DENVER, Nov. 2, 2012 /PRNewswire/ -- Cimarex Energy Co.
(NYSE: XEC) today reported third-quarter 2012 net income of
$84.3 million, or $0.97 per diluted share. This compares to
third-quarter 2011 earnings of $128.2
million, or $1.49 per diluted
share.
Third-quarter 2012 net income includes an unrealized non-cash
loss on derivative instruments associated with 2012 oil hedges of
$5.3 million, or $0.04 per share after-tax. Third-quarter
2011 net income had an unrealized non-cash gain on derivative
instruments associated with 2011 oil and gas hedges of $5.4 million, or $0.04 per share after-tax.
Third-quarter 2012 production volumes averaged an all-time high
635.1 million cubic feet equivalent (MMcfe), per day, a 7% increase
as compared to third-quarter 2011 output of 592.0 MMcfe per
day. Oil production grew 23% to a record 32,456 barrels per
day. Permian Basin oil production grew 42% to 25,000 barrels
per day. Combined Permian and Mid-Continent third-quarter
volumes averaged 598.8 MMcfe per day, growing 18% over the same
period in 2011. Total third-quarter 2012 production volumes
were 51% gas, 31% oil and 18% natural gas liquids (NGL).
Oil, gas and NGL revenue in the third quarter of 2012 totaled
$397.4 million as compared to
$419.7 million in the same period of
2011. Third-quarter 2012 adjusted cash flow from operations
was $291.2 million versus
$356.8 million a year
ago(1).
The decrease in third-quarter revenues and cash flow is
primarily a result of lower gas and NGL prices, partially offset by
higher liquids production. Third-quarter 2012 realized gas
price fell 39% to $2.79 per thousand
cubic feet (Mcf) and NGL prices dropped 34% to $28.55 per barrel, as compared to a year ago. Oil
prices for the third quarter of 2012 averaged $88.18 per barrel flat with the third-quarter
2011 average price of $87.64 per
barrel.
For the nine months ended September 30,
2012, net income totaled $254.7
million, or $2.93 per diluted
share, as compared to $413.1 million,
or $4.79 per diluted share, for the
first nine months of 2011. Year-to-date through September 30, 2012 adjusted cash flow from
operations totaled $834.6 million
versus $1.0 billion for
2011(1).
2012 Outlook
Total Company fourth-quarter 2012
volumes are estimated to average 652-677 MMcfe/d, an 8-13% increase
over fourth-quarter 2011. Fourth-quarter 2012 Permian Basin
and Mid-Continent (PB/MC) production is expected to average 622-642
MMcfe/d, an increase of 17-21% over fourth-quarter 2011. Gulf Coast
volumes are estimated to average 30-35 MMcfe/d for fourth-quarter
2012.
The resulting full-year 2012, total Company volumes are
projected to average 620-626 MMcfe/d, 5-6% growth over 2011.
PB/MC 2012 production volumes are projected to average 581-585
MMcfe/d, growing 19-20% over 2011. Gulf Coast volumes are
expected to average 39-41 MMcfe/d for 2012.
Full-year 2012 exploration and development (E&D) capital
investment is expected to be approximately $1.6 billion. E&D capital for the first nine
months of 2011 totaled $1.2
billion.
Expenses for 2012 are expected to fall within the following
ranges:
Expenses
($/Mcfe):
|
|
|
Production
expense
|
$1.11
- $1.16
|
|
Transportation expense
|
0.25 - 0.30
|
|
DD&A
and ARO accretion
|
2.35 - 2.45
|
|
General
and administrative expense
|
0.25 - 0.30
|
|
Taxes
other than income (% of oil and gas revenue)
|
6.0% - 6.5%
|
Other
Long-term debt at September 30, 2012 was $830 million, comprised of $750 million 5.875% Senior Notes due in 2022 and
$80 million of borrowings under its
senior unsecured revolving credit facility. Debt to total
capitalization ratio at quarter-end was 20% (4).
Cimarex's hedge position is unchanged covering approximately
14,000 barrels of oil per day for the balance of 2012. The
following table summarizes the open hedge positions:
Oil Contracts
|
|
|
|
|
|
|
|
Weighted Average Price
|
Period
|
|
Type
|
|
Daily
Volume(2)
|
|
Index(3)
|
|
Floor
|
|
Ceiling
|
Months
of Oct.-Dec. 12
|
|
Collar
|
|
14,000
|
|
WTI
|
|
$
|
80.00
|
|
$
|
119.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cimarex accounts for commodity contracts using the
mark-to-market (through income) accounting method.
Third-quarter 2012 had a non-cash mark-to-market loss of
$5.3 million and no cash
settlements.
Exploration and Development Activity
Cimarex's
drilling activities are conducted within two main areas:
Permian Basin and Mid-Continent. Permian activity is
primarily directed to the Delaware
Basin of southeast New Mexico and
West Texas. The majority of our Mid-Continent drilling is in
the western Oklahoma Cana-Woodford shale.
Cimarex drilled 253 gross (138 net) wells during the first nine
months of 2012, completing 97% as producers. Exploration and
development capital for the year has totaled $1.2 billion. Of total expenditures, 52%
were invested in projects located in the Permian Basin; 44% in the
Mid-Continent area; and 4% in the Gulf Coast and other.
Wells
Drilled and Completed by Region
|
|
|
|
|
|
|
For the
Three Months
|
|
For the
Nine Months
|
|
|
Ended
September 30,
|
|
Ended
September 30,
|
|
|
2012
|
2011
|
|
2012
|
2011
|
Gross
wells
|
|
|
|
|
|
|
Permian
Basin
|
|
37
|
35
|
|
131
|
106
|
Mid-Continent
|
|
55
|
42
|
|
119
|
128
|
Gulf
Coast/Other
|
|
1
|
5
|
|
3
|
8
|
|
|
93
|
82
|
|
253
|
242
|
Net
wells
|
|
|
|
|
|
|
Permian
Basin
|
|
24
|
23
|
|
88
|
79
|
Mid-Continent
|
|
23
|
20
|
|
49
|
52
|
Gulf
Coast/Other
|
|
0
|
5
|
|
1
|
7
|
|
|
47
|
48
|
|
138
|
138
|
% Gross
wells completed as producers
|
|
99%
|
94%
|
|
97%
|
95%
|
At quarter-end 39 net wells were drilled and awaiting
completion: 28 Mid-Continent and 11 Permian Basin. Cimarex
currently has 19 operated rigs running; 14 in the Permian Basin and
five in the Mid-Continent.
Permian Basin
Cimarex drilled and completed 131 gross
(88 net) Permian Basin wells during the first nine months of 2012,
completing 96% as producers. At quarter-end, 18 gross (11
net) wells were awaiting completion. Drilling principally
occurred in the Delaware Basin of
Texas and southeast New Mexico, mainly targeting Bone Spring,
Paddock and Wolfcamp formations. Third-quarter 2012 Permian
production averaged 274.5 MMcfe/d, an increase of 33% over
third-quarter 2011, which included 42% growth in oil volumes to
25,000 barrels per day.
Year-to-date 2012 New Mexico Bone Spring wells drilled and
completed totaled 48 gross (24 net). Per-well 30-day gross
production from the 2012 New Mexico Bone Spring wells averaged over
630 barrels equivalent (Boe) per day (86% oil). Texas Third
Bone Spring drilling totaled 28 gross (18 net) wells, which had
per-well 30-day average gross production rates of over 1,000
barrels equivalent per day (80% oil).
Cimarex continues to evaluate the Wolfcamp shale in the
Delaware Basin, primarily in
southern Eddy County New Mexico
(White City) and northern Culberson County Texas.
Year-to-date Cimarex has drilled and completed 11 gross (10
net) horizontal Wolfcamp wells, bringing total wells in the play to
29 gross (27 net). Per well first-30 day production rates on
all the wells drilled to date have averaged 6.4 MMcfe/d, comprised
of 2.8 MMcf/d gas, 275 barrels per day of oil and 330 barrels per
day of NGLs (assuming full NGL recovery), or 43% gas, 26% oil and
31% NGL.
Mid-Continent
In the first nine months of 2012
Cimarex drilled and completed 119 gross (49 net) Mid-Continent
wells. At quarter-end, 64 gross (28 net) wells were awaiting
completion. Mid-Continent production averaged 324.3 MMcfe/d
for the third quarter of 2012, a 7% increase over third-quarter
2011 average of 303.1 MMcfe/d.
Essentially all this year's drilling activity has been in the
Anadarko Basin, Cana-Woodford shale play, where Cimarex has drilled
and completed 113 gross (47 net) wells. At September 30, 2012 there were 54 gross (24 net)
Cana wells being completed or awaiting completion. At
year-end 2011 there were 13 gross (4.9 net) wells waiting on
completion in Cana. The increase in wells waiting on
completion as compared to year-end is a result of commencing infill
development drilling in 2012.
Since the Cana play began in late 2007, Cimarex has drilled or
participated in 464 gross (177 net) wells. Third-quarter 2012
net Cana production averaged 184.3 MMcfe/d, a 32% increase versus
the third-quarter 2011 average of 139.2 MMcfe/d.
Gulf Coast
Cimarex participated in three gross (0.8
net) outside operated Yegua/Cook Mountain wells in 2012, of which
one gross well was successful. Gulf Coast production averaged
35.1 MMcfe/d for the third quarter of 2012, a 57% decrease as
compared to the third-quarter 2011 average of 81.8 MMcfe/d. The
decreased output is a result of natural decline in
highly-productive wells drilled near Beaumont, Texas.
Production by Region
Cimarex's average daily
production by commodity and region is summarized below:
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
For the
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Gas (Mcf
per day)
|
|
|
|
|
|
|
|
Permian
Basin
|
79,502
|
|
76,872
|
|
78,007
|
|
72,150
|
Mid-Continent
|
224,009
|
|
209,459
|
|
218,411
|
|
197,688
|
Gulf
Coast/Other
|
20,735
|
|
43,334
|
|
24,110
|
|
57,513
|
|
324,246
|
|
329,665
|
|
320,528
|
|
327,351
|
|
|
|
|
|
|
|
|
Oil
(Barrels per day)
|
|
|
|
|
|
|
|
Permian
Basin
|
25,000
|
|
17,578
|
|
22,839
|
|
15,977
|
Mid-Continent
|
6,120
|
|
5,720
|
|
5,802
|
|
5,641
|
Gulf
Coast/Other
|
1,336
|
|
2,986
|
|
1,602
|
|
4,954
|
|
32,456
|
|
26,284
|
|
30,243
|
|
26,572
|
NGL
(Barrels per day)
|
|
|
|
|
|
|
|
Permian
Basin
|
7,501
|
|
3,921
|
|
6,523
|
|
3,231
|
Mid-Continent
|
10,598
|
|
9,885
|
|
9,934
|
|
8,866
|
Gulf
Coast/Other
|
1,261
|
|
3,632
|
|
1,487
|
|
4,981
|
|
19,360
|
|
17,438
|
|
17,944
|
|
17,078
|
Total
Equivalent (Mcfe per day)
|
|
|
|
|
|
|
|
Permian
Basin
|
274,508
|
|
205,866
|
|
254,179
|
|
187,398
|
Mid-Continent
|
324,317
|
|
303,089
|
|
312,827
|
|
284,730
|
Gulf
Coast/Other
|
36,318
|
|
83,045
|
|
42,644
|
|
117,127
|
|
635,143
|
|
592,000
|
|
609,650
|
|
589,255
|
Conference call and web cast
Cimarex will also host a conference call today at 11:00 a.m. Mountain Time (1:00 p.m. Eastern Time). To access the
live, interactive call, please dial (877) 789-9039 and reference
call ID # 37850869 ten minutes before the scheduled start
time. A digital replay will be available for one week
following the live broadcast at (855) 859-2056 and by using the
conference ID # 37850869. The listen-only web cast of the
call will be accessible via 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 communication contains statements that constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements
are based on current expectations and beliefs and are subject to a
number of risks, uncertainties and assumptions that could cause
actual results to differ materially from those described in the
forward-looking statements. These risks and uncertainties are more
fully described in SEC reports filed by Cimarex. While Cimarex
makes these forward-looking statements in good faith, management
cannot guarantee that anticipated future results will be achieved.
Cimarex assumes no obligation and expressly disclaims any duty to
update the information contained herein except as required by
law.
(1) Adjusted cash flow from operations is a non-GAAP
financial measure. See below for a reconciliation of the
related amounts.
(2) Average daily volume in barrels per day.
(3) WTI refers to West Texas Intermediate oil price as
quoted on the New York Mercantile Exchange.
(4) Reconciliation of pro forma debt to total
capitalization, which is a non-GAAP measure, is: pro forma
long-term debt of $830 million
divided by long-term debt of $830
million plus stockholders' equity of $3,377.9 million.
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF ADJUSTED CASH FLOW FROM
OPERATIONS
|
|
|
|
For the
Three Months Ended
|
|
For the
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
(in
thousands)
|
Net cash
provided by operating activities
|
$
|
261,216
|
$
|
332,432
|
$
|
836,148
|
$
|
971,523
|
|
Change in
operating assets
|
|
|
|
|
|
|
|
|
|
and liabilities
|
|
29,957
|
|
24,372
|
|
(1,509)
|
|
33,264
|
|
|
|
|
|
|
|
|
|
|
Adjusted
cash flow from operations
|
$
|
291,173
|
$
|
356,804
|
$
|
834,639
|
$
|
1,004,787
|
|
|
|
|
|
|
|
|
|
|
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,
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.
|
|
|
|
|
|
|
|
|
|
|
PRICE
AND PRODUCTION DATA
|
|
|
|
For the
Three Months Ended
|
|
For the
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
Total gas production - Mcf
|
|
29,830,627
|
|
30,329,145
|
|
87,824,541
|
|
89,366,754
|
|
Gas
volume - Mcf per day
|
|
324,246
|
|
329,665
|
|
320,528
|
|
327,351
|
|
Gas
price - per Mcf
|
|
$2.79
|
|
$4.57
|
|
$2.71
|
|
$4.59
|
|
|
|
|
|
|
|
|
|
|
|
Total oil production - barrels
|
|
2,985,956
|
|
2,418,141
|
|
8,286,503
|
|
7,254,247
|
|
Oil
volume - barrels per day
|
|
32,456
|
|
26,284
|
|
30,243
|
|
26,572
|
|
Oil
price - per barrel
|
|
$88.18
|
|
$87.64
|
|
$91.67
|
|
$93.08
|
|
|
|
|
|
|
|
|
|
|
|
Total NGL production - barrels
|
|
1,781,139
|
|
1,604,337
|
|
4,916,753
|
|
4,662,376
|
|
NGL
volume - barrels per day
|
|
19,360
|
|
17,438
|
|
17,944
|
|
17,078
|
|
NGL
price - per barrel
|
|
$28.55
|
|
$43.11
|
|
$31.35
|
|
$42.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OIL AND
GAS CAPITALIZED EXPENDITURES
|
|
|
|
For the
Three Months Ended
|
|
For the
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
(in
thousands)
|
|
Acquisitions:
|
|
|
|
|
|
|
|
|
|
Proved
|
$
|
—
|
$
|
12,439
|
$
|
—
|
$
|
21,604
|
|
Unproved
|
|
4,636
|
|
8,380
|
|
11,349
|
|
20,427
|
|
|
|
4,636
|
|
20,819
|
|
11,349
|
|
42,031
|
|
Exploration and development:
|
|
|
|
|
|
|
|
|
|
Land and
Seismic
|
|
28,226
|
|
61,907
|
|
86,613
|
|
146,832
|
|
Exploration and development
|
|
389,989
|
|
360,733
|
|
1,120,740
|
|
1,032,794
|
|
|
|
418,215
|
|
422,640
|
|
1,207,353
|
|
1,179,626
|
|
Sale
proceeds:
|
|
|
|
|
|
|
|
|
|
Proved
|
|
(10,894)
|
|
(83,709)
|
|
(11,079)
|
|
(102,192)
|
|
Unproved
|
|
—
|
|
(150)
|
|
(1,088)
|
|
(1,971)
|
|
|
|
(10,894)
|
|
(83,859)
|
|
(12,167)
|
|
(104,163)
|
|
|
$
|
411,957
|
$
|
359,600
|
$
|
1,206,535
|
$
|
1,117,494
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
COMPREHENSIVE INCOME (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
For the
Nine Months Ended
|
|
|
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Gas
sales
|
|
|
$
|
83,208
|
$
|
138,631
|
$
|
238,102
|
$
|
410,331
|
|
Oil
sales
|
|
|
|
263,315
|
|
211,928
|
|
759,609
|
|
675,239
|
|
NGL
sales
|
|
|
50,860
|
|
69,169
|
|
154,160
|
|
200,428
|
|
Gas
gathering, processing and other, net
|
|
9,529
|
|
14,081
|
|
31,199
|
|
41,620
|
|
|
|
|
|
|
|
|
406,912
|
|
433,809
|
|
1,183,070
|
|
1,327,618
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion, amortization and
accretion
|
|
139,499
|
|
108,259
|
|
384,964
|
|
287,777
|
|
Production
|
|
|
62,699
|
|
62,333
|
|
192,818
|
|
181,558
|
|
Transportation
|
|
14,481
|
|
13,754
|
|
40,966
|
|
41,559
|
|
Gas
gathering and processing
|
|
5,496
|
|
6,263
|
|
15,302
|
|
17,472
|
|
Taxes
other than income
|
|
24,095
|
|
30,533
|
|
72,738
|
|
98,625
|
|
General
and administrative
|
|
14,742
|
|
9,390
|
|
41,523
|
|
34,734
|
|
Stock
compensation, net
|
|
8,301
|
|
4,595
|
|
17,519
|
|
13,962
|
|
(Gain)
loss on derivative instruments, net
|
|
5,329
|
|
(7,120)
|
|
(661)
|
|
(11,353)
|
|
Other
operating, net
|
|
2,236
|
|
2,379
|
|
7,295
|
|
8,095
|
|
|
|
|
|
|
|
|
276,878
|
|
230,386
|
|
772,464
|
|
672,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
130,034
|
|
203,423
|
|
410,606
|
|
655,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
(income) and expense:
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
12,191
|
|
7,278
|
|
32,852
|
|
22,192
|
|
Amortization of deferred financing costs
|
|
1,032
|
|
2,001
|
|
2,718
|
|
5,407
|
|
Capitalized interest
|
|
(9,231)
|
|
(7,253)
|
|
(26,154)
|
|
(21,830)
|
|
Loss on
early extinguishment of debt
|
|
—
|
|
—
|
|
16,214
|
|
—
|
|
Other,
net
|
|
|
|
(6,159)
|
|
(3,604)
|
|
(18,714)
|
|
(7,226)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income tax
|
|
132,201
|
|
205,001
|
|
403,690
|
|
656,646
|
Income tax
expense
|
|
47,939
|
|
76,849
|
|
149,019
|
|
243,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
$
|
84,262
|
$
|
128,152
|
$
|
254,671
|
$
|
413,063
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.97
|
$
|
1.49
|
$
|
2.94
|
$
|
4.81
|
|
Diluted
|
|
|
|
$
|
0.97
|
$
|
1.49
|
$
|
2.93
|
$
|
4.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
per share
|
$
|
0.12
|
$
|
0.10
|
$
|
0.36
|
$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
Unrestricted common shares outstanding
|
|
84,681
|
|
83,736
|
|
84,681
|
|
83,736
|
|
Diluted
common shares
|
|
84,997
|
|
84,115
|
|
85,021
|
|
84,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
attributable to common stockholders and participating
securities:
|
|
|
|
|
|
|
|
|
|
Basic
shares outstanding
|
|
86,589
|
|
85,806
|
|
86,589
|
|
85,806
|
|
Fully
diluted shares
|
|
86,905
|
|
86,185
|
|
86,929
|
|
86,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
84,262
|
$
|
128,152
|
$
|
254,671
|
$
|
413,063
|
|
Other
comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
Change in
fair value of investments, net of tax
|
|
238
|
|
(585)
|
|
502
|
|
(417)
|
|
Total
comprehensive income
|
$
|
84,500
|
$
|
127,567
|
$
|
255,173
|
$
|
412,646
|
CONDENSED CASH FLOW STATEMENTS
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
For the
Nine Months Ended
|
|
|
|
|
|
|
|
|
September 30,
|
September 30,
|
|
|
|
|
|
|
|
|
2012
|
2011
|
2012
|
2011
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities:
|
|
|
|
|
|
Net
income
|
$
|
84,262
|
$
|
128,152
|
$
|
254,671
|
$
|
413,063
|
|
Adjustment
to reconcile net income to net cash
provided
by operating activities:
|
|
|
|
|
|
|
|
Depreciation, depletion, amortization and
accretion
|
139,499
|
108,259
|
384,964
|
287,777
|
|
|
|
Deferred
income taxes
|
49,568
|
120,930
|
150,648
|
288,986
|
|
|
|
Stock
compensation, net
|
8,301
|
4,595
|
17,519
|
13,962
|
|
|
|
Derivative
instruments, net
|
5,329
|
(5,373)
|
(661)
|
(7,536)
|
|
|
|
Loss on
early extinguishment of debt
|
—
|
—
|
16,214
|
—
|
|
|
|
Changes in
non-current assets and liabilities
|
2,815
|
(840)
|
7,930
|
3,719
|
|
|
|
Amortization of deferred financing costs and other,
net
|
1,399
|
1,081
|
3,354
|
4,816
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
(Increase)
decrease in receivables, net
|
(83,436)
|
(49,778)
|
24,398
|
(32,229)
|
|
|
|
Decrease
in other current assets
|
13,673
|
40,430
|
8,763
|
30,736
|
|
|
|
Increase
(decrease) in accounts payable and accrued
liabilities
|
39,806
|
(15,024)
|
(31,652)
|
(31,771)
|
|
|
|
|
|
Net cash
provided by operating activities
|
261,216
|
332,432
|
836,148
|
971,523
|
Cash flows
from investing activities:
|
|
|
|
|
|
Oil and
gas expenditures
|
(423,134)
|
(453,375)
|
(1,181,742)
|
(1,152,676)
|
|
Sales of
oil and gas assets
|
10,894
|
83,859
|
12,167
|
104,163
|
|
Sales of
other assets
|
142
|
111,495
|
550
|
111,837
|
|
Other
expenditures
|
(16,826)
|
(17,161)
|
(42,913)
|
(70,050)
|
|
|
|
|
|
Net cash
used by investing activities
|
(428,924)
|
(275,182)
|
(1,211,938)
|
(1,006,726)
|
Cash flows
from financing activities:
|
|
|
|
|
|
Net
increase in bank debt
|
80,000
|
—
|
25,000
|
—
|
|
Increase
in other long-term debt
|
—
|
—
|
750,000
|
—
|
|
Decrease
in other long-term debt
|
—
|
—
|
(363,595)
|
—
|
|
Financing
costs incurred
|
(1,129)
|
(7,248)
|
(13,821)
|
(7,348)
|
|
Dividends
paid
|
(10,330)
|
(8,583)
|
(29,199)
|
(23,998)
|
|
Issuance
of common stock and other
|
7,646
|
2,591
|
10,410
|
9,583
|
|
|
|
Net cash
provided by (used in) financing activities
|
76,187
|
(13,240)
|
378,795
|
(21,763)
|
Net change
in cash and cash equivalents
|
(91,521)
|
44,010
|
3,005
|
(56,966)
|
Cash and
cash equivalents at beginning of period
|
96,932
|
13,150
|
2,406
|
114,126
|
Cash and
cash equivalents at end of period
|
$
|
5,411
|
$
|
57,160
|
$
|
5,411
|
$
|
57,160
|
CONDENSED BALANCE SHEETS
(unaudited)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
Assets
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
(In
thousands, except share data)
|
Current
assets:
|
|
|
|
|
|
|
Cash and
cash equivalents
|
$
|
5,411
|
$
|
2,406
|
|
Receivables, net
|
|
335,011
|
|
359,409
|
|
Oil and
gas well equipment and supplies
|
|
77,879
|
|
85,141
|
|
Deferred
income taxes
|
|
2,126
|
|
2,723
|
|
Derivative
instruments
|
|
416
|
|
—
|
|
Other
current assets
|
|
6,715
|
|
8,216
|
|
|
Total
current assets
|
|
427,558
|
|
457,895
|
Oil and
gas properties at cost, using the full cost method of
accounting:
|
|
|
|
|
|
Proved
properties
|
|
11,116,783
|
|
9,933,517
|
|
Unproved
properties and properties under development,
|
|
|
|
|
|
|
not being
amortized
|
|
661,626
|
|
607,219
|
|
|
|
|
|
|
|
|
11,778,409
|
|
10,540,736
|
|
Less –
accumulated depreciation, depletion and amortization
|
|
(6,767,943)
|
|
(6,414,528)
|
|
|
Net oil
and gas properties
|
|
5,010,466
|
|
4,126,208
|
Fixed
assets, net
|
|
134,776
|
|
118,215
|
Goodwill
|
|
|
|
|
691,432
|
|
691,432
|
Other
assets, net
|
|
49,023
|
|
34,827
|
|
|
|
|
|
|
|
$
|
6,313,255
|
$
|
5,428,577
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
64,988
|
$
|
79,788
|
|
Accrued
liabilities
|
|
434,966
|
|
385,651
|
|
Derivative
instruments
|
|
—
|
|
245
|
|
Revenue
payable
|
|
151,798
|
|
150,655
|
|
|
Total
current liabilities
|
|
651,752
|
|
616,339
|
Long-term
debt
|
|
|
830,000
|
|
405,000
|
Deferred
income taxes
|
|
1,128,642
|
|
974,932
|
Other
liabilities
|
|
|
324,914
|
|
301,693
|
|
|
Total
liabilities
|
|
2,935,308
|
|
2,297,964
|
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,
|
|
|
|
|
|
|
86,540,753
and 85,774,084 shares issued, respectively
|
|
865
|
|
858
|
|
Paid-in
capital
|
|
1,931,583
|
|
1,908,506
|
|
Retained
earnings
|
|
1,445,011
|
|
1,221,263
|
|
Accumulated other comprehensive income
(loss)
|
|
488
|
|
(14)
|
|
|
|
|
|
|
|
|
3,377,947
|
|
3,130,613
|
|
|
|
|
|
|
|
$
|
6,313,255
|
$
|
5,428,577
|
SOURCE Cimarex Energy Co.