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DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co.

Cimarex Energy Co. · Oct 9, 2012 · 29 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. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 1
    2012 Deutsche Bank Leveraged Finance Conference October 9-11, 2012
  2. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 2
    Corporate Profile NYSE: XEC Shares outstanding 86.0 MM Proved reserves3.. 2.05 Tcfe Market cap1... 5.0 B % Natural gas 59% Long-term debt 2.. 0.8 B % Proved developed 82% Enterprise value 5.8 B R/P Ratio.. 9.5x Stockholders' equity2…
  3. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 3
    Strong, Simple Balance Sheet Unsecured Bank Facility Borrowing Base 2 B Commitments 1 B Outstanding 80 MM as of Sept. 30, 2012 Maturity July 14, 2016 Senior Unsecured Notes 750 MM, 5.875% Issued in April 2012 10-year, NC5, due…
  4. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 4
    Credit Statistics and Ratings Credit Stats (as of June 30, 2012) Total Debt/EBITDA 0.6x EBITDA/Total Interest 28.9x (1) Debt/Proved Reserves (/Mcfe) 0.37 (1) Debt/Proved Dev. Reserves (/Mcfe) 0.45 Debt/Total Cap 19% Ratings S&P…
  5. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 5
    Historical Credit Ratios Total Debt / EBITDA Total Debt / PD Reserves (1) (/Mcfe) Total Debt / Proved Reserves (1) (/Mcfe) Total Debt / Total Capitalization (1) Proved reserves as of year-end 2011 6
  6. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 6
    Operating Footprint YE 2011 Proved Reserves 2.05 Tcfe By Region Mid-Continent Permian By Product Gulf Coast 7
  7. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 7
    Approach to the Business Grow through the drill-bit Generate our own drilling inventory Portfolio approach Keep a mix of opportunitiesgas and oil; low- medium-higher risk projects; geologic and geographic diversity Rate of return…
  8. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 8
    Growth in Oil and NGL Reserves Oil NGLs 80 72.3 65.8 60 63.7 56.8 MMBbls 40 44.3 41.3 20 0.9 1.3 0 2008 2009 2010 2011 9
  9. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 9
    Capital Investment Program 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…
  10. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 10
    Permian Basin Summary Statistics Proved reserves (YE 11) 620.4 (Bcfe) 60% liquids; 99% proved developed Production (Q2 12) 247.5 (MMcfe/d) 68% liquids Net acres (YE 11) 438 (000s) Permian Capital Investment 2012E 2011A E&D…
  11. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 11
    Permian Basin Prolific multi-pay Abo/Paddock basin Strong position in New Mexico Bone Spring multiple plays in the Delaware Basin: - New Mexico Bone Spring 65,000 net acres New Mexico Texas/New Mexico Texas Unconventional -…
  12. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 12
    Permian Delaware Bone Spring 2011 Drilling: First-half 2012 drilled and 80 Bone Spring wells 63 New Mexico completed 50 gross (28 net) 17 Texas Bone Spring wells - 31 gross (16 net) in New Mexico - 19 gross (12 net) in Texas…
  13. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 13
    NM Bone Spring EURs 50% Increase in EURs RESERVES MBOE 650 MBOE AVERAGE 400 MBOE AVERAGE 4-2009 Wells-Chronological 9-2011 6-2012 14
  14. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 14
    TX 3rd Bone Spring EURs 60% Increase in EURs 730 MBOE AVERAGE RESERVES MBOE 450 MBOE AVERAGE 5-2006 Wells-Chronological 9-2011 6-2012 15
  15. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 15
    Permian Horizontal Wolfcamp White City/northern Culberson Cty. Focus area 80,000 net acres Delaware Wolfcamp Stats: White City Organic-rich shale Triple Crown 34 miles 12 Gross thickness: 600 700 pipeline Total organic carbon: 2…
  16. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 16
    Permian Horizontal Wolfcamp Significant investment in infrastructure in 2011/2012 - Support full development of Wolfcamp and other regional plays - No acreage dedications, flexibility to access markets Triple Crown Pipeline - 34…
  17. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 17
    Permian Horizontal Wolfcamp Net Operated Wolfcamp Production 40 (Assumes Full NGL Recovery) 35 New Pipeline In Place Average Daily Production, MMCFED 30 Drilling and 25 Completion Delays Due to Pipeline Constraints 20…
  18. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 18
    Mid-Continent Region Summary Statistics Proved reserves (YE 11) 1,375.7 (Bcfe) 32% liquids; 72% proved developed Production (Q2 12) 300.2 (MMcfe/d) 29% liquids Net acres (YE 11) 729 (000s) Mid-Continent Capital Investment 2012E…
  19. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 19
    Cana-Woodford Shale Drilled or non-op in 414 wells through Q2 2012 Strong land position: 120,000 net acres w/ 75,000 Acres NRIs 81% (Liquids Rich) Liquids Rich Area - Net acres: 75,000 45,000 Acres - Gross pay: 100 300 (Gas…
  20. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 20
    Cana-Woodford Infill Development Infill drilling in liquids- Canadian River rich core River 4-7 operated rigs Access Drilling off two well XEC Infill Row pads with 9 wells/section Began frac of infill XEC wells late…
  21. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 21
    Cana-Woodford Infill Development Program Drilling Infill row looking west to east Efficiencies Multi-well pad drilling Bi-Fuel for rigs Water management Proximity savings Equipment/personnel reductions Rig Competition 22
  22. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 22
    Cana-Woodford Infill Development Significant improvement Infill in row looking west to east drilling days Best of the Best well under 20 days - Composite of best performance of all wells XEC best well to date TDd in 26 days…
  23. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 23
    Cana-Woodford Summary Infill row looking east Q2-12 production:156 MMcfe/d (36% increase over Q2-11) Gas (MMcf/d) 110 70% NGLs (b/d) 5,772 22% Oil (b/d) 1,915 7% Equivalent (MMcfe/d) 156 100% Significant resource…
  24. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 24
    Key Investment Considerations Diversified drilling program - Well positioned in multi-pay Permian Basin and Mid-Continent areas - Multi-year inventory - Oil and NGL focus - Quickly adaptable to economic environment Solid base of…
  25. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 25
    Appendix
  26. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 26
    Quarterly Dividend (cents/share) 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 Mar06 Jul06 Nov06 Mar07 Dividend Jul07 Nov07 Mar08 Jul08 Nov08 Mar09 Jul09 Nov09 Quarterly Dividend Per Share Mar10 Jul10 Nov10 Yield…
  27. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 27
    Hedges Oil Average Price Daily (2) Period Index Type Volume(1) Floor Ceiling Jul - Dec 2012 WTI Collar 14,000 80.00 119.35 (1) Oil volume = bbls/d
  28. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 28
    Non-GAAP Reconciliation Reconciliation of Net Income to EBITDA and Adjusted EBITDA TTM ( in Millions) 2007 2008 2009 2010 2011 6/30/12 Net income (loss) 345 (902) (312) 575 530 415 Income tax expense (benefit) 197 (529) (177) 339 312…
  29. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Cimarex Energy Co. – slide 29
    Non-GAAP Reconciliation Reconciliation of cash flow from operations Debt/Cap Calculation Quarter ended YE June 30, 2012 2011 (in millions) (in millions) Pro Forma long-term debt 750 Net cash provided by operating activities…

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