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Cimarex Energy Co.$96.75$.34.35%

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 Cimarex Reports Fourth-Quarter and Full-Year 2015 Results
   Tuesday, February 16, 2016 5:00:00 PM ET

Cimarex Energy Co. (XEC ) today reported a fourth quarter 2015 net loss of $630.5 million, or $6.78 per share. The adjusted fourth quarter net loss was $23.0 million, or $0.25 per share, compared to fourth-quarter 2014 adjusted net income of $76.4 million, or $0.87 per diluted share(1). For the year, Cimarex recorded a net loss of $2.4 billion, or $25.92 per share. The adjusted net loss for the full year was $0.60 per share(1). Adjusted cash flow from operations totaled $744 million in 2015, a 54 percent drop from 2014 levels(1). Revenues in 2015 totaled $1.5 billion, a 40 percent decrease from 2014. The decrease in revenues, earnings and cash flow was the result of substantially lower product prices received. (See table of Average Realized Price by Region below.)

Total company production volumes averaged 986 million cubic feet equivalent (MMcfe) per day in the fourth quarter, up four percent from a year ago. Weather and facilities disruptions negatively impacted fourth quarter production by approximately 30 MMcfe per day. For the full year, Cimarex reported daily production volumes of 985 MMcfe per day, up 13 percent from our 2014 average daily output of 869 MMcfe per day.

Cimarex invested $877 million in exploration and development in 2015. This was down significantly from the amount Cimarex invested in 2014 when E&D capital investment totaled $1.9 billion. Investments made in 2015 were funded with cash flow and cash on hand.

Proved reserves at December 31, 2015 were 2.9 trillion cubic feet equivalent (Tcfe), down seven percent year over year. Cimarex added 429 Bcfe through extensions and discoveries and had 142 Bcfe in net performance revisions. As a result, the company replaced 159 percent of 2015 production (excludes negative price and operating cost revisions of 399 Bcfe and 19 Bcfe, respectively). Proved reserves are 75 percent proved developed. Prices used for 2015 proved reserve reporting for oil, gas and NGLs were down 47 percent, 40 percent and 53 percent, respectively, from 2014. (See table of Proved Reserves below.)

Continued declines in oil and natural gas prices impacted the company’s financial results for both the fourth quarter and full year. Realized oil prices averaged $37.32 per barrel in the fourth quarter and $43.38 per barrel for the full year, down 43 percent and 48 percent, versus the respective periods a year ago. In the fourth quarter, natural gas prices averaged $2.20 per Mcf and NGL prices averaged $12.72 per barrel compared to $3.95 and $25.32, respectively, in the fourth quarter of 2014. For the full year, natural gas prices averaged $2.53 per Mcf and NGL prices averaged $13.75 per barrel compared to $4.43 and $33.14, respectively, in 2014. Total debt at December 31, 2015 consisted of $1.5 billion of long-term notes, with $750 million maturing in 2022 and $750 million maturing in 2024. Cimarex had no borrowings under its revolving credit facility and had a cash balance of $779 million. Debt was 35 percent of total capitalization(2).

Operations Update

During 2015, Cimarex participated in the drilling and completion of 219 gross (99 net) wells, 123 of which we operate. Total exploration and development investment was $877 million. Of the total, 55 percent was invested in Permian projects and 45 percent in the Mid-Continent.

At year-end, 49 gross (20 net) wells were drilled and awaiting completion - 37 gross (13 net) in the Mid-Continent and 12 gross (seven net) in the Permian.

WELLS BROUGHT ON PRODUCTION BY REGION
                   For the Three Months Ended  For the Twelve Months Ended
                   December 31,                December 31,
                   2015      2014              2015       2014
    Gross wells
    Permian Basin  13        54                85         171
    Mid-Continent  52        33                134        139
    Other          --        --                --         2
                   65        87                219        312
    Net wells
    Permian Basin  8         39                60         117
    Mid-Continent  20        14                39         57
    Other          --        --                --         1
                   28        53                99         175

Permian Basin

Production from the Permian Basin averaged 520 MMcfe per day in the fourth quarter, a 16 percent increase over fourth-quarter 2014 and a decrease of eight percent sequentially. Quarterly oil volumes averaged 38,423 barrels per day, flat year-over-year, and accounted for 44 percent of the region’s total production for the quarter.

Cimarex completed and brought on production 13 gross (eight net) Permian Basin wells during the fourth quarter, bringing the total for 2015 to 85 gross (60 net) wells.

One highlight of the 2015 Permian program was the drilling and completion of 19 gross (13 net) New Mexico Bone Spring wells. Average 30-day gross peak production from these wells was 1,404 barrels of oil equivalent (BOE) per day (63 percent oil).

In Culberson County, Texas, Cimarex has completed 27 long lateral Wolfcamp wells to date including 18 in the Wolfcamp D (Lower Wolfcamp) and nine in the Wolfcamp A (Upper Wolfcamp). Of note were two 7,500-foot Upper Wolfcamp laterals completed during the fourth quarter using a larger stimulation. Average 30-day gross peak production from these two wells was 1,879 BOE per day (51 percent oil, 30 percent gas, 19 percent NGL).

Mid-Continent

Cimarex drilled and completed 134 gross (39 net) wells in the Mid-Continent area in 2015. The majority of the activity was in the Cana-Woodford and Meramec shale plays in western Oklahoma. At the end of the fourth quarter, 37 gross (13 net) wells were awaiting completion; 30 gross (10 net) Cana-Woodford wells and seven gross (three net) Meramec wells. Mid-Continent production averaged 461.1 MMcfe per day for the fourth quarter of 2015 and 432.4 MMcfe per day for the full year.

Cimarex completed its second 10,000-foot lateral well in the Meramec formation in the fourth quarter. Initial gross 30-day peak production from the first two long lateral Meramec wells averaged 15.0 MMcfe per day (53 percent gas, 24 percent oil, 23 percent NGL). A third Meramec long lateral is flowing back. In addition, Cimarex now has 17 5,000-foot Meramec wells on production that have an average 30-day initial peak production rate of 8.4 MMcfe per day (33 percent oil, 44 percent gas, 23 percent NGL) with oil yields ranging from 11 bbl/MMcf to 486 bbl/MMcf.

Production by Region

Cimarex’s average daily production and commodity price by region is summarized below:

DAILY PRODUCTION BY REGION
                                 For the Three Months Ended  For the Twelve Months Ended
                                 December 31,                December 31,
                                 2015      2014              2015       2014
Permian Basin
       Gas (MMcf)                185.4     142.2             180.8      123.8
       Oil (Bbls)                38,423    38,246            43,067     34,390
       NGL (Bbls)                17,350    12,444            17,042     11,471
       Total Equivalent (MMcfe)  520.0     446.4             541.5      399.0
Mid-Continent
       Gas (MMcf)                286.8     314.5             276.2      292.4
       Oil (Bbls)                8,490     7,889             7,523      7,348
       NGL (Bbls)                20,561    21,044            18,513     19,122
       Total Equivalent (MMcfe)  461.1     488.0             432.4      451.2
Total Company
       Gas (MMcf)                475.2     464.6             463.0      425.0
       Oil (Bbls)                47,133    46,990            51,132     42,846
       NGL (Bbls)                37,964    33,830            35,789     31,078
       Total Equivalent (MMcfe)  985.7     949.5             984.5      868.6
AVERAGE REALIZED PRICE BY REGION
                                 For the Three Months Ended  For the Twelve Months Ended
                                 December 31,                December 31,
                                 2015      2014              2015       2014
Permian Basin
       Gas ($ per Mcf)           2.24      3.96              2.55       4.48
       Oil ($ per Bbl)           37.64     64.38             43.58      82.44
       NGL ($ per Bbl)           10.97     22.23             11.94      30.04
Mid-Continent
       Gas ($ per Mcf)           2.16      3.94              2.51       4.42
       Oil ($ per Bbl)           35.80     66.91             41.90      88.23
       NGL ($ per Bbl)           14.19     27.18             15.41      35.03
Total Company
       Gas ($ per Mcf)           2.20      3.95              2.53       4.43
       Oil ($ per Bbl)           37.32     64.94             43.38      83.70
       NGL ($ per Bbl)           12.72     25.32             13.75      33.14

Other

The following table summarizes the company’s current open hedge positions:

                               First        Second       Third        Fourth
                               Quarter      Quarter      Quarter      Quarter      Total
Gas:
2016
PEPL Collars (3)
Volume (MMBtu)                 910,000      2,730,000    2,760,000    2,760,000    9,160,000
Wtd Avg Floor                  $       2.70 $       2.32 $       2.32 $       2.32 $         2.35
Wtd Avg Ceiling                $       2.85 $       2.75 $       2.75 $       2.75 $         2.76
El Paso Perm Collars (3)
Volume (MMBtu)                 1,820,000    3,030,000    2,760,000    2,760,000    10,370,000
Wtd Avg Floor                  $       2.75 $       2.45 $       2.42 $       2.42 $         2.48
Wtd Avg Ceiling                $       3.12 $       2.90 $       2.87 $       2.87 $         2.92
2017
PEPL Collars (3)
Volume (MMBtu)                 1,800,000    1,820,000    -            -            3,620,000
Wtd Avg Floor                  $       2.13 $       2.13 $          - $          - $         2.13
Wtd Avg Ceiling                $       2.70 $       2.70 $          - $          - $         2.70
El Paso Perm Collars(3)
Volume (MMBtu)                 2,700,000    2,730,000    -            -            5,430,000
Wtd Avg Floor                  $       2.42 $       2.42 $          - $          - $         2.42
Wtd Avg Ceiling                $       2.97 $       2.97 $          - $          - $         2.97
                               First        Second       Third        Fourth
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 tomorrow, February 17, at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To participate in the live, interactive call, please dial 866-367-3053 five minutes before the scheduled start time (international callers dial 1-412-902-4216). The replay will be available on the Cimarex website or via the Cimarex App.

Investor Presentation

For more details on Cimarex’s 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. Please refer to the company’s Annual Report on Form 10-K for the year ended December 31, 2015, to be filed with the SEC, 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; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; 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 hydraulic fracturing, emissions and disposal of produced water; 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 one major geographic area; 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.

(1) Adjusted net income 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 $2.8 billion.
(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 Twelve Months Ended
                                                                                                    December 31,                    December 31,
                                                                                                    2015               2014         2015                 2014
                                                                                                    (in thousands, net of tax, except per share data)
Net income (loss)                                                                               $   (630,508)        $ 75,792  $    (2,408,948)        $ 507,204
                                        Impairment of oil and gas properties                        613,382            --           2,361,406            --
                                        Mark-to-market (gain) loss on open derivative positions     (5,910)            587          (7,164)              2,440
                                        Gain on sale of midstream assets                            --                 --           --                   (4,276)
Adjusted net income (loss)                                                                      $   (23,036)         $ 76,379  $    (54,706)           $ 505,368
Diluted earnings (loss) per share*,**                                                           $   (6.78)           $ 0.86    $    (25.92)            $ 5.78
Adjusted diluted earnings (loss) per share *,**                                                 $   (0.25)           $ 0.87    $    (0.60)             $ 5.76
Diluted shares attributable to common stockholders and participating securities                     92,992    **       87,695       92,992      **       87,732
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 Twelve Months Ended
                                                                  December 31,                 December 31,
                                                                  2015       2014              2015        2014
                                                                  (in thousands)
Net cash provided by operating activities                       $ 114,954  $ 347,395         $ 691,500   $ 1,619,365
                     Change in operating assets and liabilities   10,772     (4,935)           52,082      14,847
Adjusted cash flow from operations                              $ 125,726  $ 342,460         $ 743,582   $ 1,634,212
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.
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.
PROVED RESERVES
                                                       Gas        Oil       NGL       Total
                                                       (Bcf)      (MBbls)   (MBbls)   (Bcfe)
December 31, 2014                                      1,666.7    118,992   125,273   3,132.3
                      Revisions of previous estimates  (154.3)    (14,632)  (5,667)   (276.2)
                      Extensions and discoveries       183.1      22,859    18,079    428.7
                      Purchase of reserves             --         --        --        --
                      Production                       (169.0)    (18,663)  (13,063)  (359.3)
                      Sale of properties               (9.5)      (758)     (345)     (16.1)
December 31, 2015                                      1,517.0    107,798   124,277   2,909.4
Proved developed reserves
Year-end 2014                                          1,264.0    100,050   89,630    2,402.0
Year-end 2015                                          1,129.5    89,189    87,549    2,189.9
                                                       2015       2014      % Change
Pre-tax PV-10 ($ in millions) *                        $2,279.0   $6,389.5  -64%
Standardized Measure ($ in millions)                   $1,934.1   $4,352.8  -56%
Average prices used in Standardized Measure
Gas Price per Mcf                                      $2.59      $4.35     -40%
Oil price per barrel                                   $50.28     $94.99    -47%
NGL price per barrel                                   $14.41     $30.89    -53%
*Pre-tax PV-10 is a non-GAAP financial measure.  Pre-tax PV-10 is comparable to the standardized measure, which is the most directly comparable GAAP financial measure.  Pre-tax PV-10 is computed on the same basis as the standardized measure but without deducting future income taxes. As of December 31, 2015 and 2014, Cimarex’s discounted future income taxes were $344.9 million and $2,036.6 million, respectively.  Cimarex’s standardized measure of discounted future net cash flows was $1,934.1 million at year-end 2015 and $4,352.8 million at year-end 2014.  Cimarex believes pre-tax PV-10 is a useful measure for investors for evaluating the relative monetary significance of its oil and natural gas properties. Cimarex further believes investors may utilize its pre-tax PV-10 as a basis for comparison of the relative size and value of its reserves to other companies because many factors that are unique to each individual company impact the amount of future income taxes to be paid. However, pre-tax PV-10 is not a substitute for the standardized measure of discounted future net cash flows. Cimarex’s pre-tax PV-10 and the standardized measure of discounted future net cash flows do not purport to present the fair value of its oil and natural gas reserves.
PROVED RESERVES BY REGION
                  Gas       Oil      NGL      Total
                  (Bcf)     (MBbls)  (MBbls)  (Bcfe)
   Mid-Continent  1,134.4   29,048   87,639   1,834.6
   Permian Basin  378.5     78,482   36,598   1,069.0
   Other          4.1       268      40       5.8
                  1,517.0   107,798  124,277  2,909.4
OIL AND GAS CAPITALIZED EXPENDITURES
                                        For the Three Months Ended     For the Twelve Months Ended
                                        December 31,                   December 31,
                                        2015       2014                2015        2014
                                        (in thousands)
    Acquisitions:
    Proved                          $   30       $ 125             $   30        $ 138,508
    Unproved                            2,400      314                 6,666       111,225
    Net purchase price adjustments*     350        --                  (11,653)    -
                                        2,780      439                 (4,957)     249,733
    Exploration and development:
    Land and Seismic                    14,084     28,349              52,049      176,061
    Exploration and development         180,107    421,241             824,903     1,704,961
                                        194,191    449,590             876,952     1,881,022
    Sale proceeds:
    Proved                              --         (1,038)             (26,045)    (270,766)
    Unproved                            (2,528)    (38)                (15,231)    (175,341)
                                        (2,528)    (1,076)             (41,276)    (446,107)
                                    $   194,443  $ 448,953         $   830,719   $ 1,684,648
* The net purchase price adjustment 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 Twelve Months Ended
                                                                               December 31,                  December 31,
                                                                               2015           2014           2015           2014
                                                                         (in thousands, except per share data)
Revenues:
           Oil sales                                                     $     161,814      $ 280,729      $ 809,664      $ 1,308,958
           Gas sales                                                           96,242         168,791        428,227        687,930
           NGL sales                                                           44,411         78,813         179,647        375,941
           Gas gathering and other, net                                        8,812          10,218         35,081         51,347
                                                                               311,279        538,551        1,452,619      2,424,176
Costs and expenses:
           Impairment of oil and gas properties                                965,348        --             3,716,883      --
           Depreciation, depletion, amortization and accretion                 161,768        219,536        788,044        816,103
           Production                                                          77,229         91,994         299,374        342,304
           Transportation, processing, and other operating                     52,717         50,115         182,362        195,414
           Gas gathering and other                                             9,539          7,700          38,138         35,113
           Taxes other than income                                             17,086         29,339         84,764         128,793
           General and administrative                                          24,283         23,637         74,688         81,160
           Stock compensation                                                  4,679          4,126          19,559         15,001
           (Gain) loss on derivative instruments, net                          (9,278)        (12,722)       (11,246)       (3,762)
           Other operating, net                                                12             82             856            116
                                                                               1,303,383      413,807        5,193,422      1,610,242
Operating income (loss)                                                        (992,104)      124,744        (3,740,803)    813,934
Other (income) and expense:
           Interest expense                                                    19,811         20,093         80,447         68,617
           Amortization of deferred financing costs                            1,966          1,127          5,299          4,248
           Capitalized interest                                                (5,502)        (10,055)       (30,589)       (35,925)
           Other, net                                                          (3,762)        (6,700)        (13,576)       (28,907)
Income (loss) before income tax                                                (1,004,617)    120,279        (3,782,384)    805,901
Income tax expense (benefit)                                                   (374,109)      44,487         (1,373,436)    298,697
Net income (loss)                                                        $     (630,508)    $ 75,792       $ (2,408,948)  $ 507,204
Earnings (loss) per share to common stockholders:
           Basic                                                         $     (6.78)       $ 0.87         $ (25.92)      $ 5.79
           Diluted                                                       $     (6.78)*      $ 0.86         $ (25.92)*     $ 5.78
Dividends per share                                                      $     0.16         $ 0.16         $ 0.64         $ 0.64
Shares attributable to common stockholders:
           Unrestricted common shares outstanding                              92,992         85,679         92,992         85,679
           Diluted common shares                                               92,992         85,773         92,992         85,810
Shares attributable to common stockholders and participating securities:
           Basic shares outstanding                                            N/A*           87,601         N/A*           87,601
           Fully diluted shares                                                N/A*           87,695         N/A*           87,732
Comprehensive income (loss):
           Net income (loss)                                             $     (630,508)    $ 75,792       $ (2,408,948)  $ 507,204
           Other comprehensive income (loss):
                      Change in fair value of investments, net of tax          138            52             (661)          (87)
           Total comprehensive income (loss)                             $     (630,370)    $ 75,844       $ (2,409,609)  $ 507,117
* Due to the net loss, shares of 94,829, 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 Twelve Months Ended
                                                                                               December 31,                     December 31,
                                                                                                     2015         2014          2015           2014
                                                                                               (in thousands)
Cash flows from operating activities:
       Net income (loss)                                                                       $     (630,508)  $ 75,792     $  (2,408,948)  $ 507,204
       Adjustment to reconcile net income (loss) to net cash provided by operating activities:
                    Impairment of oil and gas properties                                             965,348      --            3,716,883      --
                    Depreciation, depletion, amortization and accretion                              161,768      219,536       788,044        816,103
                    Deferred income taxes                                                            (373,882)    44,083        (1,388,146)    298,293
                    Stock compensation                                                               4,679        4,126         19,559         15,001
                    (Gain) loss on derivative instruments                                            (9,278)      (12,722)      (11,246)       (3,762)
                    Settlements on derivative instruments                                            --           13,656        --             7,641
                    Changes in non-current assets and liabilities                                    6,887        (567)         23,230         (2,440)
                    Amortization of deferred financing costs and other, net                          712          (1,444)       4,206          (3,828)
       Changes in operating assets and liabilities:
                    Receivables, net                                                                 34,916       27,958        186,699        (35,133)
                    Other current assets                                                             8,320        682           37,954         (25,428)
                    Accounts payable and other current liabilities                                   (54,008)     (23,705)      (276,735)      45,714
                                 Net cash provided by operating activities                           114,954      347,395       691,500        1,619,365
Cash flows from investing activities:
       Oil and gas expenditures                                                                      (208,015)    (477,321)     (979,044)      (2,108,250)
       Sales of oil and gas assets                                                                   1,510        (1,729)       39,853         449,981
       Sales of other assets                                                                         121          235           1,178          8,413
       Other capital expenditures                                                                    (12,507)     (13,827)      (70,592)       (90,611)
                                 Net cash used by investing activities                               (218,891)    (492,642)     (1,008,605)    (1,740,467)
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                                                               (1,970)      --            (24,633)       (11,616)
       Dividends paid                                                                                (15,070)     (13,917)      (58,281)       (53,849)
       Proceeds from exercise of stock options and other                                             1,047        1,369         21,439         11,898
                                 Net cash provided by (used in) financing activities                 (15,993)     (12,548)      690,625        522,433
Net change in cash and cash equivalents                                                              (119,930)    (157,795)     373,520        401,331
Cash and cash equivalents at beginning of period                                                     899,312      563,657       405,862        4,531
Cash and cash equivalents at end of period                                                     $     779,382    $ 405,862    $  779,382      $ 405,862
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
                                                                                                                               December 31,         December 31,
                                                                                                                               2015                 2014
Assets                                                                                                                                (in thousands, except share data)
Current assets:
           Cash and cash equivalents                                                                                           $      779,382       $        405,862
           Receivables, net                                                                                                           225,398                412,108
           Oil and gas well equipment and supplies                                                                                    54,579                 89,780
           Deferred income taxes                                                                                                      --                     13,475
           Derivative instruments                                                                                                     10,745                 --
           Other current assets                                                                                                       7,826                  10,579
                               Total current assets                                                                                   1,077,930              931,804
Oil and gas properties at cost, using the full cost method of accounting:
           Proved properties                                                                                                          15,546,948             14,402,064
           Unproved properties and properties under development, not being amortized                                                  440,166                759,149
                                                                                                                                      15,987,114             15,161,213
           Less - accumulated depreciation, depletion, amortization and impairment                                                    (12,710,968)           (8,257,502)
                               Net oil and gas properties                                                                             3,276,146              6,903,711
Fixed assets, net                                                                                                                     230,009                211,031
Goodwill                                                                                                                              620,232                620,232
Derivative instruments                                                                                                                501                    --
Other assets, net *                                                                                                                   38,468                 41,691
                                                                                                                               $      5,243,286     $        8,708,469
Liabilities and Stockholders’ Equity
Current liabilities:
           Accounts payable                                                                                                    $      66,815        $        138,051
           Accrued liabilities                                                                                                        247,508                447,384
           Revenue payable                                                                                                            95,744                 190,892
                               Total current liabilities                                                                              410,067                776,327
Long-term debt *:
           Principal                                                                                                                  1,500,000              1,500,000
           Less - unamortized debt issuance costs                                                                                     (14,380)               (16,824)
                               Long-term debt, net                                                                                    1,485,620              1,483,176
Deferred income taxes                                                                                                                 352,705                1,754,706
Other liabilities                                                                                                                     197,216                193,628
                               Total liabilities                                                                                      2,445,608              4,207,837
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, 94,820,570 and 87,592,535 shares issued, respectively        948                    876
           Paid-in capital                                                                                                            2,762,976              1,997,080
           Retained earnings                                                                                                          33,313                 2,501,574
           Accumulated other comprehensive income                                                                                     441                    1,102
                                                                                                                                      2,797,678              4,500,632
                                                                                                                               $      5,243,286     $        8,708,469
* At December 31, 2015, we adopted the Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) No. 2015-03, Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. The requirements are to be applied retrospectively to prior periods presented. These changes resulted in classifying debt issuance costs as a direct deduction from the carrying amount of the related debt liability (except for those related to revolving credit facilities), rather than as an asset. As of December 31, 2015 and 2014, other assets, net and long-term debt are reduced by $14,380 and $16,824, respectively.  The adoption of this ASU did not impact the Statement of Operations and Comprehensive Income (Loss) or the Cash Flow Statements.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cimarex-reports-fourth-quarter-and-full-year-2015-results-300220991.html

SOURCE Cimarex Energy Co.

http://rt.prnewswire.com/rt.gif?NewsItemId=LA24074&Transmission_Id=201602161700PR_NEWS_USPR_____LA24074&DateId=20160216



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