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Corporate Update – Cimarex Energy Co.

Cimarex Energy Co. · Feb 1, 2014 · 26 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. Corporate Update – Cimarex Energy Co. – slide 1
    Corporate Update February 2014 1
  2. Corporate Update – Cimarex Energy Co. – slide 2
    Corporate Profile Shares outstanding 87.2 MM Proved reserves3.. 2.5 Tcfe Market cap1... 9.8 B % Natural gas 52% Long-term debt 2.. 0.9 B % Proved developed 80% Enterprise value 10.7 B R/P Ratio.. 9.9x Stockholders' equity2 4.0…
  3. Corporate Update – Cimarex Energy Co. – slide 3
    Whats New Daily Production Revenues reach 2.0bn in 2013 (MMcfe) +13% 2014 Capex of 1.8 billion 760-800 up 15% y-o-y Expected production growth 343 of 13% (midpoint) Delaware Basin generating more opportunities Wolfcamp Shale…
  4. Corporate Update – Cimarex Energy Co. – slide 4
    2014 Capital Investment Plan Total Capital: 1.8 billion By Region: Facilities 4% Land, Seismic & Cap. Overhead 15% Drilling 81% Robust Permian opportunity set commands 80% of capex Oil production growth of…
  5. Corporate Update – Cimarex Energy Co. – slide 5
    Production Profile 4Q 2013 Production Mix Revenue Contribution Oil 32% Natural Gas 50% NGL 18% 705MMcfe per day; up 4% year-over-year Permian Basin oil production of 29,651 b/d up 9% year-over-year Strong prices…
  6. Corporate Update – 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. Corporate Update – Cimarex Energy Co. – slide 7
    Delaware Basin - Bone Spring Activity Spend 375mm in 2014 to drill 100 gross (56 net) wells 129 gross (80 net) wells in 2013 Three areas New Mexico 2nd & 3rd Bone Spring (Eddy & Lea Counties) . 73 gross wells drilled 2013 30-day…
  8. Corporate Update – Cimarex Energy Co. – slide 8
    Delaware Basin Avalon Shale Five gross wells in 2013 30-day peak rate of 1,080 BOE/d (70% oil) Upsized frac design unlocks oil window in the Avalon 13,700 net acres identified as prospective in Lea County 200+ engineered…
  9. Corporate Update – Cimarex Energy Co. – slide 9
    Delaware Basin Wolfcamp Fairway 180,000 net acres in the fairway Multiple Wolfcamp Targets Culberson/White City Area 100,000+ net acres Three benches producing JDA with Chevron Reeves County New focus area 40,000+ net acres…
  10. Corporate Update – Cimarex Energy Co. – slide 10
    Culberson Focus Area Wolfcamp 100,000+ 100,000+ netnet acres acres Wolfcamp 2013 mainAobjectives well tests 1,251 BOE/d (54% Drilling oil) acreage to hold 20-stage Wolfcamp frac C&D First 20-stage Two rigs;D20 frac had…
  11. Corporate Update – Cimarex Energy Co. – slide 11
    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…
  12. Corporate Update – Cimarex Energy Co. – slide 12
    Reeves & Ward Counties Emerging Wolfcamp Reeves County Wolfcamp A wells have 30-day IP of 925 BOE/d; 583 bo/d (63%) First 10,000 ft. lateral had 30- day IP of 1,816 BOE/d; 1,016 bo/d (56%) . First Wolfcamp B/C test yields . 465…
  13. Corporate Update – Cimarex Energy Co. – slide 13
    Thick, Multi-pay Wolfcamp Section Culberson Area Reeves County Ward County 100,000 net acres 40,000 net acres 32,000 net acres IIndicates producing zone. 14 14
  14. Corporate Update – 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 Currently drilling Currently drilling 15 15
  15. Corporate Update – 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 drilling Currently drilling 16 16
  16. Corporate Update – Cimarex Energy Co. – slide 16
    Upsized Wolfcamp Frac Old Frac Design: 5,000-foot lateral; 12 stages; 4mm lbs of sand (400,000 lbs 100 mesh); pumped at 100 b/minute New Frac Design: 5,000-foot lateral; 20 stages; 6.0mm lbs of sand (2.mm lbs 100 mesh); pumped…
  17. Corporate Update – Cimarex Energy Co. – slide 17
    Mid-Continent Highlights Cana-Woodford Activity Map Total 2014 capex of 350mm for the region Cana capex of 250mm Operated Well Non-operated Well Two operated rigs in 2014 Field production expected to grow 4% in 2014 Well cost…
  18. Corporate Update – Cimarex Energy Co. – slide 18
    Summary Recap Well positioned for 2014 and beyond Primary focus on multiple Permian projects Generating new ideas Solid base of proved reserves and production 80% proved developed; 10-year reserve life Growing oil and NGL…
  19. Corporate Update – Cimarex Energy Co. – slide 19
    Appendix 20 20
  20. Corporate Update – Cimarex Energy Co. – slide 20
    Culberson Area Upside Multiple opportunities Five prospective horizons Large Wolfcamp Shale resource potential Per zone Wolfcamp development scenarios: 160-acre spacing: 1.7-2.1 Tcfe; 3.6bn of capital; 500 net wells 80-acre…
  21. Corporate Update – Cimarex Energy Co. – slide 21
    Permian Production Growth 60,000 BOE/day 58,659 55,347 53,267 50,000 48,679 45,755 45,865 41,246 40,058 40,000 35,839 34,311 30,376 30,000 28,955 20,000 10,000 - Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313…
  22. Corporate Update – Cimarex Energy Co. – slide 22
    Cana-Woodford Production 250 229 MMcfe/day 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 Gas NGL Oil 23 23
  23. Corporate Update – Cimarex Energy Co. – slide 23
    2014 Guidance 2014 Production, Unit Expense and Capital Guidance First Quarter Full-Year Production* Total Equivalent (Mmcfe/d) 696-710 760-800 % Liquids 51% 52% Expenses (/Mcfe): Production 1.12 - 1.22 Transportation 0.40 -…
  24. Corporate Update – Cimarex Energy Co. – slide 24
    Hedges Oil Weighted Average Price (1) Period Index Type Bbl/d Floor Ceiling Jan. - Dec. '14 WTI Collar 12,000 85.00 103.47 Gas Weighted Average Price (1) Period Index Type MMBTU/d Floor Ceiling Jan. - Dec. '14 PEPL Collar…
  25. Corporate Update – Cimarex Energy Co. – slide 25
    Non-GAAP Reconciliation Reconciliation of Net Income to EBITDA and Adjusted EBITDA ( in Millions) 2009 2010 2011 2012 2013 Net income (loss) (312) 575 530 354 565 Income tax expense (benefit) (177) 339 312 207 329 Interest expense,…
  26. Corporate Update – Cimarex Energy Co. – slide 26
    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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