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The Oil & Gas Conference – Cimarex Energy Co.

Cimarex Energy Co. · Aug 19, 2014 · 28 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. The Oil & Gas Conference – Cimarex Energy Co. – slide 1
    The Oil & Gas Conference August 19, 2014 1
  2. The Oil & Gas Conference – Cimarex Energy Co. – slide 2
    Corporate Profile Shares outstanding 87.0 MM Proved reserves3.. 2.5 Tcfe Market cap1... 12.3 B % Natural gas 52% Long-term debt 2.. 1.5 B % Proved developed 80% Enterprise value 13.8 B R/P Ratio.. 9.9x Stockholders' equity2…
  3. The Oil & Gas Conference – Cimarex Energy Co. – slide 3
    Whats New Daily Production +25% Expect 2014 production to (MMcfe) 860-875 grow 25% (midpoint) 2014 E&D Capex of 1.95bn up 15% y-o-y Issued 750mm of senior unsecured notes at 4.375% Closed 238mm Mid- Continent acquisition 350…
  4. The Oil & Gas Conference – Cimarex Energy Co. – slide 4
    Production Profile 2Q 2014 Production Mix Revenue Contribution Oil 30% Natural Gas 49% NGL 21% 839MMcfe per day; up 22% year-over-year Permian Basin oil production of 33,317 b/d up 11% year-over-year Strong prices…
  5. The Oil & Gas Conference – Cimarex Energy Co. – slide 5
    2014 Capital Investment Plan Total Capital: 1.95 billion By Region: Facilities & Other 6% Land, Seismic & Cap. Overhead 14% Drilling 80% Robust Permian opportunity set commands 75% of capex Oil production growth of…
  6. The Oil & Gas Conference – 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. The Oil & Gas Conference – Cimarex Energy Co. – slide 7
    2014 Permian Drilling Capital Total Permian Wolfcamp 1.2 billion 685 million Wolfcamp program includes 20 extended laterals in the second half 14 in Culberson ( 11 Wolfcamp D; 3 Wolfcamp A) 6 Wolfcamp A in Reeves County Strong…
  8. The Oil & Gas Conference – Cimarex Energy Co. – slide 8
    Delaware Basin - Bone Spring Activity Spend 375mm in 2014 to drill 100 gross (56 net) wells 48 gross (25 net) wells YTD Three areas New Mexico 2nd & 3rd Bone Spring (Eddy & Lea Counties) . 17 operated wells YTD 30-day average peak…
  9. The Oil & Gas Conference – Cimarex Energy Co. – slide 9
    Delaware Basin Avalon Shale Six wells completed to date 30-day average peak IP of 943 BOE/d (74% oil) Upsized frac design unlocks oil window in the Avalon 13,700 net acres identified as prospective in Lea County 200+ engineered…
  10. The Oil & Gas Conference – Cimarex Energy Co. – slide 10
    Delaware Basin Wolfcamp Fairway 235,000 net acres in the fairway Multiple Wolfcamp Targets Culberson/White City Area 100,000+ net acres Wolfcamp D, C & A producing JDA with Chevron Reeves County New focus area 80,000 net acres…
  11. The Oil & Gas Conference – Cimarex Energy Co. – slide 11
    Thick, Multi-pay Wolfcamp Section Culberson Area Reeves County Ward County 100,000 net acres 80,000 net acres 42,000 net acres IIndicates producing zone. 12 12
  12. The Oil & Gas Conference – Cimarex Energy Co. – slide 12
    Culberson Focus Area Wolfcamp 100,000 100,000+ netnet acresacres Wolfcamp D long laterals show 2013 main objectives significant uplift 30-day Drilling to hold average peak acreage IP of 2,660 BOE/d (40% gas, 27% Wolfcamp C&…
  13. The Oil & Gas Conference – Cimarex Energy Co. – slide 13
    Upsized Returns from Long Lateral with Upsized Frac Culberson County Wolfcamp D Wells BOE/day 3000 Old New Long 2500 Well Cost (MM) 8.0 8.7 13.5 BT IRR 30% 90% 161% NPV10 (MM) 4.0 12.2 31.6 2000 Assumptions: Oil - 90/bbl; Gas -…
  14. The Oil & Gas Conference – Cimarex Energy Co. – slide 14
    Reeves & Ward Counties Emerging Wolfcamp Reeves County Recent Wolfcamp A well has average 30-day peak IP of 1,368 BOE/d; 899bo/d (66%) Upsized frac design +30% uplift to IP Two Wolfcamp A downspacing . pilots underway 35mm…
  15. The Oil & Gas Conference – Cimarex Energy Co. – slide 15
    Culberson County Wolfcamp Pilots Stacked Lateral Test 80-acre Spacing Pilot Wolfcamp C & D Wolfcamp D Two wells Four wells Evaluating Evaluating 16 16
  16. The Oil & Gas Conference – Cimarex Energy Co. – slide 16
    Reeves County Wolfcamp Pilots 80-acre Spacing Pilot Stacked/Staggered Spacing Pilot Wolfcamp A Wolfcamp A Four wells Six wells Evaluating Currently drilling 17 17
  17. The Oil & Gas Conference – Cimarex Energy Co. – slide 17
    Mid-Continent Highlights Cana-Woodford Activity Map Total 2014 E&D capex for the region of 480mm Cana capex of 360mm Operated Well Non-operated Well Upsized frac yield upsized results Cana production grew 44% year-over-year…
  18. The Oil & Gas Conference – Cimarex Energy Co. – slide 18
    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…
  19. The Oil & Gas Conference – Cimarex Energy Co. – slide 19
    Mid-Continent Acquisition Cana-Woodford Activity Map 238 million purchase Adds 35 MMcfe/d 140 Bcfe Operated Well Cana Core Non-operated Well 2014 Cana capex of 360mm Growing Woodford rig count in second half One rig drilling…
  20. The Oil & Gas Conference – Cimarex Energy Co. – slide 20
    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…
  21. The Oil & Gas Conference – Cimarex Energy Co. – slide 21
    Appendix 22 22
  22. The Oil & Gas Conference – Cimarex Energy Co. – slide 22
    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 23
  23. The Oil & Gas Conference – Cimarex Energy Co. – slide 23
    Cana-Woodford Production 350 MMcfe/day 310 300 255 250 229 226 215 216 217 200 184 161 156 150 100 50 - Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Gas NGL Oil 24 24
  24. The Oil & Gas Conference – Cimarex Energy Co. – slide 24
    Permian Production Growth MBOE/day 70 66 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 Q2 14 Oil NGL Gas 25 25
  25. The Oil & Gas Conference – Cimarex Energy Co. – slide 25
    2014 Guidance 2014 Production, Unit Expense and Capital Guidance Third Quarter Full-Year Production* Total Equivalent (Mmcfe/d) 920-945 860-875 % Liquids 52% 52% Expenses (/Mcfe): Production 1.12 - 1.17 Transportation,…
  26. The Oil & Gas Conference – Cimarex Energy Co. – slide 26
    Hedges Oil Weighted Average Price (1) Period Index Type Bbl/d Floor Ceiling July - Dec. '14 WTI Collar 12,000 85.00 103.47 Gas Weighted Average Price (1) Period Index Type MMBTU/d Floor Ceiling July - Dec. '14 PEPL Collar…
  27. The Oil & Gas Conference – Cimarex Energy Co. – slide 27
    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…
  28. The Oil & Gas Conference – Cimarex Energy Co. – slide 28
    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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