CIMAREX REPORTS FIRST
QUARTER EARNINGS OF $0.78 PER SHARE
Cimarex
Energy Co. (NYSE: XEC) today reported
that strong oil and gas prices combined with higher production volumes boosted
first-quarter 2003 net income to $32.7 million, or $0.78 per diluted share. This compares to first-quarter 2002 net
income of $4.3 million, or $0.16 per share.
Net
income for the first quarter of 2003 includes an after-tax one-time accounting
benefit of $1.6 million, or $0.04 per share, from the required adoption of
Statement of Financial Accounting Standard No. 143 relating to new accounting
treatment for future asset retirement obligations.
Revenues
from first-quarter 2003 oil and gas sales grew 286 percent to $89.8 million, up
from $23.2 million during the first quarter of 2002.
Cimarex’s realized gas price in the first quarter of 2003 was $5.76 per thousand
cubic feet (Mcf), which was 185 percent higher than a
year ago. Oil prices rose 38 percent to
$30.14 per barrel. The significant
increase in first-quarter 2003 product prices reflects tightening supply and
demand conditions in oil and gas markets.
Cimarex was un-hedged during the first quarter and remains so.
Reported
daily average gas production increased by 28 percent to 136 million cubic feet
(MMcf) and reported oil production rose 257 percent
to 7,212 barrels per day. The jump in
production volumes mainly reflects the
Cash
flow from operations increased more than four-fold to $65.6 million from $15.7
million during the first three months of 2002.
See below a reconciliation of cash flow from operations, a non-GAAP
financial measure that is widely used by analysts and investors as an important
indicator of financial performance in the oil and gas exploration and
production sector.
Capitalized
costs incurred for oil and gas exploration and development during the first
quarter of 2003 totaled $27.6 million, up from $12.4 million during the same
three months of 2002. During the latest
quarter, 41 gross wells had been drilled including 33 new producers and eight
dry holes.
The
strong cash flow generated by first-quarter 2003 production operations also
enabled us to further reduce our debt by $27.0 million to $5.0 million as of
CONFERENCE CALL
Management
will conduct a conference call and web cast on Wednesday, May 7, 2003 at 11
a.m. Mountain Time to further review quarterly financial results and
operational matters. To access the
live, interactive conference call, dial 800-881-5262 about ten minutes before
the scheduled start time and refer to Cimarex Energy Co. The listen-only web cast of the call will be
accessible via www.cimarex.com. Subsequent to the live event, recordings will
be available via the Cimarex website or by calling 800-642-1687. The dial-in replay conference code is
9851136.
Cimarex
Energy Co. is an independent natural gas and crude oil exploration and production company with operations focused in Mid-Continent
and
This news release may
contain projections and other forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended. Any such
projections or statements reflect the Company’s current view with respect to
future events and financial performance. No assurances can be given,
however, that these events will occur or that such projections will be achieved
and actual results could differ materially from those projected. A discussion
of important factors that could cause actual results to differ materially from
those projected are included in the Company’s Registration Statement on Form
S-4 and Annual Report on Form 10-K filed
with the Securities and Exchange Commission.
Financial
statements and other information follow:
