DENVER, Feb. 16, 2011 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today reported fourth-quarter 2010 net income of $117.6 million, or $1.37 per diluted share. This compares to fourth-quarter 2009 earnings of $104.6 million, or $1.23 per diluted share.
Fourth-quarter 2010 net income includes an unrealized non-cash loss on derivative instruments associated with 2011 oil hedges of $17.9 million after-tax, or $0.21 per share.
Oil, gas and natural gas liquids (NGLs) revenue in the fourth quarter of 2010 totaled $394.7 million, a 26% increase compared to $313.5 million in the same period of 2009. Fourth-quarter 2010 cash flow from operations was $318.3 million versus $186.0 million a year ago(1).
The increase in fourth-quarter 2010 revenues is a result of greater production and higher realized oil prices. Fourth-quarter 2010 production volumes averaged 604.5 million cubic feet equivalent (MMcfe) per day, a 29% increase over fourth-quarter 2009 output of 467.6 MMcfe per day. The increase reflects solid drilling results in western Oklahoma, the Permian Basin and southeast Texas. Fourth-quarter 2010 production volumes were 56% gas, 27% oil and 17% NGLs.
Fourth-quarter 2010 realized oil prices increased 13% to $82.33 per barrel. Gas prices fell 21% to $4.18 per thousand cubic feet (Mcf) as compared to the same period of 2009.
For the year-ended December 31, 2010, net income totaled $574.8 million, or $6.70 per diluted share, as compared to a loss of $311.9 million, or $3.82 per share, for 2009. The 2009 loss was impacted by a $502 million ($6.15 per share) after-tax full-cost ceiling test write-down.
Full-year 2010 cash flow from operations totaled $1.19 billion versus $658.5 million for 2009
(1).
Proved Reserves
Year-end 2010 proved reserves grew 23% to 1.88 trillion cubic feet equivalent (Tcfe), up from 1.53 Tcfe at year-end 2009. Proved reserves are 77% developed for both year-end 2010 and year-end 2009. Reserves added from extensions, discoveries and revisions of previous estimates totaled 560.1 billion cubic feet equivalent (Bcfe), replacing 258% of production. Reserve additions were comprised of 66% oil and natural gas liquids and 34% gas, resulting in proved reserves going from 77% gas at year-end 2009 to 67% at year-end 2010.
Reserves added through extensions and discoveries totaled 411.7 Bcfe. Revisions to previous estimates added 148.4 Bcfe which included 44.8 Bcfe from higher prices. Proved reserves at year-end 2010 include 499 Bcfe in the western Oklahoma, Cana-Woodford shale play, comprised of 297 Bcfe of proved developed and 202 Bcfe of proved undeveloped reserves.
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| Gas | Oil | NGLs(2) | Total | |
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| (Bcf) | (MBbl) | (MBbl) | (Bcfe) | |
Total proved reserves |
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| |
Beginning of year |
| 1,186.6 | 56,764 | 1,253 | 1,534.7 | |
Revisions of previous estimates |
| (24.7) | 3,279 | 25,588 | 148.4 | |
Extensions & discoveries |
| 216.3 | 14,133 | 18,419 | 411.7 | |
Purchase of reserves |
| 12.8 | 104 | 322 | 15.4 | |
Production |
| (132.8) | (9,844) | (4,272) | (217.5) | |
Sales of properties |
| (4.0) | (780) | - | (8.7) | |
End of year |
| 1,254.2 | 63,656 | 41,310 | 1,884.0 | |
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Proved developed reserves |
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Year-end 2009 |
| 865.7 | 52,636 | 1,253 | 1,189.0 | |
Year-end 2010 |
| 911.9 | 60,231 | 31,051 | 1,459.6 | |
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| 2010 | 2009 | % Chg. |
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Pre-tax PV-10 ($ in millions) (3) |
| $3,616.6 | $2,285.9 | 58% |
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Standardized Measure ($ in millions) |
| $2,515.3 | $1,668.0 | 51% |
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Average prices used in Standardized Measure (4) |
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Gas price per Mcf |
| $4.12 | $3.56 | 16% |
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Oil price per barrel |
| $75.35 | $57.58 | 31% |
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NGL price per barrel |
| $33.89 | $28.54 | 19% |
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2011 Outlook
First-quarter 2011 production is projected to range between 582-602 MMcfe/d, which has been negatively impacted by 10-15 MMcfe/d from weather related down time. Full-year 2011 production is projected to be in the range of 615-645 MMcfe/d.
Full-year 2011 exploration and development (E&D) capital investment is expected to be principally funded from cash flow. At the present time, based on current market prices and service costs, we would expect that 2011 capital expenditures may range from $1.2-$1.4 billion. We have a large inventory of drilling opportunities and limited lease expirations.
An approximate break down of the mid-point of our potential 2011 E&D capital investment and actual 2010 by region is provided below.
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($ in millions) | 2011 E&D Estimate |
| 2010 E&D___ | |
Permian | $ 710 | 55% |
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| $ 419 | 42% |
| |
Mid-Continent | 490 | 38% |
|
| 451 | 45% |
| |
Gulf Coast | 95 | 7% |
|
| 116 | 12% |
| |
Western/Other | 5 | 0% |
|
| 13 | 1% |
| |
| $1,300 | 100% |
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| $ 999 | 100% |
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| | | | | | | |
Expenses for 2011 are expected to fall within the following ranges:
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Expenses ($/Mcfe): |
| |
| Production expense | $0.95 - $1.15 | |
| Transportation expense | 0.22 - 0.27 | |
| DD&A and ARO accretion | 1.65 - 1.80 | |
| General and administrative expense | 0.22 - 0.28 | |
| Taxes other than income (% of oil and gas revenue) | 7.5% - 8.5% | |
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Other
Cimarex has oil and natural gas contracts for January through December 2011. The following table summarizes the current commodity hedge position:
Natural Gas Contracts
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| Weighted Average | |
Period |
| Type |
| Volume (5) |
| Index(6) |
| Swap Price | |
Jan 11 – Dec 11 |
| Swap |
| 20,000 |
| PEPL |
|
| $ | 5.05 | |
| |
| | | | | | | | | | |
Oil Contracts
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| Weighted Average Price | |
Period |
| Type |
| Volume (5) |
| Index(6) |
| Floor |
| Ceiling | |
Jan 11 – Dec 11 |
| Collar |
| 12,000 |
| WTI |
| $ | 65.00 |
| $ | 105.44 | |
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Cimarex accounts for these commodity contracts using the mark-to-market (through income) accounting method. Fourth-quarter 2010 net cash settlements, or realized gain, for natural gas and oil hedge contracts were $20.8 million, which was offset by $29.1 million of non-cash unrealized mark-to-market losses, for a net loss of $8.2 million.
Long-term debt at December 31, 2010 was $350 million. Debt to total capitalization ratio at quarter-end was 12% (7).
Exploration and Development Activity
Cimarex's drilling activities are conducted within three main areas: Permian Basin, Mid-Continent and Gulf Coast. Permian activity is currently primarily directed to the Delaware Basin of southeast New Mexico and West Texas. Majority of Mid-Continent drilling is in the western Oklahoma Cana-Woodford shale and Texas Panhandle Granite Wash. Gulf Coast operations are currently focused in southeast Texas, near Beaumont.
Cimarex drilled and completed 219 gross (129 net) wells during 2010, investing $999 million on E&D. Of total expenditures, 45% were invested in projects located in the Mid-Continent area; 42% in the Permian Basin; and 12% in the Gulf Coast.
Wells Drilled and Completed by Region | |
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| Fourth Quarter | Year Ended | |
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| 2010 | 2009 | 2010 | 2009 | |
Gross wells |
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Permian Basin |
| 31 | 22 | 92 | 49 | |
Mid-Continent |
| 34 | 11 | 114 | 51 | |
Gulf Coast |
| 1 | 5 | 11 | 9 | |
Other |
| 1 | - | 2 | 1 | |
|
| 67 | 38 | 219 | 110 | |
Net wells |
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Permian Basin |
| 27 | 9 | 74 | 36 | |
Mid-Continent |
| 9 | 7 | 44 | 22 | |
Gulf Coast |
| 1 | 4 | 10 | 8 | |
Other |
| - | - | 1 | 1 | |
|
| 37 | 20 | 129 | 67 | |
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% Gross wells completed as producers |
| 99% | 95% | 95% | 93% | |
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At year-end 24 net wells were drilled and awaiting completion: 13 Mid-Continent, ten Permian Basin and one Gulf Coast. Cimarex currently has 23 operated rigs running; 12 in the Permian Basin, ten in the Mid-Continent, and one in southeast Texas Gulf Coast.
Permian Basin
Drilling principally occurred in the Delaware Basin of Texas and southeast New Mexico, mainly targeting Bone Spring, Abo and Paddock formations.
Recent notable horizontal Bone Spring wells brought on production (30-day gross average) this quarter include the Howard 33-22 3H (100% working interest) at 980 barrels equivalent per day (Boe/d), Crescent Hale 1 Fed 1H (100% working interest) at 940 Boe/d, Fields 33-27 1H (100% working interest) at 820 Boe/d and the Mallon 34 Fed 18H (84% working interest) at 670 Boe/d.
Cimarex is also evaluating multiple shale intervals in the Delaware Basin including the Wolfcamp, Avalon and Cisco/Canyon. In southern Eddy County New Mexico and Culberson County Texas, Cimarex has drilled seven horizontal Wolfcamp shale wells. Thirty-day average initial production on these wells averaged 6.3 MMcfe/d, comprised of 3.1 MMcf/d of gas, 188 barrels per day of oil and 340 barrels per day of NGLs. The wells had an average lateral length of 3,800'. Cimarex's working interest in this area is generally greater than 75% with a completed well cost of $6.5-$7.0 million gross.
Mid-Continent
The majority of Cimarex's drilling occurred in the western Oklahoma Anadarko Basin, Cana-Woodford shale play and the Texas Panhandle Granite Wash.
In the western Oklahoma, Cana-Woodford shale play, Cimarex drilled and completed 86 gross (32.8 net) wells during 2010. At year-end 26 gross (10.2 net) wells were being completed or awaiting completion in this area.
Since Cana-Woodford drilling began in late 2007, Cimarex has participated in 189 gross (70.8 net) wells. Of total wells, 143 gross (55 net) were on production at year-end and the remainder were either drilling or awaiting completion. Fourth-quarter 2010 net Cana-Woodford production averaged 99.5 MMcfe/d (61% gas) versus the fourth-quarter 2009 average of 33 MMcfe/d.
Texas Panhandle drilling for 2010 totaled 14 gross (7.4 net) wells: 12 Granite Wash and two Morrow.
Gulf Coast
Gulf Coast drilling for 2010 was primarily near Beaumont in Jefferson County, Texas, where ten gross (9.3 net) Yegua/Cook Mountain wells were drilled. The wells drilled were highly productive generating strong return on investment. One rig is currently drilling near Beaumont.
Production by Region
Cimarex's average daily production by commodity and region is summarized below:
Production by region | |
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| Fourth Quarter | Year Ended | |
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| 2010 | 2009 | 2010 | 2009 | |
Gas (MMcf/d) |
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| |
Permian Basin |
| 72.0 | 72.0 | 71.5 | 78.9 | |
Mid-Continent |
| 195.8 | 178.8 | 194.1 | 187.8 | |
Gulf Coast |
| 72.4 | 77.7 | 97.3 | 54.2 | |
Other |
| 1.3 | 1.5 | 1.0 | 2.3 | |
|
| 341.5 | 330.0 | 363.9 | 323.2 | |
NGLs (Mb/d) |
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Permian Basin |
| 2.9 | 0.1 | 1.7 | 0.2 | |
Mid-Continent |
| 7.6 | 0.3 | 5.5 | 0.3 | |
Gulf Coast |
| 6.2 | 0.2 | 4.5 | 0.1 | |
Other |
| - | - | - | - | |
|
| 16.7 | 0.6 | 11.7 | 0.6 | |
Oil (Mb/d) |
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| |
Permian Basin |
| 15.4 | 11.9 | 14.0 | 13.6 | |
Mid-Continent |
| 4.9 | 4.2 | 4.7 | 4.8 | |
Gulf Coast |
| 6.8 | 6.2 | 8.3 | 4.2 | |
Other |
| - | - | - | 0.1 | |
|
| 27.1 | 22.3 | 27.0 | 22.7 | |
Total Equivalent (MMcfe/d) |
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| |
Permian Basin |
| 182.2 | 144.2 | 165.4 | 161.4 | |
Mid-Continent |
| 271.0 | 205.7 | 255.4 | 218.5 | |
Gulf Coast |
| 150.0 | 116.2 | 174.1 | 80.2 | |
Other |
| 1.3 | 1.5 | 1.0 | 2.8 | |
|
| 604.5 | 467.6 | 595.9 | 462.9 | |
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Conference call and web cast
Cimarex will also host a conference call today at 11:00 a.m. Mountain Time (1:00 p.m. Eastern Time). To access the live, interactive call, please dial (877) 789-9039 and reference call ID # 37309431 ten minutes before the scheduled start time. A digital replay will be available for one week following the live broadcast at (800) 642-1687 and by using the conference ID #37309431. The listen-only web cast of the call will be accessible via www.cimarex.com.
Investor Presentation
For more details on Cimarex's full-year 2010 financial and operating results, please refer to the year-end investor presentation available at www.cimarex.com on the Investor Relations-Presentation page.
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, Permian Basin and Gulf Coast areas of the U.S.
This communication contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are more fully described in SEC reports filed by Cimarex. While Cimarex makes these forward-looking statements in good faith, management cannot guarantee that anticipated future results will be achieved. Cimarex assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law.
- Cash flow from operations is a non-GAAP financial measure. See below for a reconciliation of the related amounts.
- Beginning in 2010, Cimarex began separately reporting NGL volumes. The determination of whether to record NGL volumes is based on where title transfer occurs. Ongoing contractual amendments together with increased gas production volumes with high NGL content have contributed to higher estimated NGL reserves.
- Pre-tax PV-10% is a financial measure that is not calculated in accordance with generally accepted accounting principles, or GAAP, as defined by the SEC. 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, 2010 and 2009, Cimarex's discounted future income taxes were $1,101.3 million and $617.9 million, respectively. Cimarex's standardized measure of discounted future net cash flows was $2,515.3 million at year-end 2010 and $1,668 million at year-end 2009. Cimarex believes pre-tax PV-10% is a useful measure for investors for evaluating the relative monetary significance of its oil and natural gas properties. Cimarex further believes investors may utilize its pre-tax PV-10% as a basis for comparison of the relative size and value of its reserves to other companies because many factors that are unique to each individual company impact the amount of future income taxes to be paid. 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.
- Year end 2010 reserve estimates are based on trailing 12-month average prices of $4.38 per MMBtu of natural gas (Henry Hub) and $79.43 per barrel of oil (WTI).
- Gas volume in MMBtu per day and oil volume in barrels per day.
- PEPL refers to Panhandle Eastern Pipe Line, Tex/Ok Mid-Continent index as quoted in Platt's Inside FERC. WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange.
- Reconciliation of debt to total capitalization, which is a non-GAAP measure, is: long-term debt of $350 million divided by long-term debt of $350 million plus stockholders' equity of $2,609.8 million.
RECONCILIATION OF CASH FLOW FROM OPERATIONS | |
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| For the Three Months Ended |
| For the Twelve Months Ended | |
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| December 31, |
| December 31, | |
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| 2010 |
| 2009 |
| 2010 |
| 2009 | |
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| (in thousands) | |
Net cash provided by operating activities | $ | 243,764 | $ | 209,531 | $ | 1,130,432 | $ | 675,177 | |
| Change in operating assets |
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| and liabilities |
| 74,486 |
| (23,484) |
| 57,699 |
| (16,696) | |
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Cash flow from operations | $ | 318,250 | $ | 186,047 | $ | 1,188,131 | $ | 658,481 | |
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Management believes that the non-GAAP measure of cash flow from operations is useful information for investors because it is used internally and is accepted by the investment community as a means of measuring the company's ability to fund its capital program. It is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry. | |
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PRICE AND PRODUCTION DATA* | |
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| For the Three Months Ended |
| For the Twelve Months Ended | |
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| December 31, |
| December 31, | |
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| 2010 |
| 2009 |
| 2010 |
| 2009 | |
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| Total gas production - Mcf |
| 31,418,250 |
| 30,363,066 |
| 132,813,364 |
| 117,967,685 | |
| Gas volume - Mcf per day |
| 341,503 |
| 330,033 |
| 363,872 |
| 323,199 | |
| Gas price - per Mcf |
| $4.18 |
| $5.30 |
| $4.92 |
| $4.12 | |
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| Total oil production - barrels |
| 2,496,635 |
| 2,052,410 |
| 9,843,743 |
| 8,278,455 | |
| Oil volume - barrels per day |
| 27,137 |
| 22,309 |
| 26,969 |
| 22,681 | |
| Oil price - per barrel |
| $82.33 |
| $72.93 |
| $76.76 |
| $56.63 | |
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| Total NGL production - barrels |
| 1,536,558 |
| 57,631 |
| 4,272,381 |
| 219,922 | |
| NGL volume - barrels per day |
| 16,702 |
| 626 |
| 11,705 |
| 603 | |
| NGL price - per barrel |
| $37.59 |
| $48.57 |
| $34.91 |
| $37.11 | |
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* Increases in our 2010 production volumes primarily reflect positive drilling results in our western Oklahoma Cana-Woodford shale play, our Permian Basin oil programs and our Yegua/Cook Mountain play in southeast Texas. A portion of the changes also result from contractual terms whereby NGL volumes are recorded based on where title transfer occurs. As a consequence, reported gas and NGL volumes and prices between periods may not be comparable. | |
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PROVED RESERVES BY REGION | |
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| Gas |
| Oil |
| NGL |
| Total | |
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| (Bcf) |
| (MBbls) |
| (MBbls) |
| (Bcfe) | |
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Mid-Continent |
| 756.2 |
| 13,255 |
| 32,183 |
| 1,028.9 | |
Permian Basin |
| 238.5 |
| 47,103 |
| 6,677 |
| 561.2 | |
Gulf Coast |
| 48.8 |
| 3,262 |
| 2,450 |
| 83.1 | |
Wyoming/Other |
| 210.7 |
| 36 |
| - |
| 210.8 | |
|
| 1,254.2 |
| 63,656 |
| 41,310 |
| 1,884.0 | |
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OIL AND GAS CAPITALIZED EXPENDITURES | |
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| For the Three Months Ended |
| For the Twelve Months Ended | |
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| December 31, |
| December 31, | |
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| 2010 |
| 2009 |
| 2010 |
| 2009 | |
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| (in thousands) | |
| Acquisitions: |
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| Proved | $ | 1,415 | $ | 13,056 | $ | 15,220 | $ | 13,530 | |
| Unproved* |
| 3,055 |
| 400 |
| 24,552 |
| (9,915) | |
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| 4,470 |
| 13,456 |
| 39,772 |
| 3,615 | |
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| Exploration and development: |
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| Land and Seismic |
| 16,207 |
| 14,394 |
| 128,283 |
| 48,466 | |
| Exploration and development |
| 257,264 |
| 143,116 |
| 870,651 |
| 475,960 | |
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| 273,471 |
| 157,510 |
| 998,934 |
| 524,426 | |
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| Sale proceeds: |
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| Proved* |
| 38 |
| (80,078) |
| (24,016) |
| (105,349) | |
| Unproved |
| (302) |
| (1,025) |
| (4,219) |
| (4,059) | |
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| (264) |
| (81,103) |
| (28,235) |
| (109,408) | |
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| $ | 277,677 | $ | 89,863 | $ | 1,010,471 | $ | 418,633 | |
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* The negative amount in 2009 unproved acquisitions reflects purchase price adjustments related to an acreage acquisition in the fourth quarter of 2008. The positive amount in the fourth-quarter 2010 proved sales proceeds reflects purchase price adjustments related to a disposition in the second quarter of 2010. | |
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CONDENSED STATEMENTS OF OPERATIONS (unaudited) | |
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| For the Three Months Ended |
| For the Twelve Months Ended | |
| December 31, |
| December 31, | |
| 2010 |
| 2009 |
| 2010 |
| 2009 | |
| (In thousands, except per share data) | |
Revenues: |
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| Gas sales | $ | 131,385 | $ | 161,010 | $ | 653,793 | $ | 485,448 | |
| Oil sales |
| 205,560 |
| 149,689 |
| 755,618 |
| 468,833 | |
| NGL sales |
| 57,760 |
| 2,799 |
| 149,151 |
| 8,162 | |
| Gas gathering, processing and other, net |
| 13,324 |
| 15,298 |
| 55,121 |
| 47,351 | |
|
| 408,029 |
| 328,796 |
| 1,613,683 |
| 1,009,794 | |
Costs and expenses: |
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| Impairment of oil and gas properties |
| — |
| — |
| — |
| 791,137 | |
| Depreciation, depletion, amortization and accretion |
| 84,497 |
| 63,556 |
| 311,544 |
| 278,012 | |
| Production |
| 54,666 |
| 39,088 |
| 194,015 |
| 178,215 | |
| Transportation |
| 14,892 |
| 8,525 |
| 49,968 |
| 33,758 | |
| Gas gathering and processing |
| 4,980 |
| 6,213 |
| 22,162 |
| 20,560 | |
| Taxes other than income |
| 32,919 |
| 25,109 |
| 121,781 |
| 75,634 | |
| General and administrative |
| 12,484 |
| 11,921 |
| 48,620 |
| 41,724 | |
| Stock compensation, net |
| 3,341 |
| 2,423 |
| 12,353 |
| 9,254 | |
| (Gain) loss on derivative instruments, net |
| 8,218 |
| (4,554) |
| (62,696) |
| 13,059 | |
| Other operating, net |
| 2,254 |
| 5,169 |
| 4,575 |
| 24,263 | |
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|
| 218,251 |
| 157,450 |
| 702,322 |
| 1,465,616 | |
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Operating income (loss) |
| 189,778 |
| 171,346 |
| 911,361 |
| (455,822) | |
|
|
|
|
|
|
|
|
|
| |
Other (income) and expense: |
|
|
|
|
|
|
|
| |
| Interest expense |
| 7,283 |
| 7,913 |
| 29,764 |
| 34,590 | |
| Amortization of deferred financing costs |
| 1,708 |
| 1,720 |
| 6,849 |
| 5,187 | |
| Capitalized interest |
| (7,247) |
| (7,178) |
| (29,215) |
| (23,408) | |
| Gain on early extinguishment of debt |
| — |
| — |
| (3,776) |
| — | |
| Other, net |
| (3,202) |
| 4,663 |
| (5,992) |
| 16,290 | |
|
|
|
|
|
|
|
|
| |
Income (loss) before income tax |
| 191,236 |
| 164,228 |
| 913,731 |
| (488,481) | |
Income tax expense (benefit) |
| 73,651 |
| 59,583 |
| 338,949 |
| (176,538) | |
Net income (loss) | $ | 117,585 | $ | 104,645 | $ | 574,782 | $ | (311,943) | |
|
|
|
|
|
|
|
|
| |
Earnings (loss) per share to common stockholders: |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
| Basic | $ | 1.38 | $ | 1.24 | $ | 6.74 | $ | (3.82) | |
| Diluted | $ | 1.37 | $ | 1.23 | $ | 6.70 | $ | (3.82) | |
|
|
|
|
|
|
|
|
| |
Dividends per share | $ | 0.08 | $ | 0.06 | $ | 0.32 | $ | 0.24 | |
|
|
|
|
|
|
|
|
| |
Shares attributable to common stockholders: |
|
|
|
|
|
|
|
| |
| Unrestricted common shares outstanding |
| 83,335 |
| 81,815 |
| 83,335 |
| 81,815 | |
| Diluted common shares |
| 83,758 |
| 82,562 |
| 83,787 |
| 81,815 | |
|
|
|
|
|
|
|
|
| |
Shares attributable to common stockholders and participating securities: |
|
|
|
|
|
|
|
| |
| Basic shares outstanding |
| 85,330 |
| 84,192 |
| 85,330 |
| 84,192 | |
| Fully diluted shares |
| 85,752 |
| 84,939 |
| 85,782 |
| 84,192 | |
| | | | | | | | | |
CONDENSED CASH FLOW STATEMENTS (unaudited) | |
|
|
|
|
|
|
|
|
| |
| For the Three Months Ended | For the Twelve Months Ended | |
| December 31, | December 31, | |
|
| 2010 |
| 2009 |
| 2010 |
| 2009 | |
| (In thousands) | |
Cash flows from operating activities: |
|
|
|
|
|
|
|
| |
| Net income (loss) | $ | 117,585 | $ | 104,645 | $ | 574,782 | $ | (311,943) | |
| Adjustment to reconcile net income (loss) to net cash |
|
|
|
|
|
|
|
| |
|
| provided by operating activities: |
|
|
|
|
|
|
|
| |
|
|
| Impairments and other valuation losses |
| — |
| 1,224 |
| — |
| 806,039 | |
|
|
| Depreciation, depletion, amortization and accretion |
| 84,497 |
| 63,556 |
| 311,544 |
| 278,012 | |
|
|
| Deferred income taxes |
| 78,934 |
| 55,832 |
| 292,612 |
| (164,760) | |
|
|
| Stock compensation, net |
| 3,341 |
| 2,423 |
| 12,353 |
| 9,254 | |
|
|
| Derivative instruments, net |
| 29,058 |
| (6,704) |
| (10,598) |
| 14,453 | |
|
|
| Changes in non-current assets and liabilities |
| 2,265 |
| (39,725) |
| 12,772 |
| 8,948 | |
|
|
| Amortization of deferred financing costs |
|
|
|
|
|
|
|
| |
|
|
|
| and other, net |
| 2,570 |
| 4,796 |
| (5,334) |
| 18,478 | |
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
| |
|
|
| (Increase) decrease in receivables, net |
| (79,022) |
| (54,163) |
| (83,386) |
| 29,881 | |
|
|
| Decrease in other current assets |
| 34,219 |
| 32,490 |
| 34,250 |
| 49,894 | |
|
|
| Increase (decrease) in accounts payable and |
|
|
|
|
|
|
|
| |
|
|
|
| accrued liabilities |
| (29,683) |
| 45,157 |
| (8,563) |
| (63,079) | |
|
|
|
|
| Net cash provided by operating activities |
| 243,764 |
| 209,531 |
| 1,130,432 |
| 675,177 | |
Cash flows from investing activities: |
|
|
|
|
|
|
|
| |
| Oil and gas expenditures |
| (268,215) |
| (145,200) |
| (959,751) |
| (535,308) | |
| Sales of oil and gas and other assets |
| 429 |
| 81,179 |
| 34,075 |
| 119,735 | |
| Sales of short-term investments |
| — |
| — |
| — |
| 3,328 | |
| Other expenditures |
| (12,941) |
| (10,718) |
| (51,882) |
| (31,849) | |
|
|
|
|
| Net cash used in investing activities |
| (280,727) |
| (74,739) |
| (977,558) |
| (444,094) | |
Cash flows from financing activities: |
|
|
|
|
|
|
|
| |
| Net decrease in bank debt |
| — |
| (131,000) |
| (25,000) |
| (195,000) | |
| Decrease in other long-term debt |
| — |
| — |
| (19,450) |
| — | |
| Financing costs incurred |
| — |
| (6) |
| (101) |
| (18,001) | |
| Dividends paid |
|
|
| (6,837) |
| (5,049) |
| (25,499) |
| (20,172) | |
| Issuance of common stock and other |
| 9,830 |
| 845 |
| 28,758 |
| 3,421 | |
|
|
|
|
| Net cash provided by (used in) |
|
|
|
|
|
|
|
| |
|
|
|
|
|
| financing activities |
|
| 2,993 |
| (135,210) |
| (41,292) |
| (229,752) | |
Net change in cash and cash equivalents |
| (33,970) |
| (418) |
| 111,582 |
| 1,331 | |
Cash and cash equivalents at beginning of period |
| 148,096 |
| 2,962 |
| 2,544 |
| 1,213 | |
Cash and cash equivalents at end of period | $ | 114,126 | $ | 2,544 | $ | 114,126 | $ | 2,544 | |
| | | | | | | | | | | | | | | |
CONDENSED BALANCE SHEETS (unaudited) | |
| |
|
| December 31, |
| December 31, | |
Assets |
| 2010 |
| 2009 | |
|
| (In thousands, except share data) | |
Current assets: |
|
|
|
| |
| Cash and cash equivalents | $ | 114,126 | $ | 2,544 | |
| Restricted cash |
| 699 |
| 593 | |
| Receivables, net |
| 310,968 |
| 227,896 | |
| Oil and gas well equipment and supplies |
| 81,871 |
| 145,153 | |
| Deferred income taxes |
| 4,293 |
| 15,837 | |
| Derivative instruments |
| 5,731 |
| 1,238 | |
| Other current assets |
| 44,079 |
| 13,997 | |
|
| Total current assets |
| 561,767 |
| 407,258 | |
Oil and gas properties at cost, using the full cost method of accounting: |
|
|
|
| |
| Proved properties |
| 8,421,768 |
| 7,549,861 | |
| Unproved properties and properties under development, |
|
|
|
| |
|
| not being amortized |
| 547,609 |
| 399,724 | |
|
| 8,969,377 |
| 7,949,585 | |
| Less – accumulated depreciation, depletion and amortization |
| (6,047,019) |
| (5,764,669) | |
|
| Net oil and gas properties |
| 2,922,358 |
| 2,184,916 | |
Fixed assets, net |
| 156,579 |
| 127,237 | |
Goodwill |
| 691,432 |
| 691,432 | |
Other assets, net |
| 26,111 |
| 33,694 | |
| $ | 4,358,247 | $ | 3,444,537 | |
Liabilities and Stockholders’ Equity |
|
|
|
| |
Current liabilities: |
|
|
|
| |
| Accounts payable | $ | 47,242 | $ | 30,214 | |
| Accrued liabilities |
| 320,989 |
| 235,815 | |
| Derivative instruments |
| 9,587 |
| 13,902 | |
| Revenue payable |
| 134,495 |
| 108,832 | |
|
| Total current liabilities |
| 512,313 |
| 388,763 | |
Long-term debt |
| 350,000 |
| 392,793 | |
Deferred income taxes |
| 619,040 |
| 348,897 | |
Other liabilities |
| 267,062 |
| 275,978 | |
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, |
|
|
|
| |
|
| 85,234,721 and 83,541,995 shares issued, respectively |
| 852 |
| 835 | |
| Paid-in capital |
| 1,883,065 |
| 1,859,255 | |
| Retained earnings |
| 725,651 |
| 178,035 | |
| Accumulated other comprehensive income (loss) |
| 264 |
| (19) | |
|
| 2,609,832 |
| 2,038,106 | |
| $ | 4,358,247 | $ | 3,444,537 | |
| | | | | | | |
CONTACT: Mark Burford, Vice President – Capital Markets and Planning of Cimarex Energy Co., +1-303-295-3995
