights Earnings and Cash Flow Net income of 530 MM or 6.15 per diluted share Cash flow from operating activities of 1.3 B vs. 1.1 B in 10 O&G Sales of 1.7 B in 11 vs. 1.6 B in 10 Higher oil prices +21% partially…
  4. Year end 2011 Results – Cimarex Energy Co. – slide 4
    2011 Highlights / 2012 Capital Proved Reserves of 2.05 Tcfe Increased 9% over 10; +23% PF property sales Added 587 Bcfe from drilling (55% gas, 22% oil & 23% NGLs) All-sources F&D of 2.69/Mcfe PD = 1.668 Tcfe (82%) PUD =0.377 Tcfe…
  5. Year end 2011 Results – Cimarex Energy Co. – slide 5
    Tom Jorden CEO & President 6
  6. Year end 2011 Results – Cimarex Energy Co. – slide 6
    2011 Accomplishments Invested 1.58 B in exploration & development (E&D) drilling Drilled 174 net wells; solid returns in Permian and Cana programs Grew proved reserves to a record 2.05 Tcfe Permian and Mid-Continent (PB/MC) proved…
  7. Year end 2011 Results – Cimarex Energy Co. – slide 7
    Core Operating Areas YE 2011 Reserves 2.05 Tcfe 98% Mid-Continent Permian Q4 2011 Prod. 601 MMcfe/d Gulf Coast 89% 8
  8. Year end 2011 Results – Cimarex Energy Co. – slide 8
    Proved Reserves 2.4 2.05 2.0 1.88 1.6 1.53 Tcfe 1.2 0.8 0.4 77% Gas 67% Gas 59% Gas - 2009 2010 2011 77% PD 77% PD 82% PD Gas (Bcf) Oil & NGLs (Bcfe) 9
  9. Year end 2011 Results – Cimarex Energy Co. – slide 9
    Proved Reserves by Region 2,400 2,045 2,000 1,884 1,600 1,535 620 Bcfe 1,200 561 800 487 400 730 1,029 1,376 - 2009 2010 2011 Mid-Continent Permain Gulf Coast Other 10
  10. Year end 2011 Results – Cimarex Energy Co. – slide 10
    2012 Activity Expect to invest 1.4-1.6 B Solid returns in liquids rich areas Reserve/production adds from 2012 drilling 40-50% liquids Permian Basin projected to average 11-15 rigs Bone Spring 60 wells Unconventional Wolfcamp &…
  11. Year end 2011 Results – Cimarex Energy Co. – slide 11
    2012 Capital Investment 2011 E&D Capital 2012E E&D Capital 1.58 B 1.4-1.6 B E&D Well Count E&D Well Count Capital Gross Net Capital Gross Net ( MM) (Drilled & Completed) ( MM) (Drilled & Completed) (MidPt. Est.) PB 731 140 100…
  12. Year end 2011 Results – Cimarex Energy Co. – slide 12
    PB/MC Production Growth 700 +4-10% 25% 615-650 596 592 35-40 600 175 105 20% 580-610 500 487 15% MMcfe/d 400 421 300 10% 200 Year-over-year % growth 5% 100 11% 16% 19-25% - 0% 2010A 2011A 2012E * PB/MC…
  13. Year end 2011 Results – Cimarex Energy Co. – slide 13
    Permian Oil Production (Mbbl/d) 25.0 30% 25% 20.0 21-22 20% 16.8 15.0 Mbbl/d 14.0 15% 10.0 10% Year-over-year % growth 5.0 5% 2% 20% 26-32% - 0% 2010A 2011A 2012E * *Compound annual growth rate (CAGR) to…
  14. Year end 2011 Results – Cimarex Energy Co. – slide 14
    Permian Basin Summary Statistics Proved reserves (YE 11) 620.4 (Bcfe) 60% liquids; 99% proved developed Production (Q4 11) 215.0 (MMcfe/d) 60% liquids Net acres (YE 11) 438 (000s) Permian Capital Investment 2012E 2011A E&D…
  15. Year end 2011 Results – Cimarex Energy Co. – slide 15
    Permian Bone Spring/Avalon In 2011 drilled 80 gross (54 net) Bone Spring wells - 63 gross (40 net) in New Mexico 17 gross (14 net) in Texas Strong New Mexico 2nd/3rd Bone Spring fourth-quarter 2011 performance: 30-day IPs…
  16. Year end 2011 Results – Cimarex Energy Co. – slide 16
    Permian Bone Spring/Avalon Solid returns and strong well performance in 2nd/3rd Bone Spring - EURs: 400-600 MBoe Active 2012 Bone Spring drilling programs: - New Mexico 4-7 rigs - Texas Bone Spring 2-4 rigs - Avalon 1-2 rig…
  17. Year end 2011 Results – Cimarex Energy Co. – slide 17
    Permian Basin Horizontal Wolfcamp White City/northern Culberson Cty. Strong and improving results White City Over 80,000 net acres Significant resource potential 2012 expect to drill 18-20 wells; 2-3 rigs Fourth-quarter 2011…
  18. Year end 2011 Results – Cimarex Energy Co. – slide 18
    Mid-Continent Region Summary Statistics Proved reserves (YE 11) 1,375.7 (Bcfe) 32% liquids; 72% proved developed Production (Q4 11) 316.1 (MMcfe/d) 31% liquids Net acres (YE 11) 729 (000s) Mid-Continent Capital Investment 2012E…
  19. Year end 2011 Results – Cimarex Energy Co. – slide 19
    Cana-Woodford Shale 120,000+ net acres 64,000 Core: < 15,000 deep and 150 shale thickness Drilled or participated in over 330 wells through YE 2011 2012 focus: 10 rig program Infill development in the core Deep and other…
  20. Year end 2011 Results – Cimarex Energy Co. – slide 20
    Cana-Woodford Core 64,000 net acres (93% Core HBP) High NRIs (81%) and liquids (35%) content contribute to solid economics 2012: beginning infill drilling program with 10 operated rigs on three sections Two well pads Nine…
  21. Year end 2011 Results – Cimarex Energy Co. – slide 21
    Cana-Woodford Summary Q4-11 production 158 MMcfe/d, 59% increase over Q4 2010 Significant un-booked potential in the Core - 730 net locations (2,200 gross wells) - 4 - 5 Tcfe, net resource potential - YE 2011 proved reserves:…
  22. Year end 2011 Results – Cimarex Energy Co. – slide 22
    Gulf Coast Summary Statistics Proved reserves (YE 11) 49.0 (Bcfe) Production (Q4 11) 70.3 (MMcfe/d) Net acres (YE 11) 81 (000s) Capital Investment 2012E 2011E Gulf Coast E&D Capital ( MM) 80 95 Wells drilled - gross 8 11 net 6…
  23. Year end 2011 Results – Cimarex Energy Co. – slide 23
    Joe Albi EVP - COO 24
  24. Year end 2011 Results – Cimarex Energy Co. – slide 24
    Q4-11 / Full Year 2011 Production Q411 avg. net production = 601 MMcfe/d Hit mid-point of guidance of 588-613 MMcfe/d Record Permian & Mid-Continent (PB/MC) production of 531 MMcfe/d, 17% higher than fourth-quarter 2010 Permian oil…
  25. Year end 2011 Results – Cimarex Energy Co. – slide 25
    Q411 Production By Region Liquids (44.5 Mb/d) Gas (334.2 MMcf/d) Total (601 MMcfe/d) 26
  26. Year end 2011 Results – Cimarex Energy Co. – slide 26
    Production Guidance 2012E % Chg. Strong PB & MC 2011A Range '12 vs '11 growth +19-25% Gas (MMcf/d) PB & MC 276.5 314 330 13 19 Liquids emphasis GC/Other 52.6 20 23 (62) (56) PB/MC: 329.1 334 353 1 7 - Oil volumes +20-27% Oil (Mb/d)…
  27. Year end 2011 Results – Cimarex Energy Co. – slide 27
    2011/2012 Production Group Focus 2011 Activity 65 MM investment Performed 375 projects (infill drilling, recompletions, workovers, SWD & lift) Maximize base property net operating income Optimize production Reduce lifting cost,…
  28. Year end 2011 Results – Cimarex Energy Co. – slide 28
    Unit Operating Expense (/Mcfe) 1.40 1.05-1.25 1.20 1.18 1.14 1.14 1.14 1.10 1.00 0.80 0.60 0.40 0.28-0.33 0.31 0.30 0.29 0.28 0.20 0.25 0.00 Q1 11 Q2 11 Q3 11 Q4 11 2011A 2012E Production Transportation 29
  29. Year end 2011 Results – Cimarex Energy Co. – slide 29
    Appendix 30
  30. Year end 2011 Results – Cimarex Energy Co. – slide 30
    Non-GAAP Reconciliation Reconciliation of Net Income to EBITDA ( in Millions) 2007 2008 2009 2010 2011 Net income 346 (902) (312) 575 530 Income tax expense 198 (529) (177) 339 312 Interest expense 18 10 11 1 0 Amortization of…
  31. Year end 2011 Results – Cimarex Energy Co. – slide 31
    Non-GAAP Reconciliation Reconciliation of cash flow from operations Debt/Cap Calculation YE YE 2011 2011 (in millions) (in millions) Long-term debt 405 Net cash provided by operating activities 1,292 Change in operating…

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