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Cimarex Energy Co.$96.41$.89.93%

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 Cimarex Reports Fourth-Quarter and Full-Year 2017 Results
   Wednesday, February 14, 2018 4:15:00 PM ET

-- Total company production averaged 1,204 MMcfe (201 MBOE) per day in the fourth quarter

-- Oil production up 36 percent year-over-year

-- Proved Reserves increased 16% to 3.4 Tcfe (559 MMBOE); Cimarex replaced 211% of 2017 production

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Cimarex Energy Co. (XEC ) today reported fourth quarter 2017 net income of $174.7 million, or $1.83 per share, compared to fourth quarter 2016 net income of $47.8 million, or $0.50 per share. Adjusted fourth quarter net income (non-GAAP) was $140.0 million, or $1.47 per share, compared to fourth quarter 2016 adjusted net income (non-GAAP) of $66.4 million, or $0.70 per share1. Cash flow from operations was $340.8 million in the fourth quarter compared to $185.1 million in the fourth quarter of 2016. Adjusted cash flow from operations (non-GAAP) totaled $357.1 million in the fourth quarter, a 63 percent increase from 2016 levels1.

For the year, net income totaled $494.3 million, or $5.19 per share. The adjusted net income (non-GAAP) for the full year was $443.2 million, or $4.65 per share1. Cash flow from operations totaled $1,096.6 million in 2017 compared to $625.8 million in 2016. Adjusted cash flow from operations (non-GAAP) totaled $1,185.6 million in 2017, an 88 percent increase from 2016 levels1. Revenues in 2017 totaled $1.9 billion, a 53 percent increase from 2016. The increase in revenues and cash flow was the result of higher production and higher realized product prices.

In the fourth quarter, total company production volumes averaged 1,204 million cubic feet equivalent (MMcfe) per day (201 thousand barrels of oil equivalent (MBOE) per day), up 25 percent from a year ago. Fourth quarter oil production averaged 61,771 barrels per day, an increase of 36 percent from 2016 levels. For the full year, Cimarex reported daily production volumes of 1,142 MMcfe per day (190 MBOE per day), up 19 percent from our 2016 average daily output of 963 MMcfe per day.

Cimarex invested $1.28 billion in exploration and development (E&D) in 2017, including $344 million in the fourth quarter. Investments made in 2017 were funded with cash flow and cash on hand. E&D capital exceeded the company’s estimate for 2017 of $1.2 billion due to higher infrastructure spending, higher working interest and costs in outside operated wells, land acquisition and acceleration of activity.

Proved reserves at December 31, 2017 were 3.4 trillion cubic feet equivalent (Tcfe) or 559 million barrels of oil equivalent (MMBOE), up 16 percent year over year. Proved developed reserves increased 21 percent to 2.8 Tcfe. Cimarex added 941 Bcfe through extensions and discoveries and deducted 60 Bcfe through net revisions resulting in reserve replacement of 211 percent of 2017 production. Proved reserves are 83 percent proved developed.

Realized oil prices averaged $51.68 per barrel in the fourth quarter, 16 percent higher than the same period a year ago. Realized natural gas prices were lower in the fourth quarter and averaged $2.58 per Mcf versus $2.86 a year ago. Realized NGL prices averaged $25.88 per barrel up 43 percent compared to fourth quarter 2016. For the full year, realized oil prices averaged $47.06, up 23 percent from 2016. Realized natural gas prices averaged $2.76 per Mcf, a 19 percent increase from 2016. Realized NGL prices averaged $21.61 per barrel, up 54 percent from 2016 levels.

Total debt at December 31, 2017 consisted of $1.5 billion of long-term notes, with $750 million maturing in 2024 and $750 million maturing in 2027. Cimarex had no borrowings under its revolving credit facility and had a cash balance of $401 million. Debt was 37 percent of total capitalization2.

Operations Update Cimarex invested $1.28 billion in exploration and development in 2017, 59 percent in the Permian region and 39 percent in the Mid-Continent. An additional $45 million was invested in midstream operations in 2017. During 2017, Cimarex participated in the drilling and completion of 319 gross (98 net) wells.

At year-end, 91 gross (34 net) wells were waiting on completion, of which 60 gross (16 net) are in the Mid-Continent and 31 gross (18 net) in the Permian. Cimarex currently is operating 14 drilling rigs.

              WELLS COMPLETED BY REGION
              For the Three Months Ended  For the Twelve Months Ended
              December 31,                December 31,
              2017      2016              2017       2016
Gross wells
Permian Basin 32        11                97         48
Mid-Continent 85        44                222        105
              117       55                319        153
Net wells
Permian Basin 14        8                 55         30
Mid-Continent 10        17                43         31
              24        25                98         61

Permian Basin Production from the Permian Basin averaged 673 MMcfe per day in the fourth quarter, a 32 percent increase over fourth quarter 2016, and a seven percent increase sequentially. Oil volumes averaged 47,642 barrels per day and represented 42 percent of the region’s total equivalent production. For the full year, production averaged 631 MMcfe per day, up 25 percent year over year.

Cimarex brought 32 gross (14 net) wells on production in the Permian region during the fourth quarter, bringing the total for the year to 97 gross (55 net) wells. Cimarex currently operates ten rigs in the Permian region.

Activity in the Permian region in the fourth quarter included the completion of 14 wells in the Wolfcamp, Avalon and Bone Spring formations. Cimarex also began drilling operations on two multi-well Wolfcamp developments. The Animal Kingdom project, located in Culberson County, Texas, consists of eight wells targeting multiple landings in the Lower Wolfcamp and the Snowshoe project, located in Reeves County, Texas, is an eight-well project targeting multiple landings in the Upper Wolfcamp. Both are long lateral developments with first production expected during the third quarter of 2018.

As of year-end, Cimarex has completed 70 10,000-foot lateral Wolfcamp wells including 23 in the Lower Wolfcamp and 47 in the Upper Wolfcamp. In addition to the multiple spacing pilots drilled in the Wolfcamp in 2017, another highlight of the year’s program was the completion of four 10,000-foot lateral Upper Wolfcamp wells on the western half of our Culberson County acreage, an area that was previously untested. These wells had an average 30-day peak initial production of 2,587 BOE per day (56 percent oil, 26 percent gas, 18 percent NGL). A fifth well is currently flowing back. Cimarex has additional activity planned in this area in 2018 including a development project with drilling scheduled to begin in the third quarter.

Mid-Continent Production from the Mid-Continent region averaged 529 MMcfe per day in the fourth quarter, a 19 percent increase over fourth-quarter 2016, and a three percent increase sequentially. Oil volumes averaged 13,999 barrels per day and represented 16 percent of the region’s total equivalent production. For the full year, production averaged 509 MMcfe per day, up 11 percent year over year.

Wells brought on production during the fourth quarter totaled 85 gross (10 net) in the Mid-Continent region, bringing the total wells in 2017 to 222 gross (43 net). As planned, drilling to hold company’s Meramec acreage was completed in 2017.

Activity in the region continues to focus on the Woodford and Meramec shale plays in western Oklahoma. Recent highlights include the completion of a three-well, stacked Woodford/Meramec test in the 14N-10W township in Canadian County, Oklahoma. This test confirms results of our previous wells in the area. Cimarex operates nearly all of the 24,000 gross acres leased in the 14N-10W area with an average 62 percent working interest. Drilling activity continues in the high return Lone Rock area where Cimarex has six long lateral Woodford wells on production with average 30-day peak initial production of 1,806 BOE per day (35 percent oil, 36 percent gas, 29 percent NGL). The company is currently drilling the Shelly spacing pilot in Lone Rock with first production expected mid-summer.

Cimarex currently operates four rigs in the Mid-Continent.

Please see the latest Corporate Presentation on our website www.cimarex.com for further details.

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,
                                2017      2016              2017       2016
Permian Basin
       Gas (MMcf)               232.6     179.3             217.9      178.1
       Oil (Bbls)               47,642    36,253            44,577     36,018
       NGL (Bbls)               25,747    19,114            24,269     18,244
       Total Equivalent (MMcfe) 672.9     511.5             630.9      503.7
       Total Equivalent (BOE)   112,157   85,250            105,157    83,945
Mid-Continent
       Gas (MMcf)               300.3     276.3             294.4      280.1
       Oil (Bbls)               13,999    9,205             12,457     8,969
       NGL (Bbls)               24,176    19,036            23,296     20,513
       Total Equivalent (MMcfe) 529.3     445.8             508.9      456.9
       Total Equivalent (BOE)   88,225    74,291            84,822     76,165
Total Company
       Gas (MMcf)               534.0     457.2             513.6      459.6
       Oil (Bbls)               61,771    45,567            57,153     45,158
       NGL (Bbls)               49,954    38,184            47,600     38,797
       Total Equivalent (MMcfe) 1,204.4   959.7             1,142.1    963.4
       Total Equivalent (BOE)   200,729   159,951           190,354    160,555
AVERAGE REALIZED PRICE BY REGION
                                For the Three Months Ended  For the Twelve Months Ended
                                December 31,                December 31,
                                2017      2016              2017       2016
Permian Basin
       Gas ($ per Mcf)          2.56      2.85              2.72       2.35
       Oil ($ per Bbl)          51.38     44.75             46.96      38.45
       NGL ($ per Bbl)          25.07     15.71             20.25      12.32
Mid-Continent
       Gas ($ per Mcf)          2.60      2.86              2.78       2.29
       Oil ($ per Bbl)          52.72     44.36             47.42      37.65
       NGL ($ per Bbl)          26.73     20.58             23.02      15.59
Total Company
       Gas ($ per Mcf)          2.58      2.86              2.76       2.31
       Oil ($ per Bbl)          51.68     44.67             47.06      38.30
       NGL ($ per Bbl)          25.88     18.15             21.61      14.05

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

                                            1Q18    2Q18    3Q18   4Q18   1Q19   2Q19   3Q19
Gas Collars:     PEPL?
                 Volume (MMBtu/d)           130,000 120,000 90,000 60,000 50,000 50,000 20,000
                 Wtd Avg Floor              2.57    2.39    2.33   2.28   2.23   2.23   1.98
                 Wtd Avg Ceiling            2.93    2.70    2.56   2.49   2.46   2.46   2.16
                 El Paso Perm?
                 Volume (MMBtu/d)           90,000  90,000  70,000 50,000 40,000 40,000 20,000
                 Wtd Avg Floor              2.52    2.22    2.14   2.06   1.98   1.98   1.65
                 Wtd Avg Ceiling            2.84    2.48    2.32   2.23   2.14   2.14   1.80
Oil Collars:     WTI?’
                 Volume (Bbl/d)             29,000  29,000  25,000 19,000 13,000 13,000 6,000
                 Wtd Avg Floor              47.28   47.83   47.48  48.63  48.92  48.92  50.00
                 Wtd Avg Ceiling            56.33   57.93   57.76  58.80  61.04  61.04  66.82
Oil Basis Swaps: WTI Midland?u
                 Volume (Bbl/d)             13,000  14,000  14,000 9,000  6,000  6,000  1,000
                 Weighted Avg Differential? (0.72)  (0.72)  (0.72) (0.59) (0.51) (0.51) (0.70)

Conference call and webcast Cimarex will host a conference call tomorrow, February 15, at 11:00 a.m. EST (9:00 a.m. MST). 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 ten minutes before the scheduled start (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216). A replay will be available on the company’s website.

Investor Presentation For more details on Cimarex’s 2017 results, please refer to the company’s investor presentation available at www.cimarex.com.

This press release contains forward-looking statements, including statements regarding projected results and future events. 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, 2016, filed with the SEC, in the 2017 Annual Report and Form 10-K to be 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 levels and volatility; higher than expected costs and expenses, including the availability and cost of services and materials; compliance with environmental and other regulations; risks associated with operating in one major geographic area; environmental liabilities; 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; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; 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; derivative and hedging activities; the success of the company’s risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; 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 reconciliations of the related GAAP amounts.
2             Debt to total capitalization is calculated by dividing long-term debt by long-term debt plus stockholders’ equity.
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.
5             Index price on basis swaps is WTI Midland as quoted by Argus Americas Crude.
6             Index price on basis swaps is WTI NYMEX less the weighted average differential shown in table.
RECONCILIATION OF ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net income (loss) and earnings (loss) per share to adjusted net income and adjusted earnings per share (non-GAAP) for the periods indicated.
                                                                                                  For the Three Months Ended                        For the Twelve Months Ended
                                                                                                  December 31,                                      December 31,
                                                                                                  2017                     2016                     2017                     2016
                                                                                                  (in thousands, except per share data)
Net income (loss)                                                                               $ 174,696                $ 47,783                 $ 494,329                $ (408,803)
                                        Impairment of oil and gas properties                      --                       --                       --                       757,670
                                        Mark-to-market (gain) loss on open derivative positions   30,160                   30,417                   (22,843)                 63,186
                                        Loss on early extinguishment of debt                      18                       --                       28,187                   --
                                        Asset Retirement Obligation                               10,460                   --                       10,460                   --
                                        Impact of reduction in Federal statutory tax rate         (61,146)                 --                       (61,146)                 --
                                        Tax impact*                                               (14,142)                 (11,832)                 (5,768)                  (298,867)
Adjusted net income                                                                             $ 140,046                $ 66,368                 $ 443,219                $ 113,186
Diluted earnings (loss) per share**                                                             $ 1.83                   $ 0.50                   $ 5.19                   $ (4.38)
Adjusted diluted earnings per share**                                                           $ 1.47                   $ 0.70                   $ 4.65                   $ 1.19
Diluted shares attributable to common stockholders and participating securities
                                                                                                  95,363                   95,175                   95,265                   95,176
Adjusted net income and adjusted diluted earnings per share excludes the noted items because management believes these items affect 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 to evaluate the company’s operating performance between periods and to compare the company’s performance to other oil and gas exploration and production companies.
                                        b) Adjusted net income is more comparable to earnings estimates provided by research analysts.
*                                       The tax impact of the 2016 periods is calculated using a tax rate that excludes the effects of tax adjustments recorded in the fourth quarter primarily related to the revision of previous tax balances.
**                                      Earnings (loss) per share are based on actual figures rather than the rounded figures presented.
RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS
The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) for the periods indicated.
                                                                                                  For the Three Months Ended                                    For the Twelve Months Ended
                                                                                                  December 31,                                                  December 31,
                                                                                                  2017                                               2016       2017                                               2016
                                                                                                  (in thousands)
Net cash provided by operating activities                                                       $ 340,759                                          $ 185,061  $ 1,096,564                                        $ 625,849
                                                Change in operating assets and liabilities        16,339                                             33,679     89,067                                             3,289
Adjusted cash flow from operations                                                              $ 357,098                                          $ 218,740  $ 1,185,631                                        $ 629,138
Management uses the non-GAAP financial measure of adjusted cash flow from operations as a means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities.  Management believes this non-GAAP financial measure provides useful information to investors for the same reason, and that 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    Total
                                                                                                                                                                                                                                                                                    (Bcf)  (MBbls)   (MBbls)   (Bcfe)   (MBOE)
December 31, 2016                                                                                                                                                                                                                                                                   1,471  105,878   130,633   2,890.5  481,748
                                                                                                                                          Revisions of previous estimates                                                                                                           (40)   (1,225)   (2,099)   (59.7)   (9,951)
                                                                                                                                          Extensions and discoveries                                                                                                                364    53,464    42,692    940.7    156,786
                                                                                                                                          Purchase of reserves                                                                                                                      1      42        78        1.4      227
                                                                                                                                          Production                                                                                                                                (187)  (20,861)  (17,374)  (416.9)  (69,479)
                                                                                                                                          Sale of properties                                                                                                                        (1)    (60)      (70)      (1.8)    (294)
December 31, 2017                                                                                                                                                                                                                                                                   1,608  137,238   153,860   3,354.2  559,037
Proved developed reserves
Year-end 2016                                                                                                                                                                                                                                                                       1,145  92,032    99,176    2,292.0  381,995
Year-end 2017                                                                                                                                                                                                                                                                       1,335  114,116   126,227   2,776.6  462,761
                                                                                                                                                                                                                                                                                    2017   2016      % Change
Pre-tax PV-10 ($ in millions) *                                                                                                                                                                                                                                                     3,725  2,122     76 %
Standardized Measure ($ in millions)                                                                                                                                                                                                                                                3,285  1,893     74 %
Average prices used in Standardized Measure                                                                                                                                                                                                                                         2017   2016      % Change
Gas ($ per Mcf)                                                                                                                                                                                                                                                                     2.98   2.48      20 %
Oil ($ per Bbl)                                                                                                                                                                                                                                                                     51.34  42.75     20 %
NGL ($ per Bbl)                                                                                                                                                                                                                                                                     19.09  14.37     33 %
* 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, 2017 and 2016, Cimarex’s discounted future income taxes were $439.8 million and $229.3 million, respectively. Cimarex’s standardized measure of discounted future net cash flows was $3,285.0 million at year-end 2017 and $1,892.6 million at year-end 2016. Management uses pre-tax PV-10 as one measure of the value of the company’s proved reserves and to compare relative values of proved reserves to other exploration and production companies without regard to income taxes. Management believes pre-tax PV-10 is a useful measure for comparison of proved reserve values among companies because, unlike standardized measure, it excludes future income taxes that often depend on the unique income tax characteristics of the owner of the reserves rather than on the nature, location and quality of the reserves themselves. Management further believes that professional research analysts and rating agencies use pre-tax PV-10 in similar ways. 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    Total
                                                                                                                                                                                                                                                                                    (Bcf)  (MBbls)   (MBbls)   (Bcfe)   (MBOE)
                                                                                                                                          Mid-Continent                                                                                                                             1,033  31,853    85,292    1,735.6  289,261
                                                                                                                                          Permian Basin                                                                                                                             574    105,198   68,530    1,616.1  269,354
                                                                                                                                          Other                                                                                                                                     1      187       38        2.5      422
                                                                                                                                                                                                                                                                                    1,608  137,238   153,860   3,354.2  559,037
OIL AND GAS CAPITALIZED EXPENDITURES
                                 For the Three Months Ended      For the Twelve Months Ended
                                 December 31,                    December 31,
                                 2017       2016                 2017         2016
                                 (in thousands)
Acquisitions:
Proved                       $   678      $ 60               $   938        $ 2,678
Unproved                         2,590      319                  6,853        11,865
                                 3,268      379                  7,791        14,543
Exploration and development:
Land and seismic                 17,157     16,260               140,516      61,870
Exploration and development      326,855    229,603              1,140,548    672,882
                                 344,012    245,863              1,281,064    734,752
Sale proceeds:
Proved                           (1,947)    (2,473)              (2,032)      (15,078)
Unproved                         (1,597)    (1)                  (9,648)      (9,609)
                                 (3,544)    (2,474)              (11,680)     (24,687)
                             $   343,736  $ 243,768          $   1,277,175  $ 724,608
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited)
                                                                                                   For the Three Months Ended    For the Twelve Months Ended
                                                                                                   December 31,                  December 31,
                                                                                                   2017       2016               2017         2016
                                                                                            (in thousands, except per share data)
Revenues:
                 Oil sales                                                                  $      293,686  $ 187,277          $ 981,646    $ 632,934
                 Gas sales                                                                         126,810    120,285            516,936      388,786
                 NGL sales                                                                         118,918    63,743             375,421      199,498
                 Gas gathering and other, net                                                      11,526     10,850             44,246       36,127
                                                                                                   550,940    382,155            1,918,249    1,257,345
Costs and expenses:
                 Impairment of oil and gas properties                                              --         --                 --           757,670
                 Depreciation, depletion, amortization, and accretion                              142,482    91,096             461,655      400,176
                 Production                                                                        71,771     51,111             262,180      232,002
                 Transportation, processing, and other operating                                   59,606     51,140             231,640      190,725
                 Gas gathering and other                                                           9,910      8,308              35,840       31,785
                 Taxes other than income                                                           26,760     18,067             89,864       61,946
                 General and administrative                                                        21,161     18,462             79,996       73,901
                 Stock compensation                                                                6,637      5,741              26,256       24,523
                 (Gain) loss on derivative instruments, net                                        29,051     32,699             (21,210)     55,749
                 Other operating expense, net                                                      337        462                1,314        755
                                                                                                   367,715    277,086            1,167,535    1,829,232
Operating income (loss)                                                                            183,225    105,069            750,714      (571,887)
Other (income) and expense:
                 Interest expense                                                                  16,836     20,712             74,821       83,272
                 Capitalized interest                                                              (5,492)    (5,290)            (22,948)     (21,248)
                 Loss on early extinguishment of debt                                              18         --                 28,187       --
                 Other, net                                                                        (2,338)    (3,218)            (11,342)     (10,707)
Income (loss) before income tax                                                                    174,201    92,865             681,996      (623,204)
Income tax expense (benefit)                                                                       (495)      45,082             187,667      (214,401)
Net income (loss)                                                                           $      174,696  $ 47,783           $ 494,329    $ (408,803)
Earnings (loss) per share to common stockholders:
                 Basic                                                                      $      1.83     $ 0.50             $ 5.19       $ (4.38)
                 Diluted                                                                    $      1.83     $ 0.50             $ 5.19       $ (4.38)
Dividends declared per share                                                                $      0.08     $ 0.08             $ 0.32       $ 0.32
Shares attributable to common stockholders:
                 Unrestricted common shares outstanding                                            93,569     93,379             93,466       93,379
                 Diluted common shares                                                             93,612     93,422             93,509       93,379
Comprehensive income (loss):
                 Net income (loss)                                                          $      174,696  $ 47,783           $ 494,329    $ (408,803)
                 Other comprehensive income:
                                            Change in fair value of investments, net of tax        394        (64)               1,254        504
                 Total comprehensive income (loss)                                          $      175,090  $ 47,719           $ 495,583    $ (408,299)
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited)
                                                                                                                   For the Three Months Ended        For the Twelve Months Ended
                                                                                                                   December 31,                      December 31,
                                                                                                                         2017         2016           2017           2016
                                                                                                                   (in thousands)
Cash flows from operating activities:
             Net income (loss)                                                                                     $     174,696    $ 47,783     $   494,329      $ (408,803)
             Adjustments to reconcile net income (loss) to net cash provided by operating activities:
                                           Impairment of oil and gas properties                                          --           --             --             757,670
                                           Depreciation, depletion, amortization, and accretion                          142,482      91,096         461,655        400,176
                                           Deferred income taxes                                                         2,311        45,082         190,479        (213,286)
                                           Stock compensation                                                            6,637        5,741          26,256         24,523
                                           (Gain) loss on derivative instruments, net                                    29,051       32,699         (21,210)       55,749
                                           Settlements on derivative instruments                                         1,109        (2,281)        (1,633)        7,437
                                           Loss on early extinguishment of debt                                          18           --             28,187         --
                                           Changes in non-current assets and liabilities                                 (253)        (254)          1,891          3,867
                                           Other, net                                                                    1,047        (1,126)        5,677          1,805
             Changes in operating assets and liabilities:
                                           Receivables                                                                   (57,236)     (47,617)       (186,157)      (49,340)
                                           Other current assets                                                          1,441        (2,154)        (17,931)       20,880
                                           Accounts payable and other current liabilities                                39,456       16,092         115,021        25,171
                                                                         Net cash provided by operating activities       340,759      185,061        1,096,564      625,849
Cash flows from investing activities:
             Oil and gas capital expenditures                                                                            (331,177)    (214,444)      (1,233,126)    (699,558)
             Sales of oil and gas assets                                                                                 3,544        2,474          11,680         21,487
             Sales of other assets                                                                                       391          2,171          901            7,889
             Other capital expenditures                                                                                  (14,020)     1,785          (45,352)       (22,228)
                                                                         Net cash used by investing activities           (341,262)    (208,014)      (1,265,897)    (692,410)
Cash flows from financing activities:
             Borrowings of long-term debt                                                                                --           --             748,110        --
             Repayments of long-term debt                                                                                --           --             (750,000)      --
             Call premium, financing, and underwriting fees                                                              (118)        (100)          (29,312)       (101)
             Dividends paid                                                                                              (7,789)      (7,781)        (30,532)       (38,024)
             Employee withholding taxes paid upon the net settlement of equity-classified stock awards                   (14,032)     (15,167)       (21,669)       (26,624)
             Proceeds from exercise of stock options                                                                     168          181            394            4,804
                                                                         Net cash used by financing activities           (21,771)     (22,867)       (83,009)       (59,945)
Net change in cash and cash equivalents                                                                                  (22,274)     (45,820)       (252,342)      (126,506)
Cash and cash equivalents at beginning of period                                                                         422,808      698,696        652,876        779,382
Cash and cash equivalents at end of period                                                                         $     400,534    $ 652,876    $   400,534      $ 652,876
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
                                                                                                                                                 December 31,         December 31,
                                                                                                                                                 2017                 2016
Assets                                                                                                                                                  (in thousands, except share and per
                                                                                                                                                        share information)
Current assets:
                             Cash and cash equivalents                                                                                           $      400,534       $        652,876
                             Receivables, net of allowance                                                                                              460,174                274,570
                             Oil and gas well equipment and supplies                                                                                    49,722                 33,342
                             Derivative instruments                                                                                                     15,151                 --
                             Other current assets                                                                                                       10,054                 8,516
                                                                                       Total current assets                                             935,635                969,304
Oil and gas properties at cost, using the full cost method of accounting:
                             Proved properties                                                                                                          17,513,460             16,225,495
                             Unproved properties and properties under development, not being amortized                                                  476,903                478,277
                                                                                                                                                        17,990,363             16,703,772
                             Less - accumulated depreciation, depletion, amortization, and impairment                                                   (14,748,833)           (14,349,505)
                                                                                       Net oil and gas properties                                       3,241,530              2,354,267
Fixed assets, net of accumulated depreciation of $290,114 and $246,901, respectively                                                                    210,922                205,465
Goodwill                                                                                                                                                620,232                620,232
Derivative instruments                                                                                                                                  2,086                  --
Deferred income taxes                                                                                                                                   --                     55,835
Other assets                                                                                                                                            32,234                 32,621
                                                                                                                                                 $      5,042,639     $        4,237,724
Liabilities and Stockholders’ Equity
Current liabilities:
                             Accounts payable                                                                                                    $      98,386        $        74,486
                             Accrued liabilities                                                                                                        351,849                278,781
                             Derivative instruments                                                                                                     42,066                 49,370
                             Revenue payable                                                                                                            187,273                119,715
                                                                                       Total current liabilities                                        679,574                522,352
Long-term debt:
                             Principal                                                                                                                  1,500,000              1,500,000
                             Less - unamortized debt issuance costs and discount                                                                        (13,080)               (12,061)
                                                                                       Long-term debt, net                                              1,486,920              1,487,939
Deferred income taxes                                                                                                                                   101,618                --
Derivative Instruments                                                                                                                                  4,268                  2,570
Other liabilities                                                                                                                                       201,981                181,874
                                                                                       Total liabilities                                                2,474,361              2,194,735
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, 95,437,434 and 95,123,525 shares issued, respectively        954                    951
                             Additional paid-in capital                                                                                                 2,764,384              2,763,452
                             Retained earnings (accumulated deficit)                                                                                    (199,259)              (722,359)
                             Accumulated other comprehensive income                                                                                     2,199                  945
                                                                                       Total stockholders’ equity                                       2,568,278              2,042,989
                                                                                                                                                 $      5,042,639     $        4,237,724

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