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CSFB Energy Summit – Cimarex Energy Co.

Cimarex Energy Co. · Feb 25, 2015 · 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. CSFB Energy Summit – Cimarex Energy Co. – slide 1
    CSFB Energy Summit February 25, 2015 1
  2. CSFB Energy Summit – Cimarex Energy Co. – slide 2
    Corporate Profile 87.7 MM Proved reserves3.... 3.1 Tcfe Shares outstanding.. Market cap1......... 10.1 B % Natural gas.. 53% Long-term debt 2........ 1.5 B % Proved developed... 77% Enterprise value..... 11.6 B R/P…
  3. CSFB Energy Summit – Cimarex Energy Co. – slide 3
    Cimarex Value Proposition Focused on idea generation and execution Diverse portfolio of assets provides flexibility Balanced commodity mix: Proved reserves are 53% natural gas Regional optionality: Permian Basin and MidContinent…
  4. CSFB Energy Summit – Cimarex Energy Co. – slide 4
    Solid Growth and Financial Discipline Daily Production Proved Reserves (MMcfe) (Bcfe) 1,000 +38% 3,500 +25% 895935 3,132 869 3,000 425 750 705 2,497 2,500 2,259 348 2,000 500 1,500 444 357 1,000 0.7x 250 0.6x 0.6x…
  5. CSFB Energy Summit – Cimarex Energy Co. – slide 5
    Product and Regional Diversity 4Q 2014 Daily Production: 950 MMcfe Mix Area Revenue Realized Prices: 64.94/Bbl; 3.95/Mcf; 25.32/Bbl (NGL) 6
  6. CSFB Energy Summit – Cimarex Energy Co. – slide 6
    2015 E&D Investment Plan Total Capital: 0.91.1 billion Drilling & Completion Permian MidContinent Drilling & Completion 76% Drilling & Completion 76% 350 million 312 million 7
  7. CSFB Energy Summit – Cimarex Energy Co. – slide 7
    Permian Basin Region Multiple projects in multiple zones Wolfcamp shale (oil & gas) Bone Spring sands (oil) Avalon Shale (oil window) 2015 Focus Wolfcamp Long Laterals Culberson Wolfcamp A & D Reeves County acreage obligations…
  8. CSFB Energy Summit – Cimarex Energy Co. – slide 8
    Delaware Basin Wolfcamp Fairway 235,000 net acres in the fairway Multiple Wolfcamp Targets Culberson/White City Area 100,000+ net acres Wolfcamp A, C & D JDA with Chevron Reeves County 80,000 net acres Wolfcamp A & B/C Ward…
  9. CSFB Energy Summit – Cimarex Energy Co. – slide 9
    Culberson Focus Area Wolfcamp 100,000 netnet 100,000+ acres acres 2015 focus on long laterals in 2013 main objectives Wolfcamp A & D Drilling to hold acreage Five new Wolfcamp D long Wolfcamp laterals C&D have ave. 30day peak…
  10. CSFB Energy Summit – Cimarex Energy Co. – slide 10
    Performance of Key Culberson County Wolfcamp Wells Shallow Decline of Upsized Fracs (BOE/d) Wolfcamp D Wolfcamp A 3,000 1,600 30day IP Days 3060 2,450 2,500 Days 6090 2,500 1,200 1,250 1,095 90 day average 2,000 1,365 1,500 800…
  11. CSFB Energy Summit – Cimarex Energy Co. – slide 11
    Culberson County Focus Area: Wolfcamp D Type Curves Lower well costs = partial offset to oil price declines BOE/day 3000 5,000 ft. Lateral 10,000 ft. Lateral Previous GoForward Previous GoForward 2500 Well Cost (MM) 9.0 7.6 13.5…
  12. CSFB Energy Summit – Cimarex Energy Co. – slide 12
    Sensitivity to Crude Oil Prices Culberson County Wolfcamp D Before Tax IRR IRR at strip dated 2/16/15 133% 99% 90% 73% 68% 52% 49% 33% Wolfcamp D 10,000 ft. lateral; 43 stages Wolfcamp D 5,000 ft. lateral; 20 stages…
  13. CSFB Energy Summit – Cimarex Energy Co. – slide 13
    Reeves & Ward Counties Reeves County Weather & pipeline issues cause delays in reporting new long lateral results including fourth pilot 2015 focus on meeting acreage obligations Spud eight wells; 70mm 5mm midstream investment…
  14. CSFB Energy Summit – Cimarex Energy Co. – slide 14
    White City Second Bone Spring Cumulative Production (MBOE/d) 180 Focus Area 160 140 64% Increase 120 100 80 Completion upsized to 15 stages 60 from nine 40 64% increase in cum production over 180 days 20 90 locations…
  15. CSFB Energy Summit – Cimarex Energy Co. – slide 15
    MidContinent Highlights CanaWoodford Activity Map E&D capex of 312mm Cana Core capex of 179mm Operated Well Nonoperated Well Includes seven section infill program 128,000 net prospective Woodford acres (86%HBP) Golden Section…
  16. CSFB Energy Summit – Cimarex Energy Co. – slide 16
    Upsized Fracs Show Sustained Production Strength Golden Section (MMcfe/d) 12 Hartz Section 10 8.7 10.2 8.2 9.2 8 30day IP 6 Days 3060 Days 6090 4 90 day average 2 0 Golden Hartz 17 17
  17. CSFB Energy Summit – Cimarex Energy Co. – slide 17
    MidContinent: Meramec is an Exciting New Opportunity First six wells had average 30 day peak IP of 10.2 MMcfe/d Updip: 49% oil, 27% NGL, 24% gas Updip Downdip: 16% oil, 30% NGL, Downdip 54% gas 115,000 net prospective Meramec…
  18. CSFB Energy Summit – Cimarex Energy Co. – slide 18
    MidContinent Focus: CanaWoodford and Meramec Culberson Area Reeves County Ward County 100,000 net acres 80,000 net acres 38,000 net acres MMcfe/day 12 Cana Infill Meramec 10 Well Cost (MM) 7.0 7.3 BTAX IRR 39% 59% NPV10 (MM) 5.4…
  19. CSFB Energy Summit – Cimarex Energy Co. – slide 19
    MidContinent Economics: CanaWoodford & Meramec Economic Sensitivity to Crude Oil Prices Culberson Area Reeves County Ward County 100,000 net acres 80,000 net acres 38,000 net acres BTAX IRR IRR at strip dated 2/16/15 102% 78%…
  20. CSFB Energy Summit – Cimarex Energy Co. – slide 20
    Well Positioned for 2015 and beyond Diverse portfolio with strong returns Multiple Delaware Basin opportunities CanaWoodford infill & redelineation Emerging Meramec play Continuous generation of ideas Strong balance sheet Sale…
  21. CSFB Energy Summit – Cimarex Energy Co. – slide 21
    Appendix 22 22
  22. CSFB Energy Summit – Cimarex Energy Co. – slide 22
    CanaWoodford Production 450 MMcfe/day 406 400 384 350 310 300 255 250 229 226 215 216 217 200 184 161 156 150 100 50 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Gas NGL Oil 23 23
  23. CSFB Energy Summit – Cimarex Energy Co. – slide 23
    Permian Production Growth MBOE/day 70 68 66 60 59 58 55 53 50 49 46 46 41 40 40 30 20 10 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Oil NGL Gas 24 24
  24. CSFB Energy Summit – Cimarex Energy Co. – slide 24
    2015 Guidance 2015 Production, Unit Expense and Capital Guidance First Quarter FullYear Production* Total Equivalent (Mmcfe/d) 920940 895935 % Liquids 52% 52% Expenses (/Mcfe): Production 1.07 1.17 Transportation, processing &…
  25. CSFB Energy Summit – Cimarex Energy Co. – slide 25
    Bone Spring Play Invested 337mm in 2014 to drill 81 gross (44 net) wells Three areas New Mexico 2nd & 3rd Bone Spring (Eddy & Lea Counties) 23 operated wells in 2014 30day average peak IP*: 962 . BOE/d; 749 bo/d Texas 3rd Bone…
  26. CSFB Energy Summit – Cimarex Energy Co. – slide 26
    Thick, Multipay Wolfcamp Section Culberson Area Reeves County Ward County 100,000 net acres 80,000 net acres 38,000 net acres IIndicates producing zone. 27 27
  27. CSFB Energy Summit – Cimarex Energy Co. – slide 27
    Culberson County Wolfcamp Pilots Stacked Lateral Test 80acre Spacing Pilot Wolfcamp C & D Wolfcamp D Two wells Four wells Producing/Evaluating Producing/Evaluating 28 28
  28. CSFB Energy Summit – Cimarex Energy Co. – slide 28
    Reeves County Wolfcamp Pilots 80acre Spacing Pilot Stacked/Staggered Spacing Pilot Wolfcamp A Wolfcamp A Four wells Six wells Producing/Evaluating Flowing Back 29 29
  29. CSFB Energy Summit – Cimarex Energy Co. – slide 29
    Upsized Wolfcamp Frac Old Frac Design: 5,000foot lateral; 12 stages; 4mm lbs of sand New Frac Design: 5,000foot lateral; 20 stages; 6mm lbs of sand 30
  30. CSFB Energy Summit – Cimarex Energy Co. – slide 30
    NonGAAP Reconciliation Reconciliation of Net Income to EBITDA and Adjusted EBITDA ( in Millions) 2012 2013 2014 Net income (loss) 354 565 507 Income tax expense (benefit) 207 329 299 Interest expense, net of capitalized 14 23 37…
  31. CSFB Energy Summit – Cimarex Energy Co. – slide 31
    NonGAAP Reconciliation Reconciliation of cash flow from operations Debt/Cap Calculation Twelve months December 31, Ended December 31, 2014 2014 2013 (in millions) (in millions) Long-term debt 1,500 Net cash provided by operating…

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