Cimarex Reports Third Quarter 2020 Results
Cimarex Energy Co. (NYSE: XEC) reported a third quarter 2020 net loss of $292.7 million, or $2.94 per share, significantly down from net income of $123.8 million, or $1.21 per share, year-over-year. Adjusted net income was $52.4 million, compared to $96 million in 2019. Cash flow from operating activities totaled $259 million, down from $320 million last year. Oil production averaged 71,600 barrels per day, with realized oil prices increasing sequentially to $37.94 per barrel but still down 28% from the prior year. Total company investments for the quarter reached $83 million.
- Generated $259 million in cash from operating activities.
- Achieved $139 million in free cash flow after dividend.
- Increased realized oil prices by 94% sequentially to $37.94 per barrel.
- Reported a net loss of $292.7 million compared to a profit in Q3 2019.
- Adjusted net income decreased to $52.4 million from $96 million year-over-year.
- Oil production decreased by 16% compared to Q3 2019.
DENVER, Nov. 4, 2020 /PRNewswire/ --
- Generated Net Cash Provided by Operating Activities of
$259 million - Generated
$139 million of free cash flow after dividend (Non-GAAP) - Invested
$83 million in the quarter - Oil production averaged 71,600 barrels per day
Cimarex Energy Co. (NYSE: XEC) today reported a third quarter 2020 net loss of
Oil production averaged 71.6 thousand barrels (MBbls) per day. Total company production volumes for the quarter averaged 249.4 thousand barrels of oil equivalent (MBOE) per day.
Realized oil prices averaged
Cimarex's realized oil price was a negative differential to WTI of
Cimarex invested a total of
The company has reduced staff by 20 percent year to date through a combination of an Early Retirement Program (ERIP), further staff reductions completed in the third quarter, and attrition. Cimarex has incurred
Outlook
Improved oil prices in the third quarter allowed Cimarex to resume activity. We are currently running four drilling rigs in the Permian basin and have had two completion crews working since September 1. Cimarex continues to expect capital investment for the year to total approximately
Fourth quarter 2020 production volumes are expected to average 215 - 235 MBOE per day, with oil volumes estimated to average 62.5 - 68.5 MBbls per day. Total 2020 daily production volumes are expected to average 250 - 255 MBOE per day, with annual oil volumes estimated to average 75.5 - 77.5 MBbls per day.
Expenses per BOE of production for 2020 are estimated to be:
Production expense | ||
Transportation, processing and other expense | 2.10 - 2.40 | |
DD&A and ARO accretion | 7.50 - 8.00 | |
General and administrative expense | 1.00 - 1.10 | |
Taxes other than income (% of oil and gas revenue) |
Operations Update
Cimarex invested
WELLS BROUGHT ON PRODUCTION BY REGION | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Gross wells | ||||||||||||
Permian Basin | 7 | 44 | 59 | 100 | ||||||||
Mid-Continent | 4 | 52 | 43 | 144 | ||||||||
11 | 96 | 102 | 244 | |||||||||
Net wells | ||||||||||||
Permian Basin | 1.4 | 16.1 | 32.3 | 53.0 | ||||||||
Mid-Continent | nil | 5.4 | 1.7 | 16.1 | ||||||||
1.4 | 21.5 | 34.0 | 69.1 | |||||||||
Permian Region
Production from the Permian region averaged 180.3 MBOE per day in the third quarter, a nine percent decrease from third quarter 2019. Oil volumes averaged 62.9 MBbls per day, a 16 percent decrease from third quarter 2019 and down nine percent sequentially.
Cimarex brought 7 gross (1.4 net) wells on production in the Permian region during the third quarter. There were 51 gross (38.7 net) wells waiting on completion at September 30. Cimarex currently is operating four drilling rigs and two completion crews in the region.
Mid-Continent Region
Production from the Mid-Continent averaged 68.8 MBOE per day for the third quarter, down 22 percent from third quarter 2019 and in line with the previous quarter.
During the third quarter, 4 gross (nil net) wells were brought on production in the Mid-Continent region. At the end of the quarter, 23 gross (0.3 net) wells were waiting on completion. Cimarex currently is not 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 Ended | Nine Months Ended | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Permian Basin | ||||||||||||
Gas (MMcf) | 380.2 | 422.9 | 415.6 | 381.2 | ||||||||
Oil (Bbls) | 62,930 | 74,819 | 70,415 | 70,188 | ||||||||
NGL (Bbls) | 53,971 | 53,311 | 50,079 | 51,492 | ||||||||
Total Equivalent (MBOE) | 180.3 | 198.6 | 189.8 | 185.2 | ||||||||
Mid-Continent | ||||||||||||
Gas (MMcf) | 222.3 | 293.7 | 234.5 | 292.1 | ||||||||
Oil (Bbls) | 8,523 | 14,788 | 9,173 | 13,880 | ||||||||
NGL (Bbls) | 23,249 | 24,338 | 21,814 | 25,480 | ||||||||
Total Equivalent (MBOE) | 68.8 | 88.1 | 70.1 | 88.0 | ||||||||
Total Company | ||||||||||||
Gas (MMcf) | 603.4 | 718.0 | 651.0 | 674.6 | ||||||||
Oil (Bbls) | 71,571 | 89,731 | 79,743 | 84,230 | ||||||||
NGL (Bbls) | 77,294 | 77,693 | 71,951 | 77,021 | ||||||||
Total Equivalent (MBOE) | 249.4 | 287.1 | 260.2 | 273.7 | ||||||||
AVERAGE REALIZED PRICE BY REGION | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Permian Basin | ||||||||||||
Gas ($ per Mcf) | 0.83 | 0.40 | 0.50 | 0.36 | ||||||||
Oil ($ per Bbl) | 38.22 | 52.69 | 34.46 | 51.70 | ||||||||
NGL ($ per Bbl) | 10.17 | 9.94 | 8.68 | 12.40 | ||||||||
Mid-Continent | ||||||||||||
Gas ($ per Mcf) | 1.67 | 1.57 | 1.48 | 2.01 | ||||||||
Oil ($ per Bbl) | 35.87 | 52.73 | 33.09 | 53.55 | ||||||||
NGL ($ per Bbl) | 12.59 | 12.69 | 11.38 | 15.28 | ||||||||
Total Company | ||||||||||||
Gas ($ per Mcf) | 1.14 | 0.88 | 0.85 | 1.08 | ||||||||
Oil ($ per Bbl) | 37.94 | 52.71 | 34.31 | 52.02 | ||||||||
NGL ($ per Bbl) | 10.89 | 10.80 | 9.50 | 13.36 | ||||||||
Other
Cimarex received cash settlements of
The following table summarizes the company's current open hedge positions:
4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | |||||||||||||||||||||||
Gas Collars: | PEPL (2) | ||||||||||||||||||||||||||||
Volume (MMBtu/d) | 100,000 | 100,000 | 100,000 | 90,000 | 90,000 | 60,000 | 20,000 | ||||||||||||||||||||||
Wtd Avg Floor | $ | 1.78 | $ | 1.83 | $ | 1.89 | $ | 2.00 | $ | 2.00 | $ | 2.13 | $ | 2.40 | |||||||||||||||
Wtd Avg Ceiling | $ | 2.21 | $ | 2.23 | $ | 2.28 | $ | 2.42 | $ | 2.42 | $ | 2.55 | $ | 2.86 | |||||||||||||||
El Paso Perm (2) | |||||||||||||||||||||||||||||
Volume (MMBtu/d) | 70,000 | 70,000 | 80,000 | 70,000 | 70,000 | 40,000 | 20,000 | ||||||||||||||||||||||
Wtd Avg Floor | $ | 1.36 | $ | 1.50 | $ | 1.62 | $ | 1.86 | $ | 1.86 | $ | 2.13 | $ | 2.40 | |||||||||||||||
Wtd Avg Ceiling | $ | 1.64 | $ | 1.79 | $ | 1.92 | $ | 2.22 | $ | 2.22 | $ | 2.53 | $ | 2.88 | |||||||||||||||
Waha (2) | |||||||||||||||||||||||||||||
Volume (MMBtu/d) | 70,000 | 90,000 | 100,000 | 90,000 | 90,000 | 60,000 | 20,000 | ||||||||||||||||||||||
Wtd Avg Floor | $ | 1.43 | $ | 1.52 | $ | 1.61 | $ | 1.82 | $ | 1.82 | $ | 1.98 | $ | 2.40 | |||||||||||||||
Wtd Avg Ceiling | $ | 1.73 | $ | 1.83 | $ | 1.93 | $ | 2.17 | $ | 2.17 | $ | 2.39 | $ | 2.86 | |||||||||||||||
Oil Collars: | WTI (3) | ||||||||||||||||||||||||||||
Volume (Bbl/d) | 41,000 | 40,000 | 34,000 | 25,000 | 25,000 | 11,000 | 4,000 | ||||||||||||||||||||||
Wtd Avg Floor | $ | 40.91 | $ | 38.06 | $ | 34.62 | $ | 32.44 | $ | 32.44 | $ | 35.91 | $ | 37.50 | |||||||||||||||
Wtd Avg Ceiling | $ | 49.84 | $ | 46.45 | $ | 43.28 | $ | 41.49 | $ | 41.49 | $ | 47.37 | $ | 51.04 | |||||||||||||||
Oil Basis Swaps: | WTI Midland (4) | ||||||||||||||||||||||||||||
Volume (Bbl/d) | 32,000 | 31,000 | 33,000 | 28,000 | 28,000 | 15,000 | 8,000 | ||||||||||||||||||||||
Wtd Avg Differential | $ | 0.18 | $ | 0.03 | $ | (0.02) | $ | (0.20) | $ | (0.20) | $ | 0.19 | $ | 0.25 | |||||||||||||||
Oil Roll Differential Swaps: | WTI (3) | ||||||||||||||||||||||||||||
Volume (Bbl/d) | — | 7,000 | 11,000 | 11,000 | 11,000 | 11,000 | 4,000 | ||||||||||||||||||||||
Wtd Avg Price | $ | — | $ | (0.24) | $ | (0.22) | $ | (0.22) | $ | (0.22) | $ | (0.22) | $ | (0.20) | |||||||||||||||
Conference call and webcast
Cimarex will host a conference call tomorrow, November 5, 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 third 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, including 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; compliance with environmental and other regulations, including new regulations that may result from a change in federal and state administrations and legislatures; 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; 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 and by changes in federal and state administrations and legislatures; development drilling and testing results; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; 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.
________________________________________ | |
1 | Adjusted net income and adjusted cash flow from operations 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 (loss) income as reported under generally accepted accounting principles (GAAP) to adjusted net income (non-GAAP) for the periods indicated. | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Net (loss) income | $ | (292,740) | $ | 123,847 | $ | (1,992,169) | $ | 259,472 | ||||||||
Impairment of oil and gas properties (1) | 351,029 | — | 1,625,878 | — | ||||||||||||
Impairment of goodwill | — | — | 714,447 | — | ||||||||||||
Mark-to-market loss (gain) on open derivative positions | 79,281 | (37,039) | 83,281 | 34,831 | ||||||||||||
Loss on early extinguishment of debt | — | — | — | 4,250 | ||||||||||||
Acquisition related costs | — | 13 | — | 8,404 | ||||||||||||
Asset retirement obligation | — | — | 2,800 | — | ||||||||||||
Tax impact (2) | (85,201) | 9,146 | (376,631) | (11,491) | ||||||||||||
Adjusted net income | $ | 52,369 | $ | 95,967 | $ | 57,606 | $ | 295,466 | ||||||||
Diluted (loss) earnings per share | $ | (2.94) | $ | 1.21 | $ | (19.99) | $ | 2.56 | ||||||||
Adjusted diluted earnings per share* | $ | 0.51 | $ | 0.94 | $ | 0.56 | $ | 2.95 | ||||||||
Weighted-average number of shares outstanding: | ||||||||||||||||
Adjusted diluted** | 102,046 | 101,593 | 102,097 | 100,266 | ||||||||||||
______________________________________ | |
(1) | An additional ceiling test impairment is anticipated in the fourth quarter. |
(2) | Because the goodwill impairment is not deductible for tax purposes, the 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 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 | Nine Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in thousands) | |||||||||||||||
Net cash provided by operating activities | $ | 259,193 | $ | 320,074 | $ | 712,690 | $ | 984,157 | |||||||
Change in operating assets and liabilities | (22,529) | 40,655 | (25,077) | 63,996 | |||||||||||
Adjusted cash flow from operations | 236,664 | 360,729 | 687,613 | 1,048,153 | |||||||||||
Oil and gas expenditures | (70,811) | (286,250) | (482,141) | (999,225) | |||||||||||
Other capital expenditures | (1,913) | (18,894) | (39,965) | (59,035) | |||||||||||
Change in capital accruals | (1,343) | (2,787) | 84,943 | 11,866 | |||||||||||
Free cash flow | 162,597 | 52,798 | 250,450 | 1,759 | |||||||||||
Dividends paid | (23,684) | (21,483) | (68,893) | (60,130) | |||||||||||
Free cash flow after dividend | $ | 138,913 | $ | 31,315 | $ | 181,557 | $ | (58,371) | |||||||
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 | Nine Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in thousands) | |||||||||||||||
Acquisitions: | |||||||||||||||
Proved | $ | — | $ | 2,373 | $ | 7,250 | $ | 696,173 | |||||||
Unproved | — | (30,314) | — | 1,021,468 | |||||||||||
— | (27,941) | 7,250 | 1,717,641 | ||||||||||||
Exploration and development: | |||||||||||||||
Land and seismic | 11,586 | 18,377 | $ | 37,626 | $ | 42,456 | |||||||||
Exploration and development | 68,963 | 278,083 | 375,357 | 947,002 | |||||||||||
80,549 | 296,460 | 412,983 | 989,458 | ||||||||||||
Property sales: | |||||||||||||||
Proved | (67,514) | (9,286) | $ | (67,514) | $ | (27,314) | |||||||||
Unproved | — | (81) | (830) | (9,835) | |||||||||||
(67,514) | (9,367) | (68,344) | (37,149) | ||||||||||||
$ | 13,035 | $ | 259,152 | $ | 351,889 | $ | 2,669,950 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except per share information) | ||||||||||||||||
Revenues: | ||||||||||||||||
Oil sales | $ | 249,826 | $ | 435,094 | $ | 749,623 | $ | 1,196,166 | ||||||||
Gas and NGL sales | 140,761 | 135,483 | 339,503 | 479,442 | ||||||||||||
Gas gathering and other | 11,072 | 11,728 | 34,746 | 30,117 | ||||||||||||
401,659 | 582,305 | 1,123,872 | 1,705,725 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Impairment of oil and gas properties | 351,029 | — | 1,625,878 | — | ||||||||||||
Depreciation, depletion, amortization, and accretion | 159,626 | 230,172 | 576,051 | 638,122 | ||||||||||||
Impairment of goodwill | — | — | 714,447 | — | ||||||||||||
Production | 62,025 | 89,820 | 213,598 | 257,219 | ||||||||||||
Transportation, processing, and other operating | 53,130 | 59,797 | 161,334 | 173,479 | ||||||||||||
Gas gathering and other | 4,649 | 5,273 | 16,473 | 17,015 | ||||||||||||
Taxes other than income | 22,822 | 30,873 | 70,269 | 105,600 | ||||||||||||
General and administrative | 28,598 | 15,499 | 80,333 | 69,494 | ||||||||||||
Stock compensation | 9,738 | 6,797 | 22,879 | 20,004 | ||||||||||||
Loss (gain) on derivative instruments, net | 65,607 | (38,735) | (37,448) | 35,949 | ||||||||||||
Other operating expense, net | 167 | 10,141 | 548 | 19,057 | ||||||||||||
757,391 | 409,637 | 3,444,362 | 1,335,939 | |||||||||||||
Operating (loss) income | (355,732) | 172,668 | (2,320,490) | 369,786 | ||||||||||||
Other (income) and expense: | ||||||||||||||||
Interest expense | 23,361 | 24,586 | 69,589 | 69,665 | ||||||||||||
Capitalized interest | (12,286) | (16,264) | (38,407) | (41,811) | ||||||||||||
Loss on early extinguishment of debt | — | — | — | 4,250 | ||||||||||||
Other, net | (1,572) | (140) | 1,053 | (4,548) | ||||||||||||
(Loss) income before income tax | (365,235) | 164,486 | (2,352,725) | 342,230 | ||||||||||||
Income tax (benefit) expense | (72,495) | 40,639 | (360,556) | 82,758 | ||||||||||||
Net (loss) income | $ | (292,740) | $ | 123,847 | $ | (1,992,169) | $ | 259,472 | ||||||||
Earnings (loss) per share to common stockholders: | ||||||||||||||||
Basic | $ | (2.94) | $ | 1.21 | $ | (19.99) | $ | 2.56 | ||||||||
Diluted | $ | (2.94) | $ | 1.21 | $ | (19.99) | $ | 2.56 | ||||||||
Dividends declared per common share | $ | 0.22 | $ | 0.20 | $ | 0.66 | $ | 0.60 | ||||||||
Weighted-average number of shares outstanding: | ||||||||||||||||
Basic | 100,013 | 99,735 | 99,912 | 98,452 | ||||||||||||
Diluted | 100,013 | 99,735 | 99,912 | 98,458 | ||||||||||||
Comprehensive (loss) income: | ||||||||||||||||
Net (loss) income | $ | (292,740) | $ | 123,847 | $ | (1,992,169) | $ | 259,472 | ||||||||
Other comprehensive income: | ||||||||||||||||
Change in fair value of investments, net of tax of | — | (2,198) | — | (745) | ||||||||||||
Total comprehensive (loss) income | $ | (292,740) | $ | 121,649 | $ | (1,992,169) | $ | 258,727 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net (loss) income | $ | (292,740) | $ | 123,847 | $ | (1,992,169) | $ | 259,472 | ||||||||
Adjustments to reconcile net (loss) income to net cash | ||||||||||||||||
provided by operating activities: | ||||||||||||||||
Impairment of oil and gas properties | 351,029 | — | 1,625,878 | — | ||||||||||||
Depreciation, depletion, amortization, and accretion | 159,626 | 230,172 | 576,051 | 638,122 | ||||||||||||
Impairment of goodwill | — | — | 714,447 | — | ||||||||||||
Deferred income taxes | (72,495) | 40,639 | (360,395) | 82,758 | ||||||||||||
Stock compensation | 9,738 | 6,797 | 22,879 | 20,004 | ||||||||||||
Loss (gain) on derivative instruments, net | 65,607 | (38,735) | (37,448) | 35,949 | ||||||||||||
Settlements on derivative instruments | 13,674 | 1,696 | 120,729 | (1,118) | ||||||||||||
Loss on early extinguishment of debt | — | — | — | 4,250 | ||||||||||||
Amortization of debt issuance costs and discounts | 886 | 783 | 2,488 | 2,285 | ||||||||||||
Changes in non-current assets and liabilities | (949) | (5,379) | 6,070 | (2,630) | ||||||||||||
Other, net | 2,288 | 909 | 9,083 | 9,061 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | (24,662) | (37,509) | 179,953 | 80,183 | ||||||||||||
Other current assets | 5,193 | 2,901 | 6,688 | 2,140 | ||||||||||||
Accounts payable and other current liabilities | 41,998 | (6,047) | (161,564) | (146,319) | ||||||||||||
Net cash provided by operating activities | 259,193 | 320,074 | 712,690 | 984,157 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Acquisition of oil and gas properties | — | (2,373) | (7,250) | (285,596) | ||||||||||||
Oil and gas capital expenditures | (70,811) | (286,250) | (482,141) | (999,225) | ||||||||||||
Other capital expenditures | (1,913) | (18,894) | (39,965) | (59,035) | ||||||||||||
Sales of oil and gas assets | 69,006 | 15,314 | 69,836 | 28,547 | ||||||||||||
Sales of other assets | 704 | 425 | 1,892 | 859 | ||||||||||||
Net cash used by investing activities | (3,014) | (291,778) | (457,628) | (1,314,450) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Borrowings of long-term debt | 11,000 | 529,000 | 172,000 | 2,239,310 | ||||||||||||
Repayments of long-term debt | (11,000) | (529,000) | (172,000) | (2,610,000) | ||||||||||||
Financing, underwriting, and debt redemption fees | (9) | (7) | (1,566) | (11,798) | ||||||||||||
Finance lease payments | (1,055) | (1,176) | (3,863) | (2,731) | ||||||||||||
Dividends paid | (23,684) | (21,483) | (68,893) | (60,130) | ||||||||||||
Employee withholding taxes paid upon the net settlement of | (2,316) | (1,752) | (2,505) | (2,406) | ||||||||||||
Proceeds from exercise of stock options | — | 593 | — | 1,267 | ||||||||||||
Net cash used by financing activities | (27,064) | (23,825) | (76,827) | (446,488) | ||||||||||||
Net change in cash and cash equivalents | 229,115 | 4,471 | 178,235 | (776,781) | ||||||||||||
Cash and cash equivalents at beginning of period | 43,842 | 19,414 | 94,722 | 800,666 | ||||||||||||
Cash and cash equivalents at end of period | $ | 272,957 | $ | 23,885 | $ | 272,957 | $ | 23,885 | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
September 30, | December 31, | |||||||
Assets | (in thousands, except share and | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 272,957 | $ | 94,722 | ||||
Accounts receivable, net of allowance | 269,440 | 448,584 | ||||||
Oil and gas well equipment and supplies | 45,959 | 47,893 | ||||||
Derivative instruments | 39,402 | 17,944 | ||||||
Other current assets | 6,271 | 12,343 | ||||||
Total current assets | 634,029 | 621,486 | ||||||
Oil and gas properties at cost, using the full cost method of accounting: | ||||||||
Proved properties | 21,076,796 | 20,678,334 | ||||||
Unproved properties and properties under development, not being amortized | 1,208,733 | 1,255,908 | ||||||
22,285,529 | 21,934,242 | |||||||
Less – accumulated depreciation, depletion, amortization, and impairment | (18,862,339) | (16,723,544) | ||||||
Net oil and gas properties | 3,423,190 | 5,210,698 | ||||||
Fixed assets, net of accumulated depreciation of | 457,010 | 519,291 | ||||||
Goodwill | — | 716,865 | ||||||
Derivative instruments | 952 | 580 | ||||||
Deferred income taxes | 21,971 | — | ||||||
Other assets | 68,818 | 71,109 | ||||||
$ | 4,605,970 | $ | 7,140,029 | |||||
Liabilities, Redeemable Preferred Stock, and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 34,635 | $ | 49,020 | ||||
Accrued liabilities | 280,861 | 418,978 | ||||||
Derivative instruments | 96,763 | 16,681 | ||||||
Revenue payable | 123,705 | 207,939 | ||||||
Operating leases | 59,989 | 66,003 | ||||||
Total current liabilities | 595,953 | 758,621 | ||||||
Long-term debt principal | 2,000,000 | 2,000,000 | ||||||
Less—unamortized debt issuance costs and discounts | (13,215) | (14,754) | ||||||
Long-term debt, net | 1,986,785 | 1,985,246 | ||||||
Deferred income taxes | — | 338,424 | ||||||
Derivative instruments | 26,048 | 1,018 | ||||||
Operating leases | 144,755 | 184,172 | ||||||
Other liabilities | 227,007 | 214,787 | ||||||
Total liabilities | 2,980,548 | 3,482,268 | ||||||
Redeemable preferred stock - | 81,620 | 81,620 | ||||||
Stockholders' equity: | ||||||||
Common stock, 0.01 par value, 200,000,000 shares authorized, 101,970,811 and | 1,020 | 1,021 | ||||||
Additional paid-in capital | 3,226,828 | 3,243,325 | ||||||
(Accumulated deficit) retained earnings | (1,684,046) | 331,795 | ||||||
Total stockholders' equity | 1,543,802 | 3,576,141 | ||||||
$ | 4,605,970 | $ | 7,140,029 | |||||
View original content:http://www.prnewswire.com/news-releases/cimarex-reports-third-quarter-2020-results-301166618.html
SOURCE Cimarex Energy Co.
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