Cimarex Reports Fourth-Quarter and Full-Year 2017 Results
DENVER, Feb. 14, 2018 /PRNewswire/ --
-- 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
Cimarex Energy Co. (NYSE: 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 share(1). 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 levels(1).
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 share(1). 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 levels(1). 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 capitalization(2).
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(3)
------
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(3)
--------------
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?
------------
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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SOURCE Cimarex Energy Co.
