Cimarex Reports Third Quarter 2019 Results
DENVER, Nov. 4, 2019 /PRNewswire/ --
-- Oil production averaged 89.7 MBbls/d; up 8% sequentially
-- 2019 Exploration & Development capital guidance range lowered to $1.3 -
1.4 billion
-- Reduced per unit production expense 12% year-over-year
Cimarex Energy Co. (NYSE: XEC) today reported third quarter 2019 net income of $40.5 million, or $0.39 per share, compared to $148.4 million, or $1.56 per share, in the same period a year ago. Third quarter 2019 results were negatively impacted by a non-cash charge related to the impairment of oil and gas properties. Third quarter adjusted net income (non-GAAP) was $92.9 million, or $0.91 per share, compared to third quarter 2018 adjusted net income (non-GAAP) of $189.6 million, or $1.99 per share(1). Net cash provided by operating activities was $320.1 million in the third quarter of 2019 compared to $453.5 million in the same period a year ago. Adjusted cash flow from operations (non-GAAP) was $360.7 million in the third quarter of 2019 compared to $388.7 million in the third quarter a year ago(1).
Oil production averaged 89.7 thousand barrels (MBbls) per day, up 40 percent from the same period a year ago and up eight percent sequentially. Total company production volumes for the quarter averaged 287.1 thousand barrels of oil equivalent (MBOE) per day.
Realized product prices were down in the third quarter compared to the same quarter a year ago. Realized oil prices averaged $52.71 per barrel, down 10 percent from the $58.25 per barrel received in the third quarter of 2018. Realized natural gas prices averaged $0.88 per thousand cubic feet (Mcf), down 52 percent from the third quarter 2018 average of $1.84 per Mcf but up 76 percent sequentially. NGL prices averaged $10.80 per barrel, down 58 percent from the $25.72 per barrel received in the third quarter of 2018. See footnotes to the Average Realized Prices by Region table below for ASC 606 impact on realized prices.
Natural gas prices were negatively impacted by local price differentials. Cimarex's average differential to Henry Hub on its Permian natural gas production was $1.83 per Mcf in the third quarter of 2019 compared to $1.25 per Mcf in the third quarter of 2018 and $3.10 in the second quarter of 2019. In the Mid-Continent region, the company's average differential to Henry Hub was $0.66 per Mcf versus $0.94 per Mcf in the third quarter of 2018 and $0.86 in the second quarter of 2019. Our realized Permian oil differential to WTI Cushing improved and averaged $3.76 per barrel in the quarter, compared to $14.34 per barrel in the third quarter of 2018 and $5.80 per barrel in the second quarter of 2019.
Production expense averaged $3.34 per BOE for the third quarter, down 12 percent compared to the same period a year ago and down five percent sequentially.
Cimarex invested $296 million in exploration and development (E&D) during the third quarter, of which $221 million is attributable to drilling and completion activities. Cimarex invested $19 million in midstream assets during the quarter. Third quarter investments were funded with cash flow from operating activities. Total debt at September 30, 2019 consisted of $2.0 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $24 million. Debt was 35 percent of total capitalization(2).
Outlook
Fourth quarter 2019 production volumes are expected to average 272 - 292 MBOE per day. Oil volumes are estimated to average 86.0 - 92.0 MBbls per day in the fourth quarter, essentially flat sequentially at the midpoint, with Permian growth expected to outpace total company growth. Total 2019 daily annual oil volumes are estimated to average 84.5 - 86.5 MBbls per day with total production volumes expected to average 274 - 278 MBOE per day, up three percent at the midpoint from previous guidance due primarily to higher than expected NGL recoveries.
Estimated 2019 exploration and development investment is $1.30 - 1.40 billion, down four percent at the midpoint from guidance given in February. Midstream investments are estimated to total approximately $70 million in 2019.
Expenses per BOE of production for 2019 are estimated to be:
Production expense
$3.30 - 3.55
Transportation, processing and other
expense
1.80 - 2.20
DD&A and ARO accretion
7.75 - 8.75
General and administrative expense
0.95 - 1.10
Taxes other than income (% of oil and
gas revenue) 6.0 - 7.0%
Cimarex Chairman and CEO, Tom Jorden, said, "We have seen strong execution in 2019, which we expect to continue into 2020. Our initial planning indicates that we will generate meaningful free cash flow in 2020 using a flat $50 per barrel WTI price and NYMEX gas price of $2.50 per Mcf, adjusted for basis differentials."
Operations Update
Cimarex invested $296 million in E&D during the third quarter, 84 percent in the Permian Basin and 16 percent in the Mid-Continent. Cimarex brought 96 gross (21 net) wells on production during the quarter. At September 30, 79 gross (34 net) wells were waiting on completion. Cimarex currently is operating eight drilling rigs.
WELLS BROUGHT ON PRODUCTION BY REGION
Three Months Ended Nine Months Ended
September 30, September 30,
2019 2018 2019 2018
Gross wells
Permian Basin 44 33 100 82
Mid-Continent 52 82 144 176
96 115 244 258
Net wells
Permian Basin 16 24 53 46
Mid-Continent 5 20 16 36
21 44 69 82
Permian Region
Production from the Permian region averaged 198.6 MBOE per day in the third quarter, a 64 percent increase from third quarter 2018. Oil volumes averaged 74.8 MBbls per day, a 53 percent increase from third quarter 2018 and up six percent sequentially.
Cimarex brought 44 gross (16 net) wells on production in the Permian region during the third quarter. There were 43 gross (32 net) wells waiting on completion at September 30. Cimarex currently is operating eight drilling rigs and two completion crews in the region.
Mid-Continent Region
Production from the Mid-Continent averaged 88.1 MBOE per day for the third quarter, down 10 percent from third quarter 2018 and up three percent sequentially.
During the third quarter, Cimarex brought 52 gross (5 net) wells on production in the Mid-Continent region. At the end of the quarter, 36 gross (2 net) wells were waiting on completion. Cimarex is not currently operating a drilling rig or completion crew in the Mid-Continent.
Cimarex's average daily production and commodity price by region is summarized below:
DAILY PRODUCTION BY REGION
Three Months Ended Nine Months Ended
September 30, September 30,
2019 2018 2019 2018
Permian Basin
Gas (MMcf) 422.9 239.4 381.2 239.3
Oil (Bbls) 74,819 49,001 70,188 49,211
NGL (Bbls) 53,311 31,919 51,492 29,863
Total Equivalent (MBOE) 198.6 120.8 185.2 119.0
Mid-Continent
Gas (MMcf) 293.7 317.9 292.1 303.6
Oil (Bbls) 14,788 14,755 13,880 14,149
NGL (Bbls) 24,338 29,603 25,480 27,829
Total Equivalent (MBOE) 88.1 97.3 88.0 92.6
Total Company
Gas (MMcf) 718.0 558.8 674.6 544.4
Oil (Bbls) 89,731 63,909 84,230 63,586
NGL (Bbls) 77,693 61,560 77,021 57,748
Total Equivalent (MBOE) 287.1 218.6 273.7 212.1
AVERAGE REALIZED PRICE BY REGION
Three Months Ended Nine Months Ended
September 30, September 30,
2019 2018 2019 2018
Permian Basin
Gas ($ per Mcf) (1) 0.40 1.66 0.36 1.79
Oil ($ per Bbl) 52.69 55.16 51.70 58.24
NGL ($ per Bbl) (2) 9.94 27.53 12.40 23.95
Mid-Continent
Gas ($ per Mcf) (3) 1.57 1.97 2.01 2.01
Oil ($ per Bbl) 52.73 68.42 53.55 64.82
NGL ($ per Bbl) (4) 12.69 23.75 15.28 21.77
Total Company
Gas ($ per Mcf) (5) 0.88 1.84 1.08 1.92
Oil ($ per Bbl) 52.71 58.25 52.02 59.70
NGL ($ per Bbl) (6) 10.80 25.72 13.36 22.90
(1) The average
realized gas
price shown in
the table
above includes
the effects of
ASC 606, which
reduced the
average
realized
prices by
$0.41 per Mcf,
$0.12 per Mcf,
$0.37 per Mcf,
and $0.11 per
Mcf for the
three months
ended
September 30,
2019 and 2018
and the nine
months ended
September 30,
2019 and 2018,
respectively.
(2) The average
realized NGL
price shown in
the table
above includes
the effects of
ASC 606, which
reduced the
average
realized
prices by
$1.88 per
barrel, $1.55
per barrel,
$1.82 per
barrel, and
$1.64 per
barrel for the
three months
ended
September 30,
2019 and 2018
and the nine
months ended
September 30,
2019 and 2018,
respectively.
(3) The average
realized gas
price shown in
the table
above includes
the effects of
ASC 606, which
reduced the
average
realized
prices by
$0.04 per Mcf,
$0.04 per Mcf,
$0.05 per Mcf,
and $0.04 per
Mcf for the
three months
ended
September 30,
2019 and 2018
and the nine
months ended
September 30,
2019 and 2018,
respectively.
(4) The average
realized NGL
price shown in
the table
above includes
the effects of
ASC 606, which
reduced the
average
realized
prices by
$0.29 per
barrel, $0.53
per barrel,
$0.31 per
barrel, and
$1.05 per
barrel for the
three months
ended
September 30,
2019 and 2018
and the nine
months ended
September 30,
2019 and 2018,
respectively.
(5) The average
realized gas
price shown in
the table
above includes
the effects of
ASC 606, which
reduced the
average
realized
prices by
$0.26 per Mcf,
$0.07 per Mcf,
$0.23 per Mcf,
and $0.07 per
Mcf for the
three months
ended
September 30,
2019 and 2018
and the nine
months ended
September 30,
2019 and 2018,
respectively.
(6) The average
realized NGL
price shown in
the table
above includes
the effects of
ASC 606, which
reduced the
average
realized
prices by
$1.38 per
barrel, $1.06
per barrel,
$1.31 per
barrel, and
$1.36 per
barrel for the
three months
ended
September 30,
2019 and 2018
and the nine
months ended
September 30,
2019 and 2018,
respectively.
Other
Cimarex received cash settlements of $17.6 million related to its gas hedges during the quarter. Settlement of oil hedges resulted in a cash payment of $15.9 million.
The following table summarizes the company's current open hedge positions:
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
Gas Collars:
PEPL(3)
Volume (MMBtu/d) 120,000 90,000 60,000 30,000 30,000 10,111
Wtd Avg Floor $
1.92 $
1.92 $
1.90 $
1.85 $
1.85 $
1.85
Wtd Avg Ceiling $
2.35 $
2.36 $
2.28 $
2.31 $
2.31 $
2.31
El Paso Perm(3)
Volume (MMBtu/d) 60,000 40,000 30,000 20,000 20,000
Wtd Avg Floor $
1.38 $
1.40 $
1.40 $
1.35 $
1.35
$
Wtd Avg Ceiling $
1.71 $
1.79 $
1.82 $
1.66 $
1.66
$
Waha (3)
Volume (MMBtu/d) 60,000 50,000 30,000
Wtd Avg Floor $
1.48 $
1.50 $
1.57
$
$
$
Wtd Avg Ceiling $
1.82 $
1.87 $
1.97
$
$
$
Oil Collars:
WTI(4)
Volume (Bbl/d) 37,326 30,000 22,000 14,000 14,000 6,000
Wtd Avg Floor $
54.05 $
53.12 $
50.61 $
49.68 $
49.68 $
49.24
Wtd Avg Ceiling $
66.48 $
65.80 $
62.15 $
60.92 $
60.92 $
58.41
Oil Basis Swaps:
WTI Midland(5)
Volume (Bbl/d) 40,826 29,000 21,000 14,000 14,000 6,000
Wtd Avg Differential $
(5.42) $
0.25 $
0.29 $
0.65 $
0.65 $
0.57
Oil Swaps:
WTI(4)
Volume (Bbl/d) 5,000
Wtd Avg Fixed $
64.54
$
$
$
$
$
Gas Swaps:
Henry Hub(6)
Volume (MMBtu/d) 35,000
Wtd Avg Fixed $
3.00
$
$
$
$
$
Sold Oil Calls:
WTI(4)
Volume (Bbl/d) 3,670
Wtd Avg Ceiling $
64.36
$
$
$
$
$
Conference call and webcast
Cimarex will host a conference call tomorrow, November 5, 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 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 third quarter 2019 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 Permian Basin and Mid-Continent areas of the U.S.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the "2019 Outlook" contains projections for certain 2019 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, 2018, 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; declines in the values of our oil and gas properties resulting in impairments; local commodity price differentials; derivative and hedging activities; higher than expected costs and expenses, including the availability and cost of services and materials; our ability to successfully integrate the business of the recently acquired Resolute Energy Corporation; unknown liabilities related to Resolute; compliance with environmental and other regulations; costs and availability of third party facilities for gathering, processing, refining and transportation; 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; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; 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; 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
the sum of
(i) the
principal
amount of
senior notes
and (ii)
redeemable
preferred
stock by the
sum of (x)
the principal
amount of
senior notes,
(y)
redeemable
preferred
stock, and
(z) total
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.
6 Henry Hub
(located in
So.
Louisiana) is
the official
location for
futures
contracts on
the New York
Mercantile
Exchange
(NYMEX).
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 Nine Months Ended
September 30,
September 30,
2019 2018 2019 2018
(in thousands, except per share data)
Net income $
40,527 $
148,354 $
176,152 $
475,669
Impairment of oil and gas
properties (1) 108,879 108,879
Mark-to-market (gain)
loss on open derivative
positions (37,039) 53,507 34,831 51,128
Loss on early
extinguishment of debt 4,250
Acquisition related costs 13 8,404
Tax impact (19,472) (12,253) (38,309) (11,810)
Adjusted net income $
92,908 $
189,608 $
294,207 $
514,987
Diluted earnings per share $
0.39 $
1.56 $
1.72 $
5.00
Adjusted diluted earnings
per share* $
0.91 $
1.99 $
2.93 $
5.39
Weighted-average number of
shares outstanding:
Adjusted diluted** 101,593 95,512 100,266 95,472
(1) An additional
ceiling test
impairment is
anticipated in
the fourth
quarter.
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
Nine Months Ended
September 30,
September 30,
2019 2018 2019 2018
(in thousands)
Net cash
provided by
operating
activities $
320,074 $
453,474 $
984,157 $
1,157,813
Change in
operating
assets and
liabilities 40,655 (64,792) 63,996 (52,386)
Adjusted cash
flow from
operations $
360,729 $
388,682 $
1,048,153 $
1,105,427
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.
OIL AND GAS CAPITALIZED EXPENDITURES
Three Months Ended Nine Months Ended
September 30,
September 30,
2019 2018 2019 2018
(in thousands)
Acquisitions:
Proved $
2,373
$ $
696,173 $
62
Unproved (30,314) (1) 10,015 1,021,468 12,251
(27,941) 10,015 1,717,641 12,313
Exploration and
development:
Land and seismic $
18,377 $
55,603 $
42,456 $
76,027
Exploration and
development 278,083 445,429 947,002 1,113,898
296,460 501,032 989,458 1,189,925
Property sales:
Proved $
(9,286) $
(527,650) $
(27,314) $
(557,191)
Unproved (81) (12,022) (9,835) (17,323)
(9,367) (539,672) (37,149) (574,514)
$
259,152 $
(28,625) $
2,669,950 $
627,724
(1) Amount represents an
adjustment made to the Resolute
preliminary purchase price
allocation upon finalization of
the quantity of acres acquired.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2019 2018 2019 2018
(in thousands, except per share information)
Revenues:
Oil sales $
435,094 $
342,495 $
1,196,166 $
1,036,402
Gas and NGL sales 135,483 240,087 479,442 646,007
Gas gathering and other 11,728 8,906 30,117 32,487
582,305 591,488 1,705,725 1,714,896
Costs and expenses:
Impairment of oil and gas
properties 108,879 108,879
Depreciation, depletion,
amortization, and accretion 230,172 138,195 638,122 417,555
Production 88,300 76,272 253,259 226,758
Transportation, processing,
and other operating 52,697 49,720 154,636 146,818
Gas gathering and other 13,893 10,569 39,818 29,859
Taxes other than income 30,873 28,431 105,600 86,549
General and administrative 15,499 21,148 69,494 64,208
Stock compensation 6,797 6,437 20,004 16,262
(Gain) loss on derivative
instruments, net (38,735) 54,006 35,949 71,546
Other operating expense, net 10,141 10,015 19,057 15,470
518,516 394,793 1,444,818 1,075,025
Operating income 63,789 196,695 260,907 639,871
Other (income) and expense:
Interest expense 24,586 17,159 69,665 50,837
Capitalized interest (16,264) (5,457) (41,811) (15,117)
Loss on early extinguishment
of debt 4,250
Other, net (139) (7,544) (4,547) (14,716)
Income before income tax 55,606 192,537 233,350 618,867
Income tax expense 15,079 44,183 57,198 143,198
Net income $
40,527 $
148,354 $
176,152 $
475,669
Earnings per share to common
stockholders:
Basic $
0.39 $
1.56 $
1.72 $
5.00
Diluted $
0.39 $
1.56 $
1.72 $
5.00
Dividends declared per common
share $
0.20 $
0.18 $
0.60 $
0.50
Weighted-average number of
shares outstanding:
Basic 99,735 93,845 98,452 93,758
Diluted 99,735 93,867 98,458 93,788
Comprehensive income:
Net income $
40,527 $
148,354 $
176,152 $
475,669
Other comprehensive income:
Change in fair value of
investments, net of tax of
($648), $159, ($220) and
$160, respectively (2,198) 539 (745) 541
Total comprehensive income $
38,329 $
148,893 $
175,407 $
476,210
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Three Months Ended Nine Months Ended
September 30,
September 30,
2019 2018 2019 2018
(in thousands)
Cash flows from operating activities:
Net income $
40,527 $
148,354 $
176,152 $
475,669
Adjustments to reconcile net income
to net cash
provided by
operating activities:
Impairment of oil and gas properties 108,879 108,879
Depreciation, depletion,
amortization, and accretion 230,172 138,195 638,122 417,555
Deferred income taxes 15,079 43,083 57,198 142,815
Stock compensation 6,797 6,437 20,004 16,262
(Gain) loss on derivative
instruments, net (38,735) 54,006 35,949 71,546
Settlements on derivative instruments 1,696 (499) (1,118) (20,418)
Loss on early extinguishment of debt 4,250
Amortization of debt issuance costs
and discounts 783 727 2,285 2,183
Changes in non-current assets and
liabilities (5,379) (1,957) (2,630) (1,244)
Other, net 910 336 9,062 1,059
Changes in operating assets and
liabilities:
Accounts receivable (37,509) (26,784) 80,183 (11,772)
Other current assets 2,901 2,535 2,140 4,421
Accounts payable and other current
liabilities (6,047) 89,041 (146,319) 59,737
Net cash provided by operating
activities 320,074 453,474 984,157 1,157,813
Cash flows from investing activities:
Acquisition of Resolute Energy, net
of cash acquired (284,441)
Oil and gas capital expenditures (288,623) (500,677) (1,000,380) (1,151,484)
Sales of oil and gas assets 15,314 538,525 28,547 573,367
Sales of other assets 425 465 859 990
Other capital expenditures (18,894) (18,925) (59,035) (75,037)
Net cash (used) provided by investing
activities (291,778) 19,388 (1,314,450) (652,164)
Cash flows from financing activities:
Borrowings of long-term debt 529,000 2,239,310
Repayments of long-term debt (529,000) (2,610,000)
Financing, underwriting, and debt
redemption fees (7) (11,798)
Finance lease payments (1,176) (2,731)
Dividends paid (21,483) (15,237) (60,130) (38,038)
Employee withholding taxes paid upon
the net settlement of equity-
classified stock awards (1,752) (5,464) (2,406) (6,410)
Proceeds from exercise of stock
options 593 962 1,267 2,211
Net cash used by financing activities (23,825) (19,739) (446,488) (42,237)
Net change in cash and cash
equivalents 4,471 453,123 (776,781) 463,412
Cash and cash equivalents at
beginning of period 19,414 410,823 800,666 400,534
Cash and cash equivalents at end of
period $
23,885 $
863,946 $
23,885 $
863,946
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
September December 31,
30, 2019 2018
Assets (in thousands, except share and
per share information)
Current assets:
Cash and cash equivalents $
23,885 $
800,666
Accounts receivable, net of
allowance 425,329 454,200
Oil and gas well equipment and
supplies 49,113 55,553
Derivative instruments 49,385 101,939
Other current assets 8,867 11,781
Total current assets 556,579 1,424,139
Oil and gas properties at
cost, using the full cost
method of accounting:
Proved properties 20,134,383 18,566,757
Unproved properties and
properties under development,
not being amortized 1,539,008 436,325
21,673,391 19,003,082
Less - accumulated
depreciation, depletion,
amortization, and impairment (15,979,664) (15,287,752)
Net oil and gas properties 5,693,727 3,715,330
Fixed assets, net of
accumulated depreciation of
$373,351 and $324,631,
respectively 538,179 257,686
Goodwill 751,836 620,232
Derivative instruments 5,715 9,246
Other assets 73,169 35,451
$
7,619,205 $
6,062,084
Liabilities, Redeemable
Preferred Stock, and
Stockholders' Equity
Current liabilities:
Accounts payable $
65,925 $
106,814
Accrued liabilities 430,832 379,455
Derivative instruments 24,983 27,627
Revenue payable 207,751 194,811
Operating leases 67,208
Total current liabilities 796,699 708,707
Long-term debt principal 2,000,000 1,500,000
Less-unamortized debt
issuance costs and discounts (15,266) (11,446)
Long-term debt, net 1,984,734 1,488,554
Deferred income taxes 446,961 334,473
Derivative instruments 403 2,267
Operating leases 199,645
Other liabilities 219,585 198,297
Total liabilities 3,648,027 2,732,298
Redeemable preferred stock -
8.125% Series A Cumulative
Perpetual Convertible
Preferred Stock, $0.01 par
value, 62,500 shares
authorized and issued and no
shares authorized and issued,
respectively 81,620
Stockholders' equity:
Common stock, $0.01 par value,
200,000,000 shares
authorized, 101,820,140 and
95,755,797 shares issued,
respectively 1,018 958
Additional paid-in capital 3,234,318 2,785,188
Retained earnings 654,212 542,885
Accumulated other
comprehensive income 10 755
Total stockholders' equity 3,889,558 3,329,786
$
7,619,205 $
6,062,084
View original content:http://www.prnewswire.com/news-releases/cimarex-reports-third-quarter-2019-results-300951057.html
SOURCE Cimarex Energy Co.
