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Cimarex Reports Fourth Quarter and Full Year 2019 Results

·8 mins read

DENVER , Feb. 19, 2020 /PRNewswire/ --

  • Fourth quarter oil production averaged 92.0 MBbls per day

  • 2019 capital investment (including midstream) totaled $1.32 billion ; below guidance range

  • Generated $1.34 billion of net cash from operating activities

Cimarex Energy Co. (NYSE: XEC) today reported a net loss for fourth quarter 2019 of $384.1 million , or $3.87 per share, compared to net income of $316.2 million , or $3.32 per share, in the same period a year ago. For the full year, Cimarex reported a net loss of $124.6 million , or $1.33 per share, compared to 2018 net income of $791.9 million , or $8.32 per share.  Both fourth quarter and full year results were negatively impacted by a non-cash charge related to the impairment of oil and gas properties.  Fourth quarter 2019 adjusted net income (non-GAAP) was $120.4 million , or $1.18 per share, compared to adjusted net income (non-GAAP) of $192.1 million , or $2.01 per share in the same period a year ago 1 .  Full year 2019 adjusted net income (non-GAAP) was $448.8 million , or $4.46 per share, compared to $708.7 million , or $7.42 per share  in 2018 1 .  Adjusted cash flow from operations (non-GAAP) was $416.0 million in fourth quarter 2019 compared to $428.2 million in the same period a year ago 1 .  Full year 2019 adjusted cash flow from operations (non-GAAP) was $1.46 billion compared to $1.53 billion in 2018 1 .

Oil volumes in the fourth quarter were sequentially higher, averaging 92.0 thousand barrels (MBbls) per day.  For the full year, Cimarex reported average daily oil volumes of 86.2 MBbls, a 27 percent year-over-year increase.  Cimarex produced 292.7 thousand barrels of oil equivalent (MBOE) per day in the fourth quarter and averaged 278.5 MBOE per day for the year.

In the fourth quarter realized oil prices averaged $54.80 per barrel, up 11 percent from the $49.30 per barrel received in the fourth quarter of 2018.  Realized natural gas prices averaged $1.19 per thousand cubic feet (Mcf), down 45 percent from the fourth quarter 2018 average of $2.16 per Mcf.  NGL prices averaged $14.13 per barrel, down 32 percent from the $20.71 per barrel received in the fourth quarter of 2018, but up 31 percent from the lows we saw in the third quarter of 2019.  For the full year, Cimarex realized $52.77 per barrel of oil, down 7 percent from 2018, $1.11 per Mcf of natural gas and $13.55 per barrel of NGLs sold.

Both oil and natural gas prices were negatively impacted by local price differentials in 2019 although oil price differential did see some improvement year-over-year.  Our realized Permian oil differential to WTI Cushing averaged $(4.48) per barrel in 2019 compared to $(9.82) in 2018.  For the year, Cimarex's average differential on its Permian natural gas production was $(2.14) per Mcf compared to the Henry Hub index and, in the Mid-Continent region, realized gas prices differentials were $(0.68) per Mcf compared to Henry Hub.

Cimarex invested a total of $1.32 billion in 2019, which included $944 million attributable to drilling and completion (D&C) activities, $75 million to saltwater disposal and $74 million to midstream and other investments. Capital investments were funded with cash flow from operations.

Proved reserves at December 31, 2019 totaled 620 million barrels of oil equivalent (MMBOE), up five percent year over year.  Oil reserves increased 16 percent.  Cimarex added 119 MMBOE through extensions and discoveries and 3.5 MMBOE through net performance revisions resulting in reserve replacement of 121 percent of 2019 production. Proved reserves are 86 percent proved developed.

Total debt at December 31, 2019 consisted of $2.0 billion of long-term notes.  Cimarex had no borrowings under its revolving credit facility and a cash balance of $94.7 million at year-end.  Debt was 37 percent of total capitalization 2 .

Operations Update

Cimarex invested $1.32 billion in 2019 including $944 million (72 percent) of D&C capital.  Also included is $74 million of investment in midstream and other and $75 million in saltwater disposal investment.  Of the $1.32 billion , 85 percent was invested in the Permian region and 15 percent in the Mid-Continent.

During 2019, Cimarex participated in the drilling and completion of 291 gross (92 net) wells.  At year-end, 95 gross (32 net) wells were waiting on completion, of which 45 gross (1 net) were in the Mid-Continent and 50 gross (31 net) were in the Permian.  Cimarex currently operates ten drilling rigs.

WELLS BROUGHT ON PRODUCTION BY REGION












Three Months Ended
December 31,


Twelve Months Ended
December 31,



2019


2018


2019


2018










Gross wells









Permian Basin


31



40



131



129


Mid-Continent


16



46



160



220




47



86



291



349


Net wells









Permian Basin


22



32



76



80


Mid-Continent


1



6



16



42




23



38



92



122


Permian Region
Production from the Permian region averaged 207.1 MBOE per day in the fourth quarter, or 71 percent of total company volumes.  Oil volumes averaged 78.4 MBbls per day, 85 percent of total company oil volumes.  For the full year, production averaged 190.7 MBOE per day, 68 percent of total company volumes with Permian oil representing 84 percent of Cimarex's oil volumes in 2019.

Cimarex brought 31 gross (22 net) wells on production in the Permian during fourth quarter, bringing the total wells on production in 2019 to 131 gross (76 net).  About 86 percent of our operated wells were drilled from multi-well pads and our average lateral length on our operated wells brought on production in the Permian was 9,529 feet in 2019. Cimarex currently operates ten rigs and two completion crews in the region.

Mid-Continent Region
Production from the Mid-Continent averaged 85.3 MBOE per day for the fourth quarter, down 18 percent from fourth quarter 2018 and down three percent sequentially.  Oil volumes averaged 13.5 MBbls per day and represented 15 percent of the company's total oil volume in the quarter.  For the full year, production averaged 87.3 MBOE per day, down eight percent year over year. Oil volumes averaged 13.8 MBbls per day in 2019, down nine percent year over year.

Wells brought on production during the fourth quarter totaled 16 gross (1 net) in the Mid-Continent region, bringing the total wells in 2019 to 160 gross (16 net).  At the end of the quarter, 45 gross (1 net) wells were waiting on completion.

Activity in the region continues to focus on the Woodford and Meramec shale plays in western Oklahoma .

Production by Region
Cimarex's average daily production and commodity price by region is summarized below:

DAILY PRODUCTION BY REGION












Three Months Ended
December 31,


Twelve Months Ended
December 31,



2019


2018


2019


2018










Permian Basin









Gas (MMcf)


451.4



296.4



398.9



253.7


Oil (Bbls)


78,421



61,621



72,264



52,339


NGL (Bbls)


53,438



36,380



51,982



31,505


Total Equivalent (BOE)


207,096



147,404



190,735



126,124











Mid-Continent









Gas (MMcf)


280.1



324.2



289.1



308.8


Oil (Bbls)


13,514



18,122



13,788



15,150


NGL (Bbls)


25,081



31,275



25,379



28,697


Total Equivalent (BOE)


85,282



103,432



87,348



95,307











Total Company









Gas (MMcf)


732.6



621.9



689.2



563.9


Oil (Bbls)


92,048



79,904



86,200



67,699


NGL (Bbls)


78,557



67,706



77,408



60,258


Total Equivalent (BOE)


292,709



251,254



278,480



221,946


 

AVERAGE REALIZED PRICE BY REGION












Three Months Ended
December 31,


Twelve Months Ended
December 31,



2019


2018


2019


2018










Permian Basin









Gas ($ per Mcf)


0.83



1.44



0.49



1.69


Oil ($ per Bbl)


54.78



47.17



52.55



54.95


NGL ($ per Bbl)


13.23



20.13



12.62



22.84











Mid-Continent









Gas ($ per Mcf)


1.76



2.82



1.95



2.23


Oil ($ per Bbl)


54.91



56.48



53.89



62.31


NGL ($ per Bbl)


16.04



21.38



15.47



21.67











Total Company









Gas ($ per Mcf)


1.19



2.16



1.11



1.99


Oil ($ per Bbl)


54.80



49.30



52.77



56.61


NGL ($ per Bbl)


14.13



20.71



13.55



22.28


Other
The following table summarizes Cimarex's current hedge positions:



1Q20


2Q20


3Q20


4Q20


1Q21


2Q21

Gas Collars:

PEPL (3)













Volume (MMBtu/d)

90,000



60,000



30,000



30,000



10,000





Wtd Avg Floor

$

1.92



$

1.90



$

1.85



$

1.85



$

1.85



$



Wtd Avg Ceiling

$

2.36



$

2.28



$

2.31



$

2.31



$

2.31



$
















El Paso Perm (3)













Volume (MMBtu/d)

40,000



30,000



20,000



20,000







Wtd Avg Floor

$

1.40



$

1.40



$

1.35



$

1.35



$



$



Wtd Avg Ceiling

$

1.79



$

1.82



$

1.66



$

1.66



$



$
















Waha   (3)













Volume (MMBtu/d)

50,000



30,000











Wtd Avg Floor

$

1.50



$

1.57



$



$



$



$



Wtd Avg Ceiling

$

1.87



$

1.97



$



$



$



$















Oil Collars:

WTI(4)













Volume (Bbl/d)

39,000



31,000



23,000



23,000



15,000



5,000



Wtd Avg Floor

$

52.40



$

50.43



$

49.80



$

49.80



$

49.70



$

50.00



Wtd Avg Ceiling

$

64.48



$

61.55



$

60.59



$

60.59



$

59.41



$

60.14















Oil Basis Swaps:

WTI Midland(5)













Volume (Bbl/d)

32,297



26,000



19,000



19,000



11,000



5,000



Weighted Avg Differential

$

0.33



$

0.44



$

0.75



$

0.75



$

0.77



$

1.02


Conference call and webcast
Cimarex will host a conference call tomorrow, February 20, at 11:00 a.m. EST (9:00 a.m. MST) to discuss its fourth quarter and 2019 financial and operating results as well as management's outlook for 2020. The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).

A replay will be available on the company's website.

Investor Presentation
For more details on Cimarex's 2019 results, please refer to the company's investor presentation available at www.cimarex.com.

About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.

Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding projected results and future events. These forward-looking statements are based on management's judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a description of certain risk factors that may affect these forward-looking statements.

Actual results may differ materially from company projections and other forward-looking statements and can be affected by a variety of factors outside the control of the company including among other things: oil, NGL and natural gas price levels and volatility; higher than expected costs and expenses, including the availability and cost of services and materials; our ability to successfully integrate the March 2019 acquisition of Resolute Energy Corporation; compliance with environmental and other regulations; costs and availability of third party facilities for gathering, processing, refining and transportation; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; unexpected future capital expenditures; economic and competitive conditions; the availability and cost of capital; the ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; changes in estimates of proved reserves; derivative and hedging activities; the success of the company's risk management activities; title to properties; litigation; the ability to complete property sales or other transactions; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the SEC. Cimarex Energy Co. encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, the company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances.

____________________________________

1

Adjusted net income, adjusted cash flow from operations and free cash flow are non-GAAP financial measures. See below for reconciliations of the related GAAP amounts.



2

Debt to total capitalization is calculated by dividing long-term debt by long-term debt plus stockholders' equity.



3

PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index, El Paso Perm refers to El Paso Permian Basin index, and Waha refers to West Texas (Waha) Index, all as quoted in Platt's Inside FERC.



4

WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange.



5

Index price on basis swaps is WTI NYMEX less the weighted average WTI Midland differential, as quoted by Argus Americas Crude.

RECONCILIATION OF ADJUSTED NET INCOME

The following reconciles net (loss) income as reported under generally accepted accounting principles (GAAP) to adjusted net income (non-GAAP) for the periods indicated.


Three Months Ended
December 31,


Twelve Months Ended
December 31,


2019


2018


2019


2018


(in thousands, except per share data)









Net (loss) income

$

(384,091)



$

316,182



$

(124,619)



$

791,851


Impairment of oil and gas properties (1)

618,693





618,693




Mark-to-market loss (gain) on open derivative positions

28,888



(161,516)



63,719



(110,388)


Loss on early extinguishment of debt





4,250




Acquisition related costs



3,007



8,404



3,007


Tax impact

(143,115)



34,397



(121,637)



24,268


Adjusted net income

$

120,375



$

192,070



$

448,810



$

708,738


Diluted earnings (loss) per share

$

(3.87)



$

3.32



$

(1.33)



$

8.32


Adjusted diluted earnings per share*

$

1.18



$

2.01



$

4.46



$

7.42










Weighted-average number of shares outstanding:








Adjusted diluted**

101,903



95,675



100,679



95,523




(1)

Cimarex reported an impairment of oil and gas properties of $108.9 million in the third quarter 2019; however, no impairment should have been recorded in the third quarter. As such, that impairment was reversed and is now included in the impairment of oil and gas properties of $618.7 million recorded in the fourth quarter 2019.




Adjusted net income and adjusted diluted earnings per share exclude the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP measures because:





a)

Management uses adjusted net income to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies.






b)

Adjusted net income is more comparable to earnings estimates provided by research analysts.





* Does not include adjustments resulting from application of the "two-class method" used to determine earnings per share under GAAP.




** Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding stock options.

RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS, FREE CASH FLOW AND
FREE CASH FLOW AFTER DIVIDEND

The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) , free cash flow (non-GAAP) and free cash flow after dividend (non-GAAP) for the periods indicated.


Three Months Ended
December 31,


Twelve Months Ended
December 31,


2019


2018


2019


2018


(in thousands)

Net cash provided by operating activities

$

359,809



$

393,181



$

1,343,966



$

1,550,994


Change in operating assets and liabilities

56,178



34,971



120,174



(17,415)










Adjusted cash flow from operations

$

415,987



$

428,152



$

1,464,140



$

1,533,579










Oil and gas expenditures

$

(249,417)



$

(415,099)



$

(1,249,797)



$

(1,566,583)


Other capital expenditures

(14,658)



(28,422)



(73,693)



(103,459)


Free cash flow

151,912



(15,369)



140,650



(136,463)










Dividends paid

(21,579)



(17,205)



(81,709)



(55,243)


Free cash flow after dividend

$

130,333



$

(32,574)



$

58,941



$

(191,706)


Management uses the non-GAAP financial measures of adjusted cash flow from operations, free cash flow and free cash flow aver dividend as means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities. Management believes these non-GAAP financial measures provide useful information to investors for the same reason, and that they are also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.

PROVED RESERVES


Gas
(MMcf)


Oil
(MBbls)


NGL
(MBbls)


Total
(
MBOE)

December 31, 2018

1,591,321



146,538



179,436



591,195


Revisions of previous estimates

(180,632)



(8,516)



(12,038)



(50,661)


Extensions and discoveries

247,406



41,193



36,834



119,261


Purchases of reserves

129,435



22,628



18,818



63,019


Production

(251,567)



(31,463)



(28,254)



(101,645)


Sales of reserves

(3,818)



(610)



(328)



(1,574)


December 31, 2019

1,532,145



169,770



194,468



619,595










Proved developed reserves:








December 31, 2018

1,398,729



116,339



151,566



501,027


December 31, 2019

1,358,329



138,783



166,552



531,722











2019


2018


% Change



Standardized Measure ($ in millions)

3,629



4,015



(10)

%



Pre-tax PV-10 ($ in millions) *

3,948



4,739



(17)

%



























Average prices used in Standardized Measure

2019


2018


% Change



Gas ($ per Mcf)

2.58



3.10



(17)

%



Oil ($ per Bbl)

55.67



65.56



(15)

%



NGL ($ per Bbl)

13.27



21.03



(37)

%



* Pre-tax PV-10 is a non-GAAP financial measure. Pre-tax PV-10 is comparable to the standardized measure, which is the most directly comparable GAAP financial measure. Pre-tax PV-10 is computed on the same basis as the standardized measure but without deducting future income taxes. As of December 31, 2019 and 2018, Cimarex's discounted future income taxes were $319.4 million and $724.0 million, respectively. Cimarex's standardized measure of discounted future net cash flows was $3,629.0 million at year-end 2019 and $4,015.2 million at year-end 2018. Management uses pre-tax PV-10 as one measure of the value of the company's proved reserves and to compare relative values of proved reserves to other exploration and production companies without regard to income taxes. Management believes pre-tax PV-10 is a useful measure for comparison of proved reserve values among companies because, unlike standardized measure, it excludes future income taxes that often depend on the unique income tax characteristics of the owner of the reserves rather than on the nature, location and quality of the reserves themselves. Management further believes that professional research analysts and rating agencies use pre-tax PV-10 in similar ways. However, pre-tax PV-10 is not a substitute for the standardized measure of discounted future net cash flows. Cimarex's pre-tax PV-10 and the standardized measure of discounted future net cash flows do not purport to present the fair value of its oil and natural gas reserves.

PROVED RESERVES BY REGION


Gas

(MMcf)


Oil

(MBbls)


NGL

(MBbls)


Total

(MBOE)

Permian Basin

870,208



147,662



130,007



422,703


Mid-Continent

660,161



21,848



64,377



196,252


Other

1,776



260



84



640



1,532,145



169,770



194,468



619,595


OIL AND GAS CAPITALIZED EXPENDITURES








Three Months Ended
December 31,


Twelve Months Ended
December 31,


2019


2018


2019


2018


(in thousands)

Acquisitions:








Proved

$

(723)



$



$

695,450



$

62


Unproved

3,908



13,965



1,025,376



26,216



3,185



13,965



1,720,826



26,278










Exploration and development:








Land and seismic

17,719



6,764



60,175



82,791


Exploration and development

234,603



373,555



1,181,605



1,487,453



252,322



380,319



1,241,780



1,570,244










Property sales including purchase price adjustments

1,829



(7,285)



(35,320)



(581,799)



$

257,336



$

386,999



$

2,927,286



$

1,014,723


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited)












Three Months Ended
December 31,


Twelve Months Ended
December 31,



2019


2018


2019


2018



(in thousands, except per share information)

Revenues:









Oil sales


$

464,044



$

362,411



$

1,660,210



$

1,398,813


Gas and NGL sales


182,269



252,825



661,711



898,832


Gas gathering and other


10,931



8,885



41,048



41,372




657,244



624,121



2,362,969



2,339,017


Costs and expenses:









Impairment of oil and gas properties


618,693





618,693




Depreciation, depletion, amortization, and accretion


252,637



180,060



890,759



597,615


Production


82,722



67,271



339,941



296,189


Transportation, processing, and other operating


64,780



55,535



238,259



211,463


Gas gathering and other


6,279



9,738



23,294



28,327


Taxes other than income


43,353



38,620



148,953



125,169


General and administrative


26,349



13,635



95,843



77,843


Stock compensation


6,394



6,633



26,398



22,895


Loss (gain) on derivative instruments, net


40,901



(157,505)



76,850



(85,959)


Other operating expense, net


248



3,037



19,305



18,507




1,142,356



217,024



2,478,295



1,292,049











Operating (loss) income


(485,112)



407,097



(115,326)



1,046,968











Other (income) and expense:









Interest expense


23,721



17,387



93,386



68,224


Capitalized interest


(14,421)



(5,738)



(56,232)



(20,855)


Loss on early extinguishment of debt






4,250




Other, net


(1,193)



(8,192)



(5,741)



(22,908)











(Loss) income before income tax


(493,219)



403,640



(150,989)



1,022,507


Income tax (benefit) expense


(109,128)



87,458



(26,370)



230,656


Net (loss) income


$

(384,091)



$

316,182



$

(124,619)



$

791,851











Earnings (loss) per share to common stockholders:









Basic


$

(3.87)



$

3.32



$

(1.33)



$

8.32


Diluted


$

(3.87)



$

3.32



$

(1.33)



$

8.32











Dividends declared per common share


$

0.20



$

0.18



$

0.80



$

0.68











Weighted-average number of shares outstanding:









Basic


99,789



93,897



98,789



93,793


Diluted


99,789



93,915



98,789



93,820











Comprehensive income (loss):









Net (loss) income


$

(384,091)



$

316,182



$

(124,619)



$

791,851


Other comprehensive income (loss):









Change in fair value of investments, net of tax


(10)



(1,985)



(755)



(1,444)


Total comprehensive income (loss)


$

(384,101)



$

314,197



$

(125,374)



$

790,407













CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited)












Three Months Ended
December 31,


Twelve Months Ended
December 31,



2019


2018


2019


2018



(in thousands)

Cash flows from operating activities:









Net (loss) income


$

(384,091)



$

316,182



$

(124,619)



$

791,851


Adjustments to reconcile net (loss) income to net cash









provided by operating activities:









Impairment of oil and gas properties


618,693





618,693




Depreciation, depletion, amortization, and accretion


252,637



180,060



890,759



597,615


Deferred income taxes


(109,660)



90,465



(26,902)



233,280


Stock compensation


6,394



6,633



26,398



22,895


Loss (gain) on derivative instruments, net


40,901



(157,505)



76,850



(85,959)


Settlements on derivative instruments


(12,013)



(4,011)



(13,131)



(24,429)


Loss on early extinguishment of debt






4,250




Changes in non-current assets and liabilities


(167)



(535)



(2,797)



(1,779)


Other, net


3,293



(3,137)



14,639



105


Changes in operating assets and liabilities:









Accounts receivable


(15,055)



17,193



65,128



5,421


Other current assets


(2,879)



(6,378)



(739)



(1,957)


Accounts payable and other current liabilities


(38,244)



(45,786)



(184,563)



13,951


Net cash provided by operating activities


359,809



393,181



1,343,966



1,550,994


Cash flows from investing activities:









Oil and gas capital expenditures


(249,417)



(415,099)



(1,249,797)



(1,566,583)


Acquisition of Resolute Energy, net of cash acquired






(284,441)




Sales of oil and gas assets


398



7,285



28,945



580,652


Sales of other assets


245



2,782



1,104



3,772


Other capital expenditures


(14,658)



(28,422)



(73,693)



(103,459)


Net cash used by investing activities


(263,432)



(433,454)



(1,577,882)



(1,085,618)


Cash flows from financing activities:









Borrowings of long-term debt


380,000





2,619,310




Repayments of long-term debt


(380,000)





(2,990,000)




Financing, underwriting, and debt redemption fees




(100)



(11,798)



(100)


Finance lease payments


(1,138)





(3,869)




Dividends paid


(21,579)



(17,205)



(81,709)



(55,243)


Employee withholding taxes paid upon the net settlement of equity-classified stock awards


(2,823)



(5,732)



(5,229)



(12,142)


Proceeds from exercise of stock options




30



1,267



2,241


Net cash used by financing activities


(25,540)



(23,007)



(472,028)



(65,244)


Net change in cash and cash equivalents


70,837



(63,280)



(705,944)



400,132


Cash and cash equivalents at beginning of period


23,885



863,946



800,666



400,534


Cash and cash equivalents at end of period


$

94,722



$

800,666



$

94,722



$

800,666


CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)








December 31, 2019


December 31, 2018

Assets


(in thousands, except share and per share information)

Current assets:





Cash and cash equivalents


$

94,722



$

800,666


Accounts receivable, net of allowance


448,584



454,200


Oil and gas well equipment and supplies


47,893



55,553


Derivative instruments


17,944



101,939


Other current assets


12,343



11,781


Total current assets


621,486



1,424,139


Oil and gas properties at cost, using the full cost method of accounting:





Proved properties


20,678,334



18,566,757


Unproved properties and properties under development, not being amortized


1,255,908



436,325




21,934,242



19,003,082


Less – accumulated depreciation, depletion, amortization, and impairment


(16,723,544)



(15,287,752)


Net oil and gas properties


5,210,698



3,715,330


Fixed assets, net of accumulated depreciation of $389,458 and $324,631, respectively


519,291



257,686


Goodwill


716,865



620,232


Derivative instruments


580



9,246


Other assets


71,109



35,451




$

7,140,029



$

6,062,084


Liabilities, Redeemable Preferred Stock, and Stockholders' Equity





Current liabilities:





Accounts payable


$

49,020



$

106,814


Accrued liabilities


418,978



379,455


Derivative instruments


16,681



27,627


Revenue payable


207,939



194,811


Operating leases


66,003




Total current liabilities


758,621



708,707


Long-term debt:





Principal


2,000,000



1,500,000


Less – unamortized debt issuance costs and discounts


(14,754)



(11,446)


Long-term debt, net


1,985,246



1,488,554


Deferred income taxes


338,424



334,473


Derivative instruments


1,018



2,267


Operating leases


184,172




Other liabilities


214,787



198,297


Total liabilities


3,482,268



2,732,298


Redeemable preferred stock - 8.125% Series A Cumulative Perpetual Convertible Preferred Stock, $0.01 par value, 62,500 shares authorized and issued and no shares authorized and issued, respectively


81,620




Stockholders' equity:





Common stock, $0.01 par value, 200,000,000 shares authorized, 102,144,577 and 95,755,797 shares issued, respectively


1,021



958


Additional paid-in capital


3,243,325



2,785,188


Retained earnings


331,795



542,885


Accumulated other comprehensive income




755


Total stockholders' equity


3,576,141



3,329,786




$

7,140,029



$

6,062,084


Cision
Cision

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SOURCE Cimarex Energy Co.