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Cimarex Reports Fourth Quarter and Full Year 2020 Results

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DENVER, Feb. 22, 2021 /PRNewswire/ --  

  • Fourth quarter oil production averaged 67.8 MBbls per day
    • Full year oil production averaged 76.7 MBbls per day
  • 2020 total capital investment of $577.2 million; below guidance range
  • Generated $904.2 million of net cash from operating activities
    • $372 million of free cash flow1 (non-GAAP) in 2020; $279 million of free cash flow after dividend1 (non-GAAP) in 2020

Cimarex Energy Co. (NYSE:XEC) today reported net income for fourth quarter 2020 of $24.7 million, or $0.25 per share, compared to a net loss of $384.1 million, or $3.87 per share, in the same period a year ago. For the full year, Cimarex reported a net loss of $1,967.5 million, or $19.73 per share, compared to 2019 net loss of $124.6 million, or $1.33 per share.  Both fourth quarter and full year results were negatively impacted by a non-cash charge related to the impairment of oil and gas properties.  Fourth quarter 2020 adjusted net income (non-GAAP) was $91.3 million, or $0.89 per share, compared to adjusted net income (non-GAAP) of $120.4 million, or $1.18 per share in the same period a year ago1.  Full year 2020 adjusted net income (non-GAAP) was $142.2 million, or $1.39 per share, compared to $448.8 million, or $4.46 per share  in 20191.  Adjusted cash flow from operations (non-GAAP) was $256.6 million in fourth quarter 2020 compared to $416.0 million in the same period a year ago1.  Full year 2020 adjusted cash flow from operations (non-GAAP) was $944.2 million compared to $1.46 billion in 20191

Oil volumes in the fourth quarter were sequentially lower, averaging 67.8 thousand barrels (MBbls) per day.  For the full year, Cimarex reported average daily oil volumes of 76.7 MBbls, an 11 percent year-over-year decrease.  Cimarex produced 229.5 thousand barrels of oil equivalent (MBOE) per day in the fourth quarter and averaged 252.5 MBOE per day for the year.

In the fourth quarter realized oil prices averaged $40.09 per barrel, down 27 percent from the $54.80 per barrel received in the fourth quarter of 2019.  Realized natural gas prices averaged $1.69 per thousand cubic feet (Mcf), up 42 percent from the fourth quarter 2019 average of $1.19 per Mcf.  NGL prices averaged $14.02 per barrel, down one percent from the $14.13 per barrel received in the fourth quarter of 2019.  For the full year, Cimarex realized $35.59 per barrel of oil, down 33 percent from 2019, $1.05 per Mcf of natural gas and $10.53 per barrel of NGLs sold.

Realized oil and natural gas price differentials to WTI Cushing and Henry Hub improved year-over-year.  Our realized Permian oil differential to WTI Cushing averaged $(3.74) per barrel in 2020 compared to $(4.48) in 2019.  For the year, Cimarex's average differential on its Permian natural gas production was $(1.39) per Mcf compared to the Henry Hub index versus $(2.14) per Mcf in 2019.  Cimarex's 2020 realized gas price differential in the Mid-Continent region was $(0.41) per Mcf compared to Henry Hub versus $(0.68) in 2019.

Cimarex invested a total of $577.2 million in 2020, which includes exploration and development capital (E&D) of $544.9 million$20.8 million to saltwater disposal and $11.5 million to midstream and other investments.  E&D capital is comprised of $417.4 million attributable to drilling and completion (D&C) activities and $127.5 million for capitalized interest and overhead, production capital and leasehold acquisition.  Capital investments were funded with cash flow from operations. 

Proved reserves at December 31, 2020 totaled 531 million barrels of oil equivalent (MMBOE), down 14 percent year over year.  The decrease in proved reserves resulted from a reduction in drilling activity and negative price related revisions, both due to lower commodity prices.  Cimarex added 57 MMBOE through extensions and discoveries while revisions reduced proved reserves by 52 MMBOE.  Production for 2020 totaled 92 MMBOE. Proved reserves are 84 percent proved developed.

Total debt at December 31, 2020 consisted of $2.0 billion of long-term notes.  Cimarex had no borrowings under its revolving credit facility and a cash balance of $273.1 million at year-end.

Cimarex repurchased and canceled 34,335 shares (55 percent) of the outstanding 8.125% Series A Cumulative Perpetual Convertible Preferred Stock in the fourth quarter, for a total consideration of $43.5 million including accrued and unpaid dividends. 

Operations Update
Cimarex invested $577.2 million in 2020 including $417.4 million (72 percent) of D&C capital.  Also included is $20.8 million to saltwater disposal assets and $11.5 million to midstream.  Of the $577.2 million, 93 percent was invested in the Permian region and seven percent in the Mid-Continent.

During 2020, Cimarex participated in the drilling and completion of 149 gross (51.0 net) wells.  At year-end, 77 gross (39.6 net) wells were waiting on completion, of which 25 gross (0.5 net) were in the Mid-Continent and 52 gross (39.1 net) were in the Permian.  Cimarex is currently operating six drilling rigs and two completion crews.

WELLS BROUGHT ON PRODUCTION BY REGION












Three Months Ended
December 31,


Twelve Months Ended
December 31,



2020


2019


2020


2019










Gross wells









Permian Basin


33



31



92



131


Mid-Continent


14



16



57



160




47



47



149



291


Net wells









Permian Basin


15.9



22.5



48.1



75.5


Mid-Continent


1.2



0.5



2.9



16.6




17.1



23.0



51.0



92.1


Permian Region
Production from the Permian region averaged 166.9 MBOE per day in the fourth quarter, or 73 percent of total company volumes.  Oil volumes averaged 60.0 MBbls per day, 88 percent of total company oil volumes.  For the full year, production averaged 184.0 MBOE per day, 73 percent of total company volumes with Permian oil representing 88 percent of Cimarex's oil volumes in 2020.

Cimarex brought 33 gross (15.9 net) wells on production in the Permian during fourth quarter, bringing the total wells brought on production in 2020 to 92 gross (48.1 net).  About 97 percent of our operated wells were drilled from multi-well pads and our average lateral length on our operated wells brought on production in the Permian was 9,268 feet in 2020. Cimarex is currently operating five drilling rigs and two completion crews in the region.

Mid-Continent Region
Production from the Mid-Continent averaged 62.2 MBOE per day for the fourth quarter, down 27 percent from fourth quarter 2019 and down 10 percent sequentially.  Oil volumes averaged 7.7 MBbls per day and represented 11 percent of the company's total oil volume in the quarter.  For the full year, production averaged 68.1 MBOE per day, down 22 percent year over year. Oil volumes averaged 8.8 MBbls per day in 2020, down 36 percent year over year.

Wells brought on production during the fourth quarter totaled 14 gross (1.2 net) in the Mid-Continent region, bringing the total wells brought on production in 2020 to 57 gross (2.9 net).  At the end of the quarter, 25 gross (0.5 net) wells were waiting on completion. Cimarex is currently operating one drilling rig in the region.

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

DAILY PRODUCTION BY REGION












Three Months Ended
December 31,


Twelve Months Ended
December 31,



2020


2019


2020


2019










Permian Basin









Gas (MMcf)


373.5



451.4



405.0



398.9


Oil (Bbls)


59,952



78,421



67,785



72,264


NGL (Bbls)


44,665



53,438



48,718



51,982


Total Equivalent (BOE)


166,867



207,096



184,001



190,735











Mid-Continent









Gas (MMcf)


214.8



280.1



229.6



289.1


Oil (Bbls)


7,672



13,514



8,796



13,788


NGL (Bbls)


18,732



25,081



21,039



25,379


Total Equivalent (BOE)


62,207



85,282



68,094



87,348











Total Company









Gas (MMcf)


589.5



732.6



635.6



689.2


Oil (Bbls)


67,799



92,048



76,740



86,200


NGL (Bbls)


63,468



78,557



69,819



77,408


Total Equivalent (BOE)


229,524



292,709



252,491



278,480



AVERAGE REALIZED PRICE BY REGION












Three Months Ended
December 31,


Twelve Months Ended
December 31,



2020


2019


2020


2019










Permian Basin









Gas ($ per Mcf)


1.33



0.83



0.69



0.49


Oil ($ per Bbl)


39.87



54.78



35.66



52.55


NGL ($ per Bbl)


12.85



13.23



9.64



12.62











Mid-Continent









Gas ($ per Mcf)


2.31



1.76



1.67



1.95


Oil ($ per Bbl)


41.67



54.91



34.97



53.89


NGL ($ per Bbl)


16.81



16.04



12.60



15.47











Total Company









Gas ($ per Mcf)


1.69



1.19



1.05



1.11


Oil ($ per Bbl)


40.09



54.80



35.59



52.77


NGL ($ per Bbl)


14.02



14.13



10.53



13.55


Other
The following table summarizes Cimarex's current hedge positions:




1Q21


2Q21


3Q21


4Q21


1Q22


2Q22


3Q22

Gas Collars:

PEPL(2)
















Volume (MMBtu/d)


100,000



100,000



90,000



90,000



60,000



20,000





Wtd Avg Floor


$

1.83



$

1.89



$

2.00



$

2.00



$

2.13



$

2.40



$



Wtd Avg Ceiling


$

2.23



$

2.28



$

2.42



$

2.42



$

2.55



$

2.86



$



















El Paso Perm(2)
















Volume (MMBtu/d)


70,000



80,000



70,000



70,000



40,000



20,000





Wtd Avg Floor


$

1.50



$

1.62



$

1.86



$

1.86



$

2.13



$

2.40



$



Wtd Avg Ceiling


$

1.79



$

1.92



$

2.22



$

2.22



$

2.53



$

2.88



$



















Waha(2)
















Volume (MMBtu/d)


90,000



100,000



90,000



90,000



60,000



20,000





Wtd Avg Floor


$

1.52



$

1.61



$

1.82



$

1.82



$

1.98



$

2.40



$



Wtd Avg Ceiling


$

1.83



$

1.93



$

2.17



$

2.17



$

2.39



$

2.86



$


















Oil Collars:

WTI(3)
















Volume (Bbl/d)


40,000



34,000



40,000



40,000



26,000



19,000



10,000



Wtd Avg Floor


$

38.06



$

34.62



$

34.65



$

34.65



$

37.31



$

38.16



$

40.00



Wtd Avg Ceiling


$

46.45



$

43.28



$

44.37



$

44.37



$

48.41



$

49.56



$

49.19


















Oil Basis Swaps:

WTI Midland(4)
















Volume (Bbl/d)


31,000



33,000



35,000



35,000



22,000



15,000



7,000



Wtd Avg Differential


$

0.03



$

(0.02)



$

(0.08)



$

(0.08)



$

0.25



$

0.31



$

0.38


















Oil Roll Differential Swaps

WTI(3)
















Volume (Bbl/d)


7,000



11,000



18,000



18,000



18,000



11,000



7,000



Wtd Avg Price


$

(0.24)



$

(0.22)



$

(0.10)



$

(0.10)



$

(0.10)



$

(0.01)



$

0.10


Conference call and webcast
Cimarex will host a conference call tomorrow, February 23, at 11:00 a.m. EST (9:00 a.m. MST) to discuss its fourth quarter and 2020 financial and operating results as well as management's outlook for 2021.  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 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.

Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding projected results and future events. 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, the Annual Report on Form 10-K for the year ended December 31, 2020 to be filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a description 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, all of which may be amplified by the COVID-19 pandemic and its unpredictable nature, including among other things: fluctuations in the price we receive for our oil, gas, and NGL production, including local market price differentials, which may be exacerbated by the demand destruction resulting from COVID-19; disruptions to the availability of workers and contractors due to illness and stay at home orders related to the COVID-19 pandemic; cost and availability of gathering, pipeline, refining, transportation and other midstream and downstream activities and our ability to sell oil, gas, and NGLs, which may be negatively impacted by the COVID-19 pandemic, severe weather and other risks and lead to a lack of any available markets; availability of supply chains and critical equipment and supplies; higher than expected costs and expenses, including the availability and cost of services and materials; compliance with environmental and other regulations, including new regulations that may result from the recent change in federal and state administrations and legislatures; legislative or regulatory changes, including initiatives related to hydraulic fracturing, emissions, and disposal of produced water, which may be negatively impacted by the recent change in Presidential administration or legislatures; the ability to receive drilling and other permits or approvals and rights-of-way in a timely manner (or at all), which may be negatively impacted by the impact of COVID-19 restrictions on regulatory employees who process and approve permits, other approvals and rights-of-way and which may be restricted by new Presidential and Secretarial orders and regulation and legislation; reductions in the quantity of oil, gas, and NGLs sold and prices received because of decreased demand and/or curtailments in production relating to mechanical, transportation, storage, capacity, marketing, weather, the COVID-19 pandemic, or other problems; declines in the SEC PV10 value of our oil and gas properties resulting in full cost ceiling test impairments to the carrying values of our oil and gas properties; the effectiveness of our internal control over financial reporting; success of the company's risk management activities; availability of financing and access to capital markets; estimates of proved reserves, exploitation potential, or exploration prospect size; greater than expected production decline rates; timing and amount of future production of oil, gas, and NGLs; cybersecurity threats, technology system failures and data security issues; the inability to transport, process and store oil and gas; hedging activities and the viability of our hedging counterparties, many of whom have been negatively impacted by the COVID-19 pandemic; economic and competitive conditions; lack of available insurance; cash flow and anticipated liquidity; continuing compliance with the financial covenant contained in our amended and restated credit agreement; the loss of certain federal income tax deductions; litigation; environmental liabilities; new federal regulations regarding species or habitats; exploration and development opportunities that we pursue may not result in economic, productive oil and gas properties; drilling of wells; development drilling and testing results; performance of acquired properties and newly drilled wells; ability to obtain industry partners to jointly explore certain prospects, and the willingness and ability of those partners to meet capital obligations when requested; unexpected future capital expenditures; amount, nature, and timing of capital expenditures; proving up undeveloped acreage and maintaining production on leases; unforeseen liabilities associated with acquisitions and dispositions; establishing valuation allowances against our net deferred tax assets; potential payments for failing to meet minimum oil, gas, NGL, or water delivery or sales commitments; increased financing costs due to a significant increase in interest rates; risks associated with concentration of operations in one major geographic area; availability and cost of capital; title to properties; 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, adjusted cash flow from operations, free cash flow, and free cash flow after dividend are non-GAAP financial measures.  See below for reconciliations of the related GAAP amounts.



2

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



3

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



4

Index price on basis swaps is WTI NYMEX less the weighted average WTI Midland differential, as quoted by Argus Americas Crude.

 

RECONCILIATION OF ADJUSTED NET INCOME


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



Three Months Ended
December 31,


Twelve Months Ended
December 31,


2020


2019


2020


2019


(in thousands, except per share data)









Net income (loss)

$

24,711



$

(384,091)



$

(1,967,458)



$

(124,619)


Impairment of oil and gas properties

12,451



618,693



1,638,329



618,693


Impairment of goodwill





714,447




Mark-to-market loss on open derivative positions

71,500



28,888



154,781



63,719


Loss on early extinguishment of debt







4,250


Acquisition related costs







8,404


Asset retirement obligation

2,100





4,900




Tax impact (1)

(19,448)



(143,115)



(402,754)



(121,637)


Adjusted net income

$

91,314



$

120,375



$

142,245



$

448,810


Diluted earnings (loss) per share

$

0.25



$

(3.87)



$

(19.73)



$

(1.33)


Adjusted diluted earnings per share*

$

0.89



$

1.18



$

1.39



$

4.46










Weighted-average number of shares outstanding:








Adjusted diluted**

102,270



101,903



102,140



100,679




(1) The tax impact in the 2020 periods is calculated using an effective tax rate that excludes the effects of the first quarter 2020 goodwill impairment, other non-deductible items, and changes in valuation allowances.



Adjusted net income and adjusted diluted earnings per share exclude the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP measures because:



a)

Management uses adjusted net income to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies.



b)

Adjusted net income is more comparable to earnings estimates provided by research analysts.



* Does not include adjustments resulting from application of the "two-class method" used to determine earnings per share under GAAP.



** Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding stock options.

 

RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS, FREE CASH FLOW AND

FREE CASH FLOW AFTER DIVIDEND


The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) , free cash flow (non-GAAP) and free cash flow after dividend (non-GAAP) for the periods indicated.



Three Months Ended
December 31,


Twelve Months Ended
December 31,


2020


2019


2020


2019


(in thousands)

Net cash provided by operating activities

$

191,477



$

359,809



$

904,167



$

1,343,966


Change in operating assets and liabilities

65,109



56,178



40,032



120,174










Adjusted cash flow from operations

256,586



415,987



944,199



1,464,140










Oil and gas expenditures

(112,655)



(246,232)



(594,796)



(1,245,457)


Other capital expenditures

(4,337)



(14,658)



(44,302)



(73,693)


Change in capital accruals

(18,356)



1,126



66,587



12,993


Free cash flow

121,238



156,223



371,688



157,983










Dividends paid

(24,083)



(21,579)



(92,976)



(81,709)


Free cash flow after dividend

$

97,155



$

134,644



$

278,712



$

76,274



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

 

PROVED RESERVES



Gas
(MMcf)


Oil
(MBbls)


NGL
(MBbls)


Total
(MBOE)

December 31, 2019

1,532,145



169,770



194,468



619,595


Revisions of previous estimates

(43,504)



(19,692)



(25,488)



(52,430)


Extensions and discoveries

107,322



22,269



16,419



56,575


Purchases of reserves








Production

(232,625)



(28,087)



(25,554)



(92,412)


Sales of reserves

(496)



(197)



(27)



(307)


December 31, 2020

1,362,842



144,063



159,818



531,021










Proved developed reserves:








December 31, 2019

1,358,329



138,783



166,552



531,722


December 31, 2020

1,190,907



112,785



135,901



447,170











2020


2019


% Change



Standardized Measure ($ in millions)

2,253



3,629



(38)

%



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

2,288



3,948



(42)

%











Average prices used in Standardized Measure

2020


2019


% Change



Gas ($ per Mcf)

1.99



2.58



(23)

%



Oil ($ per Bbl)

39.54



55.67



(29)

%




* 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, 2020 and 2019, Cimarex's discounted future income taxes were $35.6 million and $319.4 million, respectively. Cimarex's standardized measure of discounted future net cash flows was $2,252.5 million at year-end 2020 and $3,629.0 million at year-end 2019. Management uses pre-tax PV-10 as one measure of the value of the company's proved reserves and to compare relative values of proved reserves to other exploration and production companies without regard to income taxes. Management believes pre-tax PV-10 is a useful measure for comparison of proved reserve values among companies because, unlike standardized measure, it excludes future income taxes that often depend on the unique income tax characteristics of the owner of the reserves rather than on the nature, location and quality of the reserves themselves. Management further believes that professional research analysts and rating agencies use pre-tax PV-10 in similar ways. 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
(MMcf)


Oil
(MBbls)


NGL
(MBbls)


Total
(MBOE)

Permian Basin

790,750



126,327



103,606



361,725


Mid-Continent

570,578



17,491



56,130



168,717


Other

1,514



245



82



579



1,362,842



144,063



159,818



531,021


 



OIL AND GAS CAPITALIZED EXPENDITURES








Three Months Ended
December 31,


Twelve Months Ended
December 31,


2020


2019


2020


2019


(in thousands)

Acquisitions:








Proved

$

4,628



$

(723)



$

11,878



$

695,450


Unproved



3,908





1,025,376



4,628



3,185



11,878



1,720,826










Exploration and development:








Land and seismic

10,842



17,719



48,468



60,175


Exploration and development

121,031



234,603



496,388



1,181,605



131,873



252,322



544,856



1,241,780










Total acquisition, exploration, and development capital expenditures

$

136,501



$

255,507



$

556,734



$

2,962,606


 



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited)












Three Months Ended
December 31,


Years Ended
December 31,



2020


2019


2020


2019



(in thousands, except per share information)

Revenues:









Oil sales


$

250,059



$

464,044



$

999,682



$

1,660,210


Gas and NGL sales


173,503



182,269



513,006



661,711


Gas gathering and other


11,161



10,931



45,907



41,048




434,723



657,244



1,558,595



2,362,969


Costs and expenses:









Impairment of oil and gas properties


12,451



618,693



1,638,329



618,693


Depreciation, depletion, amortization, and accretion


134,556



252,637



710,607



890,759


Impairment of goodwill






714,447




Production


71,726



82,722



285,324



339,941


Transportation, processing, and other operating


52,032



64,780



213,366



238,259


Gas gathering and other


7,118



6,279



23,591



23,294


Taxes other than income


9,430



43,353



79,699



148,953


General and administrative


30,672



26,349



111,005



95,843


Stock compensation


7,016



6,394



29,895



26,398


Loss on derivative instruments, net


72,982



40,901



35,534



76,850


Other operating expense, net


291



248



839



19,305




398,274



1,142,356



3,842,636



2,478,295











Operating income (loss)


36,449



(485,112)



(2,284,041)



(115,326)











Other (income) and expense:









Interest expense


23,325



23,721



92,914



93,386


Capitalized interest


(11,623)



(14,421)



(50,030)



(56,232)


Loss on early extinguishment of debt








4,250


Other, net


(1,593)



(1,193)



(540)



(5,741)











Income (loss) before income tax


26,340



(493,219)



(2,326,385)



(150,989)


Income tax expense (benefit)


1,629



(109,128)



(358,927)



(26,370)


Net income (loss)


$

24,711



$

(384,091)



$

(1,967,458)



$

(124,619)











Earnings (loss) per share to common stockholders:









Basic


$

0.25



$

(3.87)



$

(19.73)



$

(1.33)


Diluted


$

0.25



$

(3.87)



$

(19.73)



$

(1.33)











Dividends declared per common share


$

0.22



$

0.20



$

0.88



$

0.80











Weighted-average number of shares outstanding:









Basic


100,072



99,789



99,952



98,789


Diluted


100,072



99,789



99,952



98,789











Comprehensive income (loss):









Net income (loss)


$

24,711



$

(384,091)



$

(1,967,458)



$

(124,619)


Other comprehensive income (loss):









Change in fair value of investments, net of tax




(10)





(755)


Total comprehensive income (loss)


$

24,711



$

(384,101)



$

(1,967,458)



$

(125,374)











 

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited)














Three Months Ended
December 31,


Years Ended
December 31,




2020


2019


2020


2019




(in thousands)


Cash flows from operating activities:










Net income (loss)


$

24,711



$

(384,091)



$

(1,967,458)



$

(124,619)


Adjustments to reconcile net income (loss) to net cash










provided by operating activities:










Impairment of oil and gas properties


12,451



618,693



1,638,329



618,693



Depreciation, depletion, amortization, and accretion


134,556



252,637



710,607



890,759



Impairment of goodwill






714,447





Deferred income taxes


1,499



(109,660)



(358,896)



(26,902)



Stock compensation


7,016



6,394



29,895



26,398



Loss on derivative instruments, net


72,982



40,901



35,534



76,850



Settlements on derivative instruments


(1,482)



(12,013)



119,247



(13,131)



Loss on early extinguishment of debt








4,250



Changes in non-current assets and liabilities


1,119



(167)



7,189



(2,797)



Other, net


3,734



3,293



15,305



14,639



Changes in operating assets and liabilities:










Accounts receivable


(63,461)



(15,055)



116,492



65,128



Other current assets


(1,554)



(2,879)



5,134



(739)



Accounts payable and other current liabilities


(94)



(38,244)



(161,658)



(184,563)



Net cash provided by operating activities


191,477



359,809



904,167



1,343,966



Cash flows from investing activities:










Oil and gas capital expenditures


(112,655)



(246,232)



(594,796)



(1,245,457)



Acquisition of oil and gas properties


(4,628)



(3,185)



(11,878)



(288,781)



Sales of oil and gas assets


147



398



69,983



28,945



Sales of other assets


226



245



2,118



1,104



Other capital expenditures


(4,337)



(14,658)



(44,302)



(73,693)



Net cash used by investing activities


(121,247)



(263,432)



(578,875)



(1,577,882)



Cash flows from financing activities:










Borrowings of long-term debt




380,000



172,000



2,619,310



Repayments of long-term debt




(380,000)



(172,000)



(2,990,000)



Financing, underwriting, and debt redemption fees






(1,566)



(11,798)



Finance lease payments


(979)



(1,138)



(4,842)



(3,869)



Repurchase of redeemable preferred stock


(43,029)





(43,029)





Dividends paid


(24,083)



(21,579)



(92,976)



(81,709)



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


(1,951)



(2,823)



(4,456)



(5,229)



Proceeds from exercise of stock options








1,267



Net cash used by financing activities


(70,042)



(25,540)



(146,869)



(472,028)



Net change in cash and cash equivalents


188



70,837



178,423



(705,944)



Cash and cash equivalents at beginning of period


272,957



23,885



94,722



800,666



Cash and cash equivalents at end of period


$

273,145



$

94,722



$

273,145



$

94,722


CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)








December 31,
2020


December 31,
2019

Assets


(in thousands, except share and
per share information)

Current assets:





Cash and cash equivalents


$

273,145



$

94,722


Accounts receivable, net of allowance


332,485



448,584


Oil and gas well equipment and supplies


37,150



47,893


Derivative instruments


6,848



17,944


Other current assets


7,710



12,343


Total current assets


657,338



621,486


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





Proved properties


21,281,840



20,678,334


Unproved properties and properties under development, not being amortized


1,142,183



1,255,908




22,424,023



21,934,242


Less – accumulated depreciation, depletion, amortization, and impairment


(18,987,354)



(16,723,544)


Net oil and gas properties


3,436,669



5,210,698


Fixed assets, net of accumulated depreciation of $455,815 and $389,458, respectively


436,101



519,291


Goodwill




716,865


Derivative instruments


2,342



580


Deferred income taxes


20,472




Other assets


69,067



71,109




$

4,621,989



$

7,140,029


Liabilities, Redeemable Preferred Stock, and Stockholders' Equity





Current liabilities:





Accounts payable


$

44,290



$

49,020


Accrued liabilities


280,849



418,978


Derivative instruments


145,398



16,681


Revenue payable


130,637



207,939


Operating leases


59,051



66,003


Total current liabilities


660,225



758,621


Long-term debt:





Principal


2,000,000



2,000,000


Less – unamortized debt issuance costs and discounts


(12,701)



(14,754)


Long-term debt, net


1,987,299



1,985,246


Deferred income taxes




338,424


Derivative instruments


17,749



1,018


Operating leases


134,705



184,172


Other liabilities


231,776



214,787


Total liabilities


3,031,754



3,482,268


Redeemable preferred stock - 8.125% Series A Cumulative Perpetual Convertible
Preferred Stock, $0.01 par value, 28,165 shares authorized and issued and 62,500
shares authorized and issued, respectively


36,781



81,620


Stockholders' equity:





Common stock, $0.01 par value, 200,000,000 shares authorized, 102,866,806 and
102,144,577 shares issued, respectively


1,029



1,021


Additional paid-in capital


3,211,562



3,243,325


(Accumulated deficit) retained earnings


(1,659,137)



331,795


Total stockholders' equity


1,553,454



3,576,141




$

4,621,989



$

7,140,029


 

Cision View original content:http://www.prnewswire.com/news-releases/cimarex-reports-fourth-quarter-and-full-year-2020-results-301232780.html

SOURCE Cimarex Energy Co.

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