Cimarex Reports Second Quarter 2018 Results
DENVER, Aug. 7, 2018 /PRNewswire/ --
-- Daily production averaged 211.4 MBOE; oil production up seven percent
year-over-year
-- 2018 capital guidance unchanged
-- Oil production expected to grow 20-25 percent year-over-year
-- Ward County asset sale expected to close August 31, 2018
Cimarex Energy Co. (NYSE: XEC) today reported second quarter 2018 net income of $141.0 million, or $1.48 per share, compared to $97.3 million, or $1.02 per share, in the same period a year ago. Second quarter adjusted net income (non-GAAP) was $151.9 million, or $1.59 per share, compared to second quarter 2017 adjusted net income (non-GAAP) of $101.0 million, or $1.06 per share(1). Net cash provided by operating activities was $321.2 million in the second quarter of 2018 compared to $255.3 million in the same period a year ago. Adjusted cash flow from operations (non-GAAP) was $349.5 million in the second quarter of 2018 compared to $278.8 million in the second quarter a year ago(1).
The previously announced sale of assets in Ward County, Texas, for $570 million (before any purchase price adjustments), is expected to close on August 31, 2018. The impact of the sale has been factored into our production guidance starting in September.
Total company volumes for the quarter averaged 211.4 thousand barrels of oil equivalent (MBOE) per day. Oil production averaged 61,651 barrels (bbl) per day, up seven percent from the same period a year ago and down five percent from first quarter 2018 levels. Driven by the number of wells expected to be brought on production in the second half of 2018 (86 wells versus 38 wells in the first half), and pro forma for the sale of assets in Ward County, Texas, Cimarex continues to expect oil production growth of 20-25 percent year-over-year. (See Pro Forma Production Reconciliation table below.)
Realized oil prices averaged $60.99 per barrel, up 38 percent from the $44.14 per barrel received in the second quarter of 2017. Realized natural gas prices averaged $1.65 per thousand cubic feet (Mcf) down 41 percent from the second quarter 2017 average of $2.82 per Mcf. NGL prices averaged $22.29 per barrel, up 22 percent from the $18.24 per barrel received in the second quarter of 2017. Realized prices for 2018 reflect the adoption of Accounting Standards Codification 606 (ASC 606). See table below (Impact of ASC 606) for comparison of realized prices for 2018 for pre- and post-ASC 606.
Both oil and natural gas prices were negatively impacted by local price differentials. Market conditions in the Permian Basin caused the realized differential for Midland priced oil and the differential for Permian Basin gas to widen. Our realized Permian oil differential to WTI Cushing averaged $(8.05) per barrel in the quarter, compared to $(3.12) per barrel in the first quarter of 2018 and $(4.14) per barrel in the second quarter of 2017. Cimarex's average differential on its Permian natural gas production was $1.31 per Mcf below Henry Hub in the second quarter of 2018 compared to $0.42 per Mcf lower in the second quarter of 2017. In the Mid-Continent region, realized gas prices were $1.03 per Mcf below the Henry Hub index versus $0.34 per Mcf below Henry Hub in the second quarter of 2017 due to abnormally wide differentials on the ONEOK index (OGT) where approximately 75 percent of the company's second quarter Mid-Continent gas volumes were priced.
As previously discussed, Cimarex has taken a number of steps to ensure the flow of our oil and natural gas volumes out of the Permian Basin with sales agreements in place for our projected oil and natural gas volumes through 2019.
Cimarex invested $375 million in exploration and development (E&D) during the second quarter, of which $322 million is attributable to drilling and completion activities. Second quarter investments were funded with cash flow from operations and cash on the balance sheet. Total debt at June 30, 2018 consisted of $1.5 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $411 million. Debt was 34 percent of total capitalization(2).
2018 Outlook
Adjusting for the previously announced sale of assets in Ward County, Texas (assuming an August 31 close), third quarter 2018 production volumes are expected to average 206 -215 MBOE per day with oil volumes estimated to average 61,500 - 64,500 barrels per day. The total 2018 daily production volumes are now expected to average 214 - 221 MBOE per day with annual oil volumes now estimated to average 66,000 - 68,000 barrels per day.
On a pro forma basis (excluding Ward volumes entirely), Cimarex expects 2018 total production (MBOE per day) and oil production (barrels per day) to grow 14-18 percent and 20-25 percent over 2017 volumes, respectively. Additionally, the company expects oil volumes in the fourth quarter to average 75,000 - 81,000 barrels per day, or 33-43 percent higher than the pro forma fourth quarter 2017 average. (See Pro Forma Production Reconciliation table below.)
Pro Forma Production Reconciliation
(excludes Ward volumes for all periods)
2018E 2017 % Growth
---- --------
Daily Production (MBOE/d) 209 - 216 183.1 14-18%
Daily Oil Production (MBbls/d) 62.4 - 64.6 51.8 20-25%
Estimated 2018 exploration and development investment remains unchanged at $1.6 - 1.7 billion.
Expenses per BOE of production for the remainder of 2018 are estimated to be:
Production expense $3.80 - 4.30
Transportation, processing and other expense* 2.40 - 3.00
DD&A and ARO accretion 7.50 - 8.10
General and administrative expense 1.15 - 1.45
Taxes other than income (% of oil and gas revenue) 5.75 - 6.25%
*Reflects adoption of ASC
606 (see Impact of ASC
606 table below).
Operations Update
Cimarex invested $375 million in E&D during the second quarter, 59 percent in the Permian Basin and 41 percent in the Mid-Continent. Cimarex brought 89 gross (23 net) wells on production during the quarter. At June 30, 141 gross (57 net) wells were waiting on completion. Cimarex currently is operating 13 drilling rigs.
WELLS BROUGHT ON PRODUCTION BY REGION
Three Months Ended Six Months Ended
June 30, June 30,
2018 2017 2018 2017
---- ---- ---- ----
Gross wells
Permian Basin 32 11 49 36
Mid-Continent 57 40 94 85
--- --- --- ---
89 51 143 121
Net wells
Permian Basin 13 10 22 26
Mid-Continent 10 8 16 18
--- --- --- ---
23 18 38 44
Permian Region
Production from the Permian region averaged 121,744 BOE per day in the second quarter, a 13 percent increase from second quarter 2017. Oil volumes averaged 48,797 barrels per day, a six percent increase from second quarter 2017. Total production increased seven percent sequentially, with oil production down two percent.
Cimarex completed 32 gross (13 net) wells in the Permian region during the second quarter. There were 45 gross (32 net) wells waiting on completion at June 30.
Activity in the region for the quarter included twelve wells completed in the Wolfcamp and Bone Spring formations. Of note, in Lea County, New Mexico, the six-well Hallertau 5 FED Upper Wolfcamp infill pilot was brought on-line during the quarter. The infill pilot, which included six short laterals (4,230' average) testing 12 wells per section, had an average peak 30-day initial production rate of 1,295 BOE (783 barrels of oil) per day, with results ranging from 1,855 BOE (1,096 barrels of oil) per day to 937 BOE (564 barrels of oil) per day.
Cimarex currently is operating ten drilling rigs and five completion crews in the region.
Mid-Continent Region
Production from the Mid-Continent averaged 88,864 BOE per day for the second quarter, up five percent versus second quarter 2017 and down three percent sequentially.
During the second quarter, Cimarex completed 57 gross (10 net) wells in the Mid-Continent region. At the end of the quarter, 96 gross (25 net) wells were waiting on completion. Cimarex currently is operating three drilling rigs and one completion crew in the region.
Production by Region
Cimarex's average daily production and commodity price by region is summarized below:
DAILY PRODUCTION BY REGION
Three Months Ended Six Months Ended
June 30, June 30,
2018 2017 2018 2017
---- ---- ---- ----
Permian Basin
Gas (MMcf) 240.5 219.8 239.2 210.4
Oil (Bbls) 48,797 45,828 49,318 43,446
NGL (Bbls) 32,865 24,996 28,817 23,319
Total Equivalent (BOE) 121,744 107,456 118,002 101,829
Mid-Continent
Gas (MMcf) 297.0 295.4 296.2 290.2
Oil (Bbls) 12,473 11,893 13,841 11,475
NGL (Bbls) 26,894 23,693 26,927 22,926
Total Equivalent (BOE) 88,864 84,827 90,142 82,774
Total Company
Gas (MMcf) 539.5 516.7 537.1 502.0
Oil (Bbls) 61,651 57,871 63,422 55,042
NGL (Bbls) 59,857 48,731 55,810 46,281
Total Equivalent (BOE) 211,424 192,720 208,752 184,998
AVERAGE REALIZED PRICE BY REGION
Three Months Ended Six Months Ended
June 30, June 30,
2018* 2017 2018* 2017
---- ---- ---- ----
Permian Basin
Gas ($ per Mcf) 1.49 2.77 1.86 2.83
Oil ($ per Bbl) 59.83 44.15 59.79 45.94
NGL ($ per Bbl) 22.80 16.65 21.93 17.38
Mid-Continent
Gas ($ per Mcf) 1.77 2.85 2.04 2.97
Oil ($ per Bbl) 65.70 44.10 62.87 45.39
NGL ($ per Bbl) 21.66 19.90 20.67 21.16
Total Company
Gas ($ per Mcf) 1.65 2.82 1.96 2.91
Oil ($ per Bbl) 60.99 44.14 60.45 45.82
NGL ($ per Bbl) 22.29 18.24 21.32 19.26
*Realized prices for 2018
reflect the adoption of ASC
606. See Impact of ASC 606
table for a comparison of
2018 realized prices on a
pre- and post-ASC 606
basis.
Other
The following table summarizes the company's current open hedge positions:
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
---- ---- ---- ---- ---- ----
Gas Collars: PEPL(3)
------
Volume (MMBtu/d) 130,000 100,000 90,000 90,000 60,000 30,000
Wtd Avg Floor $2.19 $2.12 $2.08 $2.08 $1.92 $1.90
Wtd Avg Ceiling $2.48 $2.42 $2.39 $2.39 $2.26 $2.33
El Paso Perm(3)
--------------
Volume (MMBtu/d) 100,000 80,000 70,000 70,000 50,000 20,000
Wtd Avg Floor $1.92 $1.81 $1.73 $1.73 $1.50 $1.35
Wtd Avg Ceiling $2.14 $2.03 $1.95 $1.95 $1.74 $1.55
Waha (3)
-------
Volume (MMBtu/d) 10,000 10,000 10,000 10,000 10,000 10,000
Wtd Avg Floor $1.35 $1.35 $1.35 $1.35 $1.35 $1.35
Wtd Avg Ceiling $1.56 $1.56 $1.56 $1.56 $1.56 $1.56
Oil Collars: WTI(4)
-----
Volume (Bbl/d) 35,000 29,000 23,000 23,000 16,000 8,000
Wtd Avg Floor $49.80 $51.03 $51.83 $51.83 $53.50 $57.00
Wtd Avg Ceiling $60.49 $61.74 $63.77 $63.77 $67.13 $68.04
Oil Basis Swaps: WTI Midland(5)
-------------
Volume (Bbl/d) 27,000 22,000 19,000 19,000 14,000 6,000
Weighted Avg Differential $(3.89) $(4.56) $(5.17) $(5.17) $(6.84) $(10.73)
Conference call and webcast
Cimarex will host a conference call tomorrow, August 8, at 11:00 a.m. EDT (9:00 a.m. MT). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (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 second quarter 2018 results, please refer to the company's investor presentation available at www.cimarex.com.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the "2018 Outlook" contains projections for certain 2018 operational and financial metrics. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2017, 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, El Paso Perm refers to El Paso
Permian Basin index, and Waha refers to West Texas (Waha) Index, all 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 NYMEX less the weighted average WTI Midland differential, as quoted by
Argus Americas Crude.
RECONCILIATION OF ADJUSTED NET INCOME
The following reconciles net income as reported under generally accepted accounting principles (GAAP) to adjusted net income (non-GAAP) for the periods indicated.
Three Months Ended Six Months Ended
June 30, June 30,
2018 2017 2018 2017
---- ---- ---- ----
(in thousands, except per share data)
Net income $140,997 $97,262 $327,315 $228,234
Mark-to-market loss
(gain) on open derivative
positions 14,169 (22,166) (2,379) (72,087)
Loss on early
extinguishment of debt - 28,169 - 28,169
Tax impact (3,259) (2,257) 552 16,469
------ ------
Adjusted net income $151,907 $101,008 $325,488 $200,785
======== ======== ======== ========
Diluted earnings per share $1.48 $1.02 $3.44 $2.40
===== ===== ===== =====
Adjusted diluted earnings
per share* $1.59 $1.06 $3.41 $2.11
===== ===== ===== =====
Weighted-average number of
shares outstanding:
Adjusted diluted** 95,428 95,179 95,451 95,172
====== ====== ====== ======
Adjusted net income and adjusted diluted earnings per share exclude 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 measures 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.
* Does not include adjustments resulting from application of the "two-class method" used to determine earnings per share under GAAP.
** Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding stock options.
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.
Three Months Ended Six Months Ended
June 30, June 30,
2018 2017 2018 2017
---- ---- ---- ----
(in thousands)
Net cash
provided by
operating
activities $321,246 $255,286 $704,339 $504,800
Change in
operating
assets and
liabilities 28,265 23,507 12,406 39,827
------ ------ ------ ------
Adjusted cash
flow from
operations $349,511 $278,793 $716,745 $544,627
======== ======== ======== ========
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.
IMPACT OF ASC 606
Effective January 1, 2018, Cimarex adopted the provisions of Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606"). Application of ASC 606 has no impact on our net income or cash flows from operations; however, certain costs classified as Transportation, processing, and other operating expenses in the statement of operations under prior accounting standards are now reflected as deductions from revenue under ASC 606. The following tables present certain Pre- and Post-ASC 606 amounts:
REVENUES
Three Months Ended
June 30,
2018 2017
----
Pre-ASC 606 Post-ASC 606 As Reported
Adoption Adoption
-------- --------
(in thousands)
Oil sales $342,184 $342,184 $232,453
Gas sales $84,727 $80,787 $132,474
NGL sales $125,126 $121,415 $80,886
Six Months Ended
June 30,
2018 2017
---- ----
Pre-ASC 606 Post-ASC 606 As Reported
Adoption Adoption
-------- --------
(in thousands)
Oil sales $693,907 $693,907 $456,519
Gas sales $197,404 $190,508 $264,419
NGL sales $230,739 $215,412 $161,312
AVERAGE REALIZED PRICE BY REGION
Three Months Ended
June 30,
2018 2017
----
Pre-ASC 606 Post-ASC 606 As Reported
Adoption Adoption
-------- --------
Permian Basin
Gas ($ per Mcf) 1.62 1.49 2.77
Oil ($ per Bbl) 59.83 59.83 44.15
NGL ($ per Bbl) 23.81 22.80 16.65
Mid-Continent
Gas ($ per Mcf) 1.81 1.77 2.85
Oil ($ per Bbl) 65.70 65.70 44.10
NGL ($ per Bbl) 21.94 21.66 19.90
Total Company
Gas ($ per Mcf) 1.73 1.65 2.82
Oil ($ per Bbl) 60.99 60.99 44.14
NGL ($ per Bbl) 22.97 22.29 18.24
Six Months Ended
June 30,
2018 2017
----
Pre-ASC 606 Post-ASC 606 As Reported
Adoption Adoption
-------- --------
Permian Basin
Gas ($ per Mcf) 1.97 1.86 2.83
Oil ($ per Bbl) 59.79 59.79 45.94
NGL ($ per Bbl) 23.62 21.93 17.38
Mid-Continent
Gas ($ per Mcf) 2.08 2.04 2.97
Oil ($ per Bbl) 62.87 62.87 45.39
NGL ($ per Bbl) 22.01 20.67 21.16
Total Company
Gas ($ per Mcf) 2.03 1.96 2.91
Oil ($ per Bbl) 60.45 60.45 45.82
NGL ($ per Bbl) 22.84 21.32 19.26
TRANSPORTATION, PROCESSING, AND OTHER OPERATING EXPENSES
Three Months Ended
June 30,
2018 2017
----
Pre-ASC 606 Post-ASC 606 As Reported
Adoption Adoption
-------- --------
(in thousands, except per BOE)
Transportation, processing,
and other operating expenses $59,584 $51,933 $58,624
Per BOE $3.10 $2.70 $3.34
Six Months Ended
June 30,
2018 2017
----
Pre-ASC 606 Post-ASC 606 As Reported
Adoption Adoption
-------- --------
(in thousands, except per BOE)
Transportation, processing,
and other operating expenses $119,321 $97,098 $113,647
Per BOE $3.16 $2.57 $3.39
OIL AND GAS CAPITALIZED EXPENDITURES
Three Months Ended Six Months Ended
June 30, June 30,
2018 2017 2018 2017
---- ---- ---- ----
(in thousands)
Acquisitions:
Proved $ - $255 $62 $260
Unproved 77 792 2,236 3,825
--- --- ----- -----
77 1,047 2,298 4,085
Exploration and
development:
Land and seismic $10,327 $33,302 $20,424 $110,487
Exploration and
development 365,097 262,575 668,469 491,042
------- ------- ------- -------
375,424 295,877 688,893 601,529
Sales proceeds:
Proved $(4,577) $(1,957) $(29,541) $(1,892)
Unproved (441) (2,305) (5,301) (7,271)
---- ------ ------ ------
(5,018) (4,262) (34,842) (9,163)
$370,483 $292,662 $656,349 $596,451
======== ======== ======== ========
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2018 2017 2018 2017
---- ---- ---- ----
(in thousands, except per share information)
Revenues:
Oil sales $342,184 $232,453 $693,907 $456,519
Gas and NGL sales 202,202 213,360 405,920 425,731
Gas gathering and other 11,888 10,639 23,581 21,378
------ ------ ------ ------
556,274 456,452 1,123,408 903,628
------- ------- --------- -------
Costs and expenses:
Depreciation, depletion,
amortization, and accretion 145,441 108,844 279,360 206,280
Production 79,215 62,578 150,486 124,999
Transportation, processing,
and other operating 51,933 58,624 97,098 113,647
Gas gathering and other 9,467 8,647 19,290 17,074
Taxes other than income 27,930 17,477 58,118 38,790
General and administrative 19,739 19,762 43,060 37,796
Stock compensation 3,095 6,293 9,825 12,581
Loss (gain) on derivative
instruments, net 21,699 (22,509) 17,540 (66,370)
Other operating expense, net 5,252 266 5,455 882
363,771 259,982 680,232 485,679
------- ------- ------- -------
Operating income 192,503 196,470 443,176 417,949
Other (income) and expense:
Interest expense 16,895 20,095 33,678 41,147
Capitalized interest (4,850) (5,442) (9,660) (12,083)
Loss on early extinguishment
of debt - 28,169 - 28,169
Other, net (2,605) (2,231) (7,172) (4,441)
------ ------ ------ ------
Income before income tax 183,063 155,879 426,330 365,157
Income tax expense 42,066 58,617 99,015 136,923
Net income $140,997 $97,262 $327,315 $228,234
======== ======= ======== ========
Earnings per share to common
stockholders:
Basic $1.48 $1.02 $3.44 $2.40
===== ===== ===== =====
Diluted $1.48 $1.02 $3.44 $2.40
===== ===== ===== =====
Dividends declared per share $0.16 $0.08 $0.32 $0.16
===== ===== ===== =====
Weighted-average number of
shares outstanding:
Basic 93,728 93,402 93,713 93,396
====== ====== ====== ======
Diluted 93,759 93,435 93,748 93,431
====== ====== ====== ======
Comprehensive income:
Net income $140,997 $97,262 $327,315 $228,234
Other comprehensive income:
Change in fair value of
investments, net of tax 192 224 2 626
Total comprehensive income $141,189 $97,486 $327,317 $228,860
======== ======= ======== ========
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2018 2017 2018 2017
---- ---- ---- ----
(in thousands)
Cash flows from operating activities:
Net income $140,997 $97,262 $327,315 $228,234
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion,
amortization, and accretion 145,441 108,844 279,360 206,280
Deferred income taxes 42,783 58,617 99,732 136,929
Stock compensation 3,095 6,293 9,825 12,581
Loss (gain) on derivative
instruments, net 21,699 (22,509) 17,540 (66,370)
Settlements on derivative instruments (7,530) 343 (19,919) (5,717)
Loss on early extinguishment of debt - 28,169 - 28,169
Changes in non-current assets and
liabilities 1,613 57 713 1,076
Other, net 1,413 1,717 2,179 3,445
Changes in operating assets and
liabilities:
Accounts receivable (29,710) (16,483) 15,012 (61,145)
Other current assets 283 (8,139) 1,886 (11,104)
Accounts payable and other current
liabilities 1,162 1,115 (29,304) 32,422
Net cash provided by operating
activities 321,246 255,286 704,339 504,800
------- ------- ------- -------
Cash flows from investing activities:
Oil and gas capital expenditures (327,352) (270,331) (650,807) (582,172)
Sales of oil and gas assets 5,018 4,262 34,842 9,163
Sales of other assets 93 349 525 394
Other capital expenditures (37,056) (10,127) (56,112) (18,209)
Net cash used by investing activities (359,297) (275,847) (671,552) (590,824)
-------- -------- -------- --------
Cash flows from financing activities:
Borrowings of long-term debt - 748,110 - 748,110
Repayments of long-term debt - (750,000) - (750,000)
Call premium, financing, and
underwriting fees - (29,009) - (29,035)
Dividends paid (15,199) (7,576) (22,801) (15,153)
Employee withholding taxes paid upon
the net settlement of equity-
classified stock awards (641) (277) (946) (1,215)
Proceeds from exercise of stock
options 904 - 1,249 36
Net cash used by financing activities (14,936) (38,752) (22,498) (47,257)
------- ------- ------- -------
Net change in cash and cash
equivalents (52,987) (59,313) 10,289 (133,281)
Cash and cash equivalents at
beginning of period 463,810 578,908 400,534 652,876
------- -------
Cash and cash equivalents at end of
period $410,823 $519,595 $410,823 $519,595
======== ======== ======== ========
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
June 30, 2018 December 31, 2017
------------- -----------------
Assets (in thousands, except share and
per share information)
Current assets:
Cash and cash equivalents $410,823 $400,534
Accounts receivable, net of
allowance 444,655 460,174
Oil and gas well equipment and
supplies 53,375 49,722
Derivative instruments 72,943 15,151
Other current assets 8,346 10,054
Total current assets 990,142 935,635
------- -------
Oil and gas properties at
cost, using the full cost
method of accounting:
Proved properties 18,112,548 17,513,460
Unproved properties and
properties under development,
not being amortized 532,715 476,903
------- -------
18,645,263 17,990,363
Less - accumulated
depreciation, depletion,
amortization, and impairment (15,000,443) (14,748,833)
----------- -----------
Net oil and gas properties 3,644,820 3,241,530
--------- ---------
Fixed assets, net of
accumulated depreciation of
$312,927 and $290,114,
respectively 238,964 210,922
Goodwill 620,232 620,232
Derivative instruments 2,330 2,086
Other assets 34,905 32,234
$5,531,393 $5,042,639
========== ==========
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable $95,239 $98,386
Accrued liabilities 370,371 351,849
Derivative instruments 90,480 42,066
Revenue payable 180,869 187,273
Total current liabilities 736,959 679,574
------- -------
Long-term debt:
Principal 1,500,000 1,500,000
Less - unamortized debt
issuance costs and discount (12,261) (13,080)
Long-term debt, net 1,487,739 1,486,920
--------- ---------
Deferred income taxes 201,350 101,618
Derivative instruments 11,511 4,268
Other liabilities 207,336 201,981
Total liabilities 2,644,895 2,474,361
--------- ---------
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, 95,392,547 and
95,437,434 shares issued,
respectively 954 954
Additional paid-in capital 2,770,532 2,764,384
Retained earnings (accumulated
deficit) 112,811 (199,259)
Accumulated other
comprehensive income 2,201 2,199
Total stockholders' equity 2,886,498 2,568,278
--------- ---------
$5,531,393 $5,042,639
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View original content:http://www.prnewswire.com/news-releases/cimarex-reports-second-quarter-2018-results-300693526.html
SOURCE Cimarex Energy Co.
