DENVER, Aug. 2, 2012 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today reported second-quarter 2012 net income of $64.3 million, or $0.74 per diluted share. This compares to second-quarter 2011 earnings of $166.7 million, or $1.94 per diluted share.
Second-quarter 2012 net income includes an unrealized non-cash gain on derivative instruments associated with 2012 oil hedges of $10.1 million ($0.07 per share after-tax) and a loss on early extinguishment of debt of $16.2 million ($0.12 per share after-tax). Second-quarter 2011 results had an unrealized non-cash gain on derivative instruments associated with 2011 oil and gas hedges of $22.5 million, or $0.16 per share after-tax.
Oil, gas and natural gas liquids (NGLs) revenue in the second quarter of 2012 totaled $343.2 million as compared to $452.3 million in the same period of 2011. Second-quarter 2012 adjusted cash flow from operations was $240.5 million versus $343.4 million a year ago(1).
The decrease in second-quarter revenues and cash flow is primarily a result of lower oil, NGL and gas prices. Second-quarter 2012 realized oil prices decreased 12% to $87.81 per barrel, NGL prices fell 36% to $29.02 per barrel and gas prices dropped 49% to $2.42 per thousand cubic feet (Mcf), as compared to a year ago.
Second-quarter 2012 production volumes averaged 590.1 million cubic feet equivalent (MMcfe) per day as compared to second-quarter 2011 output of 585.7 MMcfe per day. Oil production grew 8% to 28,686 barrels per day. Total second-quarter 2012 production volumes were 54% gas, 29% oil and 17% NGLs.
Permian Basin oil production grew 37% to 21,694 barrels per day. Combined Permian and Mid-Continent second-quarter volumes averaged 547.7 MMcfe per day, growing 17% over the same period in 2011. Overall production volumes were impacted by Permian processing plant turnarounds and Cana-Woodford ethane rejection, which together reduced second-quarter production by approximately 17-19 MMcfe/d.
2012 Outlook
Full-year guidance is unchanged, with higher projected oil production from the Permian offsetting Cana-Woodford ethane rejection seen in the second-quarter and further anticipated in third-quarter. Total Company 2012 volumes are projected to average 612-632 MMcfe/d, 3-7% growth over 2011. Permian Basin and Mid-Continent (PB/MC) 2012 production volumes are projected to average 575-590 MMcfe/d, growing 18-21% over 2011. Gulf Coast volumes are expected to average 37-42 MMcfe/d for 2012, or approximately 6% of total estimated company volumes.
Total Company third-quarter 2012 volumes are estimated to average 610-640 MMcfe/d, a 3-8% increase over third-quarter 2011. Third-quarter 2012 PB/MC production is expected to average 580-605 MMcfe/d, an increase of 14-19% over third-quarter 2011. Gulf Coast volumes are estimated to average 30-35 MMcfe/d for third-quarter 2012.
Capital continues to shift towards more oil and liquids-rich areas in the Permian Basin. Strong drilling results are causing an acceleration of oil volume growth. Combined PB/MC oil growth is now projected at 28-32% versus our original estimate of 20-27% growth.
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| 2012E Guidance |
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| 2011A | Updated
Range | Previous Range |
Gas (MMcf/d) |
| 329 | 320 | - | 330 | 326 | - | 336 |
Oil (Mb/d) |
| 26.8 | 30.2 | - | 31.2 | 29.3 | - | 30.3 |
NGL (Mb/d) |
| 17.1 | 18.5 | - | 19.1 | 18.4 | - | 19.0 |
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Total (MMcfe/d) | 592 | 612 | - | 632 | 612 | - | 632 |
% Liquids |
| 44% | 48% | 47% |
First-half 2012 exploration and development (E&D) investment totaled $782.6 million. Full-year 2012 E&D capital investment is still expected to range from $1.4-$1.6 billion. Nearly all the 2012 capital is directed towards oil drilling or liquids-rich gas in the Permian and Cana-Woodford.
Expenses for 2012 are expected to fall within the following ranges:
Expenses ($/Mcfe): |
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| Production expense | $1.15 - $1.30 |
| Transportation expense | 0.28 - 0.33 |
| DD&A and ARO accretion | 2.25 - 2.45 |
| General and administrative expense | 0.25 - 0.30 |
| Taxes other than income (% of oil and gas revenue) | 6.5% - 7.0% |
Other
In July 2012, Cimarex increased bank commitments under its senior unsecured revolving credit facility from $800 million to $1 billion. The borrowing base remains unchanged at $2 billion. At June 30, 2012 Cimarex had no bank debt outstanding.
On April 5, 2012, Cimarex completed a public offering of $750 million aggregate principal amount of 5.875% Senior Notes due 2022. Net proceeds were approximately $737 million, which funded the repayment of all outstanding $350 million 7.125% Senior Notes due 2017 and all borrowings under the senior revolving credit facility. The repayment of the 7.125% notes due 2017 resulted in a $16.2 million ($0.12 per share after-tax) charge for early extinguishment of debt.
Long-term debt at June 30, 2012 was $750 million, comprised only of the 5.875% Senior Notes due in 2022. Debt to total capitalization ratio at quarter-end was 19% (4).
Cimarex's hedge position is unchanged covering approximately 14,000 barrels of oil per day for the balance of 2012. The following table summarizes the open hedge positions:
Oil Contracts |
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| Weighted Average Price |
Period |
| Type |
| Daily Volume(2) |
| Index(3) |
| Floor |
| Ceiling |
Months of Jul.-Dec. 12 |
| Collar |
| 14,000 |
| WTI |
| $ | 80.00 |
| $ | 119.35 |
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Cimarex accounts for commodity contracts using the mark-to-market (through income) accounting method. Second-quarter 2012 had a non-cash mark-to-market gain of $10.1 million and no cash settlements.
Exploration and Development Activity
Cimarex's drilling activities are conducted within two main areas: Permian Basin and Mid-Continent. Permian activity is primarily directed to the Delaware Basin of southeast New Mexico and West Texas. The majority of our Mid-Continent drilling is in the western Oklahoma Cana-Woodford shale.
Cimarex drilled 160 gross (91 net) wells during the first-half of 2012, completing 96% as producers. Exploration and development capital for the year has totaled $782.6 million. Of total expenditures, 52% were invested in projects located in the Permian Basin; 44% in the Mid-Continent area; and 4% in the Gulf Coast and other.
Wells Drilled and Completed by Region |
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| For the Three Months |
| For the Six Months |
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| Ended June 30, |
| Ended June 30, |
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| 2012 |
| 2011 |
| 2012 |
| 2011 |
Gross wells |
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Permian Basin |
| 55 |
| 45 |
| 94 |
| 71 |
Mid-Continent |
| 31 |
| 49 |
| 64 |
| 86 |
Gulf Coast/Other |
| 1 |
| 1 |
| 2 |
| 3 |
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| 87 |
| 95 |
| 160 |
| 160 |
Net wells |
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Permian Basin |
| 37 |
| 36 |
| 64 |
| 56 |
Mid-Continent |
| 14 |
| 19 |
| 26 |
| 32 |
Gulf Coast/Other |
| - |
| - |
| 1 |
| 2 |
|
| 51 |
| 55 |
| 91 |
| 90 |
% Gross wells completed as producers |
| 97% |
| 96% |
| 96% |
| 96% |
At quarter-end 35 net wells were drilled and awaiting completion: 25 Mid-Continent and ten Permian Basin. Cimarex currently has 22 operated rigs running; 14 in the Permian Basin and eight in the Mid-Continent.
Permian Basin
Cimarex drilled and completed 94 gross (64 net) Permian Basin wells during the first six months of 2012, completing 95% as producers. At quarter-end, 12 gross (ten net) wells were awaiting completion. Drilling principally occurred in the Delaware Basin of Texas and southeast New Mexico, mainly targeting Bone Spring, Paddock and Wolfcamp formations. Second-quarter 2012 Permian production averaged 247.5 MMcfe/d, an increase of 36% over second-quarter 2011, which included 37% growth in oil volumes to 21,694 barrels per day.
Year-to-date 2012 New Mexico Bone Spring wells drilled and completed totaled 31 gross (16 net). Per-well 30-day gross production from the 2012 Bone Spring wells averaged over 600 barrels equivalent (Boe) per day (87% oil). Texas Third Bone Spring drilling totaled 19 gross (12 net) wells, which had per-well 30-day average gross production rates of 850 barrels equivalent per day (79% oil).
Cimarex continues to evaluate the Wolfcamp shale in the Delaware Basin, primarily in southern Eddy County New Mexico (White City) and northern Culberson County Texas. Year-to-date Cimarex has drilled and completed 6 gross (5.9 net) horizontal Wolfcamp wells, bringing total wells in the play to 24 gross (22.7 net). Per well first-30 day production rates on all the wells drilled to date have averaged 6.5 MMcfe/d, comprised of 2.8 MMcf/d gas, 270 barrels per day of oil and 350 barrels per day of NGLs (assuming full NGL recovery), or 43% gas, 25% oil and 32% NGL. Per well first-30 day production from the wells brought on this quarter averaged 6.7 MMcfe/d, comprised of 2.6 MMcf/d gas, 345 barrels per day of oil and 335 barrels per day of NGLs (assuming full NGL recovery), or 39% gas, 31% oil and 30% NGL.
Mid-Continent
In the first half of 2012 Cimarex drilled and completed 64 gross (26 net) Mid-Continent wells. At quarter-end, 59 gross (25 net) wells were awaiting completion. Mid-Continent production averaged 300.2 MMcfe/d for the second quarter of 2012, a 5% increase over second-quarter 2011 average of 284.7 MMcfe/d.
Essentially all this year's drilling activity has been in the Anadarko Basin, Cana-Woodford shale play, where Cimarex has drilled and completed 60 gross (25 net) wells. At June 30, 2012 there were 57 gross (24 net) Cana wells being completed or awaiting completion. At year-end 2011 there were 13 gross (4.9 net) wells waiting on completion in Cana. The increase in wells waiting on completion as compared to year-end is a result of commencing infill development drilling in 2012.
Since the Cana play began in late 2007, Cimarex has drilled or participated in 414 gross (155 net) wells. Second-quarter 2012 net Cana production averaged 156.2 MMcfe/d, a 36% increase versus the second-quarter 2011 average of 115.1 MMcfe/d.
Gulf Coast
Cimarex participated in two (0.7 net) outside operated Yegua/Cook Mountain wells in the first half of 2012, of which one was successful. Gulf Coast production averaged 41.0 MMcfe/d for the second quarter of 2012, a 65% decrease as compared to the second-quarter 2011 average of 116.9 MMcfe/d. The decreased output is a result of natural decline in highly-productive wells drilled near Beaumont, Texas.
Production by Region
Cimarex's average daily production by commodity and region is summarized below:
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| For the Three Months Ended |
| For the Six Months Ended |
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| June 30, |
| June 30, |
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| 2012 |
| 2011 |
| 2012 |
| 2011 |
Gas (Mcf per day) |
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Permian Basin |
| 79,409 |
| 70,655 |
| 77,252 |
| 69,750 |
Mid-Continent |
| 214,339 |
| 194,038 |
| 215,582 |
| 191,705 |
Gulf Coast/Other |
| 23,577 |
| 60,048 |
| 25,814 |
| 64,720 |
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| 317,325 |
| 324,741 |
| 318,648 |
| 326,175 |
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Oil (Barrels per day) |
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Permian Basin |
| 21,694 |
| 15,780 |
| 21,747 |
| 15,164 |
Mid-Continent |
| 5,392 |
| 5,960 |
| 5,642 |
| 5,601 |
Gulf Coast/Other |
| 1,600 |
| 4,910 |
| 1,735 |
| 5,954 |
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| 28,686 |
| 26,650 |
| 29,124 |
| 26,719 |
NGL (Barrels per day) |
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Permian Basin |
| 6,317 |
| 2,820 |
| 6,029 |
| 2,880 |
Mid-Continent |
| 8,914 |
| 9,144 |
| 9,598 |
| 8,348 |
Gulf Coast/Other |
| 1,539 |
| 4,880 |
| 1,602 |
| 5,667 |
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| 16,770 |
| 16,844 |
| 17,229 |
| 16,895 |
Total Equivalent (Mcfe per day) |
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Permian Basin |
| 247,475 |
| 182,255 |
| 243,908 |
| 178,014 |
Mid-Continent |
| 300,175 |
| 284,662 |
| 307,022 |
| 275,399 |
Gulf Coast/Other |
| 42,410 |
| 118,791 |
| 45,833 |
| 134,446 |
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| 590,060 |
| 585,708 |
| 596,763 |
| 587,859 |
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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 # 10076721 ten minutes before the scheduled start time. A digital replay will be available for one week following the live broadcast at (855) 859-2056 and by using the conference ID # 10076721. The listen-only web cast of the call will be accessible via 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 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.
(1) Adjusted cash flow from operations is a non-GAAP financial measure. See below for a reconciliation of the related amounts.
(2) Average daily volume in barrels per day.
(3) WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange.
(4) Reconciliation of pro forma debt to total capitalization, which is a non-GAAP measure, is: pro forma long-term debt of $750 million divided by long-term debt of $750 million plus stockholders' equity of $3,292.0 million.
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RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS |
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| For the Three Months Ended |
| For the Six Months Ended |
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| June 30, |
| June 30, |
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| 2012 |
| 2011 |
| 2012 |
| 2011 |
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| (in thousands) |
Net cash provided by operating activities | $ | 323,040 | $ | 373,814 | $ | 574,932 | $ | 639,091 |
| Change in operating assets and liabilities |
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| (82,530) |
| (30,451) |
| (31,466) |
| 8,892 |
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Adjusted cash flow from operations | $ | 240,510 | $ | 343,363 | $ | 543,466 | $ | 647,983 |
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Management believes that the non-GAAP measure of adjusted 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, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of cash flow from operating activities. It is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry. |
PRICE AND PRODUCTION DATA |
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| For the Three Months Ended |
| For the Six Months Ended |
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| June 30, |
| June 30, |
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| 2012 |
| 2011 |
| 2012 |
| 2011 |
| Total gas production - Mcf |
| 28,876,597 |
| 29,551,462 |
| 57,993,914 |
| 59,037,609 |
| Gas volume - Mcf per day |
| 317,325 |
| 324,741 |
| 318,648 |
| 326,175 |
| Gas price - per Mcf |
| $2.42 |
| $4.75 |
| $2.67 |
| $4.60 |
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| Total oil production - barrels |
| 2,610,407 |
| 2,425,187 |
| 5,300,547 |
| 4,836,106 |
| Oil volume - barrels per day |
| 28,686 |
| 26,650 |
| 29,124 |
| 26,719 |
| Oil price - per barrel |
| $87.81 |
| $100.12 |
| $93.63 |
| $95.80 |
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| Total NGL production - barrels |
| 1,526,067 |
| 1,532,813 |
| 3,135,614 |
| 3,058,039 |
| NGL volume - barrels per day |
| 16,770 |
| 16,844 |
| 17,229 |
| 16,895 |
| NGL price - per barrel |
| $29.02 |
| $45.06 |
| $32.94 |
| $42.92 |
OIL AND GAS CAPITALIZED EXPENDITURES |
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| For the Three Months Ended |
| For the Six Months Ended |
|
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| June 30, |
| June 30, |
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| 2012 |
| 2011 |
| 2012 |
| 2011 |
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| (in thousands) |
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| Acquisitions: |
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| Proved | $ | 240 | $ | 9,165 | $ | 291 | $ | 9,165 |
| Unproved |
| 4,791 |
| 11,606 |
| 6,713 |
| 12,047 |
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| 5,031 |
| 20,771 |
| 7,004 |
| 21,212 |
| Exploration and development: |
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| Land and Seismic |
| 21,175 |
| 52,499 |
| 58,387 |
| 84,925 |
| Exploration and development |
| 361,743 |
| 367,486 |
| 724,242 |
| 672,061 |
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| 382,918 |
| 419,985 |
| 782,629 |
| 756,986 |
| Sale proceeds: |
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| Proved |
| (14) |
| (7,129) |
| (185) |
| (18,483) |
| Unproved |
| (146) |
| (1,327) |
| (1,088) |
| (1,821) |
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| (160) |
| (8,456) |
| (1,273) |
| (20,304) |
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| $ | 387,789 | $ | 432,300 | $ | 788,360 | $ | 757,894 |
CONDENSED COMPREHENSIVE STATEMENTS OF OPERATIONS (unaudited) |
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| For the Three Months Ended |
| For the Six Months Ended |
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| June 30, |
| June 30, |
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| 2012 |
| 2011 |
| 2012 |
| 2011 |
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| (In thousands, except per share data) |
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Revenues: |
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| Gas sales |
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| $ | 69,741 | $ | 140,377 | $ | 154,894 | $ | 271,700 |
| Oil sales |
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| 229,210 |
| 242,812 |
| 496,294 |
| 463,311 |
| NGL sales |
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| 44,286 |
| 69,069 |
| 103,300 |
| 131,259 |
| Gas gathering, processing and other, net |
| 9,885 |
| 14,955 |
| 21,670 |
| 27,539 |
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| 353,122 |
| 467,213 |
| 776,158 |
| 893,809 |
Costs and expenses: |
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| Depreciation, depletion, amortization and accretion |
| 123,678 |
| 92,554 |
| 245,465 |
| 179,518 |
| Production |
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| 62,494 |
| 60,745 |
| 130,119 |
| 119,225 |
| Transportation |
| 15,260 |
| 16,387 |
| 30,866 |
| 29,833 |
| Gas gathering and processing |
| 2,864 |
| 4,630 |
| 5,425 |
| 9,181 |
| Taxes other than income |
| 23,483 |
| 34,495 |
| 48,643 |
| 68,092 |
| General and administrative |
| 12,634 |
| 10,617 |
| 26,781 |
| 25,344 |
| Stock compensation, net |
| 4,684 |
| 4,617 |
| 9,218 |
| 9,367 |
| Gain on derivative instruments, net |
| (10,078) |
| (22,477) |
| (5,990) |
| (4,233) |
| Other operating, net |
| 2,719 |
| 2,342 |
| 5,059 |
| 5,716 |
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| 237,738 |
| 203,910 |
| 495,586 |
| 442,043 |
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Operating income |
| 115,384 |
| 263,303 |
| 280,572 |
| 451,766 |
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Other (income) and expense: |
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| Interest expense |
| 12,702 |
| 7,638 |
| 20,661 |
| 14,913 |
| Amortization of deferred financing costs |
| 977 |
| 1,702 |
| 1,686 |
| 3,407 |
| Capitalized interest |
| (9,119) |
| (7,352) |
| (16,923) |
| (14,577) |
| Loss on early extinguishment of debt |
| 16,214 |
| — |
| 16,214 |
| — |
| Other, net |
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| (7,829) |
| (3,018) |
| (12,555) |
| (3,622) |
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Income before income tax |
| 102,439 |
| 264,333 |
| 271,489 |
| 451,645 |
Income tax expense |
| 38,137 |
| 97,584 |
| 101,080 |
| 166,734 |
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Net income |
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| $ | 64,302 | $ | 166,749 | $ | 170,409 | $ | 284,911 |
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Earnings per share to common stockholders: |
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| Basic |
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| $ | 0.75 | $ | 1.95 | $ | 1.98 | $ | 3.33 |
| Diluted |
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| $ | 0.74 | $ | 1.94 | $ | 1.97 | $ | 3.31 |
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Dividends per share | $ | 0.12 | $ | 0.10 | $ | 0.24 | $ | 0.20 |
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Shares attributable to common stockholders: |
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| Unrestricted common shares outstanding |
| 83,984 |
| 83,635 |
| 83,984 |
| 83,635 |
| Diluted common shares |
| 84,319 |
| 84,063 |
| 84,337 |
| 84,068 |
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Shares attributable to common stockholders and participating securities: |
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| Basic shares outstanding |
| 86,046 |
| 85,655 |
| 86,046 |
| 85,655 |
| Fully diluted shares |
| 86,381 |
| 86,083 |
| 86,399 |
| 86,088 |
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Comprehensive income: |
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|
| Net income |
| $ | 64,302 | $ | 166,749 | $ | 170,409 | $ | 284,911 |
| Other comprehensive income: |
|
|
|
|
|
|
|
|
|
| Change in fair value of investments, net of tax |
| (135) |
| 9 |
| 264 |
| 168 |
| Total comprehensive income | $ | 64,167 | $ | 166,758 | $ | 170,673 | $ | 285,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CASH FLOW STATEMENTS (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the Three Months Ended |
| For the Six Months Ended |
|
|
|
|
|
|
|
| June 30, |
| June 30, |
|
|
|
|
|
|
|
| 2012 |
| 2011 |
| 2012 |
| 2011 |
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
| Net income |
|
|
|
| $ 64,302 |
| $ 166,749 |
| $ 170,409 |
| $ 284,911 |
|
| Adjustment to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion, amortization and accretion |
| 123,678 |
| 92,554 |
| 245,465 |
| 179,518 |
|
|
| Deferred income taxes |
| 38,137 |
| 98,358 |
| 101,080 |
| 168,056 |
|
|
| Stock compensation, net |
| 4,684 |
| 4,617 |
| 9,218 |
| 9,367 |
|
|
| Derivative instruments, net |
| (10,078) |
| (22,441) |
| (5,990) |
| (2,163) |
|
|
| Loss on early extinguishment of debt |
| 16,214 |
| — |
| 16,214 |
| — |
|
|
| Changes in non-current assets and liabilities |
| 2,876 |
| 1,821 |
| 5,115 |
| 4,559 |
|
|
| Amortization of deferred financing costs and other, net |
|
|
|
|
|
|
|
|
|
|
|
| 697 |
| 1,705 |
| 1,955 |
| 3,735 |
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
| Decrease in receivables, net |
| 109,978 |
| 15,527 |
| 107,834 |
| 17,549 |
|
|
| Increase in other current assets |
| (4,979) |
| (6,689) |
| (4,910) |
| (9,694) |
|
|
| Increase (decrease) in accounts payable and accrued liabilities |
|
|
|
|
|
|
|
|
|
|
|
| (22,469) |
| 21,613 |
| (71,458) |
| (16,747) |
|
|
|
|
| Net cash provided by operating activities |
| 323,040 |
| 373,814 |
| 574,932 |
| 639,091 |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
| Oil and gas expenditures |
| (354,287) |
| (389,119) |
| (752,390) |
| (699,301) |
| Sales of oil and gas and other assets |
| 359 |
| 8,609 |
| 1,681 |
| 20,646 |
| Other expenditures |
| (19,145) |
| (28,383) |
| (32,305) |
| (52,889) |
|
|
|
|
| Net cash used by investing activities |
| (373,073) |
| (408,893) |
| (783,014) |
| (731,544) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
| Net decrease in bank debt |
| (222,000) |
| — |
| (55,000) |
| — |
| Increase in other long-term debt |
| 750,000 |
| — |
| 750,000 |
| — |
| Decrease in other long-term debt |
| (363,595) |
| — |
| (363,595) |
| — |
| Financing costs incurred |
| (12,200) |
| (100) |
| (12,692) |
| (100) |
| Dividends paid |
|
|
| (10,293) |
| (8,566) |
| (18,869) |
| (15,415) |
| Issuance of common stock and other |
| 647 |
| 2,749 |
| 2,764 |
| 6,992 |
|
|
|
| Net cash provided by (used in) financing activities |
| 142,559 |
| (5,917) |
| 302,608 |
| (8,523) |
Net change in cash and cash equivalents |
| 92,526 |
| (40,996) |
| 94,526 |
| (100,976) |
Cash and cash equivalents at beginning of period |
| 4,406 |
| 54,146 |
| 2,406 |
| 114,126 |
Cash and cash equivalents at end of period |
| $ 96,932 |
| $ 13,150 |
| $ 96,932 |
| $ 13,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED BALANCE SHEETS (unaudited) |
|
|
|
|
|
|
|
|
| June 30, |
| December 31, |
Assets |
| 2012 |
| 2011 |
|
|
|
|
|
|
|
| (In thousands, except share data) |
Current assets: |
|
|
|
|
|
| Cash and cash equivalents | $ | 96,932 | $ | 2,406 |
| Receivables, net |
| 251,575 |
| 359,409 |
| Oil and gas well equipment and supplies |
| 91,062 |
| 85,141 |
| Deferred income taxes |
| 1,193 |
| 2,723 |
| Derivative instruments |
| 5,745 |
| — |
| Other current assets |
| 7,205 |
| 8,216 |
|
| Total current assets |
| 453,712 |
| 457,895 |
Oil and gas properties at cost, using the full cost method of accounting: |
|
|
|
|
| Proved properties |
| 10,697,029 |
| 9,933,517 |
| Unproved properties and properties under development, |
|
|
|
|
|
| not being amortized |
| 647,673 |
| 607,219 |
|
|
|
|
|
|
|
| 11,344,702 |
| 10,540,736 |
| Less – accumulated depreciation, depletion and amortization |
| (6,638,311) |
| (6,414,528) |
|
| Net oil and gas properties |
| 4,706,391 |
| 4,126,208 |
Fixed assets, net |
| 133,463 |
| 118,215 |
Goodwill |
|
|
|
| 691,432 |
| 691,432 |
Other assets, net |
| 46,306 |
| 34,827 |
|
|
|
|
|
|
| $ | 6,031,304 | $ | 5,428,577 |
Liabilities and Stockholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
| Accounts payable | $ | 52,170 | $ | 79,788 |
| Accrued liabilities |
| 424,993 |
| 385,651 |
| Derivative instruments |
| — |
| 245 |
| Revenue payable |
| 133,186 |
| 150,655 |
|
| Total current liabilities |
| 610,349 |
| 616,339 |
Long-term debt |
|
| 750,000 |
| 405,000 |
Deferred income taxes |
| 1,074,633 |
| 974,932 |
Other liabilities |
|
| 304,348 |
| 301,693 |
|
| Total liabilities |
| 2,739,330 |
| 2,297,964 |
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, |
|
|
|
|
|
| 85,987,555 and 85,774,084 shares issued, respectively |
| 860 |
| 858 |
| Paid-in capital |
| 1,919,777 |
| 1,908,506 |
| Retained earnings |
| 1,371,087 |
| 1,221,263 |
| Accumulated other comprehensive income (loss) |
| 250 |
| (14) |
|
|
|
|
|
|
|
| 3,291,974 |
| 3,130,613 |
|
|
|
|
|
|
| $ | 6,031,304 | $ | 5,428,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT: Mark Burford, Vice President – Capital Markets and Planning, Cimarex Energy Co., +1-303-295-3995, www.cimarex.com
