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DENVER, Nov. 3, 2015 /PRNewswire/ -- Cimarex Energy Co. (XEC) today reported a third quarter 2015 net loss of $763.3 million, or $8.21 per diluted share, including a non-cash impairment of oil and gas properties. The adjusted third quarter net loss was $14.4 million, or $0.15 per diluted share.(1) Third quarter 2015 adjusted cash flow from operations was $178.6 million versus $439.7 million a year ago.(1)
Total company production averaged 979 million cubic feet equivalent (MMcfe) per day during the third quarter, a four percent increase from third quarter 2014. Year-over-year oil volumes grew 15 percent, natural gas volumes decreased one percent and natural gas liquids (NGL) volumes were up one percent.
Commodity prices impacted Cimarex's financial results for the quarter. Realized oil prices averaged $41.89 per barrel, down 52 percent versus a year ago and 17 percent sequentially. Natural gas prices were down 35 percent year-over-year and averaged $2.68 per thousand cubic feet (Mcf) compared to $4.10 per Mcf. NGL prices averaged $12.19 per barrel, down 64 percent from the third quarter of 2014 and 17 percent sequentially. (See table of Average Realized Price by Region below.)
Cimarex invested $184 million in exploration and development during the third quarter, which was primarily funded with cash flow from operations. Total debt at September 30, 2015, remained at $1.5 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $899 million. Debt was 30 percent of total capitalization(2). In October 2015, we entered into a new senior unsecured revolving credit facility which matures October 16, 2020. The credit facility has aggregate commitments of $1.0 billion, no borrowing base and a single financial covenant of debt to capital ratio not to exceed 65 percent.
Total company production for the fourth quarter 2015 is projected to average 980-1,010 MMcfe per day. Incorporating updated fourth quarter guidance, full year production is now estimated to average 983-991 MMcfe per day, a mid-point increase of 14 percent over 2014. Capital investment for exploration and development is estimated to be $900-$950 million in 2015, down from previous guidance of $1.0 billion.
Expenses per Mcfe of production for the remainder of 2015 are estimated to be:
|
|
|
Production expense
|
$0.77 - $0.87
|
|
Transportation, processing and other expense
|
0.45 - 0.55
|
|
DD&A and ARO accretion
|
1.65 - 1.85
|
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General and administrative expense*
|
0.23 - 0.27
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Taxes other than income (% of oil and gas revenue)
*Includes $0.05/Mcfe related to a charitable contribution commitment.
|
5.5 - 6.0%
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Operations UpdateCimarex invested $184 million in exploration and development during the third quarter bringing the total for the first nine months of 2015 to $683 million. Year-to-date, 59 percent has been invested in the Permian Basin and 40 percent in the Mid-Continent. We completed 56 gross (14 net) wells during the quarter. At September 30, 60 gross (27 net) wells were awaiting completion. Cimarex is currently operating seven drilling rigs.
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WELLS BROUGHT ON PRODUCTION BY REGION
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|
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For the Three Months Ended
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For the Nine Months Ended
|
|
|
September 30,
|
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September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Gross wells
|
|
|
|
|
|
|
|
|
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Permian Basin
|
|
4
|
|
36
|
|
72
|
|
117
|
|
Mid-Continent
|
|
52
|
|
30
|
|
82
|
|
106
|
|
Other
|
|
—
|
|
-
|
|
-
|
|
2
|
|
|
56
|
|
66
|
|
154
|
|
225
|
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Net wells
|
|
|
|
|
|
|
|
|
|
Permian Basin
|
|
4
|
|
27
|
|
52
|
|
78
|
|
Mid-Continent
|
|
10
|
|
9
|
|
19
|
|
43
|
|
Other
|
|
—
|
|
-
|
|
-
|
|
1
|
|
|
14
|
|
36
|
|
71
|
|
122
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Permian RegionProduction from the Permian region averaged 562.4 MMcfe per day in the third quarter, a 38 percent increase over third quarter 2014. Quarterly oil volumes increased 24 percent year-over-year to 42,367 barrels per day and accounted for 45 percent of the region's total production for the quarter.
Cimarex completed and brought on production four gross (four net) wells in the Permian region during the third quarter. On September 30, there were seven gross (five net) wells waiting on completion in the Delaware Basin.
Cimarex now has 13 long-lateral Wolfcamp D wells producing in Culberson County, Texas, up two from our last report. These 10,000-foot laterals had an average 30-day initial gross peak production rate of 2,308 BOE per day (46 percent gas, 29 percent NGL, 25 percent oil).
Mid-ContinentActivity in the Mid-Continent region was focused in the Cana area in western Oklahoma, where 52 gross (ten net) wells were completed and brought on production during the third quarter. At the end of the quarter, 53 gross (22 net) wells were waiting on completion. Third quarter production from the Cana area averaged 321.6 MMcfe per day, representing 33 percent of total company production. Total Mid-Continent production averaged 405.3 MMcfe per day for the third quarter of 2015.
In the Meramec formation, Cimarex completed its first 10,000-foot lateral. The Clayton 1HX had an average 30-day initial peak production rate of 16.0 MMcfe per day (57 percent gas, 28 percent NGL, 15 percent oil). In addition, Cimarex now has eleven 5,000-foot Meramec wells on production which have an average 30-day initial gross peak production rate of 9.3 MMcfe per day (47 percent gas, 29 percent oil, 24 percent NGL).
Average daily production and commodity price for Cimarex by region are summarized below:
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DAILY PRODUCTION BY REGION
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|
|
|
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|
|
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For the Three Months Ended
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For the Nine Months Ended
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|
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September 30,
|
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September 30,
|
|
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2015
|
|
2014
|
|
2015
|
|
2014
|
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Permian Basin
|
|
|
|
|
|
|
|
|
Gas (MMcf)
|
197.6
|
|
126.6
|
|
179.3
|
|
117.6
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|
Oil (Bbls)
|
42,367
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|
34,299
|
|
44,632
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|
33,090
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|
NGL (Bbls)
|
18,430
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|
12,634
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|
16,938
|
|
11,144
|
|
Total Equivalent (MMcfe)
|
562.4
|
|
408.1
|
|
548.7
|
|
383.0
|
|
|
|
|
|
|
|
|
|
|
Mid-Continent
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|
|
|
|
|
|
|
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Gas (MMcf)
|
260.8
|
|
333.3
|
|
272.6
|
|
284.9
|
|
Oil (Bbls)
|
6,981
|
|
8,158
|
|
7,197
|
|
7,166
|
|
NGL (Bbls)
|
17,093
|
|
22,604
|
|
17,823
|
|
18,475
|
|
Total Equivalent (MMcfe)
|
405.3
|
|
517.9
|
|
422.7
|
|
438.8
|
|
|
|
|
|
|
|
|
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Total Company
|
|
|
|
|
|
|
|
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Gas (MMcf)
|
464.3
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|
468.4
|
|
458.9
|
|
411.7
|
|
Oil (Bbls)
|
49,951
|
|
43,376
|
|
52,480
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|
41,450
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|
NGL (Bbls)
|
35,815
|
|
35,627
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|
35,056
|
|
30,151
|
|
Total Equivalent (MMcfe)
|
978.9
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|
942.4
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|
984.1
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|
841.3
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|
|
|
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AVERAGE REALIZED PRICE BY REGION
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For the Three Months Ended
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For the Nine Months Ended
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|
|
September 30,
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September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Permian Basin
|
|
|
|
|
|
|
|
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Gas ($ per Mcf)
|
2.75
|
|
4.16
|
|
2.66
|
|
4.70
|
|
Oil ($ per Bbl)
|
42.04
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|
85.43
|
|
45.31
|
|
89.47
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|
NGL ($ per Bbl)
|
10.80
|
|
30.81
|
|
12.28
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|
32.98
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|
|
|
|
|
|
|
|
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Mid-Continent
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|
|
|
|
|
|
|
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Gas ($ per Mcf)
|
2.63
|
|
4.07
|
|
2.63
|
|
4.59
|
|
Oil ($ per Bbl)
|
40.74
|
|
94.09
|
|
44.32
|
|
96.13
|
|
NGL ($ per Bbl)
|
13.66
|
|
35.93
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|
15.88
|
|
38.04
|
|
|
|
|
|
|
|
|
|
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Total Company
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|
|
|
|
|
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|
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Gas ($ per Mcf)
|
2.68
|
|
4.10
|
|
2.65
|
|
4.62
|
|
Oil ($ per Bbl)
|
41.89
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|
87.27
|
|
45.22
|
|
90.87
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NGL ($ per Bbl)
|
12.19
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|
34.08
|
|
14.13
|
|
36.10
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Other
The following table summarizes the company's current open hedge positions:
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First
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Second
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Third
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Fourth
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|
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Quarter
|
|
Quarter
|
|
Quarter
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|
Quarter
|
|
Total
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Gas:
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|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
PEPL Collars (3)
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|
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|
|
|
|
|
|
|
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|
Volume (MMBtu)
|
|
910,000
|
|
910,000
|
|
920,000
|
|
920,000
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|
3,660,000
|
|
Wtd Avg Floor
|
|
$ 2.70
|
|
$ 2.70
|
|
$ 2.70
|
|
$ 2.70
|
|
$ 2.70
|
|
Wtd Avg Ceiling
|
|
$ 2.85
|
|
$ 2.85
|
|
$ 2.85
|
|
$ 2.85
|
|
$ 2.85
|
|
|
|
|
|
|
|
|
|
|
|
|
El Paso Perm Collars (3)
|
|
|
|
|
|
|
|
|
|
|
|
Volume (MMBtu)
|
|
1,820,000
|
|
1,210,000
|
|
920,000
|
|
920,000
|
|
4,870,000
|
|
Wtd Avg Floor
|
|
$ 2.75
|
|
$ 2.75
|
|
$ 2.75
|
|
$ 2.75
|
|
$ 2.75
|
|
Wtd Avg Ceiling
|
|
$ 3.12
|
|
$ 3.09
|
|
$ 3.06
|
|
$ 3.06
|
|
$ 3.09
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|
|
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|
|
|
|
|
|
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2017
|
|
|
|
|
|
|
|
|
|
|
|
El Paso Perm Collars(3)
|
|
|
|
|
|
|
|
|
|
|
|
Volume (MMBtu)
|
|
900,000
|
|
910,000
|
|
-
|
|
-
|
|
1,810,000
|
|
Wtd Avg Floor
|
|
$ 2.75
|
|
$ 2.75
|
|
$ -
|
|
$ -
|
|
$ 2.75
|
|
Wtd Avg Ceiling
|
|
$ 3.36
|
|
$ 3.36
|
|
$ -
|
|
$ -
|
|
$ 3.36
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|
|
|
|
|
|
|
|
|
|
|
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
|
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Oil:
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
WTI Oil Three-Way Collars (4)
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Bbl)
|
|
273,000
|
|
273,000
|
|
276,000
|
|
276,000
|
|
1,098,000
|
|
Floor sold (put) $
|
|
$ 40.00
|
|
$ 40.00
|
|
$ 40.00
|
|
$ 40.00
|
|
$ 40.00
|
|
Floor purchased (put) $
|
|
$ 50.00
|
|
$ 50.00
|
|
$ 50.00
|
|
$ 50.00
|
|
$ 50.00
|
|
Ceiling sold (call) $
|
|
$ 60.00
|
|
$ 60.00
|
|
$ 60.00
|
|
$ 60.00
|
|
$ 60.00
|
Conference call and webcast
Cimarex will host a conference call Wednesday, November 4, at 11:00 a.m. EST. The call will be webcast and accessible on the company's website at www.cimarex.com. To participate in the live, interactive call, please dial 1-866-367-3053 ten minutes before the scheduled start time (international callers dial 1-412-902-4216). A replay will be available for one week following the call by dialing 1-877-344-7529 (international callers dial 1-412-317-0088); conference I.D. 10073620. The replay will also be available on the company's website or via the Cimarex App.
Investor Presentation
For more details on Cimarex's third quarter 2015 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the company is providing a revised "2015 Outlook", which contains projections for certain 2015 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K/A for the year ended December 31, 2014, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements.
Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including, among other things: oil, NGL and natural gas price volatility; declines in the values of our oil and gas properties resulting in impairments; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; costs and availability of third party facilities for gathering, processing, refining and transportation; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to emissions and hydraulic fracturing; higher than expected costs and expenses, including the availability and cost of services and materials; unexpected future capital expenditures; economic and competitive conditions; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; compliance with environmental and other regulations; derivative and hedging activities; risks associated with operating in two major geographic areas; the success of the company's risk management activities; title to properties; litigation; environmental liabilities; the ability to complete property sales or other transactions; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.
www.cimarex.com
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__________________________________
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|
|
(1) Adjusted net income (loss) and adjusted cash flow from operations are non-GAAP financial measures. See below for a reconciliation of the related amounts.
|
|
(2) Reconciliation of debt to total capitalization, which is a non-GAAP measure, is: long-term debt of $1.5 billion divided by long-term debt of $1.5 billion plus stockholders' equity of $3.4 billion.
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(3) PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index and El Paso Perm is El Paso Permian Basin index both as quoted in Platt's Inside FERC.
|
|
(4) WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange.
|
|
RECONCILIATION OF ADJUSTED NET INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
For the Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
(in thousands, net of tax, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
(763,284)
|
|
$
|
144,315
|
|
$
|
(1,778,440)
|
|
$
|
431,412
|
|
Impairment of oil and gas properties
|
|
750,185
|
|
|
—
|
|
|
1,748,024
|
|
|
—
|
|
Mark-to-market (gain) loss on open derivative positions
|
|
(1,260)
|
|
|
(5,938)
|
|
|
(1,260)
|
|
|
1,852
|
|
Gain on sale of midstream assets
|
|
—
|
|
|
(4,202)
|
|
|
—
|
|
|
(4,202)
|
|
Adjusted net income (loss)
|
$
|
(14,359)
|
|
$
|
134,175
|
|
$
|
(31,676)
|
|
$
|
429,062
|
|
Diluted earnings (loss) per share
|
$
|
(8.21)
|
|
$
|
1.65
|
|
$
|
(19.14)
|
|
$
|
4.94
|
|
Adjusted diluted earnings (loss) per share *
|
$
|
(0.15)
|
|
$
|
1.53
|
|
$
|
(0.35)
|
|
$
|
4.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares attributable to common stockholders and participating securities
|
|
92,969
|
**
|
|
87,393
|
|
|
92,969
|
**
|
|
87,402
|
|
Estimated tax rates utilized
|
|
36.5%
|
|
|
37.1%
|
|
|
36.5%
|
|
|
37.1%
|
|
|
Adjusted net income (loss) and adjusted diluted earnings (loss) per share excludes the noted item because management believes this item affects the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP earnings because:
|
|
a) Management uses adjusted net income (loss) to evaluate the company's operational trends and performance relative to other oil and gas exploration and production companies.
|
|
b) Adjusted net income (loss) is more comparable to earnings estimates provided by research analysts.
|
|
*
|
Earnings (loss) per share are based on actual figures rather than the rounded figures presented
|
|
**
|
Participating securities and other dilutive shares are not included in the diluted share computation when a loss exists.
|
|
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
For the Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
(in thousands)
|
|
Net cash provided by operating activities
|
$
|
206,001
|
|
$
|
502,201
|
|
$
|
576,546
|
|
$
|
1,271,970
|
|
Change in operating assets and liabilities
|
|
(27,448)
|
|
|
(62,453)
|
|
|
41,310
|
|
|
19,782
|
|
Adjusted cash flow from operations
|
$
|
178,553
|
|
$
|
439,748
|
|
$
|
617,856
|
|
$
|
1,291,752
|
|
|
Management believes that the non-GAAP measure of adjusted cash flow from operations is useful information for investors because it is used internally and is accepted by the investment community as a means of measuring the company's ability to fund its capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of cash flow from operating activities. It is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.
|
|
OIL AND GAS CAPITALIZED EXPENDITURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
For the Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
(in thousands)
|
|
Acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved (*)
|
$
|
2
|
|
$
|
—
|
|
$
|
(2,226)
|
|
$
|
144,516
|
|
Unproved (*)
|
|
2,237
|
|
|
—
|
|
|
(5,511)
|
|
|
114,732
|
|
|
|
2,239
|
|
|
—
|
|
|
(7,737)
|
|
|
259,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration and development:
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and Seismic
|
|
10,000
|
|
|
34,697
|
|
|
37,965
|
|
|
143,891
|
|
Exploration and development
|
|
174,270
|
|
|
424,861
|
|
|
644,796
|
|
|
1,280,036
|
|
|
|
184,270
|
|
|
459,558
|
|
|
682,761
|
|
|
1,423,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale proceeds:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved
|
|
(24,031)
|
|
|
(271,954)
|
|
|
(26,336)
|
|
|
(272,177)
|
|
Unproved
|
|
(6,201)
|
|
|
(174,403)
|
|
|
(12,412)
|
|
|
(175,303)
|
|
|
|
(30,232)
|
|
|
(446,357)
|
|
|
(38,748)
|
|
|
(447,480)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
156,277
|
|
$
|
13,201
|
|
$
|
636,276
|
|
$
|
1,235,695
|
|
|
|
*
|
The negative amounts in 2015 reflect purchase price adjustments related to an acquisition in second quarter 2014.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
For the Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil sales
|
$
|
192,501
|
|
$
|
348,276
|
|
$
|
647,850
|
|
$
|
1,028,229
|
|
Gas sales
|
|
114,649
|
|
|
176,539
|
|
|
331,985
|
|
|
519,139
|
|
NGL sales
|
|
40,159
|
|
|
111,701
|
|
|
135,236
|
|
|
297,128
|
|
Gas gathering and other, net
|
|
8,746
|
|
|
13,224
|
|
|
26,269
|
|
|
41,129
|
|
|
|
|
356,055
|
|
|
649,740
|
|
|
1,141,340
|
|
|
1,885,625
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas properties
|
|
1,180,649
|
|
|
—
|
|
|
2,751,535
|
|
|
—
|
|
Depreciation, depletion, amortization and accretion
|
|
188,269
|
|
|
220,779
|
|
|
626,276
|
|
|
596,567
|
|
Production
|
|
69,334
|
|
|
89,084
|
|
|
222,145
|
|
|
250,310
|
|
Transportation, processing, and other operating
|
|
46,290
|
|
|
54,573
|
|
|
129,645
|
|
|
145,299
|
|
Gas gathering and other
|
|
8,429
|
|
|
8,588
|
|
|
28,599
|
|
|
27,413
|
|
Taxes other than income
|
|
19,717
|
|
|
33,510
|
|
|
67,678
|
|
|
99,454
|
|
General and administrative
|
|
20,413
|
|
|
20,240
|
|
|
50,405
|
|
|
57,523
|
|
Stock compensation
|
|
4,737
|
|
|
3,603
|
|
|
14,880
|
|
|
10,875
|
|
(Gain) loss on derivative instruments, net
|
|
(1,968)
|
|
|
(9,229)
|
|
|
(1,968)
|
|
|
8,960
|
|
Other operating (income) expense, net
|
|
60
|
|
|
(181)
|
|
|
844
|
|
|
34
|
|
|
|
|
1,535,930
|
|
|
420,967
|
|
|
3,890,039
|
|
|
1,196,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
(1,179,875)
|
|
|
228,773
|
|
|
(2,748,699)
|
|
|
689,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) and expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
20,313
|
|
|
19,751
|
|
|
60,636
|
|
|
48,524
|
|
Amortization of deferred financing costs
|
|
1,103
|
|
|
1,128
|
|
|
3,333
|
|
|
3,121
|
|
Capitalized interest
|
|
(7,100)
|
|
|
(10,005)
|
|
|
(25,087)
|
|
|
(25,870)
|
|
Other, net
|
|
(2,375)
|
|
|
(11,123)
|
|
|
(9,814)
|
|
|
(22,207)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax
|
|
(1,191,816)
|
|
|
229,022
|
|
|
(2,777,767)
|
|
|
685,622
|
|
Income tax expense (benefit)
|
|
(428,532)
|
|
|
84,707
|
|
|
(999,327)
|
|
|
254,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
(763,284)
|
|
$
|
144,315
|
|
$
|
(1,778,440)
|
|
$
|
431,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(8.21)
|
|
$
|
1.65
|
|
$
|
(19.14)
|
|
$
|
4.94
|
|
Diluted
|
$
|
(8.21)
|
|
$
|
1.65
|
|
$
|
(19.14)
|
|
$
|
4.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
$
|
0.16
|
|
$
|
0.16
|
|
$
|
0.48
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrestricted common shares outstanding
|
|
92,969
|
|
|
85,643
|
|
|
92,969
|
|
|
85,643
|
|
Diluted common shares
|
|
92,969
|
|
|
85,779
|
|
|
92,969
|
|
|
85,788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares attributable to common stockholders and participating securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic shares outstanding
|
|
N/A*
|
|
|
87,257
|
|
|
N/A*
|
|
|
87,257
|
|
Fully diluted shares
|
|
N/A*
|
|
|
87,393
|
|
|
N/A*
|
|
|
87,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
(763,284)
|
|
$
|
144,315
|
|
$
|
(1,778,440)
|
|
$
|
431,412
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of investments, net of tax
|
|
(609)
|
|
|
(123)
|
|
|
(800)
|
|
|
(139)
|
|
Total comprehensive income (loss)
|
$
|
(763,893)
|
|
$
|
144,192
|
|
$
|
(1,779,240)
|
|
$
|
431,273
|
|
|
|
*
|
Due to the net loss, shares of 94,568, which include participating securities, are not considered in the loss per share calculation
|
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(763,284)
|
|
$
|
144,315
|
|
$
|
(1,778,440)
|
|
$
|
431,412
|
|
Adjustment to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of oil and gas properties
|
|
|
1,180,649
|
|
|
—
|
|
|
2,751,535
|
|
|
—
|
|
|
Depreciation, depletion, amortization and accretion
|
|
|
188,269
|
|
|
220,779
|
|
|
626,276
|
|
|
596,567
|
|
|
Deferred income taxes
|
|
|
(443,469)
|
|
|
84,707
|
|
|
(1,014,264)
|
|
|
254,210
|
|
|
Stock compensation
|
|
|
4,737
|
|
|
3,603
|
|
|
14,880
|
|
|
10,875
|
|
|
(Gain) loss on derivative instruments
|
|
|
(1,968)
|
|
|
(9,229)
|
|
|
(1,968)
|
|
|
8,960
|
|
|
Settlements on derivative instruments
|
|
|
—
|
|
|
(211)
|
|
|
—
|
|
|
(6,015)
|
|
|
Changes in non-current assets and liabilities
|
|
|
13,401
|
|
|
563
|
|
|
16,343
|
|
|
(1,873)
|
|
|
Amortization of deferred financing costs and other, net
|
|
|
218
|
|
|
(4,779)
|
|
|
3,494
|
|
|
(2,384)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables, net
|
|
|
59,310
|
|
|
18,611
|
|
|
151,783
|
|
|
(63,091)
|
|
|
Other current assets
|
|
|
13,513
|
|
|
(6,928)
|
|
|
29,634
|
|
|
(26,110)
|
|
|
Accounts payable and other current liabilities
|
|
|
(45,375)
|
|
|
50,770
|
|
|
(222,727)
|
|
|
69,419
|
|
|
|
Net cash provided by operating activities
|
|
|
206,001
|
|
|
502,201
|
|
|
576,546
|
|
|
1,271,970
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and gas expenditures
|
|
|
(171,807)
|
|
|
(492,390)
|
|
|
(771,029)
|
|
|
(1,630,929)
|
|
Sales of oil and gas assets
|
|
|
29,827
|
|
|
450,587
|
|
|
38,343
|
|
|
451,710
|
|
Sales of other assets
|
|
|
340
|
|
|
7,927
|
|
|
1,057
|
|
|
8,178
|
|
Other capital expenditures
|
|
|
(22,203)
|
|
|
(25,383)
|
|
|
(58,085)
|
|
|
(76,784)
|
|
|
Net cash used by investing activities
|
|
|
(163,843)
|
|
|
(59,259)
|
|
|
(789,714)
|
|
|
(1,247,825)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net bank debt borrowings
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(174,000)
|
|
Proceeds from other long-term debt
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
750,000
|
|
Proceeds from sale of common stock
|
|
|
—
|
|
|
—
|
|
|
752,100
|
|
|
—
|
|
Financing and underwriting fees
|
|
|
(100)
|
|
|
(398)
|
|
|
(22,663)
|
|
|
(11,616)
|
|
Dividends paid
|
|
|
(15,082)
|
|
|
(13,910)
|
|
|
(43,211)
|
|
|
(39,932)
|
|
Proceeds from exercise of stock options and other
|
|
|
15,456
|
|
|
6,468
|
|
|
20,392
|
|
|
10,529
|
|
|
Net cash provided by (used in) financing activities
|
|
|
274
|
|
|
(7,840)
|
|
|
706,618
|
|
|
534,981
|
|
Net change in cash and cash equivalents
|
|
|
42,432
|
|
|
435,102
|
|
|
493,450
|
|
|
559,126
|
|
Cash and cash equivalents at beginning of period
|
|
|
856,880
|
|
|
128,555
|
|
|
405,862
|
|
|
4,531
|
|
Cash and cash equivalents at end of period
|
|
$
|
899,312
|
|
$
|
563,657
|
|
$
|
899,312
|
|
$
|
563,657
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
|
|
|
|
September 30,
|
|
December 31,
|
|
2015
|
|
2014
|
|
Assets
|
|
(in thousands, except share data)
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
899,312
|
|
$
|
405,862
|
|
Receivables, net
|
|
260,060
|
|
|
412,108
|
|
Oil and gas well equipment and supplies
|
|
65,096
|
|
|
89,780
|
|
Deferred income taxes
|
|
6,863
|
|
|
13,475
|
|
Derivative instruments
|
|
1,501
|
|
|
—
|
|
Other current assets
|
|
5,629
|
|
|
10,579
|
|
|
Total current assets
|
|
1,238,461
|
|
|
931,804
|
|
Oil and gas properties at cost, using the full cost method of accounting:
|
|
|
|
|
Proved properties
|
|
15,206,618
|
|
|
14,402,064
|
|
Unproved properties and properties under development, not being amortized
|
|
584,799
|
|
|
759,149
|
|
|
|
|
15,791,417
|
|
|
15,161,213
|
|
Less – accumulated depreciation, depletion, amortization and impairment
|
|
(11,597,715)
|
|
|
(8,257,502)
|
|
|
Net oil and gas properties
|
|
4,193,702
|
|
|
6,903,711
|
|
Fixed assets, net
|
|
229,136
|
|
|
211,031
|
|
Goodwill
|
|
620,232
|
|
|
620,232
|
|
Derivative instruments
|
|
467
|
|
|
—
|
|
Other assets, net
|
|
54,364
|
|
|
58,515
|
|
|
|
$
|
6,336,362
|
|
$
|
8,725,293
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
$
|
71,620
|
|
$
|
138,051
|
|
Accrued liabilities
|
|
286,760
|
|
|
447,384
|
|
Revenue payable
|
|
122,728
|
|
|
190,892
|
|
|
Total current liabilities
|
|
481,108
|
|
|
776,327
|
|
Long-term debt
|
|
1,500,000
|
|
|
1,500,000
|
|
Deferred income taxes
|
|
733,371
|
|
|
1,754,706
|
|
Other liabilities
|
|
187,916
|
|
|
193,628
|
|
|
Total liabilities
|
|
2,902,395
|
|
|
4,224,661
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Preferred stock, $0.01 par value, 15,000,000 shares authorized, no shares issued
|
|
—
|
|
|
—
|
|
Common stock, $0.01 par value, 200,000,000 shares authorized, 94,559,630 and 87,592,535 shares issued, respectively
|
|
946
|
|
|
876
|
|
Paid-in capital
|
|
2,753,768
|
|
|
1,997,080
|
|
Retained earnings
|
|
678,950
|
|
|
2,501,574
|
|
Accumulated other comprehensive income
|
|
303
|
|
|
1,102
|
|
|
|
|
3,433,967
|
|
|
4,500,632
|
|
|
|
$
|
6,336,362
|
|
$
|
8,725,293
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cimarex-reports-third-quarter-2015-results-300171773.html
|
|