SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934.
November 2, 2012
Date of Report
CIMAREX ENERGY CO.
(Exact name of registrant as specified in its charter)
Delaware | 001-31446 | 45-0466694 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
1700 Lincoln Street, Suite 1800, Denver, Colorado | 80203-4518 |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code 303-295-3995
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On November 2, 2012, Cimarex Energy Co. (Cimarex) announced its third-quarter 2012 financial results. The news release is included in this report as Exhibit 99.1.
ITEM 7.01 REGULATION FD DISCLOSURE
On November 2, 2012, Cimarex issued a news release reporting its financial results for the third-quarter 2012. A copy of the news release is furnished as Exhibit 99.1 to this report.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
D. Exhibits
Exhibit No. | Description |
99.1 | Cimarex News Release, November 2, 2012 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CIMAREX ENERGY CO. | ||
Dated: November 2, 2012 | By: | /s/ Paul Korus |
Paul Korus, Senior Vice President, | ||
Chief Financial Officer |
EXHIBIT INDEX
Exhibit No. | Description |
99.1 | Cimarex News Release, dated November 2, 2012 |
Cimarex Energy Reports Third-Quarter 2012 Results
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 |
CONTACT: Cimarex Energy Co., Mark Burford, Vice President – Capital Markets and Planning, +1-303-295-3995, www.cimarex.com