Cimarex Reports Fourth-Quarter and Full-Year 2015 Results

- 2015 Capex down 53% from 2014 levels

- Full-year Production up 13% to 985 MMcfe per day

Feb 16, 2016, 17:00 ET from Cimarex Energy Co.

DENVER, Feb. 16, 2016 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today reported a fourth quarter 2015 net loss of $630.5 million, or $6.78 per share.  The adjusted fourth quarter net loss was $23.0 million, or $0.25 per share, compared to fourth-quarter 2014 adjusted net income of $76.4 million, or $0.87 per diluted share(1).     For the year, Cimarex recorded a net loss of $2.4 billion, or $25.92 per share.   The adjusted net loss for the full year was $0.60 per share(1).  Adjusted cash flow from operations totaled $744 million in 2015, a 54 percent drop from 2014 levels(1).     Revenues in 2015 totaled $1.5 billion, a 40 percent decrease from 2014.  The decrease in revenues, earnings and cash flow was the result of substantially lower product prices received. (See table of Average Realized Price by Region below.)

Total company production volumes averaged 986 million cubic feet equivalent (MMcfe) per day in the fourth quarter, up four percent from a year ago.  Weather and facilities disruptions negatively impacted fourth quarter production by approximately 30 MMcfe per day.   For the full year, Cimarex reported daily production volumes of 985 MMcfe per day, up 13 percent from our 2014 average daily output of 869 MMcfe per day. 

Cimarex invested $877 million in exploration and development in 2015.   This was down significantly from the amount Cimarex invested in 2014 when E&D capital investment totaled $1.9 billion.  Investments made in 2015 were funded with cash flow and cash on hand.

Proved reserves at December 31, 2015 were 2.9 trillion cubic feet equivalent (Tcfe), down seven percent year over year.  Cimarex added 429 Bcfe through extensions and discoveries and had 142 Bcfe in net performance revisions.  As a result, the company replaced 159 percent of 2015 production (excludes negative price and operating cost revisions of 399 Bcfe and 19 Bcfe, respectively).   Proved reserves are 75 percent proved developed.  Prices used for 2015 proved reserve reporting for oil, gas and NGLs were down 47 percent, 40 percent and 53 percent, respectively, from 2014.  (See table of Proved Reserves below.)

Continued declines in oil and natural gas prices impacted the company's financial results for both the fourth quarter and full year.  Realized oil prices averaged $37.32 per barrel in the fourth quarter and $43.38 per barrel for the full year, down 43 percent and 48 percent, versus the respective periods a year ago.  In the fourth quarter, natural gas prices averaged $2.20 per Mcf and NGL prices averaged $12.72 per barrel compared to $3.95 and $25.32, respectively, in the fourth quarter of 2014.  For the full year, natural gas prices averaged $2.53 per Mcf and NGL prices averaged $13.75 per barrel compared to $4.43 and $33.14, respectively, in 2014. Total debt at December 31, 2015 consisted of $1.5 billion of long-term notes, with $750 million maturing in 2022 and $750 million maturing in 2024. Cimarex had no borrowings under its revolving credit facility and had a cash balance of $779 million. Debt was 35 percent of total capitalization(2)

Operations Update

During 2015, Cimarex participated in the drilling and completion of 219 gross (99 net) wells, 123 of which we operate.  Total exploration and development investment was $877 million.  Of the total, 55 percent was invested in Permian projects and 45 percent in the Mid-Continent.

At year-end, 49 gross (20 net) wells were drilled and awaiting completion – 37 gross (13 net) in the Mid-Continent and 12 gross (seven net) in the Permian.

WELLS BROUGHT ON PRODUCTION BY REGION

For the Three Months Ended

For the Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

Gross wells

Permian Basin

13

54

85

171

Mid-Continent

52

33

134

139

Other

2

65

87

219

312

Net wells

Permian Basin

8

39

60

117

Mid-Continent

20

14

39

57

Other

1

28

53

99

175

 

Permian Basin

Production from the Permian Basin averaged 520 MMcfe per day in the fourth quarter, a 16 percent increase over fourth-quarter 2014 and a decrease of eight percent sequentially. Quarterly oil volumes averaged 38,423 barrels per day, flat year-over-year, and accounted for 44 percent of the region's total production for the quarter. Cimarex completed and brought on production 13 gross (eight net) Permian Basin wells during the fourth quarter, bringing the total for 2015 to 85 gross (60 net) wells.

One highlight of the 2015 Permian program was the drilling and completion of 19 gross (13 net) New Mexico Bone Spring wells.  Average 30-day gross peak production from these wells was 1,404 barrels of oil equivalent (BOE) per day (63 percent oil). 

In Culberson County, Texas, Cimarex has completed 27 long lateral Wolfcamp wells to date including 18 in the Wolfcamp D (Lower Wolfcamp) and nine in the Wolfcamp A (Upper Wolfcamp).  Of note were two 7,500-foot Upper Wolfcamp laterals completed during the fourth quarter using a larger stimulation.  Average 30-day gross peak production from these two wells was 1,879 BOE per day (51 percent oil, 30 percent gas, 19 percent NGL).

Mid-Continent

Cimarex drilled and completed 134 gross (39 net) wells in the Mid-Continent area in 2015.  The majority of the activity was in the Cana-Woodford and Meramec shale plays in western Oklahoma.  At the end of the fourth quarter, 37 gross (13 net) wells were awaiting completion; 30 gross (10 net) Cana-Woodford wells and seven gross (three net) Meramec wells. Mid-Continent production averaged 461.1 MMcfe per day for the fourth quarter of 2015 and 432.4 MMcfe per day for the full year.

Cimarex completed its second 10,000-foot lateral well in the Meramec formation in the fourth quarter.  Initial gross 30-day peak production from the first two long lateral Meramec wells averaged 15.0 MMcfe per day (53 percent gas, 24 percent oil, 23 percent NGL).   A third Meramec long lateral is flowing back.   In addition, Cimarex now has 17 5,000-foot Meramec wells on production that have an average 30-day initial peak production rate of 8.4 MMcfe per day (33 percent oil, 44 percent gas, 23 percent NGL) with oil yields ranging from 11 bbl/MMcf to 486 bbl/MMcf.

Production by Region

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

 

DAILY PRODUCTION BY REGION

For the Three Months Ended

For the Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

Permian Basin

Gas (MMcf)

185.4

142.2

180.8

123.8

Oil (Bbls)

38,423

38,246

43,067

34,390

NGL (Bbls)

17,350

12,444

17,042

11,471

Total Equivalent (MMcfe)

520.0

446.4

541.5

399.0

Mid-Continent

Gas (MMcf)

286.8

314.5

276.2

292.4

Oil (Bbls)

8,490

7,889

7,523

7,348

NGL (Bbls)

20,561

21,044

18,513

19,122

Total Equivalent (MMcfe)

461.1

488.0

432.4

451.2

Total Company

Gas (MMcf)

475.2

464.6

463.0

425.0

Oil (Bbls)

47,133

46,990

51,132

42,846

NGL (Bbls)

37,964

33,830

35,789

31,078

Total Equivalent (MMcfe)

985.7

949.5

984.5

868.6

AVERAGE REALIZED PRICE BY REGION

For the Three Months Ended

For the Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

Permian Basin

Gas ($ per Mcf)

2.24

3.96

2.55

4.48

Oil ($ per Bbl)

37.64

64.38

43.58

82.44

NGL ($ per Bbl)

10.97

22.23

11.94

30.04

Mid-Continent

Gas ($ per Mcf)

2.16

3.94

2.51

4.42

Oil ($ per Bbl)

35.80

66.91

41.90

88.23

NGL ($ per Bbl)

14.19

27.18

15.41

35.03

Total Company

Gas ($ per Mcf)

2.20

3.95

2.53

4.43

Oil ($ per Bbl)

37.32

64.94

43.38

83.70

NGL ($ per Bbl)

12.72

25.32

13.75

33.14

 

Other

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

First

Second

Third

Fourth

Quarter

Quarter

Quarter

Quarter

Total

Gas:

2016

PEPL Collars (3)

Volume (MMBtu)

910,000

2,730,000

2,760,000

2,760,000

9,160,000

 Wtd Avg Floor 

$       2.70

$       2.32

$       2.32

$       2.32

$         2.35

 Wtd Avg Ceiling 

$       2.85

$       2.75

$       2.75

$       2.75

$         2.76

El Paso Perm Collars (3)

Volume (MMBtu)

1,820,000

3,030,000

2,760,000

2,760,000

10,370,000

 Wtd Avg Floor 

$       2.75

$       2.45

$       2.42

$       2.42

$         2.48

 Wtd Avg Ceiling 

$       3.12

$       2.90

$       2.87

$       2.87

$         2.92

2017

PEPL Collars (3)

Volume (MMBtu)

1,800,000

1,820,000

-

-

3,620,000

 Wtd Avg Floor 

$       2.13

$       2.13

$          -

$          -

$         2.13

 Wtd Avg Ceiling 

$       2.70

$       2.70

$          -

$          -

$         2.70

El Paso Perm Collars(3)

Volume (MMBtu)

2,700,000

2,730,000

-

-

5,430,000

 Wtd Avg Floor 

$       2.42

$       2.42

$          -

$          -

$         2.42

 Wtd Avg Ceiling 

$       2.97

$       2.97

$          -

$          -

$         2.97

First

Second

Third

Fourth

Oil:

Quarter

Quarter

Quarter

Quarter

Total

2016

WTI Oil Three-Way Collars (4)

Volume (Bbl)

273,000

273,000

276,000

276,000

1,098,000

Floor sold (put) $

$     40.00

$     40.00

$     40.00

$     40.00

$       40.00

Floor purchased (put) $

$     50.00

$     50.00

$     50.00

$     50.00

$       50.00

Ceiling sold (call) $

$     60.00

$     60.00

$     60.00

$     60.00

$       60.00

 

Conference call and webcast

Cimarex will host a conference call tomorrow, February 17, at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To participate in the live, interactive call, please dial 866-367-3053 five minutes before the scheduled start time (international callers dial 1-412-902-4216).  The replay will be available on the Cimarex website or via the Cimarex App. 

Investor Presentation

For more details on Cimarex's 2015 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 Mid-Continent and Permian Basin areas of the U.S.

This press release contains forward-looking statements, including statements regarding projected results and future events. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2015, to be filed with the SEC,  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 volatility; 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; costs and availability of third party facilities for gathering, processing, refining and transportation; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions and disposal of produced water; higher than expected costs and expenses, including the availability and cost of services and materials; unexpected future capital expenditures; economic and competitive conditions; 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; compliance with environmental and other regulations; derivative and hedging activities; risks associated with operating in one major geographic area; the success of the company's risk management activities; title to properties; litigation; environmental liabilities; 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 a reconciliation of the related amounts.

(2)

Reconciliation of debt to total capitalization, which is a non-GAAP measure, is:  long-term debt of $1.5 billion divided by long-term debt of $1.5 billion plus stockholders' equity of $2.8 billion.

(3)

PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index and El Paso Perm is El Paso Permian Basin index both as quoted in Platt's Inside FERC.

(4)

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

 

RECONCILIATION OF ADJUSTED NET INCOME (LOSS)

For the Three Months Ended

For the Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

(in thousands, net of tax, except per share data)

Net income (loss)

$

(630,508)

$

75,792

$

(2,408,948)

$

507,204

Impairment of oil and gas properties

613,382

2,361,406

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

(5,910)

587

(7,164)

2,440

Gain on sale of midstream assets

(4,276)

Adjusted net income (loss)

$

(23,036)

$

76,379

$

(54,706)

$

505,368

Diluted earnings (loss) per share*,**

$

(6.78)

$

0.86

$

(25.92)

$

5.78

Adjusted diluted earnings (loss) per share *,**

$

(0.25)

$

0.87

$

(0.60)

$

5.76

Diluted shares attributable to common stockholders and participating securities

92,992

**

87,695

92,992

**

87,732

Estimated tax rates utilized

36.5%

37.1%

36.5%

37.1%

Adjusted net income (loss) and adjusted diluted earnings (loss) per share excludes the noted item because management believes this item affects the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP earnings because:

a) Management uses adjusted net income (loss) to evaluate the company's operational trends and performance relative to other oil and gas exploration and production companies.

b) Adjusted net income (loss) is more comparable to earnings estimates provided by research analysts.

*

Earnings (loss) per share are based on actual figures rather than the rounded figures presented

**

Participating securities and other dilutive shares are not included in the diluted share computation when a loss exists.

 

RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS

For the Three Months Ended

For the Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

(in thousands)

Net cash provided by operating activities

$

114,954

$

347,395

$

691,500

$

1,619,365

Change in operating assets and liabilities

10,772

(4,935)

52,082

14,847

Adjusted cash flow from operations

$

125,726

$

342,460

$

743,582

$

1,634,212

Adjusted net income (loss) and adjusted diluted earnings (loss) per share excludes the noted item because management believes this item affects the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP earnings because:

a) Management uses adjusted net income (loss) to evaluate the company's operational trends and performance relative to other oil and gas exploration and production companies.

b) Adjusted net income (loss) is more comparable to earnings estimates provided by research analysts.

*

Earnings (loss) per share are based on actual figures rather than the rounded figures presented

**

Participating securities and other dilutive shares are not included in the diluted share computation when a loss exists.

Management believes that the non-GAAP measure of adjusted cash flow from operations is useful information for investors because it is used internally and is accepted by the investment community as a means of measuring the company's ability to fund its capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of cash flow from operating activities.  It is 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

Oil

NGL

Total

(Bcf)

(MBbls)

(MBbls)

(Bcfe)

December 31, 2014

1,666.7

118,992

125,273

3,132.3

Revisions of previous estimates

(154.3)

(14,632)

(5,667)

(276.2)

Extensions and discoveries

183.1

22,859

18,079

428.7

Purchase of reserves

Production 

(169.0)

(18,663)

(13,063)

(359.3)

Sale of properties

(9.5)

(758)

(345)

(16.1)

December 31, 2015

1,517.0

107,798

124,277

2,909.4

Proved developed reserves

Year-end 2014

1,264.0

100,050

89,630

2,402.0

Year-end 2015

1,129.5

89,189

87,549

2,189.9

2015

2014

 % Change 

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

$2,279.0

$6,389.5

-64%

Standardized Measure ($ in millions)

$1,934.1

$4,352.8

-56%

Average prices used in Standardized Measure

Gas Price per Mcf

$2.59

$4.35

-40%

Oil price per barrel

$50.28

$94.99

-47%

NGL price per barrel

$14.41

$30.89

-53%

*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, 2015 and 2014, Cimarex's discounted future income taxes were $344.9 million and $2,036.6 million, respectively.  Cimarex's standardized measure of discounted future net cash flows was $1,934.1 million at year-end 2015 and $4,352.8 million at year-end 2014.  Cimarex believes pre-tax PV-10 is a useful measure for investors for evaluating the relative monetary significance of its oil and natural gas properties. Cimarex further believes investors may utilize its pre-tax PV-10 as a basis for comparison of the relative size and value of its reserves to other companies because many factors that are unique to each individual company impact the amount of future income taxes to be paid. 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

Oil

NGL

Total

(Bcf)

(MBbls)

(MBbls)

(Bcfe)

Mid-Continent

1,134.4

29,048

87,639

1,834.6

Permian Basin

378.5

78,482

36,598

1,069.0

Other

4.1

268

40

5.8

1,517.0

107,798

124,277

2,909.4

 

OIL AND GAS CAPITALIZED EXPENDITURES

For the Three Months Ended

For the Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

(in thousands)

Acquisitions:

Proved

$

30

$

125

$

30

$

138,508

Unproved

2,400

314

6,666

111,225

Net purchase price adjustments*

350

(11,653)

-

2,780

439

(4,957)

249,733

Exploration and development:

Land and Seismic

14,084

28,349

52,049

176,061

Exploration and development

180,107

421,241

824,903

1,704,961

194,191

449,590

876,952

1,881,022

Sale proceeds:

Proved

(1,038)

(26,045)

(270,766)

Unproved

(2,528)

(38)

(15,231)

(175,341)

(2,528)

(1,076)

(41,276)

(446,107)

$

194,443

$

448,953

$

830,719

$

1,684,648

*

The net purchase price adjustment amounts in 2015 reflect purchase price adjustments related to an acquisition in second quarter 2014.

 

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

For the Three Months Ended

For the Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

(in thousands, except per share data)

Revenues:

Oil sales

$

161,814

$

280,729

$

809,664

$

1,308,958

Gas sales

96,242

168,791

428,227

687,930

NGL sales

44,411

78,813

179,647

375,941

Gas gathering and other, net

8,812

10,218

35,081

51,347

311,279

538,551

1,452,619

2,424,176

Costs and expenses:

Impairment of oil and gas properties

965,348

3,716,883

Depreciation, depletion, amortization and accretion

161,768

219,536

788,044

816,103

Production

77,229

91,994

299,374

342,304

Transportation, processing, and other operating

52,717

50,115

182,362

195,414

Gas gathering and other

9,539

7,700

38,138

35,113

Taxes other than income

17,086

29,339

84,764

128,793

General and administrative

24,283

23,637

74,688

81,160

Stock compensation

4,679

4,126

19,559

15,001

(Gain) loss on derivative instruments, net

(9,278)

(12,722)

(11,246)

(3,762)

Other operating, net

12

82

856

116

1,303,383

413,807

5,193,422

1,610,242

Operating income (loss)

(992,104)

124,744

(3,740,803)

813,934

Other (income) and expense:

Interest expense 

19,811

20,093

80,447

68,617

Amortization of deferred financing costs

1,966

1,127

5,299

4,248

Capitalized interest

(5,502)

(10,055)

(30,589)

(35,925)

Other, net

(3,762)

(6,700)

(13,576)

(28,907)

Income (loss) before income tax

(1,004,617)

120,279

(3,782,384)

805,901

Income tax expense (benefit)

(374,109)

44,487

(1,373,436)

298,697

Net income (loss)

$

(630,508)

$

75,792

$

(2,408,948)

$

507,204

Earnings (loss) per share to common stockholders:

Basic 

$

(6.78)

$

0.87

$

(25.92)

$

5.79

Diluted

$

(6.78)*

$

0.86

$

(25.92)*

$

5.78

Dividends per share

$

0.16

$

0.16

$

0.64

$

0.64

Shares attributable to common stockholders:

Unrestricted common shares outstanding

92,992

85,679

92,992

85,679

Diluted common shares

92,992

85,773

92,992

85,810

Shares attributable to common stockholders and participating securities:

Basic shares outstanding

N/A*

87,601

N/A*

87,601

Fully diluted shares 

N/A*

87,695

N/A*

87,732

Comprehensive income (loss):

Net income (loss)

$

(630,508)

$

75,792

$

(2,408,948)

$

507,204

Other comprehensive income (loss):

Change in fair value of investments, net of tax 

138

52

(661)

(87)

Total comprehensive income (loss)

$

(630,370)

$

75,844

$

(2,409,609)

$

507,117

*

Due to the net loss, shares of 94,829, which include participating securities, are not considered in the loss per share calculation

 

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited)

For the Three Months Ended

For the Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

(in thousands)

Cash flows from operating activities:

Net income (loss)

$

(630,508)

$

75,792

$

(2,408,948)

$

507,204

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

Impairment of oil and gas properties

965,348

3,716,883

Depreciation, depletion, amortization and accretion

161,768

219,536

788,044

816,103

Deferred income taxes

(373,882)

44,083

(1,388,146)

298,293

Stock compensation

4,679

4,126

19,559

15,001

(Gain) loss on derivative instruments

(9,278)

(12,722)

(11,246)

(3,762)

Settlements on derivative instruments

13,656

7,641

Changes in non-current assets and liabilities

6,887

(567)

23,230

(2,440)

Amortization of deferred financing costs and other, net

712

(1,444)

4,206

(3,828)

Changes in operating assets and liabilities:

Receivables, net

34,916

27,958

186,699

(35,133)

Other current assets

8,320

682

37,954

(25,428)

Accounts payable and other current liabilities

(54,008)

(23,705)

(276,735)

45,714

Net cash provided by operating activities

114,954

347,395

691,500

1,619,365

Cash flows from investing activities:

Oil and gas expenditures

(208,015)

(477,321)

(979,044)

(2,108,250)

Sales of oil and gas assets

1,510

(1,729)

39,853

449,981

Sales of other assets

121

235

1,178

8,413

Other capital expenditures

(12,507)

(13,827)

(70,592)

(90,611)

Net cash used by investing activities

(218,891)

(492,642)

(1,008,605)

(1,740,467)

Cash flows from financing activities:

Net bank debt borrowings

(174,000)

Proceeds from other long-term debt

750,000

Proceeds from sale of common stock

752,100

Financing and underwriting fees

(1,970)

(24,633)

(11,616)

Dividends paid

(15,070)

(13,917)

(58,281)

(53,849)

Proceeds from exercise of stock options and other

1,047

1,369

21,439

11,898

Net cash provided by (used in) financing activities

(15,993)

(12,548)

690,625

522,433

Net change in cash and cash equivalents

(119,930)

(157,795)

373,520

401,331

Cash and cash equivalents at beginning of period

899,312

563,657

405,862

4,531

Cash and cash equivalents at end of period

$

779,382

$

405,862

$

779,382

$

405,862

 

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

December 31,

December 31,

2015

2014

Assets

(in thousands, except share data)

Current assets:

Cash and cash equivalents

$

779,382

$

405,862

Receivables, net

225,398

412,108

Oil and gas well equipment and supplies

54,579

89,780

Deferred income taxes

13,475

Derivative instruments

10,745

Other current assets

7,826

10,579

Total current assets

1,077,930

931,804

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

Proved properties

15,546,948

14,402,064

Unproved properties and properties under development, not being amortized

440,166

759,149

15,987,114

15,161,213

Less – accumulated depreciation, depletion, amortization and impairment

(12,710,968)

(8,257,502)

Net oil and gas properties

3,276,146

6,903,711

Fixed assets, net

230,009

211,031

Goodwill

620,232

620,232

Derivative instruments

501

Other assets, net *

38,468

41,691

$

5,243,286

$

8,708,469

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$

66,815

$

138,051

Accrued liabilities

247,508

447,384

Revenue payable

95,744

190,892

Total current liabilities

410,067

776,327

Long-term debt *:

Principal

1,500,000

1,500,000

Less – unamortized debt issuance costs

(14,380)

(16,824)

Long-term debt, net

1,485,620

1,483,176

Deferred income taxes

352,705

1,754,706

Other liabilities 

197,216

193,628

Total liabilities

2,445,608

4,207,837

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, 94,820,570 and 87,592,535 shares issued, respectively

948

876

Paid-in capital

2,762,976

1,997,080

Retained earnings

33,313

2,501,574

Accumulated other comprehensive income

441

1,102

2,797,678

4,500,632

$

5,243,286

$

8,708,469

*

At December 31, 2015, we adopted the Financial Accounting Standards Board's (FASB) Accounting Standards Update (ASU) No. 2015-03, Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. The requirements are to be applied retrospectively to prior periods presented. These changes resulted in classifying debt issuance costs as a direct deduction from the carrying amount of the related debt liability (except for those related to revolving credit facilities), rather than as an asset. As of December 31, 2015 and 2014, other assets, net and long-term debt are reduced by $14,380 and $16,824, respectively.  The adoption of this ASU did not impact the Statement of Operations and Comprehensive Income (Loss) or the Cash Flow Statements.

 

 

SOURCE Cimarex Energy Co.



RELATED LINKS

http://www.cimarex.com