Cimarex Energy (CIMXP) 10-Q 3 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 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	Sep. 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	94,964,174
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 698,696	$ 779,382
Receivables, net	226,983	225,398
Oil and gas well equipment and supplies	34,909	54,579
Derivative instruments	1,147	10,745
Prepaid expenses	3,453	7,036
Other current assets	1,315	790
Total current assets	966,503	1,077,930
Oil and gas properties at cost, using the full cost method of accounting:
Proved properties	16,013,316	15,546,948
Unproved properties and properties under development, not being amortized	447,071	440,166
Gross oil and gas properties	16,460,387	15,987,114
Less - accumulated depreciation, depletion, amortization and impairment	(13,756,311)	(12,710,968)
Net oil and gas properties	2,704,076	3,276,146
Fixed assets, net	214,448	230,009
Goodwill	620,232	620,232
Derivative instruments	3	501
Other assets, net	33,485	38,468
Total assets	4,538,747	5,243,286
Current liabilities:
Accounts payable	53,428	66,815
Accrued liabilities	258,551	247,508
Derivative instruments	21,573
Revenue payable	107,766	95,744
Total current liabilities	441,318	410,067
Principal	1,500,000	1,500,000
Less - unamortized debt issuance costs	(12,629)	(14,380)
Long-term debt, net	1,487,371	1,485,620
Deferred income taxes	87,523	352,705
Other liabilities	189,253	197,216
Total liabilities	2,205,465	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, 94,964,174 and 94,820,570 shares issued, respectively	950	948
Paid-in capital	2,774,804	2,762,976
Retained earnings (Accumulated deficit)	(443,480)	33,313
Accumulated other comprehensive income	1,008	441
Total stockholders' equity	2,333,282	2,797,678
Total liabilities and stockholders' equity	$ 4,538,747	$ 5,243,286

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 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	94,964,174	94,820,570

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues:
Oil sales	$ 166,079	$ 192,501	$ 445,657	$ 647,850
Gas sales	109,278	114,649	268,501	331,985
NGL sales	50,464	40,159	135,755	135,236
Gas gathering and other	9,824	8,754	25,276	26,165
Gas marketing, net	72	(8)	1	104
Total revenues	335,717	356,055	875,190	1,141,340
Costs and expenses:
Impairment of oil and gas properties	89,816	1,180,649	719,142	2,751,535
Depreciation, depletion and amortization	109,344	185,654	361,320	619,883
Asset retirement obligation	2,033	2,615	6,081	6,393
Production	52,976	69,334	180,891	222,145
Transportation, processing and other operating	48,706	46,290	139,585	129,645
Gas gathering and other	7,905	8,429	23,477	28,599
Taxes other than income	15,974	19,717	43,879	67,678
General and administrative	20,118	20,413	55,439	50,405
Stock compensation	5,764	4,737	18,782	14,880
(Gain) loss on derivative instruments, net	(9,758)	(1,968)	23,050	(1,968)
Other operating, net	179	60	293	844
Total costs and expenses	343,057	1,535,930	1,571,939	3,890,039
Operating income (loss)	(7,340)	(1,179,875)	(696,749)	(2,748,699)
Other (income) and expense:
Interest expense	20,931	21,416	62,560	63,969
Capitalized interest	(5,421)	(7,100)	(15,958)	(25,087)
Other, net	(3,828)	(2,375)	(7,489)	(9,814)
Income (loss) before income tax	(19,022)	(1,191,816)	(735,862)	(2,777,767)
Income tax expense (benefit)	(6,204)	(428,532)	(266,623)	(999,327)
Net income (loss)	$ (12,818)	$ (763,284)	$ (469,239)	$ (1,778,440)
Earnings (loss) per share to common stockholders:
Basic (in dollars per share)	$ (0.14)	$ (8.21)	$ (5.04)	$ (19.14)
Diluted (in dollars per share)	(0.14)	(8.21)	(5.04)	(19.14)
Dividends per share	$ 0.08	$ 0.16	$ 0.24	$ 0.48
Comprehensive income (loss):
Net income (loss)	$ (12,818)	$ (763,284)	$ (469,239)	$ (1,778,440)
Other comprehensive income (loss):
Change in fair value of investments, net of tax	287	(609)	567	(800)
Total comprehensive income (loss)	$ (12,531)	$ (763,893)	$ (468,672)	$ (1,779,240)

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ (469,239)	$ (1,778,440)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Impairments and other valuation losses	719,142	2,751,535
Depreciation, depletion and amortization	361,320	619,883
Asset retirement obligation	6,081	6,393
Deferred income taxes	(265,508)	(1,014,264)
Stock compensation	18,782	14,880
(Gain) loss on derivative instruments	23,050	(1,968)
Settlements on derivative instruments	9,718
Changes in non-current assets and liabilities	4,121	16,343
Other, net	2,931	3,494
Changes in operating assets and liabilities:
Receivables, net	(1,723)	151,783
Other current assets	23,034	29,634
Accounts payable and other current liabilities	(2,378)	(222,727)
Net cash provided by operating activities	429,331	576,546
Cash flows from investing activities:
Oil and gas expenditures	(485,114)	(771,029)
Sales of oil and gas assets	19,013	38,343
Sales of other assets	5,718	1,057
Other capital expenditures	(24,013)	(58,085)
Net cash used by investing activities	(484,396)	(789,714)
Cash flows from financing activities:
Proceeds from sale of common stock		752,100
Financing and underwriting fees	(1)	(22,663)
Dividends paid	(30,243)	(43,211)
Proceeds from exercise of stock options and other	4,623	20,392
Net cash provided by (used in) financing activities	(25,621)	706,618
Net change in cash and cash equivalents	(80,686)	493,450
Cash and cash equivalents at beginning of period	779,382	405,862
Cash and cash equivalents at end of period	$ 698,696	$ 899,312

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 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 and no impairment was required. However, the continued industry-wide decline in drilling operations has put downward pressure on the price of oil and gas well equipment and supplies. 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 (loss) 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 September 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 an impairment of $89.8 million ($57.1 million, net of tax). Year-to-date 2016 impairments totaled $719.1 million ($456.9 million, net of tax). These impairments 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, or if there is a negative impact on one or more of the other components of the calculation, we may 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: September 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	9 Months Ended
	Sep. 30, 2016
Long-Term Debt
Long-Term Debt	2. Debt at September 30, 2016 and December 31, 2015 consisted of the following: September 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 $ $ $ $ At September 30, 2016 and December 31, 2015, we had no bank debt outstanding. All of our long-term debt is senior unsecured 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 September 30, 2016, 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 September 30, 2016, we were in compliance with all of the financial and non-financial covenants. At September 30, 2016 and December 31, 2015, we had $4.7 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 the 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 September 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	9 Months Ended
	Sep. 30, 2016
Derivative Instruments/Hedging
Derivative Instruments/Hedging	3. 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. We may hedge up to 50% of our oil and natural gas production. The following tables summarize our outstanding derivative contracts as of September 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 Nine Months Ended September 30, September 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 September 30, 2016 and December 31, 2015, as well as the potential effect of netting arrangements on contracts with the same counterparty. September 30, 2016: (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 — 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	9 Months Ended
	Sep. 30, 2016
Fair Value Measurements
Fair Value Measurements	4. 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 provides fair value measurement information for certain assets and liabilities as of September 30, 2016 and December 31, 2015: September 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 September 30, 2016 and December 31, 2015, the allowance for doubtful accounts was $1.6 million and $1.8 million, respectively.

CAPITAL STOCK

CAPITAL STOCK	9 Months Ended
	Sep. 30, 2016
Capital Stock
Capital Stock	5. Authorized capital stock consists of 200 million shares of common stock and 15 million shares of preferred stock. At September 30, 2016, there were no shares of preferred stock outstanding. A summary of our common stock activity for the nine months ended September 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 September 30, 2016 Dividends In August 2016, the Board of Directors declared a cash dividend of $0.08 per share. The dividend is payable on December 1, 2016, to stockholders of record on November 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 and August 2016, all of the dividends declared ($15.2 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	9 Months Ended
	Sep. 30, 2016
STOCK-BASED COMPENSATION
Stock-based Compensation	6. 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 Nine Months Ended September 30, September 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 $ $ $ $ The increases in 2016 stock compensation are primarily related to performance awards granted in December 2015, a portion of which have been amortized over the 2016 periods.

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS	9 Months Ended
	Sep. 30, 2016
Asset Retirement Obligations
Asset Retirement Obligations	7. 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 nine months ended September 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 September 30, 2016 Less current obligation Long-term asset retirement obligation $ During the first nine months of 2016, the liability settlements and disposals included $12.5 million related to properties that were sold.

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	9 Months Ended
	Sep. 30, 2016
Earnings (Loss) per Share
Earnings (Loss) per Share	8. The calculations of basic and diluted net earnings (loss) per common share under the two-class method are presented below: Three Months Ended Nine Months Ended September 30, September 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	9 Months Ended
	Sep. 30, 2016
Income Taxes
Income Taxes	9. The components of our provision for income taxes are as follows: Three Months Ended Nine Months Ended September 30, September 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 $891.3 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 September 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 2013 through 2015 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 2015. 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	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies
Commitments and Contingencies	10. Commitments We have commitments of $200.9 million to finish drilling and completing wells in progress at September 30, 2016. We also have various commitments for drilling rigs. The total minimum commitments under these agreements are $1.9 million. At September 30, 2016, we had firm sales contracts to deliver approximately 50.2 Bcf of natural gas over the next 25 months. If this gas is not delivered, our financial commitment would be approximately $134.9 million. This 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 commitments over the next ten years. If no gas is delivered, the maximum amount that would be payable under these commitments would be approximately $227.8 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 approximately $16.0 million. Of this total, we have accrued a liability of $9.6 million. Due to reduced drilling activity in 2015 and 2016, we may have additional liabilities associated with these delivery commitments in the future. We have other various transportation, delivery and facilities commitments in the normal course of business, which approximate $31.6 million. We anticipate meeting these obligations. We have various commitments for office space and equipment under operating lease arrangements totaling $99.0 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	9 Months Ended
	Sep. 30, 2016
Supplemental Disclosure of Cash Flow Information:
Supplemental Disclosure of Cash Flow Information:	11. Three Months Ended Nine Months Ended September 30, September 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)	9 Months Ended
	Sep. 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	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 and no impairment was required. However, the continued industry-wide decline in drilling operations has put downward pressure on the price of oil and gas well equipment and supplies. 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 (loss) 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 September 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 an impairment of $89.8 million ($57.1 million, net of tax). Year-to-date 2016 impairments totaled $719.1 million ($456.9 million, net of tax). These impairments 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, or if there is a negative impact on one or more of the other components of the calculation, we may 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)	9 Months Ended
	Sep. 30, 2016
Basis of Presentation
Schedule of components of receivable accounts, accounts payable, and accrued liabilities	September 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)	9 Months Ended
	Sep. 30, 2016
Long-Term Debt
Summary of debt	September 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)	9 Months Ended
	Sep. 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 Nine Months Ended September 30, September 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	September 30, 2016: (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 — 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)	9 Months Ended
	Sep. 30, 2016
Fair Value Measurements
Fair value measurement information for certain assets and liabilities	September 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)	9 Months Ended
	Sep. 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 September 30, 2016

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2016
STOCK-BASED COMPENSATION
Recognition of non-cash stock-based compensation cost	Three Months Ended Nine Months Ended September 30, September 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)	9 Months Ended
	Sep. 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 September 30, 2016 Less current obligation Long-term asset retirement obligation $

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	9 Months Ended
	Sep. 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 Nine Months Ended September 30, September 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)	9 Months Ended
	Sep. 30, 2016
Income Taxes
Components of the provision for income taxes	Three Months Ended Nine Months Ended September 30, September 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)	9 Months Ended
	Sep. 30, 2016
Supplemental Disclosure of Cash Flow Information:
Supplemental Disclosure of Cash Flow Information	Three Months Ended Nine Months Ended September 30, September 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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 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	$ 89,816	$ 1,180,649	$ 719,142	$ 2,751,535
Impairment of oil and gas properties, after tax	57,100		456,900
Receivables, net of allowance
Trade	46,749		46,749		$ 81,888
Oil and gas sales	170,025		170,025		136,537
Gas gathering, processing, and marketing	10,197		10,197		6,935
Other	12		12		38
Receivables, net	226,983		226,983		225,398
Accounts payable:
Trade	33,471		33,471		53,384
Gas gathering, processing, and marketing	19,957		19,957		13,431
Accounts payable	53,428		53,428		66,815
Accrued liabilities
Exploration and development	56,032		56,032		56,721
Taxes other than income	17,924		17,924		17,545
Other	184,595		184,595		173,242
Accrued liabilities	$ 258,551		$ 258,551		$ 247,508

LONG-TERM DEBT - Summary (Detai

LONG-TERM DEBT - Summary (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument
Principal	$ 1,500,000	$ 1,500,000
Unamortized Debt Issuance Costs	12,629	14,380
Senior Notes 5.875% [Member]
Debt Instrument
Principal	750,000	750,000
Unamortized Debt Issuance Costs	$ 6,005	$ 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	$ 6,624	$ 7,402
Interest rate (as a percent)	4.375%	4.375%

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument
Unamortized debt issuance costs	$ 12,629,000	$ 14,380,000
Revolving Credit Facility [Member]
Debt Instrument
Unamortized debt issuance costs	4,700,000	5,700,000
Credit facility amount	1,000,000,000
Credit facility, increase amount option	1,250,000,000
Borrowings outstanding	0	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	$ 6,624,000	$ 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	$ 6,005,000	$ 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	9 Months Ended
	Sep. 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	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	1,288
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	41.25
Ceiling, weighted average price (in dollars per unit) | $ / bbl	50.24
Derivative Contract Oil Collar W T I Index [Member] | Fourth Quarter - 2016 [Member]
Fair values of derivative assets and liabilities
Volume | bbl / qtr	1,288
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	41.25
Ceiling, weighted average price (in dollars per unit) | $ / bbl	50.24
Derivative Contract Oil Collar W T I Index [Member] | 2017 [Member]
Fair values of derivative assets and liabilities
Volume | bbl / qtr	3,914
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	42.28
Ceiling, weighted average price (in dollars per unit) | $ / bbl	51.46
Derivative Contract Oil Collar W T I Index [Member] | First Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | bbl / qtr	1,260
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	41.25
Ceiling, weighted average price (in dollars per unit) | $ / bbl	50.24
Derivative Contract Oil Collar W T I Index [Member] | Second Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | bbl / qtr	1,274
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	41.25
Ceiling, weighted average price (in dollars per unit) | $ / bbl	50.24
Derivative Contract Oil Collar W T I Index [Member] | Third Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | bbl / qtr	920
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	43.75
Ceiling, weighted average price (in dollars per unit) | $ / bbl	53.34
Derivative Contract Oil Collar W T I Index [Member] | Fourth 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	45
Ceiling, weighted average price (in dollars per unit) | $ / bbl	54.42
Derivative Contract Gas Collar PEPL Index [Member] | 2016 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	8,280
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.42
Ceiling, weighted average price (in dollars per unit)	2.93
Derivative Contract Gas Collar PEPL Index [Member] | Fourth Quarter - 2016 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	8,280
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.42
Ceiling, weighted average price (in dollars per unit)	2.93
Derivative Contract Gas Collar PEPL Index [Member] | 2017 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	22,760
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.44
Ceiling, weighted average price (in dollars per unit)	2.98
Derivative Contract Gas Collar PEPL Index [Member] | First Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	7,200
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.38
Ceiling, weighted average price (in dollars per unit)	2.94
Derivative Contract Gas Collar PEPL Index [Member] | Second Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	7,280
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.38
Ceiling, weighted average price (in dollars per unit)	2.94
Derivative Contract Gas Collar PEPL Index [Member] | Third Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	5,520
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.47
Ceiling, weighted average price (in dollars per unit)	3.02
Derivative Contract Gas Collar PEPL Index [Member] | Fourth 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)	2.68
Ceiling, weighted average price (in dollars per unit)	3.13
Derivative Contract Gas Collar Perm EP [Member] | 2016 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	6,440
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.47
Ceiling, weighted average price (in dollars per unit)	2.96
Derivative Contract Gas Collar Perm EP [Member] | Fourth Quarter - 2016 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	6,440
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.47
Ceiling, weighted average price (in dollars per unit)	2.96
Derivative Contract Gas Collar Perm EP [Member] | 2017 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	18,190
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.51
Ceiling, weighted average price (in dollars per unit)	3.03
Derivative Contract Gas Collar Perm EP [Member] | First Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	6,300
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.47
Ceiling, weighted average price (in dollars per unit)	3.01
Derivative Contract Gas Collar Perm EP [Member] | Second Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	6,370
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.47
Ceiling, weighted average price (in dollars per unit)	3.01
Derivative Contract Gas Collar Perm EP [Member] | Third Quarter - 2017 [Member]
Fair values of derivative assets and liabilities
Volume | MMBTU / D	3,680
Weighted Average Price
Floor, weighted average price (in dollars per unit)	2.51
Ceiling, weighted average price (in dollars per unit)	3.04
Derivative Contract Gas Collar Perm EP [Member] | Fourth 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)	2.73
Ceiling, weighted average price (in dollars per unit)	3.15
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] | Fourth Quarter - 2016 [Member]
Weighted Average Price
Floor, weighted average price (in dollars per unit) | $ / bbl	40
Maximum [Member]
Derivative
Percent of oil and gas production available for hedging	50.00%
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] | 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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
(Gain) loss on derivative instruments, net
(Gain) loss on derivative instruments, net	$ (9,758)	$ (1,968)	$ 23,050	$ (1,968)
(Gains) losses from settlement of derivative instruments:
Settlement (gains) losses	$ (791)		$ (9,718)

DERIVATIVE INSTRUMENTS_HEDGIN33

DERIVATIVE INSTRUMENTS/HEDGING - Derivative assets and liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Asset
Total gross amounts presented in accompanying balance sheet	$ 1,147	$ 10,745
Liability
Total gross amounts presented in accompanying balance sheet	21,573
Not Designated as Hedging Instrument [Member]
Asset
Total gross amounts presented in accompanying balance sheet	1,150	11,246
Less: gross amounts not offset in the accompanying balance sheet	(1,150)
Net amount:		11,246
Liability
Total gross amounts presented in accompanying balance sheet	22,672
Less: gross amounts not offset in the accompanying balance sheet	(1,150)
Net amount:	21,522
Not Designated as Hedging Instrument [Member] | Oil Contracts [Member] | Current Assets [Member]
Asset
Total gross amounts presented in accompanying balance sheet	662	6,774
Not Designated as Hedging Instrument [Member] | Oil Contracts [Member] | Current Liabilities [Member]
Liability
Total gross amounts presented in accompanying balance sheet	15,166
Not Designated as Hedging Instrument [Member] | Oil Contracts [Member] | Non-Current Liabilities [Member]
Liability
Total gross amounts presented in accompanying balance sheet	1,026
Not Designated as Hedging Instrument [Member] | Natural Gas Contracts [Member] | Current Assets [Member]
Asset
Total gross amounts presented in accompanying balance sheet	485	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	3	$ 501
Not Designated as Hedging Instrument [Member] | Natural Gas Contracts [Member] | Current Liabilities [Member]
Liability
Total gross amounts presented in accompanying balance sheet	6,407
Not Designated as Hedging Instrument [Member] | Natural Gas Contracts [Member] | Non-Current Liabilities [Member]
Liability
Total gross amounts presented in accompanying balance sheet	$ 73

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financial Assets (Liabilities):
Derivative instruments — assets	$ 1,147	$ 10,745
Derivative instruments — liabilities	(21,573)
Carrying Amount [Member]
Financial Assets (Liabilities):
Derivative instruments — assets	1,150	11,246
Derivative instruments — liabilities	(22,672)
Fair Value [Member]
Financial Assets (Liabilities):
Derivative instruments — assets	1,150	$ 11,246
Derivative instruments — liabilities	$ (22,672)
Senior Notes 5.875% [Member]
Financial Assets (Liabilities):
Interest rate (as a percent)	5.875%	5.875%
Senior Notes 5.875% [Member] | Carrying Amount [Member]
Financial Assets (Liabilities):
Long-term debt	$ (750,000)	$ (750,000)
Senior Notes 5.875% [Member] | Fair Value [Member]
Financial Assets (Liabilities):
Long-term debt	$ (791,235)	$ (723,750)
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] | Carrying Amount [Member]
Financial Assets (Liabilities):
Long-term debt	$ (750,000)	$ (750,000)
Senior Notes 4.375% [Member] | Fair Value [Member]
Financial Assets (Liabilities):
Long-term debt	$ (792,180)	$ (683,318)
Senior Notes 4.375% [Member] | Fair Value, Inputs, Level 1 [Member]
Financial Assets (Liabilities):
Interest rate (as a percent)	4.375%	4.375%

FAIR VALUE MEASUREMENTS - Other

FAIR VALUE MEASUREMENTS - Other instruments (Details) - USD ($) $ in Millions	Sep. 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		4 Months Ended	9 Months Ended
	Aug. 31, 2016	Sep. 30, 2016	Sep. 30, 2015	Aug. 31, 2016	Sep. 30, 2016	Sep. 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					208,000
Restricted stock forfeited and retired, shares					(26,000)
Common stock reacquired and retired, shares					(100,000)
Option exercises, net of cancellations					61,000
Ending balance, shares		94,964,174			94,964,174
Dividends
Cash dividend declared (in dollars per share)	$ 0.08	$ 0.08	$ 0.16		$ 0.24	$ 0.48
Dividend payable
Cash dividend declared				$ 15.2

STOCK-BASED and OTHER COMPENSAT

STOCK-BASED and OTHER COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Options, Restricted Stock and Unit Awards
Compensation cost before capitalized cost	$ 10,660	$ 7,741	$ 33,888	$ 27,468
Less amounts capitalized to oil and gas properties	(4,896)	(3,004)	(15,106)	(12,588)
Compensation expense	5,764	4,737	18,782	14,880
Restricted Stock [Member]
Options, Restricted Stock and Unit Awards
Compensation cost before capitalized cost	10,089	6,886	31,914	25,327
Performance Based Restricted Stock [Member]
Options, Restricted Stock and Unit Awards
Compensation cost before capitalized cost	5,465	4,984	18,374	14,627
Service Based Restricted Stock [Member]
Options, Restricted Stock and Unit Awards
Compensation cost before capitalized cost	4,624	1,902	13,540	10,700
Employee Stock Option [Member]
Options, Restricted Stock and Unit Awards
Compensation cost before capitalized cost	$ 571	$ 855	$ 1,974	$ 2,141

ASSET RETIREMENT OBLIGATIONS (D

ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Asset Retirement Obligations
Balance at beginning of year	$ 164,105
Liabilities incurred	2,234
Liability settlements and disposals	(20,316)
Accretion expense	5,732
Revisions of estimated liabilities	2,735
Balance at end of year	164,105	$ 154,490
Less current obligation		(9,033)
Long-term asset retirement obligation		$ 145,457
Liability settlements and disposals related to properties that were sold	$ 12,500

EARNINGS (LOSS) PER SHARE (Deta

EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Basic:
Net income (loss)	$ (12,818)	$ (763,284)	$ (469,239)	$ (1,778,440)
Net income (loss) applicable to common stockholders	(12,818)	(763,284)	(469,239)	(1,778,440)
Diluted:
Net income (loss)	(12,818)	(763,284)	(469,239)	(1,778,440)
Net income (loss) applicable to common stockholders	$ (12,818)	$ (763,284)	$ (469,239)	$ (1,778,440)
Shares:
Basic shares outstanding	93,221	92,969	93,221	92,969
Fully diluted common stock (in shares)	93,221	92,969	93,221	92,969
Excluded antidilutive securities (in shares)	2,065	1,915	2,065	1,915
Earnings per share to common shareholders
Basic (in dollars per share)	$ (0.14)	$ (8.21)	$ (5.04)	$ (19.14)
Diluted (in dollars per share)	$ (0.14)	$ (8.21)	$ (5.04)	$ (19.14)

INCOME TAXES - Components of th

INCOME TAXES - Components of the Provision for income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Current Taxes:
Current taxes (benefit)	$ (1,115)	$ 14,937	$ (1,115)	$ 14,937
Deferred Taxes:
Deferred taxes (benefit)	(5,089)	(443,469)	(265,508)	(1,014,264)
Total income tax expense (benefits)	$ (6,204)	$ (428,532)	$ (266,623)	$ (999,327)
Combined Federal and State effective income tax rate	32.60%	36.00%	36.20%	36.00%

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Income Taxes
U.S. net tax operating loss carryforward		$ 891.3
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	9 Months Ended
	Sep. 30, 2016USD ($)
Drilling Commitments [Member]
Construction, Drilling and Purchase Commitments
Commitments for purchases and other expenditures	$ 200.9
Commitments to Secure Use of Drilling Rigs [Member]
Construction, Drilling and Purchase Commitments
Commitments for purchases and other expenditures	$ 1.9

COMMITMENTS AND CONTINGENCIES43

COMMITMENTS AND CONTINGENCIES - Other Commitments - Delivery, operating leases (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)MMcf	Dec. 31, 2015USD ($)
Delivery Commitments
Accrued liabilities	$ 258,551	$ 247,508
Non-cancelable operating leases
Future minimum operating lease arrangements	$ 99,000
Natural Gas Sales Contracts [Member]
Delivery Commitments
Volume of gas deliverable (in Bcf) | MMcf	50,200
Delivery term	25 months
Financial commitment upon nondelivery	$ 134,900
Gas Gathering And Processing Agreements [Member]
Delivery Commitments
Delivery term	10 years
Financial commitment upon nondelivery	$ 227,800
Minimum Volume Agreement [Member]
Delivery Commitments
Financial commitment upon nondelivery	16,000
Accrued liabilities	9,600
Other Transportation, Delivery And Facilities Commitments [Member]
Delivery Commitments
Financial commitment upon nondelivery	$ 31,600

SUPPLEMENTAL DISCLOSURE OF CA44

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Cash paid during the period for:
Interest expense (including capitalized amounts)	$ 813	$ 1,014	$ 40,547	$ 41,226
Interest capitalized	286	336	10,343	17,333
Income taxes		$ 2	13	558
Cash received for income taxes	$ 1,115		$ 1,140	$ 409