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GHS 100 ENERGY CONFERENCE – Cimarex Energy Co.

Cimarex Energy Co. · Jun 25, 2013 · 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. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 1
    GHS 100 Energy Conference June 25, 2013
  2. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 2
    Corporate Profile NYSE: XEC Shares outstanding 86.6 MM Proved reserves3.. 2.3 Tcfe Market cap1... 5.7 B % Natural gas 55% Long-term debt 2.. 0.9 B % Proved developed 80% Enterprise value 6.6 B R/P Ratio.. 9.9x Stockholders' equity2…
  3. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 3
    Cimarex Identity Grow through drilling - Generate our own drilling inventory Portfolio approach - Multiple basins and regions - Gas, NGLs and oil Return driven - Current focus on liquids-rich and oil-prone projects - Expanding…
  4. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 4
    Core Operating Areas 2013 Capex - 1.5 billion Gulf Coast 5% Mid- Continent 31% Mid-Continent Permian 62% Permian Q1 2013 Prod. 661 MMcfe/d Gulf Coast 5
  5. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 5
    Whats New Joint Development Agreement signed with Chevron Seeing solid drilling results from 2013 program - On track to invest approximately 1.5 billion - Production growth of 8-13% Active Delaware Basin program (950 million) -…
  6. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 6
    Permian Basin Summary Statistics Proved reserves (YE 12) 696.7 Bcfe 60% liquids; 99% proved developed Production (Q1 2013) 275.1 MMcfe/d 71% liquids Net acres (YE 12) 438,000 Permian Capital Investment 2013E 2012A E&D Capital…
  7. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 7
    Delaware Basin Focus Multi-stacked formations Oil & liquids-rich targets 12-14 operated rigs focused on Bone Spring & Wolfcamp drilling Active Wolfcamp project in Culberson County Emerging Wolfcamp in Reeves County 2nd Bone…
  8. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 8
    Delaware Basin Bone Spring 85-90 net Bone Spring 2012 Drilling: 107 gross (60 net) wells wells planned in 2013 2nd Bone Spring activity increasing in Culberson County 2 rigs expected to drill 20 wells New Mexico 2nd/3rd Bone…
  9. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 9
    Culberson County Joint Development Area 6 5 4 3 2 1 6 5 2 1 6 5 4 3 2 1 50/50 partner with Chevron on 104k gross acres 6 5 4 3 2 1 6 5 2 1 6 5 4 3 2 1 7 8 9 10 11 12 7 8 11 12 7 8 9 10 11 12 7 8 9 10 11 12 7 8 11 12 7 8…
  10. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 10
    Culberson County Focus Area 100,000+ net acres 6 5 4 3 2 1 6 5 2 1 6 5 4 3 2 1 7 8 9 10 11 12 7 8 11 12 7 8 9 10 11 12 18 17 16 15 14 13 18 17 14 13 18 17 16 15 14 13 2013 main objectives: 23 24 19 20 25S 26E 21 22…
  11. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 11
    Culberson County Focus Area Summary Multiple opportunities Five prospective horizons Very large Wolfcamp shale resource potential Per zone Wolfcamp development scenarios* - Four wells/section: 1.7 - 2.1 Tcfe; 3.6bn of capital;…
  12. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 12
    Rigging up in Culberson County 13
  13. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 13
    Culberson Infrastructure Significant infrastructure investment - Salt water disposal (SWD) - Electrical power - Roads and bridge - Triple Crown pipeline Triple Crown Pipeline - 34 miles of 12 pipe - Central compression -…
  14. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 14
    Culberson County JT Plant 15
  15. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 15
    Mid-Continent Region Summary Statistics Proved reserves (YE 12) 1,528.3 Bcfe 35% liquids; 71% proved developed Production (Q1 2013) 360.6 MMcfe/d 34% liquids Net acres (YE 12) 753,000 Mid-Continent Capital Investment 2013E 2012A…
  16. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 16
    Cana-Woodford Shale Drilled or participated in 532 wells 120,000 net acres - Avg. NRIs 81% Liquids Rich Liquids-Rich Area - Net acres: 75,000 Dry Gas - Gross pay: 100 300 - High oil and NGL content - Essentially all held by…
  17. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 17
    Cana-Woodford Infill Development Infill drilling in liquids- rich core 2013E: 140 gross wells - 100 non-operated 2012 Infill Row - 40 operated Two operated rigs by mid-year Two-well pads drilling nine wells per section Focus…
  18. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 18
    Cana-Woodford Net Production 250 229 Completion backlog increased as result of 215 commencing infill development 200 184 158 161 156 150 139 MMcfe/d 115 99 104 100 84 75 67 50 - Q1A Q2A Q3A Q4A Q1A Q2A Q3A…
  19. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 19
    Cana-Woodford Summary Q1 13 production: 229 MMcfe/d Infill row looking east (42% increase over Q1 12) Gas (MMcf/d) 139 61% NGLs (b/d) 11,842 31% Oil (b/d) 3,147 8% Total (MMcfe/d) 229 Significant resource potential: %…
  20. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 20
    Oil & Liquids-rich Projects fuel Growth in Proved Reserves 2.3 2.4 1.3 2.0 1.2 1.3 1.5 1.6 1.2 Tcfe 1.2 1.0 0.8 0.8 0.6 0.4 0.3 77% Gas 23% 33% 41% 45% Liquids 2009 2010 2011 2012 82% 77% 82% 80% %…
  21. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 21
    Production Growth Driven by Permian Basin and Mid-Continent MMcfe/d 800 675705 28 626 305 596 592 600 40 264 105 175 463 194 83 400 165 161 365 323 293 255 200 219 2009 2010 2011 2012 2013E…
  22. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 22
    Summary Recap Well positioned for 2013 and beyond - Primary focus on Permian projects - Continued Cana development - Generating new ideas Solid base of proved reserves and production - 80% proved developed; 10-year reserve life -…
  23. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 23
    Appendix 24
  24. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 24
    2013 Capital Investment Plan Total Capital: 1.5 B By Region: Permian Mid-Continent Gulf Coast/Other Invest 950 MM Invest 450 MM Invest 100 MM Drill approximately 175 Cana development: 350 MM Working new 3D data gross/ 115 net…
  25. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 25
    Hz Wolfcamp Type Curve* 7 4.0 30day avg: 6.4 MMcfe/d EUR: DailyRate(Mmcfe/d) 4.55.5 Bcfe (47% gas, 30% NGL & 23% oil) CumulativeProd.(Bcfe) 3.5 6 3.0 5 Cumulative Production (Bcfe) 2.5 Daily Rate (Mmcfe) 4 2.0…
  26. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 26
    Horizontal Wolfcamp Economics 50% Forward strip IRR : 34% ( 5-20-13 ) 39% 40% 33% 30% 28% 22% A-tax IRR 20% 17% 10% 0% 75.00/3.00 80.00/3.50 85.00/4.00 90.00/4.50 95.00/5.00 Realized Price - Oil (/Bbl) & Gas (/Mcf)…
  27. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 27
    2013 Guidance 2013 Production, Unit Expense and Capital Guidance 2013E Q2 Full-Year Production Total Equivalent (Mmcfe/d) 667-692 675 - 705 % Liquids 50% 50% Expenses (/Mcfe): Production 1.10 - 1.22 Transportation 0.27 - 0.32…
  28. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 28
    Hedges Oil Weighted Average Price Period Index Type Bbl/d Floor Ceiling Swap Feb. - Dec. 2013 WTI Swap 6,000 NA NA 96.13 Feb. - Dec. 2013 WTI Collar 6,000 85.00 102.31 NA 12,000 Gas Weighted Average Price Period Index Type…
  29. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 29
    Quarterly Dividend (cents/share) 0.00 0.02 0.04 0.06 0.08 0.10 0.12 Mar06 0.14 Jul06 Nov06 Dividend Mar07 Jul07 Nov07 Mar08 Jul08 Nov08 Mar09 Jul09 Nov09 Mar10 Quarterly Dividend Per Share Jul10 Nov10 Mar11…
  30. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 30
    Non-GAAP Reconciliation Reconciliation of Net Income to EBITDA and Adjusted EBITDA ( in Millions) 2008 2009 2010 2011 2012 Net income (loss) (902) (312) 575 530 354 Income tax expense (benefit) (529) (177) 339 312 207 Interest…
  31. GHS 100 ENERGY CONFERENCE – Cimarex Energy Co. – slide 31
    Non-GAAP Reconciliation Reconciliation of cash flow from operations Debt/Cap Calculation YE March 31, 2012 2013 (in millions) (in millions) Net cash provided by operating activities 1,193 Long-term debt 870 Change in operating…

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