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Cimarex Reports Second Quarter 2020 Results

August 05, 2020

DENVER, Aug. 5, 2020 /PRNewswire/ --

  • Generated Cash from Operating Activities of $145 million in the quarter
  • Invested $84 million in the second quarter
  • $26 million in free cash flow after dividend
  • Oil production averaged 78,000 barrels per day

Cimarex Energy Co. (NYSE: XEC) today reported a second quarter 2020 net loss of $925.1 million, or $9.28 per share, compared to net income of $109.3 million, or $1.07 per share, in the same period a year ago.  Second quarter results were negatively impacted by non-cash charges related to the impairment of oil and gas properties.  Second quarter adjusted net income (non-GAAP) was $(52.4) million, or $(0.51) per share, compared to second quarter 2019 adjusted net income (non-GAAP) of $83.0 million, or $0.82 per share1.  Net cash provided by operating activities was $144.7 million in the second quarter of 2020 compared to $414.0 million in the same period a year ago.  Adjusted cash flow from operations (non-GAAP) was $144.5 million in the second quarter of 2020 compared to $336.4 million in the second quarter a year ago1

Oil production averaged 78.0 thousand barrels (MBbls) per day. Total company production volumes for the quarter averaged 254.7 thousand barrels of oil equivalent (MBOE) per day.  Second quarter production volumes were impacted by the operational slow down announced in March and a 20 percent temporary curtailment of May production related to the extreme fluctuation in oil prices caused by the COVID-19 pandemic and the actions of OPEC and other countries during the quarter.

Realized oil prices averaged $19.57 per barrel, down 64 percent from the $54.24 per barrel received in the second quarter of 2019.  Realized natural gas prices averaged $0.91 per thousand cubic feet (Mcf), up 82 percent from the second quarter 2019 average of $0.50 per Mcf.  NGL prices averaged $7.52 per barrel, down 43 percent from the $13.08 barrel received in the second quarter of 2019.

Cimarex's realized oil price was impacted by a negative differential to WTI of $8.28 per barrel in the quarter from $1.99 per barrel in the previous quarter, with a negative oil price differential in the Permian of $8.12 per barrel in the second quarter, $2.00 per barrel sequentially. Our realized local natural gas price differentials improved in both regions.  The company realized a negative differential to Henry Hub on its Permian natural gas production of $1.09 per Mcf in the second quarter of 2020 compared to $3.10 per Mcf in the second quarter of 2019 and $1.85 in the first quarter of 2020.  In the Mid-Continent region, the company's average negative differential to Henry Hub was $0.31 per Mcf versus $0.86 per Mcf in the second quarter of 2019 and $0.57 in the first quarter of 2020. 

Cimarex invested a total of $84 million during the second quarter, of which $49 million was attributable to drilling and completion activities.  Second quarter investments were funded with cash flow from operating activities.  Total debt at June 30, 2020 consisted of $2.0 billion of long-term notes, with no debt maturities until 2024.  Cimarex had no borrowings under its revolving credit facility and a cash balance of $44 million at quarter end. 

Outlook

Cimarex Chairman and CEO, Tom Jorden, said, "The second quarter required drastic and prudent action.  Our response to the challenging price environment included a significant decrease in activity and curtailing May production volumes.  With improved oil prices we have elected to resume activity.  We are bringing three additional drilling rigs back to work in the third quarter and will begin completing wells again in September with two completion crews on the schedule.  As a result, we expect capital investment for the year to total approximately $600 million, in line with expectations of an operational restart from our previous guidance range."  The table below shows a breakdown of the projected capital by category:

Capital Investment ($MM)


Updated 2020E Guidance


Drilling and Completion (D&C)


~ $430


Midstream/Saltwater Disposal (SWD)


~    40


Other*


~  130


Total Capital Investment


~ $600


*Capitalized overhead, production, NPL, and technology

Cimarex is also giving production and expense guidance for the remainder of 2020.  Third quarter 2020 production volumes are expected to average 230 - 250 MBOE per day, with oil volumes estimated to average 69.0 - 74.0 MBbls per day.  Total 2020 daily production volumes are expected to average 240 - 250 MBOE per day, with annual oil volumes estimated to average 75.0 - 78.0 MBbls per day.

Expenses per BOE of production for 2020 are estimated to be:


Production expense

$2.90 - $3.30


Transportation, processing and other expense

2.10 - 2.40


DD&A and ARO accretion

7.40 - 7.90


General and administrative expense

0.95 - 1.15


Taxes other than income (% of oil and gas revenue)

6.0% - 8.0%

Mr. Jorden continued, "This activity puts us in a strong position as we enter 2021.  We see Cimarex in a position to generate more than enough free cash flow to fund our dividend in 2021 at $35 WTI, a testament to increasing efficiencies.  Any excess free cash flow would be used to fund dividend increases and grow cash on the balance sheet to retire debt."

"The health and safety of our employees remains top of mind.  Cimarex has taken a number of steps to protect employees in the wake of the COVID-19 pandemic including the implementation of a staggered office schedule and the adoption of COVID-19 protocols for field staff and employees working in the office."

Operations Update

Cimarex invested $84 million during the second quarter, with 88 percent invested in the Permian Basin and 12 percent in the Mid-Continent.  Cimarex brought 37 gross (12.5 net) wells on production during the quarter.  At June 30, 73 gross (31.1 net) wells were waiting on completion. 

WELLS BROUGHT ON PRODUCTION BY REGION












Three Months Ended
June 30,


Six Months Ended
June 30,



2020


2019


2020


2019










Gross wells









Permian Basin


17



44



52



56


Mid-Continent


20



66



39



92




37



110



91



148


Net wells









Permian Basin


11.1



31.9



30.9



36.9


Mid-Continent


1.4



7.8



1.7



10.7




12.5



39.7



32.6



47.6


Permian Region

Production from the Permian region averaged 185.7 MBOE per day in the second quarter, a two percent decrease from second quarter 2019.  Oil volumes averaged 68.8 MBbls per day, a three percent decrease from second quarter 2019 and down 14 percent sequentially.

Cimarex brought 17 gross (11.1 net) wells on production in the Permian region during the second quarter.  There were 47 gross (31.1 net) wells waiting on completion at June 30.  Cimarex is currently operating three drilling rigs but no completion crews in the region.

Mid-Continent Region

Production from the Mid-Continent averaged 68.7 MBOE per day for the second quarter, down 20 percent from second quarter 2019 and down 6 percent sequentially.

During the second quarter, 20 gross (1.4 net) wells were brought on production in the Mid-Continent region.  At the end of the quarter, 26 gross (<1 net) wells were waiting on completion.  Cimarex is not currently operating drilling rigs or completion crews in the Mid-Continent.

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

DAILY PRODUCTION BY REGION












Three Months Ended
June 30,


Six Months Ended
June 30,



2020


2019


2020


2019










Permian Basin









Gas (MMcf)


417.8



379.3



433.4



360.1


Oil (Bbls)


68,791



70,669



74,198



67,835


NGL (Bbls)


47,291



54,813



48,111



50,567


Total Equivalent (MBOE)


185.7



188.7



194.5



178.4











Mid-Continent









Gas (MMcf)


237.3



285.5



240.7



291.3


Oil (Bbls)


9,063



12,623



9,502



13,419


NGL (Bbls)


20,068



25,496



21,089



26,060


Total Equivalent (MBOE)


68.7



85.7



70.7



88.0











Total Company









Gas (MMcf)


656.0



665.8



675.2



652.5


Oil (Bbls)


77,956



83,430



83,873



81,433


NGL (Bbls)


67,402



80,362



69,251



76,680


Total Equivalent (MBOE)


254.7



274.8



265.6



266.9


AVERAGE REALIZED PRICE BY REGION












Three Months Ended
June 30,


Six Months Ended
June 30,



2020


2019


2020


2019










Permian Basin









Gas ($ per Mcf)


0.62



(0.46)



0.35



0.34


Oil ($ per Bbl)


19.73



54.02



32.84



51.15


NGL ($ per Bbl)


6.78



11.97



7.83



13.72











Mid-Continent









Gas ($ per Mcf)


1.40



1.78



1.39



2.24


Oil ($ per Bbl)


18.32



55.43



31.83



54.01


NGL ($ per Bbl)


9.26



15.47



10.71



16.51











Total Company









Gas ($ per Mcf)


0.91



0.50



0.72



1.19


Oil ($ per Bbl)


19.57



54.24



32.74



51.64


NGL ($ per Bbl)


7.52



13.08



8.71



14.67


Other

Cimarex received cash settlements of $5.9 million related to its gas hedges during the quarter.  Settlement of oil hedges resulted in cash receipts of $58.1 million.

The following table summarizes the company's current open hedge positions:



3Q20


4Q20


1Q21


2Q21


3Q21


4Q21


1Q22
















Gas Collars:

PEPL (2)















Volume (MMBtu/d)

100,000


100,000


100,000


90,000


70,000


70,000


40,000


Wtd Avg Floor

$

1.78


$

1.78


$

1.83


$

1.83


$

1.88


$

1.88


$

2.00


Wtd Avg Ceiling

$

2.21


$

2.21


$

2.23


$

2.22


$

2.29


$

2.29


$

2.40

















El Paso Perm (2)















Volume (MMBtu/d)

70,000


70,000


70,000


70,000


50,000


50,000


20,000


Wtd Avg Floor

$

1.36


$

1.36


$

1.50


$

1.50


$

1.64


$

1.64


$

1.85


Wtd Avg Ceiling

$

1.64


$

1.64


$

1.79


$

1.79


$

1.95


$

1.95


$

2.18

















Waha (2)















Volume (MMBtu/d)

70,000


70,000


90,000


90,000


70,000


70,000


40,000


Wtd Avg Floor

$

1.43


$

1.43


$

1.52


$

1.52


$

1.65


$

1.65


$

1.77


Wtd Avg Ceiling

$

1.73


$

1.73


$

1.83


$

1.83


$

1.98


$

1.98


$

2.15
















Oil Collars:

WTI (3)















Volume (Bbl/d)

41,000


41,000


40,000


30,000


21,000


21,000


7,000


Wtd Avg Floor

$

40.91


$

40.91


$

38.06


$

34.23


$

31.48


$

31.48


$

35.00


Wtd Avg Ceiling

$

49.84


$

49.84


$

46.45


$

42.25


$

39.67


$

39.67


$

45.28
















Oil Basis Swaps:

WTI Midland (4)















Volume (Bbl/d)

32,000


32,000


31,000


25,000


20,000


20,000


7,000


Wtd Avg Differential

$

0.18


$

0.18


$

0.03


$

(0.10)


$

(0.38)


$

(0.38)


$

0.11
















Oil Roll Differential
Swaps:

WTI (3)















Volume (Bbl/d)



7,000


7,000


7,000


7,000


7,000


Wtd Avg Price

$


$


$

(0.24)


$

(0.24)


$

(0.24)


$

(0.24)


$

(0.24)

Conference call and webcast

Cimarex will host a conference call tomorrow, August 6, 2020 at 11:00 a.m. EST (9:00 a.m. MST).  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 second quarter 2020 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.

This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the disclosures under the heading "Outlook" contain projections for certain 2020 operational and financial metrics.  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, 2019, filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list 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, including those resulting from demand destruction from the COVID-19 pandemic; disruptions to the availability of workers and contractors due to illness and stay at home orders related to the COVID-19 pandemic; disruptions to gathering, pipeline, refining, transportation and other midstream and downstream activities due to the COVID-19 pandemic; disruptions to supply chains and availability of critical equipment and supplies, including as a result of the COVID-19 pandemic; the effectiveness of controls over financial reporting; declines in the values of our oil and gas properties resulting in impairments; impairments of goodwill; higher than expected costs and expenses, including the availability and cost of services and materials, which may be impacted by the COVID-19 pandemic; 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 concentration of operations in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner, which may be negatively impacted by COVID-19 restrictions on regulatory personnel who process and approve those matters; development drilling and testing results; 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 which may be negatively impacted by a change in administration; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water, which may be negatively impacted by a change in administration; 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; 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 and adjusted cash flow from operations are non-GAAP financial measures.  See below for reconciliations of the related GAAP amounts.

2

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.

3

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

4

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 (LOSS) INCOME

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


Three Months Ended
June 30,


Six Months Ended
June 30,


2020


2019


2020


2019


(in thousands, except per share data)









Net income (loss)

$

(925,147)



$

109,309



$

(1,699,429)



$

135,625


Impairment of oil and gas properties (1)

941,198





1,274,849




Impairment of goodwill





714,447




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

187,826



(34,531)



4,000



71,870


Loss on early extinguishment of debt







4,250


Acquisition related costs



74





8,391


Asset retirement obligation





2,800




Tax impact (2)

(256,289)



8,166



(289,653)



(20,029)


Adjusted net (loss) income

$

(52,412)



$

83,018



$

7,014



$

200,107


Diluted earnings (loss) per share

$

(9.28)



$

1.07



$

(17.05)



$

1.34


Adjusted diluted earnings (loss) per share*

$

(0.51)



$

0.82



$

0.07



$

2.01










Weighted-average number of shares outstanding:








Adjusted diluted**

102,114



101,448



102,122



99,592


______________________________________

(1)

An additional ceiling test impairment is anticipated in the third quarter.

(2)

Because the goodwill impairment is not deductible for tax purposes, the tax impact in the 2020 period is calculated using an effective tax rate determined by excluding goodwill from the effective tax rate calculation.




Adjusted net (loss) income and adjusted diluted earnings (loss) 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 (loss) 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 (loss) 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
June 30,


Six Months Ended
June 30,


2020


2019


2020


2019


(in thousands)

Net cash provided by operating activities

$

144,706



$

413,992



$

453,497



$

664,083


Change in operating assets and liabilities

(178)



(77,630)



(2,548)



23,341










Adjusted cash flow from operations

144,528



336,362



450,949



687,424










Oil and gas expenditures

(152,510)



(379,015)



(418,580)



(711,757)


Other capital expenditures

(11,627)



(22,313)



(38,052)



(40,141)


Change in capital accruals

68,813



61,085



86,286



14,654


Free cash flow

49,204



(3,881)



80,603



(49,820)










Dividends paid

(23,616)



(21,468)



(45,209)



(38,647)


Free cash flow after dividend

$

25,588



$

(25,349)



$

35,394



$

(88,467)


Management uses the non-GAAP financial measures of adjusted cash flow from operations, free cash flow and free cash flow after 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.

OIL AND GAS CAPITALIZED EXPENDITURES








Three Months Ended
June 30,


Six Months Ended
June 30,


2020


2019


2020


2019


(in thousands)

Acquisitions:








Proved

$



$

1,200



$

7,250



$

693,800


Unproved



1,000





1,051,782





2,200



7,250



1,745,582










Exploration and development:








Land and seismic

12,116



14,552



$

26,040



$

24,079


Exploration and development

71,666



310,428



306,394



668,919



83,782



324,980



332,434



692,998










Property sales:








Proved



(22,058)



$



$

(18,028)


Unproved



(6,253)



(830)



(9,754)





(28,311)



(830)



(27,782)











$

83,782



$

298,869



$

338,854



$

2,410,798


 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(unaudited)












Three Months Ended
June 30,


Six Months Ended
June 30,



2020


2019


2020


2019



(in thousands, except per share information)

Revenues:









Oil sales


$

138,817



$

411,766



$

499,797



$

761,072


Gas and NGL sales


100,261



126,044



198,742



343,959


Gas gathering and other


10,305



8,653



23,674



18,389




249,383



546,463



722,213



1,123,420


Costs and expenses:









Impairment of oil and gas properties


941,198





1,274,849




Depreciation, depletion, amortization, and accretion


196,615



215,484



416,425



407,950


Impairment of goodwill






714,447




Production


64,337



88,995



151,573



167,399


Transportation, processing, and other operating


53,282



54,107



108,204



113,682


Gas gathering and other


3,526



6,560



11,824



11,742


Taxes other than income


16,486



41,033



47,447



74,727


General and administrative


26,226



24,911



51,735



53,995


Stock compensation


6,747



6,494



13,141



13,207


Loss (gain) on derivative instruments, net


123,885



(40,768)



(103,055)



74,684


Other operating expense, net


130



590



381



8,916




1,432,432



397,406



2,686,971



926,302











Operating (loss) income


(1,183,049)



149,057



(1,964,758)



197,118











Other (income) and expense:









Interest expense


23,047



24,674



46,228



45,079


Capitalized interest


(12,939)



(16,805)



(26,121)



(25,547)


Loss on early extinguishment of debt








4,250


Other, net


3,496



(2,167)



2,625



(4,408)











(Loss) income before income tax


(1,196,653)



143,355



(1,987,490)



177,744


Income tax (benefit) expense


(271,506)



34,046



(288,061)



42,119


Net (loss) income


$

(925,147)



$

109,309



$

(1,699,429)



$

135,625











Earnings (loss) per share to common stockholders:









Basic


$

(9.28)



$

1.07



$

(17.05)



$

1.34


Diluted


$

(9.28)



$

1.07



$

(17.05)



$

1.34











Dividends declared per common share


$

0.22



$

0.20



$

0.44



$

0.40











Weighted-average number of shares outstanding:









Basic


99,880



99,658



99,861



97,800


Diluted


99,880



99,665



99,861



97,809











Comprehensive (loss) income:









Net (loss) income


$

(925,147)



$

109,309



$

(1,699,429)



$

135,625


Other comprehensive income:









Change in fair value of investments, net of tax of $0, $89, $0 and $428, respectively




304





1,453


Total comprehensive (loss) income


$

(925,147)



$

109,613



$

(1,699,429)



$

137,078


 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)












Three Months Ended
June 30,


Six Months Ended
June 30,



2020


2019


2020


2019



(in thousands)

Cash flows from operating activities:









Net (loss) income


$

(925,147)



$

109,309



$

(1,699,429)



$

135,625


Adjustments to reconcile net (loss) income to net cash provided by operating activities:









Impairment of oil and gas properties


941,198





1,274,849




Depreciation, depletion, amortization, and accretion


196,615



215,484



416,425



407,950


Impairment of goodwill






714,447




Deferred income taxes


(271,543)



34,046



(287,900)



42,119


Stock compensation


6,747



6,494



13,141



13,207


Loss (gain) on derivative instruments, net


123,885



(40,768)



(103,055)



74,684


Settlements on derivative instruments


63,941



6,237



107,055



(2,814)


Loss on early extinguishment of debt








4,250


Amortization of debt issuance costs and discounts


818



783



1,602



1,502


Changes in non-current assets and liabilities


4,609



601



7,019



2,749


Other, net


3,405



4,176



6,795



8,152


Changes in operating assets and liabilities:









Accounts receivable


85,010



83,716



204,615



117,692


Other current assets


1,519



(1,111)



1,495



(761)


Accounts payable and other current liabilities


(86,351)



(4,975)



(203,562)



(140,272)


Net cash provided by operating activities


144,706



413,992



453,497



664,083


Cash flows from investing activities:









Acquisition of Resolute Energy, net of cash acquired








(284,441)


Oil and gas capital expenditures


(152,510)



(379,015)



(418,580)



(711,757)


Other capital expenditures


(11,627)



(22,313)



(38,052)



(40,141)


Sales of oil and gas assets




8,233



830



13,233


Sales of other assets


1,007



234



1,188



434


Net cash used by investing activities


(163,130)



(392,861)



(454,614)



(1,022,672)


Cash flows from financing activities:









Borrowings of long-term debt


60,000



528,000



161,000



1,710,310


Repayments of long-term debt


(60,000)



(528,000)



(161,000)



(2,081,000)


Financing, underwriting, and debt redemption fees


(1,457)



(853)



(1,557)



(11,791)


Finance lease payments


(1,343)



(920)



(2,808)



(1,555)


Dividends paid


(23,616)



(21,468)



(45,209)



(38,647)


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


(24)





(189)



(654)


Proceeds from exercise of stock options




594





674


Net cash used by financing activities


(26,440)



(22,647)



(49,763)



(422,663)


Net change in cash and cash equivalents


(44,864)



(1,516)



(50,880)



(781,252)


Cash and cash equivalents at beginning of period


88,706



20,930



94,722



800,666


Cash and cash equivalents at end of period


$

43,842



$

19,414



$

43,842



$

19,414


 

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)








June 30, 2020


December 31,
2019

Assets


(in thousands, except share and
per share information)

Current assets:





Cash and cash equivalents


$

43,842



$

94,722


Accounts receivable, net of allowance


244,826



448,584


Oil and gas well equipment and supplies


51,184



47,893


Derivative instruments


71,590



17,944


Other current assets


12,660



12,343


Total current assets


424,102



621,486


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





Proved properties


21,014,098



20,678,334


Unproved properties and properties under development, not being amortized


1,258,002



1,255,908




22,272,100



21,934,242


Less – accumulated depreciation, depletion, amortization, and impairment


(18,373,655)



(16,723,544)


Net oil and gas properties


3,898,445



5,210,698


Fixed assets, net of accumulated depreciation of $423,873 and $389,458, respectively


478,553



519,291


Goodwill




716,865


Derivative instruments




580


Other assets


68,688



71,109




$

4,869,788



$

7,140,029


Liabilities, Redeemable Preferred Stock, and Stockholders' Equity





Current liabilities:





Accounts payable


$

25,032



$

49,020


Accrued liabilities


268,462



418,978


Derivative instruments


51,556



16,681


Revenue payable


102,824



207,939


Operating leases


56,901



66,003


Total current liabilities


504,775



758,621


Long-term debt principal


2,000,000



2,000,000


Less—unamortized debt issuance costs and discounts


(13,729)



(14,754)


Long-term debt, net


1,986,271



1,985,246


Deferred income taxes


50,524



338,424


Derivative instruments


23,210



1,018


Operating leases


155,023



184,172


Other liabilities


217,518



214,787


Total liabilities


2,937,321



3,482,268


Redeemable preferred stock - 8.125% Series A Cumulative Perpetual Convertible Preferred Stock, $0.01 par value, 62,500 shares authorized and issued


81,620



81,620







Stockholders' equity:





Common stock, 0.01 par value, 200,000,000 shares authorized, 102,151,096 and 102,144,577 shares issued, respectively


1,022



1,021


Additional paid-in capital


3,241,244



3,243,325


(Accumulated deficit) retained earnings


(1,391,419)



331,795


Total stockholders' equity


1,850,847



3,576,141




$

4,869,788



$

7,140,029


 

Cision View original content:http://www.prnewswire.com/news-releases/cimarex-reports-second-quarter-2020-results-301107036.html

SOURCE Cimarex Energy Co.

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