Corporate Responsibility

Our approach is to analyze every project individually to determine its economic, safety and environmental impacts over the life of the project

Water Resource Management

XEC engineered riser for water reuse access

Cimarex focuses on efficient management of its water needs for completion operations, and the safe disposal of produced water from our oil and gas wells.

By developing an on-demand pipeline system tied into our existing saltwater gathering and disposal infrastructure for source water, Cimarex has reduced its purchased water needs for Permian Basin hydraulic fracturing operations. The on-demand system directs water from our oil and gas wells to a completion site, for use in hydraulic fracturing operations. As volume requirements for stimulation operations have grown, Cimarex has been able to procure the additional water requirements through this system. In 2019 total water volumes pumped in our Permian completions operations increased by 26% year-over-year. During the same period, our source water was comprised of 64% recycled volumes versus 52% in 2018. When recycled water volumes do not fulfill our stimulation requirements, Cimarex will purchase non-fresh water from third-party sources. Cimarex actively investigates alternative means to minimize non-fresh water needs, such as sourcing produced water from third-party disposal facilities and other offset operators.

All gathered produced water in excess of volumes used for a completions operation is disposed of in saltwater disposal (SWD) wells. Volumes for disposal are transported via our gathering system to SWD wells, which we typically own and operate (third-party SWD wells are used when necessary). When determining the location and underground formation of our SWD wells, we forecast produced water rates for future development needs and consider any potential seismic impact. We review the Environmental, Safety, and Health (ESH) programs of the third-party operators of SWD wells that dispose of our produced water to ensure they are operating at a high standard.

In the Mid-Continent, we primarily source our completion water needs from local rivers. We regularly assess community needs for water versus industry demand. If community constraints are forecasted, Cimarex is prepared to move to alternative water sources. The oil and gas wells in the Mid-Continent produce significantly lower volumes of water than the Permian basin, and the majority of such Mid-Continent water production is associated with the completion operation. As a result, the water production is short-lived and is piped or trucked to SWD wells, most of which we operate. Any third-party operators utilized for water disposal are vetted to ensure that they are operating at a high standard.

*Intensity rate is defined as total water sourced divided by total estimated energy recovered. Total estimated energy recovered is the most current estimated reserves of wells completed during that respective year multiplied by a BTU factor. Changes to prior years reflect any adjustments resulting from changes in estimated reserves compared to prior year estimates.