PR Newswire | Aug 5, 2020 04:06PM EDT

08/05 15:05 CDT

Cimarex Reports Second Quarter 2020 Results DENVER, Aug. 5, 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 EndedSix Months Ended June 30, June 30,

2020 2019 2020 2019



Gross wells

Permian Basin17 44 52 56

Mid-Continent20 66 39 92

37 110 91 148

Net wells

Permian Basin11.1 31.9 30.9 36.9

Mid-Continent1.4 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 EndedSix Months Ended June 30, June 30,

2020 2019 2020 2019



Permian Basin

Gas (MMcf) 417.8 379.3 433.4 360.1

Oil (Bbls) 68,791 70,669 74,19867,835

NGL (Bbls) 47,291 54,813 48,11150,567

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 21,08926,060

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 83,87381,433

NGL (Bbls) 67,402 80,362 69,25176,680

Total Equivalent (MBOE)254.7 274.8 265.6 266.9

AVERAGE REALIZED PRICE BY REGION



Three Months EndedSix Months Ended June 30, 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) 100,000100,000100,000 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 DifferentialWTI (3) Swaps:

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.



Adjusted net income and adjusted cash flow from operations are non-GAAP 1financial measures. See below for reconciliations of the related GAAP amounts.

PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index, El 2Paso Perm refers to El Paso Permian Basin index, and Waha refers to West Texas (Waha) Index, all as quoted in Platt's Inside FERC.

3WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange.

4Index 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 Six Months Ended June 30, 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 941,198 - 1,274,849 - properties (1)

Impairment of goodwill - - 714,447 -

Mark-to-market loss (gain) on 187,826 (34,531) 4,000 71,870 open derivative positions

Loss on early extinguishment of- - - 4,250 debt

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 $(9.28) $1.07 $(17.05) $1.34 share

Adjusted diluted earnings $(0.51) $0.82 $0.07 $2.01 (loss) per share*



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.

Because the goodwill impairment is not deductible for tax purposes, the (2)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:



Management uses adjusted net (loss) income to evaluate the company's a)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 ANDFREE 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 Six Months Ended June 30, June 30,

2020 2019 2020 2019

(in thousands)

Net cash provided by operating $144,706$413,992 $453,497$664,083 activities

Change in operating assets and (178) (77,630) (2,548) 23,341 liabilities



Adjusted cash flow from 144,528 336,362 450,949 687,424 operations



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 Six Months Ended June 30, 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 Six Months Ended June 30, 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 gas941,198 - 1,274,849 - properties

Depreciation, depletion, amortization, and 196,615 215,484 416,425 407,950 accretion

Impairment of goodwill - - 714,447 -

Production 64,337 88,995 151,573 167,399

Transportation, processing, and other 53,282 54,107 108,204 113,682 operating

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 26,226 24,911 51,735 53,995 administrative

Stock compensation 6,747 6,494 13,141 13,207

Loss (gain) on derivative123,885 (40,768) (103,055) 74,684 instruments, net

Other operating expense, 130 590 381 8,916 net

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 - - - 4,250 extinguishment of debt

Other, net 3,496 (2,167) 2,625 (4,408)



(Loss) income before (1,196,653)143,355 (1,987,490) 177,744 income tax

Income tax (benefit) (271,506) 34,046 (288,061) 42,119 expense

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 $0.22 $0.20 $0.44 $0.40 common share



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 - 304 - 1,453 of $0, $89, $0 and $428, respectively

Total comprehensive $(925,147)$109,613$(1,699,429)$137,078(loss) income

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)



Three Months Ended Six Months Ended June 30, 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 and941,198 - 1,274,849 - gas properties

Depreciation, depletion, 196,615 215,484 416,425 407,950 amortization, and accretion

Impairment of - - 714,447 - goodwill

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 123,885 (40,768) (103,055) 74,684 instruments, net

Settlements on derivative 63,941 6,237 107,055 (2,814) instruments

Loss on early extinguishment of - - - 4,250 debt

Amortization of debt issuance costs and 818 783 1,602 1,502 discounts

Changes in non-current assets 4,609 601 7,019 2,749 and liabilities

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 (86,351) (4,975) (203,562) (140,272) liabilities

Net cash provided by 144,706 413,992 453,497 664,083 operating activities

Cash flows from investing activities:

Acquisition of Resolute Energy, net - - - (284,441) of cash acquired

Oil and gas capital (152,510) (379,015)(418,580) (711,757) expenditures

Other capital (11,627) (22,313) (38,052) (40,141) expenditures

Sales of oil and gas - 8,233 830 13,233 assets

Sales of other assets1,007 234 1,188 434

Net cash used by (163,130) (392,861)(454,614) (1,022,672)investing activities

Cash flows from financing activities:

Borrowings of 60,000 528,000 161,000 1,710,310 long-term debt

Repayments of (60,000) (528,000)(161,000) (2,081,000)long-term debt

Financing, underwriting, and (1,457) (853) (1,557) (11,791) debt redemption fees

Finance lease (1,343) (920) (2,808) (1,555) payments

Dividends paid (23,616) (21,468) (45,209) (38,647)

Employee withholding taxes paid upon the net settlement of (24) - (189) (654) equity-classified stock awards

Proceeds from exercise of stock - 594 - 674 options

Net cash used by (26,440) (22,647) (49,763) (422,663) financing activities

Net change in cash (44,864) (1,516) (50,880) (781,252) and cash equivalents

Cash and cash equivalents at 88,706 20,930 94,722 800,666 beginning of period

Cash and cash equivalents at end of$43,842 $19,414 $43,842 $19,414 period

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 1,258,002 1,255,908 development, not being amortized

22,272,100 21,934,242

Less - accumulated depreciation, depletion, (18,373,655) (16,723,544) amortization, and impairment

Net oil and gas properties 3,898,445 5,210,698

Fixed assets, net of accumulated depreciation of $423,873 and $389,458, 478,553 519,291 respectively

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 (13,729) (14,754) discounts

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 81,620 81,620 Stock, $0.01 par value, 62,500 shares authorized and issued



Stockholders' equity:

Common stock, 0.01 par value, 200,000,000 shares authorized, 102,151,096 and 1,022 1,021 102,144,577 shares issued, respectively

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

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SOURCE Cimarex Energy Co.