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SCOTIA HOWARD WEIL47TH ANNUAL ENERGY CONFERENCE
March 2019
2FORWARD-LOOKING STATEMENTS
Forward-looking Statements
Contact:
Karen AciernoVice President – Investor Relations
This presentation contains projections and other forward-looking statements within the meaning of Section 27A ofthe U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These projectionsand statements reflect the Company’s current views with respect to future events and financial performance. Noassurances can be given, however, that these events will occur or that these projections will be achieved, andactual results could differ materially from those projected as a result of certain factors. A discussion of thesefactors is included in the Company’s periodic reports filed with the U.S. Securities and Exchange Commission.
3CIMAREX ENERGY SNAPSHOT
Cimarex Energy Snapshot
NYSE SYMBOL: XEC
MARKET CAP1: $6.9 BILLION
ENTERPRISE VALUE1: $8.9 BILLION
DEBT/EBITDA2: 0.9X
ANNUAL DIVIDEND: $0.80 (1.1% YIELD)
4Q18 PRODUCTION: 251 MBOE/D, 80 MBO/D
2019E CAPEX: $1.35 - $1.45 BILLION
2019E PRODUCTION GROWTH: 13%-22%
1 As of March 20, 20192 As of and for the twelve months ended 12/31/18. See Appendix for non-GAAP definitions and reconciliations to nearest comparable GAAP measure.
4CIMAREX ENERGY: MAXIMIZING RETURNS
Cimarex Energy: Maximizing Returns
PREMIERE PORTFOLIO
FOCUSED EXECUTION
FINANCIAL DISCIPLINE
Core positions in the Permian and Anadarko Basins
Focused on maximizing ROR and NPV
Strong returns, cash flow growth, liquidity & optionality
IDEA GENERATIONDriven by rigorous technical evaluation
LOOKBACK EVALUATIONImproves economic returns & operational efficiencies
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
DRILLING &COMPLETION
MIDSTREAM SWD OVERHEAD LAND - $1,500/ACRE
5WHAT ARE FULLY-BURDENED RETURNS?
What are Fully-Burdened Returns?
2017 XEC project – includes 36 gross wells. Assumes flat oil & natural gas realized prices of $55.00/$2.00
ATAX IRR
HALF CYCLE
FULLY-BURDENED
% OF FULLY-BURDENED RETURNS
6MAXIMIZING VALUE – PV VS ROR
Maximizing Value – PV vs ROR
-40%
-20%
0%
20%
40%
60%
80%
($6)
($3)
$0
$3
$6
$9
$12
INCREMENTAL PV ($MM) ROR %
8 10 12 13 14 15 1630%
40%
50%
60%
70%
80%
90%
$80
$90
$100
$110
$120
$130
$140
8 10 12 13 14 15 16
CUMULATIVE PV ($MM) ROR (%)
WELLS PER SECTION
CUMULATIVE PROJECT: PV vs. ROR
WELLS PER SECTION
PE
R W
EL
L R
OR
(%)
PE
R W
EL
L P
V (
$M
M)
INCREMENTAL WELL: PV vs. ROR
PR
OJE
CT
RO
R (
%)
CU
LM
UL
AT
IVE
PV
($M
M)
IN SOME RESERVOIRS, JUST ONE INCREMENTAL WELL CAN DESTROY VALUE• Competitive cumulative returns; negative PV and ROR on incremental well
7MAXIMIZING VALUE: UNDERSTANDING FRACTURE SURFACE AREA
Maximizing Value: Understanding Fracture Surface Area
20%
30%
40%
50%
60%
70%
80%
90%
$80
$90
$100
$110
$120
$130
$140
$150
8 10 12 13 14 15 16
PR
OJE
CT
RO
R (
%)
CU
MU
LA
TIV
E P
V (
$M
M)
CUMULATIVE PV ($MM) ROR (%)
CUMULATIVE PROJECT: PV vs. ROR
Optimal Spacing – PV: $130-140mm
Increased Interference – Destroying PV: < $130
No Interference – Not Maximizing PV: < $130mm
Interference
C
C
B
A
WELLS PER SECTION
B
A
8MAXIMIZING VALUE – PV VS ROR
Maximizing Value – PV vs ROR
-60%
-30%
0%
30%
60%
90%
($4)
($2)
$0
$2
$4
$6INCREMENTAL PV ($MM) ROR (%)
20%
30%
40%
50%
60%
70%
80%
90%
$0
$5
$10
$15
$20
$25
$30
$35
2 4 5 6 7 8 10
CUMULATIVE PV ($MM) ROR (%)
IN SOME RESERVOIRS, JUST ONE INCREMENTAL WELL CAN DESTROY VALUE• Competitive cumulative returns; negative PV and ROR on incremental well
WELLS PER SECTION
PR
OJE
CT
RO
R (
%)
CU
LM
UL
AT
IVE
PV
($M
M)
CUMULATIVE PROJECT: PV vs. ROR
WELLS PER SECTION
PE
R W
EL
L R
OR
(%)
PE
R W
EL
L P
V (
$M
M)
INCREMENTAL WELL: PV vs. ROR
2 4 5 6 7 8
92019 CAPITAL INVESTMENT PROGRAM
2019 Capital Investment Program
E&D CAPITAL OF $1.35 – 1.45 BILLION• Down 11% from 2018• Free cash flow neutral at $52.50 WTI; $50 WTI
excluding dividend
D&C CAPITAL $1.1 – 1.2 BILLION• 84% of E&D capital• Permian Basin ~85% • Mid-Continent Region ~15%
ADDITIONAL $60 – 70 MILLION BUDGETED FOR MIDSTREAM
CURRENTLY OPERATING 9 RIGS • Eight in Permian• One in Mid-Continent
WOLFCAMP78%
MERAMEC10%
WOODFORD4%
BONE SPRING4%
AVALON2%
OTHER2%
D&C CAPITAL$1.1 – 1.2 BILLION
10DELAWARE BASIN – OVERVIEW
Delaware Basin – Overview
259,000 TOTAL NET ACRES
85% OF 2019 D&C BUDGET
CURRENTLY RUNNING 8 RIGS, 3 COMPLETION CREWS
STACKED PAY OPPORTUNITIES• Provides multi-zone development opportunities• Upper and Lower Wolfcamp• Second and Third Bone Spring• Avalon
CIMAREX ACREAGE
WOLFCAMP
BONE SPRING
AVALON
NEW MEXICO
TEXAS
SENTINEL5 WELLS
NEW MEXICO
TEXAS
11DELAWARE BASIN – REEVES COUNTY, TX
Delaware Basin – Reeves County, TX
RESOLUTE ACQUISITION CLOSED
82,853 NET ACRES
38% OF 2019 D&C CAPITAL
TARGETING UPPER WOLFCAMP
FOUR DEVELOPMENTS ON PRODUCTION IN 2019
CIMAREX ACREAGE
OPERATED SWD
UPPER WOLFCAMP
HARDSCRABBLE6 WELLS
SANDLOT4 WELLS
SKY4 WELLS
NEW MEXICO
TEXAS
12DELAWARE BASIN – CULBERSON/WHITE CITY
Delaware Basin – Culberson/White City
100,000+ NET ACRES
JDA WITH CHEVRON IN CULBERSON
34% OF 2019 D&C CAPITAL• Targeting Upper Wolfcamp & Bone Spring
NEW 3RD BONE SPRING LANDING ZONE ADDSRESOURCE POTENTIAL• Kingman 45 State Unit 3H IP30: 2,917 BOE/d, 1,965 BO/d
WHITE CITY: UPPER WOLFCAMP FURTHER DELINEATED• Crawford 27-26 FEE 2H IP30: 2,455 BOE/d, 1,701 BO/d
FIVE DEVELOPMENTS ON PRODUCTION IN 2019CIMAREX ACREAGE
OPERATED SWD
LOWER WOLFCAMP
UPPER WOLFCAMP
OWL DRAW 3 WELLS
SIR BARTON7 WELLS
ARISTIDES6 WELLS
OLD ROSEBUD4 WELLS
BROKERS TIP7 WELLS
13CULBERSON: TOP-TIER OIL WELLS
Culberson: Top-Tier Oil Wells
0
50
100
150
200
250
300
350
0 2 4 6 8 10 12
CU
MU
LA
TIV
E O
IL (M
BB
L)
LEA XEC CULBERSON EDDY REEVES WARD LOVING
100 W
ells
18 74 192 19 12147 15 37 126 17 760
50
100
150
200
250
300
LEA XEC CULBERSON EDDY REEVES WARD LOVING
MB
BL
S -
OIL
6 MONTH 12 MONTH
DELAWARE BASIN CUMULATIVE OIL PRODUCTION BY COUNTY(>8,500 LL, First Prod >2016, Upper Wolfcamp & Bone Spring Formations)
MB
BL
S -
OIL
MONTHS
ATTRIBUTES OF CULBERSON COUNTY LONG LATERALS• Competitive Oil Production• Shallow Declines• Low Operating Costs (LOE)
COUNTY
14CULBERSON: WATER INFRASTRUCTURE DRIVING EFFICIENCIES
Culberson: Water Infrastructure Driving Efficiencies
SALTWATER DISPOSAL (SWD)• Own & operate the system• Improves operating costs• System redundancy reduces downtime• System expanding efficiently with additional
development
WATER REUSE DRIVES EFFICIENCY• On-demand recycled water lowers cost• Wolfcamp completions used 97% recycled
water in 2018 • Saved $1.54/bbl for procured water
ENVIRONMENTAL BENEFITS• Avoids surface storage of produced water• Permanent underground flow helps to
prevent spills• Reduces need for fresh water
RISER: XEC-ENGINEERED ACCESS FOR WATER REUSE
32%
87%
97%
2016 2017 2018
RECYCLED PURCHASED
XEC ACREAGE
INFRASTRUCTURE
OPERATED SWD
SWD INFRASTRUCTURE WOLFCAMP FRAC WATER
15CULBERSON: RESILIENT LONG LATERAL RETURNS
Culberson: Resilient Long Lateral Returns
PAYOUT IN ~15 MONTHS AT $50 OIL*
BASIN-LOW LOE
INVESTMENT OPPORTUNITY HAS TRIPLED SINCE 2016
UPPER WOLFCAMP BTAX IRR*FRAC GENERATIONS – INCREASING PRODUCTIVITY
NYMEX OIL PRICE
0
100
200
300
400
500
600
700
0 200 400 600 800 1,000 1,200 1,400
GEN 1 GEN 2 GEN 3 GEN 4
DAYS ON PRODUCTION
CU
MU
LA
TIV
E O
IL P
RO
DU
CT
ION
(M
BB
L)
*Assumes NYMEX oil pricing, realized gas pricing, NGL price is 30% of oil price – assumes full NGL recovery
0%
50%
100%
150%
200%
250%
$30 $40 $50 $60 $70
$1/Mcf $2/Mcf
16DELAWARE BASIN – LEA COUNTY, NM
Delaware Basin – Lea County, NM
31,384 NET ACRES
TARGETING:• Upper Wolfcamp• Avalon• Bone Spring
TRISTE DRAW (AVALON) • 6 wells tested 20 wells/section, producing
ONE DEVELOPMENT ON PRODUCTION IN 2019
NEW MEXICO
TEXAS
CIMAREX ACREAGE
BONE SPRING
AVALON
UPPER WOLFCAMP
VACA DRAW5 WELLS
17MID-CONTINENT – OVERVIEW
Mid-Continent – Overview
326,000 NET ACRES
WOODFORD: 135,625 NET UNDEVELOPED ACRES (HBP)
MERAMEC: 116,500 NET ACRES• Three developments on production in 2019
15% OF 2019 D&C CAPITAL
CIMAREX ACREAGE
MERAMEC OUTLINE
WOODFORD OUTLINE
OKLAHOMA
2 WELLSBILLY
3 WELLSWORT
5 WELLSMISS MARY
18DISCIPLINED FINANCIAL POSITIONING
Disciplined Financial Positioning
SIGNIFICANT LIQUIDITY• $2.1 billion of liquidity, including $801mm of cash
(12/31/2018)
CONSERVATIVE LEVERAGE• 0.9x Debt/TTM EBITDA (12/31/18)
INVESTMENT GRADE DEBT• $500 million 4.375% senior unsecured notes due in 2029• $750 million 3.900% senior unsecured notes due in 2027• $750 million 4.375% senior unsecured notes due in 2024
XEC DEBT/TTM EBITDA
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
2010 2011 2012 2013 2014 2015 2016 2017 2018
DEBT/TTM EBITDA AVERAGE
19CASH OPERATING MARGIN EXPANSION
Cash Operating Margin Expansion
DECLINING CASH COSTS AND INCREASEDREALIZED PRICES DRIVING MARGIN EXPANSION
Cash operating costs include: LOE, Transportation, Production Tax, G&A; Realized prices exclude hedge gain/loss
$14.2$10.7 $9.5 $9.6 $8.6
68%
55%54%
65%
70%
30%
40%
50%
60%
70%
80%
$0
$10
$20
$30
$40
$50
2014 2015 2016 2017 2018
MA
RG
IN %
$/B
OE
OP
EX
& C
AS
H M
AR
GIN
CASH OPERATING COSTS MARGIN MARGIN %
20HITTING OUR STRIDE: GENERATING FREE CASH FLOW*
Hitting Our Stride: Generating Free Cash Flow*
CUMULATIVE FREE CASH FLOW:• ‘19-’21E: $100-$600 MM• ‘16-’18A: $532 MM outspend
AVERAGE ANNUAL OIL GROWTH:• ‘19-’21E: 15%• ‘16-’18A: 11%
AVERAGE ANNUAL TOTAL CAPITAL*:• ‘19-’21E: $1.50 billion• ‘16-’18A: $1.25 billion
PERFORMANCE DRIVERS:• Consistent development program enhancing efficiencies• Increasing well productivity• Leveraging infrastructure • Lowering production and capital costs
CUMULATIVE FREE CASH FLOW ($MM)
*Free Cash Flow = Cash Flow - Total Capital – Dividend (Annual $0.80); Total Capital = Total E&D + Midstream + Other
($532)
$100
$600
($600)
($400)
($200)
$0
$200
$400
$600
2016 - 2018A 2019 - 2021E
$53 WTI
$50 WTI $55 WTI
CREATING VALUEAND GENERATINGTOP-TIER RETURNS
PROVENTRACK
RECORD
21CIMAREX ENERGY OVERVIEW
Cimarex Energy Overview
PREMIER PORTFOLIO
CORE POSITIONS INTHE PERMIAN ANDANADARKO BASINS
ENDURINGCULTURE
MAXIMIZING FULL-CYCLE RETURN ON INVESTED CAPITAL
STRONGFINANCIALPOSITION
LOW LEVERAGE ANDLIQUIDITY PROVIDES
OPPORTUNITIES
22APPENDIX
APPENDIX
232019 GUIDANCE
2019 Guidance
1Q19E FY19E
Production (MBOE/d) 245 - 257 250 - 270
Oil Production (MBO/d) 75 - 81 78 - 88
Capital Expenditures ($billion)
E & D $1.35 – 1.45
D & C $1.1 – 1.2
Midstream/Other $0.06 – 0.07
Expenses ($/BOE)
Production $3.20 – 3.70
Transportation, processing & other $2.30 – 2.90
DD&A and ARO accretion $7.75 – 8.75
General and administrative $1.00 – 1.30
Taxes other than income (% of oil and gas revenue) 5.5 – 6.5%
24HEDGES AS OF FEBRUARY 20, 2019
Hedges as of February 20, 20192019 2020
1Q 2Q 3Q 4Q 1Q 2Q
OILWTI Oil Collars1
Volume (Bbl/d) 31,689 33,000 26,000 18,000 10,000 2,000
Weighted Average Floor 53.85 53.70 55.23 57.56 58.00 50.00
Weighted Average Ceiling 66.79 66.62 69.46 70.90 73.20 62.60
WTI Swaps2
Volume (Bbl/d) 29,000 29,000 24,000 16,000 7,000 7,000
Weighted Average Differential3 (5.46) (5.46) (6.50) (7.79) (0.40) (0.40)
GASPEPL Collars4
Volume (MMBtu/d) 139,667 150,000 120,000 90,000 60,000 30,000
Weighted Average Floor 2.04 2.03 1.94 1.94 1.96 1.95
Weighted Average Ceiling 2.40 2.39 2.32 2.37 2.38 2.26
El Paso Perm Collars5
Volume (MMBtu/d) 86,556 90,000 70,000 40,000 20,000 10,000
Weighted Average Floor 1.67 1.67 1.49 1.40 1.45 1.50
Weighted Average Ceiling 1.94 1.95 1.79 1.73 1.92 2.13
Waha Collars6
Volume (MMBtu/d) 36,556 40,000 40,000 40,000 30,000 10,000
Weighted Average Floor 1.40 1.41 1.41 1.41 1.43 1.50
Weighted Average Ceiling 1.71 1.73 1.73 1.73 1.79 1.90
Total Natural Gas Collars
Volume (MMBtu/d) 262,779 280,000 230,000 170,000 110,000 50,000
Notes:1 WTI refers to West Texas Intermediate oil prices as quoted on the New York Mercantile Exchange 4 PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent as quoted on Platt’s Inside FERC 2 Index price on basis swaps is WTI Midland as quoted by Argus Americas Crude 5 El Paso Perm refers to El Paso Permian Basin index as quoted on Platt’s Inside FERC3 Index price on basis swaps is WTI NYMEX less weighted average differential shown in table 6 Waha refers to West Texas Natural Gas Index (“Waha”) as quoted in Platt’s Inside FERC.
252019 NET WELLS ONLINE
2019 Net Wells Online
2019 ACTIVITY: 83 NET WELLS (AVERAGE OPERATED LATERAL LENGTH: 9,050’)
6
33
23
20
34
1QE 2QE 3QE 4QE WELLS WAITING ON COMPLETION AT 12/31/19
PERMIAN BASIN MID-CONTINENT
262019 DELAWARE BASIN PLANS
2019 Delaware Basin Plans
WELLS DRILLED BY COUNTY
REEVES
CULBERSON
LEA
EDDY
66 NET WELLS
WOLFCAMP
AVALON
BONE SPRING
$935–$1,020MM
TOTAL D&CCAPITAL
AVERAGE LATERAL LENGTH BY COUNTY
0
2,000
4,000
6,000
8,000
10,000
CU
LB
ER
SO
N
RE
EV
ES
ED
DY
LE
A
27PERMIAN BASIN WATER MANAGEMENT
Permian Basin Water Management
OWN AND OPERATE SALT WATER DISPOSAL (SWD) SYSTEMS IN CULBERSON, EDDY AND REEVES • Improves operating costs
RECYCLING PRODUCED WATER FOR COMPLETION OPERATIONS• 53% of total water procured in 2018 was recycled• Cost savings of ~$1.20/bbl of water
CULBERSON WOLFCAMP WELLS USE 97% RECYCLED WATER FOR COMPLETIONS; REEVES WOLFCAMPWELLS USE 48%
SECURED SWD AGREEMENTS IN LEA COUNTY
28PERMIAN BASIN TAKEAWAY
Permian Basin Takeaway
SALES AGREEMENTS IN PLACE FOR OIL VOLUMES THROUGH 2019• ~80% of oil production on pipe
STRATEGIC PARTNERSHIPS IN CORE AREAS• Pipelines in place• Purchase obligations• Midland index pricing
GAS SALES AGREEMENTS IN PLACE• 97% of forecasted production through 2019• El Paso or Waha index pricing
OWN AND OPERATE TWO GAS GATHERING SYSTEMS • Triple Crown – Culberson/Eddy Counties• Matterhorn – Reeves County• Connected to multiple gas processors with inter- and
intrastate outlets• Long-term sales agreements in place for NGL volumes
CIMAREX ACREAGE
ENERGY TRANSFER PIPELINE
EAGLECLAW
OFFLOADING SITE
PLAINS PIPELINE
PLAINS PIPELINE(UNDER CONSTRUCTION)
292018 GROWTH IN PRODUCTION AND RESERVES
2018 Growth in Production and Reserves
OIL/BOE GROWTH OF 18%/17% Y/Y• Pro Forma Ward sale, Oil/BOE growth of 24%/19%
TOTAL E&D CAPITAL – $1.57 BILLION• D&C capital of $1.34 billion • 122 net wells brought online
482
559 591
0
300
600
2016 2017 2018
OIL NGL NATURAL GAS
PROVED RESERVES (MMBOE)
161
190
222
0
50
100
150
200
250
2016 2017 2018
OIL NGL NATURAL GAS
DAILY PRODUCTION (MBOE)
YE18 PROVED RESERVES: 591 MMBOE • Increase of 6% Y/Y • PDP now 85% of total proved• Reserve replacement of 168% of 2018 production
30NON-GAAP RECONCILIATION
Non-GAAP Reconciliation
($ in Millions) 2015 2016 2017 2018
Net income (loss) $ (2,580) $ (409) $ 494 $ 792
Income tax expense (benefit) (1,472) (214) 188 231
Interest expense, net of capitalized 55 62 52 47
DD&A and ARO accretion 741 400 462 598
EBITDA (3,256) (161) 1,196 1,668
Impairment of oil and gas 4,033 758 — —
Adjusted EBITDA 778 597 1,196 1,668
1The above table provides a reconciliation from generally accepted accounting principles (GAAP) net income (loss) to non-GAAP EBITDA and non-GAAP adjusted EBITDA, which excludes ceiling test impairments
2016 2017 2018
Basic shares outstanding (in 000s) 95,124 95,437 95,756Debt adjusted shares outstanding
YE Debt, net 847,124 1,099,466 699,334
TTM stock price 115.07 114.00 93.77
Equivalent shares issued using TTM stock price 7,362 9,644 7,458
Debt adjusted shares using TTM stock price 102,485 105,082 103,214
31NON-GAAP RECONCILIATION
Non-GAAP Reconciliation
Twelve Months EndedDecember 31, ($ in Millions)
Dec 31, 2018
($ in Millions) 2017 2018
Long-term debt (principal) 1,500
Net cash provided by operating activities $ 1,097 $ 1,551 Stockholders equity 3,330
Change in operating assets and liabilities 89 (17) Total capitalization 4,830
Adjusted cash flow from operations $ 1,186 $ 1,534 Long-term debt/total capitalization 31%
2018
Additions to proved reserves (MMBOE)
Revisions of previous estimates (22.7)
Extensions & discoveries 158.5
Purchase of reserves —
Total Additions (all sources) 135.8
Total Capital ($MM) $ 1,570
F&D Costs (all sources) ($/BOE) $ 11.56
Drilling F&D cost (extensions & discoveries) ($/BOE) $ 9.91
Twelve Months EndedDecember 31,
($ in Millions) 2016 2017 2018
Long-term debt (principal) $1,500 $1,500 $1,500
Adjusted EBITDA 597 1,196 1,668
Debt/Adjusted EBITDA 2.5x 1.3x 0.9x
1Management uses the non-GAAP measure of adjusted cash flow from operations as a means of measuring the company's ability to fund its capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of cash flow from operating activities. Management believes this non-GAAP measure provides useful information to investors for the same reasons, and that it is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.