Cimarex Energy (CIMXP) 10-Q 4 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2016shares
Document and Entity Information
Entity Registrant Name	CIMAREX ENERGY CO
Entity Central Index Key	1,168,054
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	94,986,852
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 641,739	$ 779,382
Receivables, net	229,634	225,398
Oil and gas well equipment and supplies	37,852	54,579
Derivative instruments	1,119	10,745
Prepaid expenses	5,090	7,036
Other current assets	2,173	790
Total current assets	917,607	1,077,930
Oil and gas properties at cost, using the full cost method of accounting:
Proved properties	15,845,260	15,546,948
Unproved properties and properties under development, not being amortized	458,530	440,166
Gross oil and gas properties	16,303,790	15,987,114
Less - accumulated depreciation, depletion, amortization and impairment	(13,569,032)	(12,710,968)
Net oil and gas properties	2,734,758	3,276,146
Fixed assets, net	224,056	230,009
Goodwill	620,232	620,232
Derivative instruments		501
Other assets, net	35,170	38,468
Total assets	4,531,823	5,243,286
Current liabilities:
Accounts payable	55,564	66,815
Accrued liabilities	220,154	247,508
Derivative instruments	28,399
Revenue payable	99,209	95,744
Total current liabilities	403,326	410,067
Principal	1,500,000	1,500,000
Less - unamortized debt issuance costs	(13,205)	(14,380)
Long-term debt, net	1,486,795	1,485,620
Deferred income taxes	92,446	352,705
Other liabilities	202,454	197,216
Total liabilities	2,185,021	2,445,608
Commitments and contingencies
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, 94,986,852 and 94,820,570 shares issued, respectively	950	948
Paid-in capital	2,775,805	2,762,976
Retained earnings (Accumulated deficit)	(430,674)	33,313
Accumulated other comprehensive income	721	441
Total stockholders' equity	2,346,802	2,797,678
Total liabilities and stockholders' equity	$ 4,531,823	$ 5,243,286

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Condensed Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	15,000,000	15,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	94,986,852	94,820,570

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Oil sales	$ 162,005	$ 259,344	$ 279,578	$ 455,349
Gas sales	76,615	106,374	159,223	217,336
NGL sales	51,939	49,477	85,291	95,077
Gas gathering and other	8,211	9,141	15,452	17,411
Gas marketing, net	103	(53)	(71)	112
Total revenues	298,873	424,283	539,473	785,285
Costs and expenses:
Impairment of oil and gas properties	399,194	967,287	629,326	1,570,886
Depreciation, depletion and amortization	123,877	217,451	251,976	434,229
Asset retirement obligation	1,750	2,042	4,048	3,778
Production	57,213	70,600	127,915	152,811
Transportation, processing and other operating	44,436	43,713	90,879	83,355
Gas gathering and other	7,492	11,306	15,572	20,170
Taxes other than income	14,066	25,980	27,905	47,961
General and administrative	21,424	14,054	35,321	29,992
Stock compensation	7,490	4,988	13,018	10,143
(Gain) loss on derivative instruments, net	33,236		32,808
Other operating, net	24	260	114	784
Total costs and expenses	710,202	1,357,681	1,228,882	2,354,109
Operating income (loss)	(411,329)	(933,398)	(689,409)	(1,568,824)
Other (income) and expense:
Interest expense	20,824	21,297	41,629	42,553
Capitalized interest	(5,633)	(8,570)	(10,537)	(17,987)
Other, net	(2,011)	(3,854)	(3,661)	(7,439)
Income (loss) before income tax	(424,509)	(942,271)	(716,840)	(1,585,951)
Income tax expense (benefit)	(154,219)	(342,056)	(260,419)	(570,795)
Net income (loss)	$ (270,290)	$ (600,215)	$ (456,421)	$ (1,015,156)
Earnings (loss) per share to common stockholders:
Basic (in dollars per share)	$ (2.91)	$ (6.47)	$ (4.91)	$ (10.94)
Diluted (in dollars per share)	(2.91)	(6.47)	(4.91)	(10.94)
Dividends per share	$ 0.08	$ 0.16	$ 0.16	$ 0.32
Comprehensive income (loss):
Net income (loss)	$ (270,290)	$ (600,215)	$ (456,421)	$ (1,015,156)
Other comprehensive income (loss):
Change in fair value of investments, net of tax	195	(292)	280	(190)
Total comprehensive income (loss)	$ (270,095)	$ (600,507)	$ (456,141)	$ (1,015,346)

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ (456,421)	$ (1,015,156)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Impairments and other valuation losses	629,326	1,570,886
Depreciation, depletion and amortization	251,976	434,229
Asset retirement obligation	4,048	3,778
Deferred income taxes	(260,419)	(570,795)
Stock compensation	13,018	10,143
(Gain) loss on derivative instruments	32,808
Settlements on derivative instruments	8,927
Changes in non-current assets and liabilities	2,548	2,942
Other, net	2,644	3,276
Changes in operating assets and liabilities:
Receivables, net	(4,327)	92,473
Other current assets	17,328	16,121
Accounts payable and other current liabilities	(27,752)	(177,352)
Net cash provided by operating activities	213,704	370,545
Cash flows from investing activities:
Oil and gas expenditures	(325,058)	(599,222)
Sales of oil and gas assets and other assets	12,854	9,233
Other capital expenditures	(17,774)	(35,882)
Net cash used by investing activities	(329,978)	(625,871)
Cash flows from financing activities:
Proceeds from sale of common stock		752,100
Financing and underwriting fees	(1)	(22,563)
Dividends paid	(22,655)	(28,129)
Proceeds from exercise of stock options and other	1,287	4,936
Net cash provided by financing activities	(21,369)	706,344
Net change in cash and cash equivalents	(137,643)	451,018
Cash and cash equivalents at beginning of period	779,382	405,862
Cash and cash equivalents at end of period	$ 641,739	$ 856,880

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2016
Basis of Presentation
Basis of Presentation	1. Basis of Presentation The accompanying unaudited financial statements have been prepared by Cimarex Energy Co. (“Cimarex,” “we” or “us”) pursuant to rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, certain disclosures required by accounting principles generally accepted in the United States and normally included in Annual Reports on Form 10-K have been omitted. Although management believes that our disclosures in these interim financial statements are adequate, they should be read in conjunction with the financial statements, summary of significant accounting policies and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2015. In the opinion of management, the accompanying financial statements reflect all adjustments necessary to present fairly our financial position, results of operations, and cash flows for the periods and as of the dates shown. We have evaluated subsequent events through the date of this filing. Use of Estimates Areas of significance requiring the use of management’s judgments include the estimation of proved oil and gas reserves, the use of proved reserves in calculating depletion, depreciation and amortization (DD&A), estimates of future net revenues in computing ceiling test limitations and estimates of future abandonment obligations used in recording asset retirement obligations and the assessment of goodwill. Estimates and judgments also are required in determining allowance for bad debt, impairments of undeveloped properties and other assets, purchase price allocation, valuation of deferred tax assets, fair value measurements and contingencies. Oil and Gas Well Equipment and Supplies Our oil and gas well equipment and supplies are valued at the lower of cost or net realizable value, where net realizable value is a defined estimated selling price. An analysis of our oil and gas well equipment and supplies was performed an d no impairment was required. How ever, the continued industry-wide decline in drilling operations has put downward pressure on the price of oil and gas well equipment and supplies. Further declines in future periods could cause us to recognize impairments on these assets. An impairment would not affect cash flow from operating activities, but would adversely affect our net income and stockholders’ equity. Oil and Gas Properties We use the full cost method of accounting for our oil and gas operations. Accounting rules require us to perform a quarterly ceiling test calculation to test our oil and gas properties for possible impairment. If the net capitalized cost of our oil and gas properties subject to amortization (the carrying value) exceeds the ceiling limitation, the excess is charged to expense. The ceiling limitation is equal to the sum of the present value discounted at 10% of estimated future net cash flows from proved reserves, the cost of properties not being amortized, the lower of cost or estimated fair value of unproven properties included in the costs being amortized and all related tax effects. Estimated future net cash flows are determined by commodity prices and proved reserve quantities. At June 30, 2016 , the carrying value of our oil and gas properties subject to the test exceeded the calculated value of the ceiling limitation, and we recognized a n impairment of $399.2 million ( $253.6 million, net of tax). Year-to-date 2016 impairments totaled $629.3 m illion ( $400.0 million, net of tax). These impairment s resulted primarily from the continued impact of decreases in the 12-month average trailing prices for oil, natural gas and NGLs utilized in determining the future net cash flows from proved reserves. If pricing conditions stay at current levels or decline further, or if there is a negative impact on one or more of the other components of the calculation, we will incur full cost ceiling impairments in future quarters. The ceiling calculation is not intended to be indicative of the fair market value of our proved reserves or future results. Impairment charges do not affect cash flow from operating activities, but do adversely affect our net income (loss) and various components of our balance sheet . Any recorded impairment of oil and gas properties is not reversible at a later date. Accounts Receivable, Accounts Payable and Accrued Liabilities The components of our accounts receivable, accounts payable and accrued liabilities are shown below: June 30, December 31, (in thousands) 2016 2015 Receivables, net of allowance Trade $ $ Oil and gas sales Gas gathering, processing, and marketing Other Receivables, net $ $ Accounts payable Trade $ $ Gas gathering, processing, and marketing Accounts payable $ $ Accrued liabilities Exploration and development $ $ Taxes other than income Other Accrued liabilities $ $ Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). In July 2015, the FASB deferred the effective date by one year to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but not before the original effective date of reporting periods beginning after December 15, 2016. We do not intend to early adopt this standard. At this time we do not expect that the adoption of this standard will have a material effect on our consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, which requires lease assets and lease liabilities for most leases to be recognized on the balance sheet and disclosing key information about leasing arrangements. The standard is effective for reporting periods beginning after December 15, 2018 , with early adoption permitted. We are currently evaluating the impact of this new guidance on our consolidated financial statements and related disclosures. We anticipate that we will not early adopt this standard. In March 2016, the FASB issued ASU 2016-09 , which will change how companies account for certain aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The standard is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted but all of the guidance must be adopted in the same period. We are currently evaluating the impact of this new guidance on our consolidated financial statements and related disclosures . We do not intend to early adopt this standard .

LONG-TERM DEBT

LONG-TERM DEBT	6 Months Ended
	Jun. 30, 2016
Long-Term Debt
Long-Term Debt	2. Long-Term Debt Debt at June 30, 2016 and December 31, 2015 consisted of the following: June 30, 2016 December 31, 2015 Unamortized Debt Unamortized Debt (in thousands) Principal Issuance Costs Principal Issuance Costs 5.875% Senior Notes, due May 1, 2022 $ $ $ $ 4.375% Senior Notes, due June 1, 2024 Total long-term debt $ $ $ $ All of our long-term debt is senior uns ecured debt and is, therefore, pari passu with other unsecured debt with respect to the payment of both principal and interest. Bank Debt We have a senior unsecured revolving credit facility (Credit Facility) that matures October 16, 2020. The Credit Facility has aggregate commitments of $1.0 billion, with our option to increase aggregate commitments to $1.25 billion at any time. There is no borrowing base subject to the discretion of the lenders based on the value of our proved reserves under the Credit Facility. As of June 30, 2016 , there were no borrowings outstanding under the Credit Facility. We had letters of credit outstanding under the Credit Facility of $2.5 million, leaving an unused borrowing availability of $997.5 million. At our option, borrowings under the Credit Facility may bear interest at either (a) LIBOR plus 1.125 – 2.0% based on the credit rating for our senior unsecured long-term debt, or (b) a base rate (as defined in the credit agreement) plus 0.125 – 1.0% , based on the credit rating for our senior unsecured long-term debt. Unused borrowings are subject to a commitment fee of 0.125 – 0.35% , based on the credit rating for our senior unsecured long-term debt. The Credit Facility contains representations, warranties, covenants and events of default that are customary for investment grade, senior unsecured bank credit agreements, including a financial covenant for the maintenance of a defined total debt-to-capital ratio of no greater than 65% . As of June 30, 2016 , we were in compliance with all of the financia l and non-financial covenants. At June 30, 2016 and December 31, 2015, we had $5.1 million and $5.7 million, respectively, of unamortized debt issuance costs associated with our Credit Facility , which were recorded as deferred assets and included in Other assets, net in our balance sheet. These costs are being amortized to interest expense ratably over th e life of the Credit Facility. Senior Notes Each of our senior notes is governed by an indenture containing certain covenants, events of default and other restrictive provisions with which we were in compliance as of June 30, 2016 . Interest on each of the senior notes is payable semi-annually. The effective interest rate on the 4.375% notes and the 5.875% notes, including the debt issuance cost, is 4.50% and 6.04% , respectively.

DERIVATIVE INSTRUMENTS_HEDGING

DERIVATIVE INSTRUMENTS/HEDGING	6 Months Ended
	Jun. 30, 2016
Derivative Instruments/Hedging
Derivative Instruments/Hedging	3. Derivative Instruments/Hedging We periodically use derivative instruments to mitigate volatility in commodity prices. While the use of these instruments limits the downside risk of adverse price changes, their use may also limit future revenues from favorable price changes. Depending on changes in oil and gas futures markets and management’s view of underlying supply and demand trends, we may increase or decrease our hedging positions. The following tables summarize our outstanding derivative contracts as of June 30, 2016 : First Second Third Fourth Quarter Quarter Quarter Quarter Total Oil Collars: 2016: Three-Way Collars WTI (1) Volume (Bbls) — — Wtd Avg Price - Lower Floor $ — $ — $ $ $ Wtd Avg Price - Upper Floor $ — $ — $ $ $ Wtd Avg Price - Ceiling $ — $ — $ $ $ Collars WTI (1) Volume (Bbls) — — Wtd Avg Price - Floor $ — $ — $ $ $ Wtd Avg Price - Ceiling $ — $ — $ $ $ 2017: Collars WTI (1) Volume (Bbls) — Wtd Avg Price - Floor $ $ $ $ — $ Wtd Avg Price - Ceiling $ $ $ $ — $ (1) WTI refers to West Texas Intermediate price as quoted on the New York Mercantile Exchange. First Second Third Fourth Quarter Quarter Quarter Quarter Total Gas Collars: 2016: PEPL (1) Volume (MMBtu) — — Wtd Avg Price - Floor $ — $ — $ $ $ Wtd Avg Price - Ceiling $ — $ — $ $ $ Perm EP (1) Volume (MMBtu) — — Wtd Avg Price - Floor $ — $ — $ $ $ Wtd Avg Price - Ceiling $ — $ — $ $ $ 2017: PEPL (1) Volume (MMBtu) — Wtd Avg Price - Floor $ $ $ $ — $ Wtd Avg Price - Ceiling $ $ $ $ — $ Perm EP (1) Volume (MMBtu) — Wtd Avg Price - Floor $ $ $ $ — $ Wtd Avg Price - Ceiling $ $ $ $ — $ (1) PEPL refers to Panhandle Eastern Pipe Line, Tex/OK Mid-Continent Index as quoted in Platt’s Inside FERC. Perm EP refers to El Paso Natural Gas Company, Permian Basin Index as quoted in Platt’s Inside FERC. A three-way collar is a combination of three options: lower floor (sold put), upper floor (bought put) and ceiling (sold call). If the published index price is below the lower floor, we receive the difference between the two floors. If the index price is between the two floors, we receive the difference between the upper floor and the index price. If the index price is between the upper floor and the ceiling, we do not receive or pay any amounts. If the index price is above the ceiling, we pay the excess over the ceiling price. Under a collar agreement, we receive the difference between the published index price and a floor price if the index price is below the floor. We pay the difference between the ceiling price and the index price if the index price is above the contracted ceiling price. No amounts are paid or received if the index price is between the floor and the ceiling price. We have elected not to account for our derivatives as cash flow hedges. Therefore, we recognize settlements and changes in the assets or liabilities relating to our open derivative contracts in earnings. Cash settlements of our contracts are included in cash flows from operating activities in our statements of cash flows. The following table presents the aggregate net (gain) loss from settlements and changes in fair value of our derivative contracts and the (gains) losses only from settlements during the periods shown below. Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 (Gain) loss on derivative instruments, net $ $ — $ $ — Settlement (gains) losses $ $ — $ $ — Our derivative contracts are carried at their fair value on our balance sheet using Level 2 inputs and are subject to enforceable master netting arrangements, which allow us to offset recognized asset and liability fair value amounts on contracts with the same counterparty. Our policy is to not offset asset and liability positions in our accompanying balance sheets. The following tables present the amounts and classifications of our derivative assets and liabilities as of June 30, 2016 and December 31, 2015 , as well as the potential effect of netting arrangements on contracts with the same counterparty. June 30, 2016: (in thousands) Balance Sheet Location Asset Liability Oil contracts Current assets — Derivative instruments $ $ — Oil contracts Current liabilities — Derivative instruments — Natural gas contracts Current liabilities — Derivative instruments — Oil contracts Non-current liabilities — Other liabilities — Natural gas contracts Non-current liabilities — Other liabilities — Total gross amounts presented in accompanying balance sheet Less: gross amounts not offset in the accompanying balance sheet Net amount: $ — $ December 31, 2015: (in thousands) Balance Sheet Location Asset Liability Oil contracts Current assets — Derivative instruments $ $ — Natural gas contracts Current assets — Derivative instruments — Natural gas contracts Non-current assets — Derivative instruments — Total gross amounts presented in accompanying balance sheet — Less: gross amounts not offset in the accompanying balance sheet — — Net amount: $ $ — We are exposed to financial risks associated with our derivative contracts from non-performance by our counterparties. We mitigate our exposure to any single counterparty by contracting with a number of financial institutions, each of which have a high credit rating and is a member of our bank credit facility. Our member banks do not require us to post collateral for our hedge liability positions. Because some of the member banks have discontinued hedging activities, in the future we may hedge with counterparties outside our bank group to obtain competitive terms and to spread counterparty risk.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements
Fair Value Measurements	4. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The FASB has established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels. Level 1 inputs are the highest priority and consist of unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 3 are unobservable inputs for an asset or liability. The following table provide s fair value measurement information for certain assets and liabilities as of June 30, 2016 and December 31, 2015 : June 30, 2016 December 31, 2015 Book Fair Book Fair (in thousands) Value Value Value Value Financial Assets (Liabilities): 5.875% Notes due 2022 $ $ $ $ 4.375% Notes due 2024 $ $ $ $ Derivative instruments — assets $ $ $ $ Derivative instruments — liabilities $ $ $ — $ — Assessing the significance of a particular input to the fair value measurement requires judgment, including the consideration of factors specific to the asset or liability. The fair value (Level 1) of our 4.375% and 5.875% fixed rate notes was based on their last traded value before period end. The fair value of our derivative instruments (Level 2) was estimated using option pricing models. These models use certain variables including forward price and volatility curves and the strike prices for the instruments. The fair value estimates are adjusted relative to non-performance risk as appropriate. See Note 3 for further information on the fair value of our derivative instruments. Other Financial Instruments The carrying amounts of our cash, cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value because of the short-term maturities and/or liquid nature of these assets and liabilities. Most of our accounts receivable balances are uncollateralized and result from transactions with other companies in the oil and gas industry. Concentration of customers may impact our overall credit risk because our customers may be similarly affected by changes in economic or other conditions within the industry. We routinely assess the recoverability of all material accounts receivable to determine their collectability. We accrue a reserve to the allowance for doubtful accounts when it is probable that a receivable will not be collected and the amount of the reserve may be reasonably estimated. At June 30, 2016 and December 31, 2015 , the allowance for doubtful accounts was $1.6 million and $1.8 million , respectively.

CAPITAL STOCK

CAPITAL STOCK	6 Months Ended
	Jun. 30, 2016
Capital Stock
Capital Stock	5. Capital Stock Authorized capital stock consists of 200 million shares of common stock and 15 million shares of preferred stock. At June 30, 2016 , there were no shares of preferred stock outstanding. A summary of our common stock activity for the six months ended June 30, 2016 follows: (in thousands) Issued and outstanding as of December 31, 2015 Issuance of service-based restricted stock awards Restricted stock forfeited and retired Common stock reacquired and retired Option exercises, net of cancellations Issued and outstanding as of June 30, 2016 Dividends In May 2016, the Board of Directors declared a cash dividend of $0.08 per share. The dividend is payable on September 1, 2016, to stockholders of record on August 15 , 2016. Dividends declared are recorded as a reduction of retained earnings to the extent retained earnings are available at the close of the period prior to the date of the declared dividend. Dividends in excess of retained earnings are recorded as a reduction of additional paid-in capital. For the dividends declared in May 2016, all of the dividends declared ( $7.6 million) were recorded as a reduction of additional paid-in capital. Future dividend payments will depend on our level of earnings, financing requirements, and other factors considered relevant by the Board of Directors.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2016
STOCK-BASED COMPENSATION
Stock-based Compensation	6. Stock-based Compensation We have recognized stock-based compensation cost as shown below. Expense associated with stock compensation will fluctuate based on the grant-date fair value of awards, the number of awards and the timing of the awards. Historical amounts may not be representative of future amounts as the value of future awards may vary from historical amounts. Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Restricted stock awards Performance stock awards $ $ $ $ Service-based stock awards Stock option awards Total stock compensation cost Less amounts capitalized to oil and gas properties Compensation expense $ $ $ $ During the second quarter of 2016, a voluntary Early Retirement Incentive Program (ERIP) was offered to certain employees and completed in June. In addition to those who participated in the ERIP, other individuals also retired in June. The retirement agreements included accelerated vesting of performance and service-based restricted stock awards and stock option awards. The effect of the accelerated vesting on our total stock compensation cost for the second quarter and six months ended June 30, 2016 was an increase of $2.6 million over the same periods from 2015.

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS	6 Months Ended
	Jun. 30, 2016
Asset Retirement Obligations
Asset Retirement Obligations	7. Asset Retirement Obligations We recognize the fair value of liabilities for retirement obligations associated with tangible long-lived assets in the period in which there is a legal obligation associated with the retirement of such assets and the amount can be reasonably estimated. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. This liability includes costs related to the plugging and abandonment of wells, the removal of facilities and equipment, and site restorations. Subsequent to initial measurement, the asset retirement liability is required to be accreted each period. If the fair value of a recorded asset retirement obligation changes, a revision is recorded to both the asset retirement obligation and the asset retirement capitalized cost. Capitalized costs are included as a component of the DD&A calculations. The following table reflects the components of the change in the carrying amount of the asset retirement obligation for the six months ended June 30, 2016 : (in thousands) Asset retirement obligation at January 1, 2016 $ Liabilities incurred Liability settlements and disposals Accretion expense Revisions of estimated liabilities Asset retirement obligation at June 30, 2016 Less current obligation Long-term asset retirement obligation $

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	6 Months Ended
	Jun. 30, 2016
Earnings (Loss) per Share
Earnings (Loss) per Share	8. Earnings (loss) per Share The calculations of basic and diluted net earnings (loss) per common share under the two-class method are presented below: Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2016 2015 2016 2015 Basic: Net income (loss) $ $ $ $ Participating securities’ share in earnings (1) — — — — Net income (loss) applicable to common stockholders $ $ $ $ Diluted: Net income (loss) $ $ $ $ Participating securities’ share in earnings (1) — — — — Net income (loss) applicable to common stockholders $ $ $ $ Shares: Basic shares outstanding Dilutive effect of stock options (2) — — — — Fully diluted common stock Excluded (2) Earnings (loss) per share to common stockholders (3): Basic $ $ $ $ Diluted $ $ $ $ (1) Participating securities are not included in undistributed earnings when a loss exists. (2) Inclusion of certain shares would have an anti-dilutive effect. (3) Earnings (loss) per share are based on actual figures rather than the rounded figures presented.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2016
Income Taxes
Income Taxes	9. Income Taxes The components of our provision for income taxes are as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Current taxes (benefit) $ — $ — $ — $ — Deferred taxes (benefit) $ $ $ $ Combined Federal and State effective income tax rate % % % % At December 31, 2015, we had a U.S. net tax operating loss carryforward of approximately $907.5 million, which would expire in tax years 2031 through 2035. We believe that the carryforward will be utilized before it expires. The amount of U.S. net tax operating loss carryforward that will be recorded to equity when utilized to reduce taxes payable is $77.2 million. We also had an alternative minimum tax credit carryforward of approximately $6.0 million. At June 30, 2016 , we had no unrecognized tax benefits that would impact our effective tax rate and have made no provisions for interest or penalties related to uncertain tax positions. The tax years 2012 through 2014 remain open to examination by the Internal Revenue Service of the United States. We file tax returns with various state taxing authorities , which remain open to examination for tax years 2011 through 2014. Our provision for income taxes differed from the U.S. statutory rate of 35% primarily due to state income taxes and non-deductible expenses.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies
Commitments and Contingencies	10. Commitments and Contingencies Commitments We have commitments of $222.4 million to finish drilling and completing wells in progress at June 30, 2016 . We also have various commitments for drilling rigs. The total minimum expenditure commitments under these agreements are $3.8 million. At June 30, 2016 , we had firm sales contracts to deliver approximate ly 46.7 Bcf of natura l gas over the next 28 months. If this ga s is not delivered, our financial commitment would be a pproximately $116.9 million. Th is commitment will fluctuate due to price volatility and actual volumes delivered. However, we believe no financial commitment will be due based on our current proved reserves and production levels from which we can fulfill these obligations. In connection with gas gathering and processing agreements, we have volume comm itments over the next ten years. If no gas is delivered, the maximum amount that would be payable under these commitments would be approximately $190.2 million. However, we believe no financial commitment will be due based on our current proved reserves and production levels from which we can fulfill these obligations. We have minimum volume delivery commitments in connection with agreements to reimburse connection costs to various pipelines. The maximum amount that would be payable if no gas is delivered would be approx imately $12.5 million. Of this total, we have accrued a liability of $10.6 million. Due to reduced drilling activity in 2015 and projected for 2016, we may have additional liabilities associated with these deli very commitments in the future. We have other various transportation, delivery and facilities commitments in the normal course of business, which app roximate $35.7 million . We anticipate meeting these obligations. We have various commitments for office space and equipment under operating lease arrangements totaling $101.5 million. All of the noted commitments were routine and made in the ordinary course of our business. Litigation We have various litigation matters related to the ordinary course of our business. We assess the probability of estimable amounts related to those matters in accordance with guidance established by the FASB and adjust our accruals accordingly. Though some of the related claims may be significant, we believe the resolution of them, individually or in the aggregate, would not have a material adverse effect on our financial condition or results of operations after consideration of current accruals.

SUPPLEMENTAL DISCLOSURE OF CASH

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION	6 Months Ended
	Jun. 30, 2016
Supplemental Disclosure of Cash Flow Information:
Supplemental Disclosure of Cash Flow Information:	11. Supplemental Disclosure of Cash Flow Information Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Cash paid during the period for: Interest expense (including capitalized amounts) $ $ $ $ Interest capitalized $ $ $ $ Income taxes $ $ $ $ Cash received for income taxes $ — $ $ $

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2016
Basis of Presentation
Basis of presentation	The accompanying unaudited financial statements have been prepared by Cimarex Energy Co. (“Cimarex,” “we” or “us”) pursuant to rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, certain disclosures required by accounting principles generally accepted in the United States and normally included in Annual Reports on Form 10-K have been omitted. Although management believes that our disclosures in these interim financial statements are adequate, they should be read in conjunction with the financial statements, summary of significant accounting policies and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2015. In the opinion of management, the accompanying financial statements reflect all adjustments necessary to present fairly our financial position, results of operations, and cash flows for the periods and as of the dates shown. We have evaluated subsequent events through the date of this filing.
Use of Estimates	Use of Estimates Areas of significance requiring the use of management’s judgments include the estimation of proved oil and gas reserves, the use of proved reserves in calculating depletion, depreciation and amortization (DD&A), estimates of future net revenues in computing ceiling test limitations and estimates of future abandonment obligations used in recording asset retirement obligations and the assessment of goodwill. Estimates and judgments also are required in determining allowance for bad debt, impairments of undeveloped properties and other assets, purchase price allocation, valuation of deferred tax assets, fair value measurements and contingencies.
Oil and Gas Properties	Oil and Gas Well Equipment and Supplies Our oil and gas well equipment and supplies are valued at the lower of cost or net realizable value, where net realizable value is a defined estimated selling price. An analysis of our oil and gas well equipment and supplies was performed an d no impairment was required. How ever, the continued industry-wide decline in drilling operations has put downward pressure on the price of oil and gas well equipment and supplies. Further declines in future periods could cause us to recognize impairments on these assets. An impairment would not affect cash flow from operating activities, but would adversely affect our net income and stockholders’ equity. Oil and Gas Properties We use the full cost method of accounting for our oil and gas operations. Accounting rules require us to perform a quarterly ceiling test calculation to test our oil and gas properties for possible impairment. If the net capitalized cost of our oil and gas properties subject to amortization (the carrying value) exceeds the ceiling limitation, the excess is charged to expense. The ceiling limitation is equal to the sum of the present value discounted at 10% of estimated future net cash flows from proved reserves, the cost of properties not being amortized, the lower of cost or estimated fair value of unproven properties included in the costs being amortized and all related tax effects. Estimated future net cash flows are determined by commodity prices and proved reserve quantities. At June 30, 2016 , the carrying value of our oil and gas properties subject to the test exceeded the calculated value of the ceiling limitation, and we recognized a n impairment of $399.2 million ( $253.6 million, net of tax). Year-to-date 2016 impairments totaled $629.3 m illion ( $400.0 million, net of tax). These impairment s resulted primarily from the continued impact of decreases in the 12-month average trailing prices for oil, natural gas and NGLs utilized in determining the future net cash flows from proved reserves. If pricing conditions stay at current levels or decline further, or if there is a negative impact on one or more of the other components of the calculation, we will incur full cost ceiling impairments in future quarters. The ceiling calculation is not intended to be indicative of the fair market value of our proved reserves or future results. Impairment charges do not affect cash flow from operating activities, but do adversely affect our net income (loss) and various components of our balance sheet . Any recorded impairment of oil and gas properties is not reversible at a later date.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). In July 2015, the FASB deferred the effective date by one year to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but not before the original effective date of reporting periods beginning after December 15, 2016. We do not intend to early adopt this standard. At this time we do not expect that the adoption of this standard will have a material effect on our consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, which requires lease assets and lease liabilities for most leases to be recognized on the balance sheet and disclosing key information about leasing arrangements. The standard is effective for reporting periods beginning after December 15, 2018 , with early adoption permitted. We are currently evaluating the impact of this new guidance on our consolidated financial statements and related disclosures. We anticipate that we will not early adopt this standard. In March 2016, the FASB issued ASU 2016-09 , which will change how companies account for certain aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The standard is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted but all of the guidance must be adopted in the same period. We are currently evaluating the impact of this new guidance on our consolidated financial statements and related disclosures . We do not intend to early adopt this standard .

BASIS OF PRESENTATION (Tables)

BASIS OF PRESENTATION (Tables)	6 Months Ended
	Jun. 30, 2016
Basis of Presentation
Schedule of components of receivable accounts, accounts payable, and accrued liabilities	June 30, December 31, (in thousands) 2016 2015 Receivables, net of allowance Trade $ $ Oil and gas sales Gas gathering, processing, and marketing Other Receivables, net $ $ Accounts payable Trade $ $ Gas gathering, processing, and marketing Accounts payable $ $ Accrued liabilities Exploration and development $ $ Taxes other than income Other Accrued liabilities $ $

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	6 Months Ended
	Jun. 30, 2016
Long-Term Debt
Summary of debt	June 30, 2016 December 31, 2015 Unamortized Debt Unamortized Debt (in thousands) Principal Issuance Costs Principal Issuance Costs 5.875% Senior Notes, due May 1, 2022 $ $ $ $ 4.375% Senior Notes, due June 1, 2024 Total long-term debt $ $ $ $

DERIVATIVE INSTRUMENTS_HEDGING

DERIVATIVE INSTRUMENTS/HEDGING (Tables)	6 Months Ended
	Jun. 30, 2016
Derivative Instruments/Hedging
Outstanding hedging contracts relative to future production	First Second Third Fourth Quarter Quarter Quarter Quarter Total Oil Collars: 2016: Three-Way Collars WTI (1) Volume (Bbls) — — Wtd Avg Price - Lower Floor $ — $ — $ $ $ Wtd Avg Price - Upper Floor $ — $ — $ $ $ Wtd Avg Price - Ceiling $ — $ — $ $ $ Collars WTI (1) Volume (Bbls) — — Wtd Avg Price - Floor $ — $ — $ $ $ Wtd Avg Price - Ceiling $ — $ — $ $ $ 2017: Collars WTI (1) Volume (Bbls) — Wtd Avg Price - Floor $ $ $ $ — $ Wtd Avg Price - Ceiling $ $ $ $ — $ (1) WTI refers to West Texas Intermediate price as quoted on the New York Mercantile Exchange. First Second Third Fourth Quarter Quarter Quarter Quarter Total Gas Collars: 2016: PEPL (1) Volume (MMBtu) — — Wtd Avg Price - Floor $ — $ — $ $ $ Wtd Avg Price - Ceiling $ — $ — $ $ $ Perm EP (1) Volume (MMBtu) — — Wtd Avg Price - Floor $ — $ — $ $ $ Wtd Avg Price - Ceiling $ — $ — $ $ $ 2017: PEPL (1) Volume (MMBtu) — Wtd Avg Price - Floor $ $ $ $ — $ Wtd Avg Price - Ceiling $ $ $ $ — $ Perm EP (1) Volume (MMBtu) — Wtd Avg Price - Floor $ $ $ $ — $ Wtd Avg Price - Ceiling $ $ $ $ — $ (1) PEPL refers to Panhandle Eastern Pipe Line, Tex/OK Mid-Continent Index as quoted in Platt’s Inside FERC. Perm EP refers to El Paso Natural Gas Company, Permian Basin Index as quoted in Platt’s Inside FERC.
Net (gains) and losses from settlements and changes in fair value of derivative contracts	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 (Gain) loss on derivative instruments, net $ $ — $ $ — Settlement (gains) losses $ $ — $ $ —
Schedule of amounts and classifications of entity's derivative assets and liabilities as well as the potential effect of netting arrangements on contracts with the same counterparty	June 30, 2016: (in thousands) Balance Sheet Location Asset Liability Oil contracts Current assets — Derivative instruments $ $ — Oil contracts Current liabilities — Derivative instruments — Natural gas contracts Current liabilities — Derivative instruments — Oil contracts Non-current liabilities — Other liabilities — Natural gas contracts Non-current liabilities — Other liabilities — Total gross amounts presented in accompanying balance sheet Less: gross amounts not offset in the accompanying balance sheet Net amount: $ — $ December 31, 2015: (in thousands) Balance Sheet Location Asset Liability Oil contracts Current assets — Derivative instruments $ $ — Natural gas contracts Current assets — Derivative instruments — Natural gas contracts Non-current assets — Derivative instruments — Total gross amounts presented in accompanying balance sheet — Less: gross amounts not offset in the accompanying balance sheet — — Net amount: $ $ —

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements
Fair value measurement information for certain assets and liabilities	June 30, 2016 December 31, 2015 Book Fair Book Fair (in thousands) Value Value Value Value Financial Assets (Liabilities): 5.875% Notes due 2022 $ $ $ $ 4.375% Notes due 2024 $ $ $ $ Derivative instruments — assets $ $ $ $ Derivative instruments — liabilities $ $ $ — $ —

CAPITAL STOCK (Tables)

CAPITAL STOCK (Tables)	6 Months Ended
	Jun. 30, 2016
Capital Stock
Common stock activity	(in thousands) Issued and outstanding as of December 31, 2015 Issuance of service-based restricted stock awards Restricted stock forfeited and retired Common stock reacquired and retired Option exercises, net of cancellations Issued and outstanding as of June 30, 2016

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2016
STOCK-BASED COMPENSATION
Recognition of non-cash stock-based compensation cost	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Restricted stock awards Performance stock awards $ $ $ $ Service-based stock awards Stock option awards Total stock compensation cost Less amounts capitalized to oil and gas properties Compensation expense $ $ $ $

ASSET RETIREMENT OBLIGATIONS (T

ASSET RETIREMENT OBLIGATIONS (Tables)	6 Months Ended
	Jun. 30, 2016
Asset Retirement Obligations
Change in the carrying amount of the asset retirement obligation	(in thousands) Asset retirement obligation at January 1, 2016 $ Liabilities incurred Liability settlements and disposals Accretion expense Revisions of estimated liabilities Asset retirement obligation at June 30, 2016 Less current obligation Long-term asset retirement obligation $

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings (Loss) per Share
Calculations of basic and diluted net earnings (loss) per common share under the two-class method	Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2016 2015 2016 2015 Basic: Net income (loss) $ $ $ $ Participating securities’ share in earnings (1) — — — — Net income (loss) applicable to common stockholders $ $ $ $ Diluted: Net income (loss) $ $ $ $ Participating securities’ share in earnings (1) — — — — Net income (loss) applicable to common stockholders $ $ $ $ Shares: Basic shares outstanding Dilutive effect of stock options (2) — — — — Fully diluted common stock Excluded (2) Earnings (loss) per share to common stockholders (3): Basic $ $ $ $ Diluted $ $ $ $ (1) Participating securities are not included in undistributed earnings when a loss exists. (2) Inclusion of certain shares would have an anti-dilutive effect. (3) Earnings (loss) per share are based on actual figures rather than the rounded figures presented.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2016
Income Taxes
Components of the provision for income taxes	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Current taxes (benefit) $ — $ — $ — $ — Deferred taxes (benefit) $ $ $ $ Combined Federal and State effective income tax rate % % % %

SUPPLEMENTAL DISCLOSURE OF CA27

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2016
Supplemental Disclosure of Cash Flow Information:
Supplemental Disclosure of Cash Flow Information	Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Cash paid during the period for: Interest expense (including capitalized amounts) $ $ $ $ Interest capitalized $ $ $ $ Income taxes $ $ $ $ Cash received for income taxes $ — $ $ $

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Oil and Gas Properties
Discount rate for calculating present value of estimated future net revenues from proved reserves (as a percent)			10.00%
Impairment of oil and gas properties	$ 399,194	$ 967,287	$ 629,326	$ 1,570,886
Impairment of oil and gas properties, after tax	253,600		400,000
Receivables, net of allowance
Trade	54,188		54,188		$ 81,888
Oil and gas sales	166,866		166,866		136,537
Gas gathering, processing, and marketing	8,568		8,568		6,935
Other	12		12		38
Receivables, net	229,634		229,634		225,398
Accounts payable:
Trade	39,224		39,224		53,384
Gas gathering, processing, and marketing	16,340		16,340		13,431
Accounts payable	55,564		55,564		66,815
Accrued liabilities
Exploration and development	46,761		46,761		56,721
Taxes other than income	15,947		15,947		17,545
Other	157,446		157,446		173,242
Accrued liabilities	$ 220,154		$ 220,154		$ 247,508

LONG-TERM DEBT - Summary (Detai

LONG-TERM DEBT - Summary (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument
Principal	$ 1,500,000	$ 1,500,000
Unamortized Debt Issuance Costs	13,205	14,380
Senior Notes 5.875% [Member]
Debt Instrument
Principal	750,000	750,000
Unamortized Debt Issuance Costs	$ 6,324	$ 6,978
Interest rate (as a percent)	5.875%	5.875%
Senior Notes 4.375% [Member]
Debt Instrument
Principal	$ 750,000	$ 750,000
Unamortized Debt Issuance Costs	$ 6,881	$ 7,402
Interest rate (as a percent)	4.375%	4.375%

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument
Unamortized debt issuance costs	$ 13,205,000	$ 14,380,000
Revolving Credit Facility [Member]
Debt Instrument
Unamortized debt issuance costs	5,100,000	5,700,000
Credit facility amount	1,000,000,000
Credit facility, increase amount option	1,250,000,000
Borrowings outstanding	0
Letters of credit outstanding under the credit facility	2,500,000
Unused borrowing availability	$ 997,500,000
Debt-to-Capital ratio	65.00%
Revolving Credit Facility [Member] | Minimum [Member]
Debt Instrument
Commitment fee percentage	0.125%
Revolving Credit Facility [Member] | Maximum [Member]
Debt Instrument
Commitment fee percentage	0.35%
Senior Notes 4.375% [Member]
Debt Instrument
Unamortized debt issuance costs	$ 6,881,000	$ 7,402,000
Interest rate (as a percent)	4.375%	4.375%
Effective rate	4.50%
Senior Notes 5.875% [Member]
Debt Instrument
Unamortized debt issuance costs	$ 6,324,000	$ 6,978,000
Interest rate (as a percent)	5.875%	5.875%
Effective rate	6.04%
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Minimum [Member]
Debt Instrument
Interest rate margin (as a percent)	1.125%
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Maximum [Member]
Debt Instrument
Interest rate margin (as a percent)	2.00%
Base Rate [Member] | Revolving Credit Facility [Member] | Minimum [Member]
Debt Instrument
Interest rate margin (as a percent)	0.125%
Base Rate [Member] | Revolving Credit Facility [Member] | Maximum [Member]
Debt Instrument
Interest rate margin (as a percent)	1.00%

DERIVATIVE INSTRUMENTS_HEDGIN31

DERIVATIVE INSTRUMENTS/HEDGING (Details) bbl / qtr in Thousands, MMBTU / D in Thousands	Jun. 30, 2016bbl / qtrMMBTU / D$ / bbl$ / MMBTU
Derivative Contract Oil Three-Way Collars WTI Index [Member] | 2016 [Member]
Fair values of derivative assets and liabilities
Volume | bbl / qtr	552
Weighted Average Price
Ceiling, weighted average price (in dollars per unit) | $ / bbl	60
Derivative Contract Oil Three-Way Collars WTI Index [Member] | Third Quarter - 2016 [Member]
Fair values of derivative assets and liabilities
Volume | bbl / qtr	276
Weighted Average Price
Ceiling, weighted average price (in dollars per unit) | $ / bbl	60
Derivative Contract Oil Three-Way Collars WTI Index [Member] | Fourth Quarter - 2016 [Member]
Fair values of derivative assets and liabilities
Volume | bbl / qtr	276
Weighted Average Price
Ceiling, weighted average price (in dollars per unit) | $ / bbl	60
Derivative Contract Oil Collar W T I Index [Member] | 2016 [Member]
Fair values of derivative assets and liabilities
Volume | bbl / qtr	1,656
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	39.17
Ceiling, weighted average price (in dollars per unit) | $ / bbl	47.92
Derivative Contract Oil Collar W T I Index [Member] | Third Quarter - 2016 [Member]
Fair values of derivative assets and liabilities
Volume | bbl / qtr	828
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	39.17
Ceiling, weighted average price (in dollars per unit) | $ / bbl	47.92
Derivative Contract Oil Collar W T I Index [Member] | Fourth Quarter - 2016 [Member]
Fair values of derivative assets and liabilities
Volume | bbl / qtr	828
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	39.17
Ceiling, weighted average price (in dollars per unit) | $ / bbl	47.92
Derivative Contract Oil Collar W T I Index [Member] | 2017 [Member]
Fair values of derivative assets and liabilities
Volume | bbl / qtr	2,089
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	39.90
Ceiling, weighted average price (in dollars per unit) | $ / bbl	48.88
Derivative Contract Oil Collar W T I Index [Member] | First Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | bbl / qtr	810
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	39.17
Ceiling, weighted average price (in dollars per unit) | $ / bbl	47.92
Derivative Contract Oil Collar W T I Index [Member] | Second Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | bbl / qtr	819
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	39.17
Ceiling, weighted average price (in dollars per unit) | $ / bbl	47.92
Derivative Contract Oil Collar W T I Index [Member] | Third Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | bbl / qtr	460
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	42.50
Ceiling, weighted average price (in dollars per unit) | $ / bbl	52.26
Derivative Contract Gas Collar PEPL Index [Member] | 2016 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	11,040
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.28
Ceiling, weighted average price (in dollars per unit)	2.82
Derivative Contract Gas Collar PEPL Index [Member] | Third Quarter - 2016 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	5,520
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.28
Ceiling, weighted average price (in dollars per unit)	2.82
Derivative Contract Gas Collar PEPL Index [Member] | Fourth Quarter - 2016 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	5,520
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.28
Ceiling, weighted average price (in dollars per unit)	2.82
Derivative Contract Gas Collar PEPL Index [Member] | 2017 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	11,810
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.21
Ceiling, weighted average price (in dollars per unit)	2.84
Derivative Contract Gas Collar PEPL Index [Member] | First Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	4,500
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.20
Ceiling, weighted average price (in dollars per unit)	2.82
Derivative Contract Gas Collar PEPL Index [Member] | Second Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	4,550
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.20
Ceiling, weighted average price (in dollars per unit)	2.82
Derivative Contract Gas Collar PEPL Index [Member] | Third Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	2,760
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.25
Ceiling, weighted average price (in dollars per unit)	2.90
Derivative Contract Gas Collar Perm EP [Member] | 2016 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	9,200
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.37
Ceiling, weighted average price (in dollars per unit)	2.89
Derivative Contract Gas Collar Perm EP [Member] | Third Quarter - 2016 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	4,600
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.37
Ceiling, weighted average price (in dollars per unit)	2.89
Derivative Contract Gas Collar Perm EP [Member] | Fourth Quarter - 2016 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	4,600
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.37
Ceiling, weighted average price (in dollars per unit)	2.89
Derivative Contract Gas Collar Perm EP [Member] | 2017 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	10,890
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.36
Ceiling, weighted average price (in dollars per unit)	2.95
Derivative Contract Gas Collar Perm EP [Member] | First Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	4,500
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.37
Ceiling, weighted average price (in dollars per unit)	2.95
Derivative Contract Gas Collar Perm EP [Member] | Second Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	4,550
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.37
Ceiling, weighted average price (in dollars per unit)	2.95
Derivative Contract Gas Collar Perm EP [Member] | Third Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	1,840
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.30
Ceiling, weighted average price (in dollars per unit)	2.93
Minimum [Member] | Derivative Contract Oil Three-Way Collars WTI Index [Member] | 2016 [Member]
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	40
Minimum [Member] | Derivative Contract Oil Three-Way Collars WTI Index [Member] | Third Quarter - 2016 [Member]
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	40
Minimum [Member] | Derivative Contract Oil Three-Way Collars WTI Index [Member] | Fourth Quarter - 2016 [Member]
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	40
Maximum [Member] | Derivative Contract Oil Three-Way Collars WTI Index [Member] | 2016 [Member]
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	50
Maximum [Member] | Derivative Contract Oil Three-Way Collars WTI Index [Member] | Third Quarter - 2016 [Member]
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	50
Maximum [Member] | Derivative Contract Oil Three-Way Collars WTI Index [Member] | Fourth Quarter - 2016 [Member]
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	50

DERIVATIVE INSTRUMENTS_HEDGIN32

DERIVATIVE INSTRUMENTS/HEDGING (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
(Gain) loss on derivative instruments, net
(Gain) loss on derivative instruments, net	$ 33,236	$ 32,808
(Gains) losses from settlement of derivative instruments:
Settlement (gains) losses	$ (3,859)	$ (8,927)

DERIVATIVE INSTRUMENTS_HEDGIN33

DERIVATIVE INSTRUMENTS/HEDGING - Derivative assets and liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Asset
Total gross amounts presented in accompanying balance sheet	$ 1,119	$ 10,745
Liability
Total gross amounts presented in accompanying balance sheet	28,399
Not Designated as Hedging Instrument [Member]
Asset
Total gross amounts presented in accompanying balance sheet	1,119	11,246
Less: gross amounts not offset in the accompanying balance sheet	(1,119)
Net amount:		11,246
Liability
Total gross amounts presented in accompanying balance sheet	31,608
Less: gross amounts not offset in the accompanying balance sheet	(1,119)
Net amount:	30,489
Not Designated as Hedging Instrument [Member] | Oil Contracts [Member] | Current Assets [Member]
Asset
Total gross amounts presented in accompanying balance sheet	1,119	6,774
Not Designated as Hedging Instrument [Member] | Oil Contracts [Member] | Current Liabilities [Member]
Liability
Total gross amounts presented in accompanying balance sheet	17,720
Not Designated as Hedging Instrument [Member] | Oil Contracts [Member] | Non-Current Liabilities [Member]
Liability
Total gross amounts presented in accompanying balance sheet	2,317
Not Designated as Hedging Instrument [Member] | Natural Gas Contracts [Member] | Current Assets [Member]
Asset
Total gross amounts presented in accompanying balance sheet		3,971
Not Designated as Hedging Instrument [Member] | Natural Gas Contracts [Member] | Non-Current Assets [Member]
Asset
Total gross amounts presented in accompanying balance sheet		$ 501
Not Designated as Hedging Instrument [Member] | Natural Gas Contracts [Member] | Current Liabilities [Member]
Liability
Total gross amounts presented in accompanying balance sheet	10,679
Not Designated as Hedging Instrument [Member] | Natural Gas Contracts [Member] | Non-Current Liabilities [Member]
Liability
Total gross amounts presented in accompanying balance sheet	$ 892

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financial Assets (Liabilities):
Derivative instruments — assets	$ 1,119	$ 10,745
Derivative instruments — liabilities	$ (28,399)
Senior Notes 5.875% [Member]
Financial Assets (Liabilities):
Interest rate (as a percent)	5.875%	5.875%
Senior Notes 5.875% [Member] | Fair Value, Inputs, Level 1 [Member]
Financial Assets (Liabilities):
Interest rate (as a percent)	5.875%	5.875%
Senior Notes 4.375% [Member]
Financial Assets (Liabilities):
Interest rate (as a percent)	4.375%	4.375%
Senior Notes 4.375% [Member] | Fair Value, Inputs, Level 1 [Member]
Financial Assets (Liabilities):
Interest rate (as a percent)	4.375%	4.375%
Carrying Amount [Member]
Financial Assets (Liabilities):
Derivative instruments — assets	$ 1,119	$ 11,246
Derivative instruments — liabilities	(31,608)
Carrying Amount [Member] | Senior Notes 5.875% [Member]
Financial Assets (Liabilities):
Long-term debt	(750,000)	(750,000)
Carrying Amount [Member] | Senior Notes 4.375% [Member]
Financial Assets (Liabilities):
Long-term debt	(750,000)	(750,000)
Fair Value [Member]
Financial Assets (Liabilities):
Derivative instruments — assets	1,119	11,246
Derivative instruments — liabilities	(31,608)
Fair Value [Member] | Senior Notes 5.875% [Member]
Financial Assets (Liabilities):
Long-term debt	(788,475)	(723,750)
Fair Value [Member] | Senior Notes 4.375% [Member]
Financial Assets (Liabilities):
Long-term debt	$ (780,000)	$ (683,318)

FAIR VALUE MEASUREMENTS - Other

FAIR VALUE MEASUREMENTS - Other instruments (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Allowance for Trade Receivables [Member]
Other Financial Instruments
Aggregate allowance for doubtful accounts	$ 1.6	$ 1.8

CAPITAL STOCK (Details)

CAPITAL STOCK (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Capital Stock
Common stock, shares authorized		200,000,000		200,000,000		200,000,000
Preferred stock, shares authorized		15,000,000		15,000,000		15,000,000
Preferred stock outstanding (in shares)		0		0
Beginning balance, shares				94,820,570
Issuance of service-based restricted stock awards				202,000
Restricted stock forfeited and retired, shares				(16,000)
Common stock reacquired and retired, shares				(39,000)
Option exercises, net of cancellations				19,000
Ending balance, shares		94,986,852		94,986,852
Dividends
Cash dividend declared (in dollars per share)	$ 0.08	$ 0.08	$ 0.16	$ 0.16	$ 0.32
Dividend payable
Cash dividend declared	$ 7.6

STOCK-BASED and OTHER COMPENSAT

STOCK-BASED and OTHER COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Options, Restricted Stock and Unit Awards
Compensation expense before capitalized cost	$ 12,714	$ 9,153	$ 23,228	$ 19,727
Less amounts capitalized to oil and gas properties	(5,224)	(4,165)	(10,210)	(9,584)
Compensation expense	7,490	4,988	13,018	10,143
Accelerated compensation cost			2,600
Restricted Stock [Member]
Options, Restricted Stock and Unit Awards
Compensation expense before capitalized cost	11,966	8,506	21,825	18,441
Performance Based Restricted Stock [Member]
Options, Restricted Stock and Unit Awards
Compensation expense before capitalized cost	7,215	4,645	12,909	9,643
Service Based Restricted Stock [Member]
Options, Restricted Stock and Unit Awards
Compensation expense before capitalized cost	4,751	3,861	8,916	8,798
Employee Stock Option [Member]
Options, Restricted Stock and Unit Awards
Compensation expense before capitalized cost	$ 748	$ 647	$ 1,403	$ 1,286

ASSET RETIREMENT OBLIGATIONS (D

ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Asset Retirement Obligations
Balance at beginning of year	$ 164,105
Liabilities incurred	1,502
Liability settlements and disposals	(6,210)
Accretion expense	3,806
Revisions of estimated liabilities	2,496
Balance at end of year	$ 164,105	$ 165,699
Less current obligation		(9,033)
Long-term asset retirement obligation		$ 156,666

EARNINGS (LOSS) PER SHARE (Deta

EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Basic:
Net income (loss)	$ (270,290)	$ (600,215)	$ (456,421)	$ (1,015,156)
Net income (loss) applicable to common stockholders	(270,290)	(600,215)	(456,421)	(1,015,156)
Diluted:
Net income (loss)	(270,290)	(600,215)	(456,421)	(1,015,156)
Net income (loss) applicable to common stockholders	$ (270,290)	$ (600,215)	$ (456,421)	$ (1,015,156)
Shares:
Basic shares outstanding	93,075	92,831	93,075	92,831
Fully diluted common stock (in shares)	93,075	92,831	93,075	92,831
Excluded antidilutive securities (in shares)	2,279	1,931	2,279	1,931
Earnings per share to common shareholders
Basic (in dollars per share)	$ (2.91)	$ (6.47)	$ (4.91)	$ (10.94)
Diluted (in dollars per share)	$ (2.91)	$ (6.47)	$ (4.91)	$ (10.94)

INCOME TAXES - Components of th

INCOME TAXES - Components of the Provision for income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Deferred Taxes:
Deferred taxes (benefit)	$ (154,219)	$ (342,056)	$ (260,419)	$ (570,795)
Total income tax expense (benefits)	$ (154,219)	$ (342,056)	$ (260,419)	$ (570,795)
Combined Federal and State effective income tax rate	36.30%	36.30%	36.30%	36.00%

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Income Taxes
U.S. net tax operating loss carryforward		$ 907.5
U.S. net tax operating loss carryforward recorded to equity when utilized to reduce taxes payable		77.2
Alternative minimum tax credit carryforward		$ 6
Unrecognized tax benefits that would impact the entity's effective rate	$ 0
Provisions for interest or penalties related to uncertain tax positions	$ 0
U.S. statutory rate (as a percent)	35.00%

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Other Commitments (Details) $ in Millions	6 Months Ended
	Jun. 30, 2016USD ($)
Drilling Commitments [Member]
Construction, Drilling and Purchase Commitments
Commitments for purchases and other expenditures	$ 222.4
Commitments to Secure Use of Drilling Rigs [Member]
Construction, Drilling and Purchase Commitments
Commitments for purchases and other expenditures	$ 3.8

COMMITMENTS AND CONTINGENCIES43

COMMITMENTS AND CONTINGENCIES - Other Commitments - Delivery, operating leases (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)MMcf	Dec. 31, 2015USD ($)
Delivery Commitments
Accrued liabilities	$ 220,154	$ 247,508
Non-cancelable operating leases
Future minimum operating lease arrangements	$ 101,500
Natural Gas Sales Contracts [Member]
Delivery Commitments
Volume of gas deliverable (in Bcf) | MMcf	46,700
Delivery term	28 months
Financial commitment upon nondelivery	$ 116,900
Gas Gathering And Processing Agreements [Member]
Delivery Commitments
Delivery term	10 years
Financial commitment upon nondelivery	$ 190,200
Minimum Volume Agreement [Member]
Delivery Commitments
Financial commitment upon nondelivery	12,500
Accrued liabilities	10,600
Other Transportation, Delivery And Facilities Commitments [Member]
Delivery Commitments
Financial commitment upon nondelivery	$ 35,700

SUPPLEMENTAL DISCLOSURE OF CA44

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Cash paid during the period for:
Interest expense (including capitalized amounts)	$ 39,140	$ 39,277	$ 39,734	$ 40,212
Interest capitalized	9,917	16,583	10,057	16,997
Income taxes	$ 2	555	13	556
Cash received for income taxes		$ 109	$ 25	$ 409