Cimarex Reports Fourth Quarter and Full Year 2019 Results
DENVER, Feb. 19, 2020 /PRNewswire/ --
-- Fourth quarter oil production averaged 92.0 MBbls per day
-- Full year oil production averaged 86.2 MBbls per day
-- 2019 capital investment (including midstream) totaled $1.32 billion;
below guidance range
-- Lower D&C costs drove the beat
-- Generated $1.34 billion of net cash from operating activities
-- $141 million of free cash flow(1) in 2019; $59 million after
dividend
Cimarex Energy Co. (NYSE: XEC) today reported a net loss for fourth quarter 2019 of $384.1 million, or $3.87 per share, compared to net income of $316.2 million, or $3.32 per share, in the same period a year ago. For the full year, Cimarex reported a net loss of $124.6 million, or $1.33 per share, compared to 2018 net income of $791.9 million, or $8.32 per share. Both fourth quarter and full year results were negatively impacted by a non-cash charge related to the impairment of oil and gas properties. Fourth quarter 2019 adjusted net income (non-GAAP) was $120.4 million, or $1.18 per share, compared to adjusted net income (non-GAAP) of $192.1 million, or $2.01 per share in the same period a year ago(1). Full year 2019 adjusted net income (non-GAAP) was $448.8 million, or $4.46 per share, compared to $708.7 million, or $7.42 per share in 2018(1). Adjusted cash flow from operations (non-GAAP) was $416.0 million in fourth quarter 2019 compared to $428.2 million in the same period a year ago(1). Full year 2019 adjusted cash flow from operations (non-GAAP) was $1.46 billion compared to $1.53 billion in 2018(1).
Oil volumes in the fourth quarter were sequentially higher, averaging 92.0 thousand barrels (MBbls) per day. For the full year, Cimarex reported average daily oil volumes of 86.2 MBbls, a 27 percent year-over-year increase. Cimarex produced 292.7 thousand barrels of oil equivalent (MBOE) per day in the fourth quarter and averaged 278.5 MBOE per day for the year.
In the fourth quarter realized oil prices averaged $54.80 per barrel, up 11 percent from the $49.30 per barrel received in the fourth quarter of 2018. Realized natural gas prices averaged $1.19 per thousand cubic feet (Mcf), down 45 percent from the fourth quarter 2018 average of $2.16 per Mcf. NGL prices averaged $14.13 per barrel, down 32 percent from the $20.71 per barrel received in the fourth quarter of 2018, but up 31 percent from the lows we saw in the third quarter of 2019. For the full year, Cimarex realized $52.77 per barrel of oil, down 7 percent from 2018, $1.11 per Mcf of natural gas and $13.55 per barrel of NGLs sold.
Both oil and natural gas prices were negatively impacted by local price differentials in 2019 although oil price differential did see some improvement year-over-year. Our realized Permian oil differential to WTI Cushing averaged $(4.48) per barrel in 2019 compared to $(9.82) in 2018. For the year, Cimarex's average differential on its Permian natural gas production was $(2.14) per Mcf compared to the Henry Hub index and, in the Mid-Continent region, realized gas prices differentials were $(0.68) per Mcf compared to Henry Hub.
Cimarex invested a total of $1.32 billion in 2019, which included $944 million attributable to drilling and completion (D&C) activities, $75 million to saltwater disposal and $74 million to midstream and other investments. Capital investments were funded with cash flow from operations.
Proved reserves at December 31, 2019 totaled 620 million barrels of oil equivalent (MMBOE), up five percent year over year. Oil reserves increased 16 percent. Cimarex added 119 MMBOE through extensions and discoveries and 3.5 MMBOE through net performance revisions resulting in reserve replacement of 121 percent of 2019 production. Proved reserves are 86 percent proved developed.
Total debt at December 31, 2019 consisted of $2.0 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $94.7 million at year-end. Debt was 37 percent of total capitalization(2).
Operations Update
Cimarex invested $1.32 billion in 2019 including $944 million (72 percent) of D&C capital. Also included is $74 million of investment in midstream and other and $75 million in saltwater disposal investment. Of the $1.32 billion, 85 percent was invested in the Permian region and 15 percent in the Mid-Continent.
During 2019, Cimarex participated in the drilling and completion of 291 gross (92 net) wells. At year-end, 95 gross (32 net) wells were waiting on completion, of which 45 gross (1 net) were in the Mid-Continent and 50 gross (31 net) were in the Permian. Cimarex currently operates ten drilling rigs.
WELLS BROUGHT ON PRODUCTION BY REGION
Three Months Ended Twelve Months Ended
December 31, December 31,
2019 2018 2019 2018
Gross wells
Permian Basin 31 40 131 129
Mid-Continent 16 46 160 220
47 86 291 349
Net wells
Permian Basin 22 32 76 80
Mid-Continent 1 6 16 42
23 38 92 122
Permian Region
Production from the Permian region averaged 207.1 MBOE per day in the fourth quarter, or 71 percent of total company volumes. Oil volumes averaged 78.4 MBbls per day, 85 percent of total company oil volumes. For the full year, production averaged 190.7 MBOE per day, 68 percent of total company volumes with Permian oil representing 84 percent of Cimarex's oil volumes in 2019.
Cimarex brought 31 gross (22 net) wells on production in the Permian during fourth quarter, bringing the total wells on production in 2019 to 131 gross (76 net). About 86 percent of our operated wells were drilled from multi-well pads and our average lateral length on our operated wells brought on production in the Permian was 9,529 feet in 2019. Cimarex currently operates ten rigs and two completion crews in the region.
Mid-Continent Region
Production from the Mid-Continent averaged 85.3 MBOE per day for the fourth quarter, down 18 percent from fourth quarter 2018 and down three percent sequentially. Oil volumes averaged 13.5 MBbls per day and represented 15 percent of the company's total oil volume in the quarter. For the full year, production averaged 87.3 MBOE per day, down eight percent year over year. Oil volumes averaged 13.8 MBbls per day in 2019, down nine percent year over year.
Wells brought on production during the fourth quarter totaled 16 gross (1 net) in the Mid-Continent region, bringing the total wells in 2019 to 160 gross (16 net). At the end of the quarter, 45 gross (1 net) wells were waiting on completion.
Activity in the region continues to focus on the Woodford and Meramec shale plays in western Oklahoma.
Production by Region
Cimarex's average daily production and commodity price by region is summarized below:
DAILY PRODUCTION BY REGION
Three Months Ended Twelve Months Ended
December 31, December 31,
2019 2018 2019 2018
Permian Basin
Gas (MMcf) 451.4 296.4 398.9 253.7
Oil (Bbls) 78,421 61,621 72,264 52,339
NGL (Bbls) 53,438 36,380 51,982 31,505
Total Equivalent
(BOE) 207,096 147,404 190,735 126,124
Mid-Continent
Gas (MMcf) 280.1 324.2 289.1 308.8
Oil (Bbls) 13,514 18,122 13,788 15,150
NGL (Bbls) 25,081 31,275 25,379 28,697
Total Equivalent
(BOE) 85,282 103,432 87,348 95,307
Total Company
Gas (MMcf) 732.6 621.9 689.2 563.9
Oil (Bbls) 92,048 79,904 86,200 67,699
NGL (Bbls) 78,557 67,706 77,408 60,258
Total Equivalent
(BOE) 292,709 251,254 278,480 221,946
AVERAGE REALIZED PRICE BY REGION
Three Months Ended Twelve Months Ended
December 31, December 31,
2019 2018 2019 2018
Permian
Basin
Gas
($
per
Mcf) 0.83 1.44 0.49 1.69
Oil
($
per
Bbl) 54.78 47.17 52.55 54.95
NGL
($
per
Bbl) 13.23 20.13 12.62 22.84
Mid-
Continent
Gas
($
per
Mcf) 1.76 2.82 1.95 2.23
Oil
($
per
Bbl) 54.91 56.48 53.89 62.31
NGL
($
per
Bbl) 16.04 21.38 15.47 21.67
Total
Company
Gas
($
per
Mcf) 1.19 2.16 1.11 1.99
Oil
($
per
Bbl) 54.80 49.30 52.77 56.61
NGL
($
per
Bbl) 14.13 20.71 13.55 22.28
Other
The following table summarizes Cimarex's current hedge positions:
1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
Gas Collars:
PEPL
(3)
Volume (MMBtu/d) 90,000 60,000 30,000 30,000 10,000
Wtd Avg Floor $
1.92 $
1.90 $
1.85 $
1.85 $
1.85
$
Wtd Avg Ceiling $
2.36 $
2.28 $
2.31 $
2.31 $
2.31
$
El Paso Perm
(3)
Volume (MMBtu/d) 40,000 30,000 20,000 20,000
Wtd Avg Floor $
1.40 $
1.40 $
1.35 $
1.35
$
$
Wtd Avg Ceiling $
1.79 $
1.82 $
1.66 $
1.66
$
$
Waha (3)
Volume (MMBtu/d) 50,000 30,000
Wtd Avg Floor $
1.50 $
1.57
$
$
$
$
Wtd Avg Ceiling $
1.87 $
1.97
$
$
$
$
Oil Collars:
WTI
(4)
Volume (Bbl/d) 39,000 31,000 23,000 23,000 15,000 5,000
Wtd Avg Floor $
52.40 $
50.43 $
49.80 $
49.80 $
49.70 $
50.00
Wtd Avg Ceiling $
64.48 $
61.55 $
60.59 $
60.59 $
59.41 $
60.14
Oil Basis Swaps:
WTI Midland
(5)
Volume (Bbl/d) 32,297 26,000 19,000 19,000 11,000 5,000
Weighted Avg Differential $
0.33 $
0.44 $
0.75 $
0.75 $
0.77 $
1.02
Conference call and webcast
Cimarex will host a conference call tomorrow, February 20, at 11:00 a.m. EST (9:00 a.m. MST) to discuss its fourth quarter and 2019 financial and operating results as well as management's outlook for 2020. 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 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.
Forward-Looking Statements
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 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 description 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; our ability to successfully integrate the March 2019 acquisition of Resolute Energy Corporation; 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; 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; 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, adjusted cash flow from operations and free cash flow 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 (loss) income as reported under generally accepted accounting principles (GAAP) to adjusted net income (non-GAAP) for the periods indicated.
Three Months Ended Twelve Months Ended
December 31,
December 31,
2019 2018 2019 2018
(in thousands, except per share data)
Net (loss) income $
(384,091) $
316,182 $
(124,619) $
791,851
Impairment of oil and gas
properties (1) 618,693 618,693
Mark-to-market loss
(gain) on open derivative
positions 28,888 (161,516) 63,719 (110,388)
Loss on early
extinguishment of debt 4,250
Acquisition related costs 3,007 8,404 3,007
Tax impact (143,115) 34,397 (121,637) 24,268
Adjusted net income $
120,375 $
192,070 $
448,810 $
708,738
Diluted earnings (loss) per
share $
(3.87) $
3.32 $
(1.33) $
8.32
Adjusted diluted earnings
per share* $
1.18 $
2.01 $
4.46 $
7.42
Weighted-average number of
shares outstanding:
Adjusted diluted** 101,903 95,675 100,679 95,523
(1) Cimarex reported an
impairment of oil
and gas properties
of $108.9 million in
the third quarter
2019; however, no
impairment should
have been recorded
in the third
quarter. As such,
that impairment was
reversed and is now
included in the
impairment of oil
and gas properties
of $618.7 million
recorded in the
fourth quarter 2019.
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, FREE CASH FLOW AND
FREE CASH FLOW AFTER DIVIDEND
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) , free cash flow (non-GAAP) and free cash flow after dividend (non-GAAP) for the periods indicated.
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2019 2018 2019 2018
(in thousands)
Net cash provided by
operating activities $
359,809 $
393,181 $
1,343,966 $
1,550,994
Change in operating
assets and
liabilities 56,178 34,971 120,174 (17,415)
Adjusted cash flow
from operations $
415,987 $
428,152 $
1,464,140 $
1,533,579
Oil and gas
expenditures $
(249,417) $
(415,099) $
(1,249,797) $
(1,566,583)
Other capital
expenditures (14,658) (28,422) (73,693) (103,459)
Free cash flow 151,912 (15,369) 140,650 (136,463)
Dividends paid (21,579) (17,205) (81,709) (55,243)
Free cash flow after
dividend $
130,333 $
(32,574) $
58,941 $
(191,706)
Management uses the non-GAAP financial measures of adjusted cash flow from operations, free cash flow and free cash flow aver dividend as 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 these non-GAAP financial measures provide useful information to investors for the same reason, and that they are 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
(MMcf) (MBbls) (MBbls) (
MBOE)
December 31, 2018 1,591,321 146,538 179,436 591,195
Revisions of
previous
estimates (180,632) (8,516) (12,038) (50,661)
Extensions and
discoveries 247,406 41,193 36,834 119,261
Purchases of
reserves 129,435 22,628 18,818 63,019
Production (251,567) (31,463) (28,254) (101,645)
Sales of reserves (3,818) (610) (328) (1,574)
December 31, 2019 1,532,145 169,770 194,468 619,595
Proved developed
reserves:
December 31, 2018 1,398,729 116,339 151,566 501,027
December 31, 2019 1,358,329 138,783 166,552 531,722
2019 2018 % Change
Standardized
Measure ($ in %
millions) 3,629 4,015 (10)
Pre-tax PV-10 ($ 3,948 4,739 (17)
in millions) * %
Average prices
used in
Standardized
Measure 2019 2018 % Change
Gas ($ per Mcf) 2.58 3.10 (17)
%
Oil ($ per Bbl) 55.67 65.56 (15)
%
NGL ($ per Bbl) 13.27 21.03 (37)
%
* 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, 2019 and 2018, Cimarex's discounted future income taxes were $319.4 million and $724.0 million, respectively. Cimarex's standardized measure of discounted future net cash flows was $3,629.0 million at year-end 2019 and $4,015.2 million at year-end 2018. 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
(MMcf) (MBbls) (MBbls) (MBOE)
Permian Basin 870,208 147,662 130,007 422,703
Mid-Continent 660,161 21,848 64,377 196,252
Other 1,776 260 84 640
1,532,145 169,770 194,468 619,595
OIL AND GAS CAPITALIZED EXPENDITURES
Three Months Ended Twelve Months Ended
December 31, December 31,
2019 2018 2019 2018
(in thousands)
Acquisitions:
Proved $
(723)
$ $
695,450 $
62
Unproved 3,908 13,965 1,025,376 26,216
3,185 13,965 1,720,826 26,278
Exploration and
development:
Land and seismic 17,719 6,764 60,175 82,791
Exploration and
development 234,603 373,555 1,181,605 1,487,453
252,322 380,319 1,241,780 1,570,244
Property sales
including purchase
price adjustments 1,829 (7,285) (35,320) (581,799)
$
257,336 $
386,999 $
2,927,286 $
1,014,723
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2019 2018 2019 2018
(in thousands, except per share information)
Revenues:
Oil sales $
464,044 $
362,411 $
1,660,210 $
1,398,813
Gas and NGL sales 182,269 252,825 661,711 898,832
Gas gathering and other 10,931 8,885 41,048 41,372
657,244 624,121 2,362,969 2,339,017
Costs and expenses:
Impairment of oil and gas
properties 618,693 618,693
Depreciation, depletion,
amortization, and accretion 252,637 180,060 890,759 597,615
Production 82,722 67,271 339,941 296,189
Transportation, processing,
and other operating 64,780 55,535 238,259 211,463
Gas gathering and other 6,279 9,738 23,294 28,327
Taxes other than income 43,353 38,620 148,953 125,169
General and administrative 26,349 13,635 95,843 77,843
Stock compensation 6,394 6,633 26,398 22,895
Loss (gain) on derivative
instruments, net 40,901 (157,505) 76,850 (85,959)
Other operating expense, net 248 3,037 19,305 18,507
1,142,356 217,024 2,478,295 1,292,049
Operating (loss) income (485,112) 407,097 (115,326) 1,046,968
Other (income) and expense:
Interest expense 23,721 17,387 93,386 68,224
Capitalized interest (14,421) (5,738) (56,232) (20,855)
Loss on early extinguishment
of debt 4,250
Other, net (1,193) (8,192) (5,741) (22,908)
(Loss) income before income
tax (493,219) 403,640 (150,989) 1,022,507
Income tax (benefit) expense (109,128) 87,458 (26,370) 230,656
Net (loss) income $
(384,091) $
316,182 $
(124,619) $
791,851
Earnings (loss) per share to
common stockholders:
Basic $
(3.87) $
3.32 $
(1.33) $
8.32
Diluted $
(3.87) $
3.32 $
(1.33) $
8.32
Dividends declared per common
share $
0.20 $
0.18 $
0.80 $
0.68
Weighted-average number of
shares outstanding:
Basic 99,789 93,897 98,789 93,793
Diluted 99,789 93,915 98,789 93,820
Comprehensive income (loss):
Net (loss) income $
(384,091) $
316,182 $
(124,619) $
791,851
Other comprehensive income
(loss):
Change in fair value of
investments, net of tax (10) (1,985) (755) (1,444)
Total comprehensive income
(loss) $
(384,101) $
314,197 $
(125,374) $
790,407
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2019 2018 2019 2018
(in thousands)
Cash flows from operating activities:
Net (loss) income $
(384,091) $
316,182 $
(124,619) $
791,851
Adjustments to reconcile net (loss)
income to net cash
provided by operating activities:
Impairment of oil and gas properties 618,693 618,693
Depreciation, depletion,
amortization, and accretion 252,637 180,060 890,759 597,615
Deferred income taxes (109,660) 90,465 (26,902) 233,280
Stock compensation 6,394 6,633 26,398 22,895
Loss (gain) on derivative
instruments, net 40,901 (157,505) 76,850 (85,959)
Settlements on derivative instruments (12,013) (4,011) (13,131) (24,429)
Loss on early extinguishment of debt 4,250
Changes in non-current assets and
liabilities (167) (535) (2,797) (1,779)
Other, net 3,293 (3,137) 14,639 105
Changes in operating assets and
liabilities:
Accounts receivable (15,055) 17,193 65,128 5,421
Other current assets (2,879) (6,378) (739) (1,957)
Accounts payable and other current
liabilities (38,244) (45,786) (184,563) 13,951
Net cash provided by operating
activities 359,809 393,181 1,343,966 1,550,994
Cash flows from investing activities:
Oil and gas capital expenditures (249,417) (415,099) (1,249,797) (1,566,583)
Acquisition of Resolute Energy, net
of cash acquired (284,441)
Sales of oil and gas assets 398 7,285 28,945 580,652
Sales of other assets 245 2,782 1,104 3,772
Other capital expenditures (14,658) (28,422) (73,693) (103,459)
Net cash used by investing activities (263,432) (433,454) (1,577,882) (1,085,618)
Cash flows from financing activities:
Borrowings of long-term debt 380,000 2,619,310
Repayments of long-term debt (380,000) (2,990,000)
Financing, underwriting, and debt
redemption fees (100) (11,798) (100)
Finance lease payments (1,138) (3,869)
Dividends paid (21,579) (17,205) (81,709) (55,243)
Employee withholding taxes paid upon
the net settlement of equity-
classified stock awards (2,823) (5,732) (5,229) (12,142)
Proceeds from exercise of stock
options 30 1,267 2,241
Net cash used by financing activities (25,540) (23,007) (472,028) (65,244)
Net change in cash and cash
equivalents 70,837 (63,280) (705,944) 400,132
Cash and cash equivalents at
beginning of period 23,885 863,946 800,666 400,534
Cash and cash equivalents at end of
period $
94,722 $
800,666 $
94,722 $
800,666
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
December 31, 2019 December 31, 2018
Assets (in thousands, except share and per share
information)
Current assets:
Cash and cash equivalents $
94,722 $
800,666
Accounts receivable, net of
allowance 448,584 454,200
Oil and gas well equipment and
supplies 47,893 55,553
Derivative instruments 17,944 101,939
Other current assets 12,343 11,781
Total current assets 621,486 1,424,139
Oil and gas properties at
cost, using the full cost
method of accounting:
Proved properties 20,678,334 18,566,757
Unproved properties and
properties under development,
not being amortized 1,255,908 436,325
21,934,242 19,003,082
Less - accumulated
depreciation, depletion,
amortization, and impairment (16,723,544) (15,287,752)
Net oil and gas properties 5,210,698 3,715,330
Fixed assets, net of
accumulated depreciation of
$389,458 and $324,631,
respectively 519,291 257,686
Goodwill 716,865 620,232
Derivative instruments 580 9,246
Other assets 71,109 35,451
$
7,140,029 $
6,062,084
Liabilities, Redeemable
Preferred Stock, and
Stockholders' Equity
Current liabilities:
Accounts payable $
49,020 $
106,814
Accrued liabilities 418,978 379,455
Derivative instruments 16,681 27,627
Revenue payable 207,939 194,811
Operating leases 66,003
Total current liabilities 758,621 708,707
Long-term debt:
Principal 2,000,000 1,500,000
Less - unamortized debt
issuance costs and discounts (14,754) (11,446)
Long-term debt, net 1,985,246 1,488,554
Deferred income taxes 338,424 334,473
Derivative instruments 1,018 2,267
Operating leases 184,172
Other liabilities 214,787 198,297
Total liabilities 3,482,268 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, 102,144,577 and
95,755,797 shares issued,
respectively 1,021 958
Additional paid-in capital 3,243,325 2,785,188
Retained earnings 331,795 542,885
Accumulated other
comprehensive income 755
Total stockholders' equity 3,576,141 3,329,786
$
7,140,029 $
6,062,084
View original content:http://www.prnewswire.com/news-releases/cimarex-reports-fourth-quarter-and-full-year-2019-results-301007860.html
SOURCE Cimarex Energy Co.
