DENVER, May 4, 2015 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today reported a first quarter 2015 net loss of $414.9 million, or $4.84 per diluted share, primarily the result of a non-cash charge related to the impairment of oil and gas properties. The adjusted first quarter net loss was $31.7 million, or $0.37 per diluted share. First quarter 2015 adjusted cash flow from operations was $186.9 million versus $408.9 million a year ago((1)).

Total company production averaged 946.7 million cubic feet equivalent (MMcfe) per day during the first quarter, a 28 percent increase from first quarter 2014. Year-over-year natural gas volumes increased 25 percent, oil volumes grew 31 percent and NGL volumes were up 29 percent.

Continued weakness in commodity prices impacted Cimarex's financial results for the quarter. Realized oil prices averaged $42.50 per barrel, down 54 percent versus a year ago and 35 percent sequentially. Natural gas prices were down 48 percent year-over-year and averaged $2.77 per Mcf compared to $5.32 per Mcf. NGL prices averaged $15.71 per barrel, down 61 percent from the $39.94 per barrel in the first quarter of 2014. (See table of Price and Production Data below.)

Cimarex invested $308 million in exploration and development during the first quarter which was funded with cash flow from operations and cash on hand. Total debt at March 31, 2015, consisted of $1.5 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $121 million. Debt was 27 percent of total capitalization((2)).

2015 Outlook

Cimarex now estimates total production volumes for 2015 to average 920-950 MMcfe per day, a midpoint increase of eight percent over 2014 volumes. Oil volumes are expected to grow 11-15 percent and gas volumes 3-6 percent. Total company production for the second quarter 2015 is projected to average 965-985 MMcfe per day. Capital investment budgeted for exploration and development remains at $0.9-$1.1 billion in 2015.

Expenses per Mcfe of production for the remainder of 2015 are estimated to be:




               Production expense                         $1.00 -  $1.10

                Transportation, processing and other
                expense                                  0.47  -  0.57

               DD&A and ARO accretion*                   2.30  -  2.40

               General and administrative expense        0.20  -  0.24

                Taxes other than income (% of oil
                and gas revenue)                            5.5  -  6.0%

                *Excludes the potential impact of
                any future ceiling test writedowns.

Operations Update

Cimarex invested $308 million in exploration and development during the first quarter, 68 percent in the Permian Basin and 31 percent in the Mid-Continent. We completed 53 gross (33 net) wells during the quarter. At March 31, 2015, 59 gross (30 net) wells were awaiting completion. Cimarex is currently operating six drilling rigs.



                   WELLS BROUGHT ON PRODUCTION BY REGION


                                      For the Three Months
                                              Ended

                                            March 31,
                                            ---------

                                                      2015 2014
                                                      ---- ----

     Gross wells

     Permian Basin                                      42   34

     Mid-Continent                                      11   39

     Other                                               -   1

                                                        53   74

     Net wells

     Permian Basin                                      30   21

     Mid-Continent                                       3   14

     Other                                               -   1

                                                        33   36

Permian Region

Production from the Permian Basin averaged 487.8 MMcfe per day in the first quarter, a 41 percent increase over first quarter 2014. Quarterly oil volumes increased 36 percent year-over-year to 43,089 barrels per day and accounted for 53 percent of the region's total production for the quarter.

During the first quarter Cimarex completed and brought on production 42 gross (30 net) wells in the Permian region. There were 23 gross (16 net) wells waiting on completion on March 31.

The 42 gross wells completed consisted of 16 Avalon wells, 12 Second Bone Spring wells, two Texas Third Bone Spring wells and 12 Wolfcamp wells (six in Culberson area and six in Reeves County).

Cimarex now has seven long-lateral Wolfcamp D wells producing in Culberson County, Texas, with an average 30-day gross peak production rate of 2,378 BOE per day (26 percent oil, 45 percent gas, 29 percent NGL). Four 7,500-foot Wolfcamp A wells are also producing in Culberson County. Average 30-day peak production from these wells was 1,266 BOE per day (47 percent oil, 32 percent gas, 21 percent NGL).

Mid-Continent

The majority of Mid-Continent activity was in the Cana area in western Oklahoma, where Cimarex completed and brought on production seven gross (3 net) wells. At the end of the quarter, 27 gross (11 net) wells were waiting on completion. First quarter production from the Cana area averaged 350.0 MMcfe per day, representing 37 percent of Cimarex's total company production. Total Mid-Continent production averaged 444.1 MMcfe per day for the first quarter of 2015.

Cimarex completed an additional Meramec well in the first quarter bringing the total wells on production to seven. Average 30-day peak production from these wells was 10.0 MMcfe per day, with oil yields ranging from 17 barrels/MMcf to over 300 barrels/MMcf. Cimarex is currently drilling its first 10,000-foot long lateral in the Meramec formation.

Cimarex's average daily production and commodity price by region are summarized below:



                           DAILY PRODUCTION BY REGION


                                                              For the Three
                                                                Months Ended

                                                               March 31,
                                                               ---------

                                                              2015              2014
                                                              ----              ----

    Permian Basin

                  Gas (MMcf)                                   150.4             102.5

                  Oil (Bbls)                                  43,089            31,624

                  NGL (Bbls)                                  13,156             9,124

                   Total
                   Equivalent
                   (MMcfe)                           487.8                347.0


    Mid-Continent

                  Gas (MMcf)                                   287.0             243.8

                  Oil (Bbls)                                   7,436             6,057

                  NGL (Bbls)                                  18,762            15,196

                   Total
                   Equivalent
                   (MMcfe)                           444.1                371.3


    Total Company

                  Gas (MMcf)                                   445.8             355.3

                  Oil (Bbls)                                  51,241            39,168

                  NGL (Bbls)                                  32,242            25,028

                   Total
                   Equivalent
                   (MMcfe)                           946.7                740.4





                       AVERAGE REALIZED PRICE BY REGION


                                                           For the Three
                                                              Months Ended

                                                             March 31,
                                                             ---------

                                                              2015              2014
                                                              ----              ----

    Permian Basin

                   Gas ($ per
                   Mcf)                               2.75                 5.23

                  Oil ($ per Bbl)                              42.48             91.55

                   NGL ($ per
                   Bbl)                              13.50                37.06


    Mid-Continent

                   Gas ($ per
                   Mcf)                               2.75                 5.39

                  Oil ($ per Bbl)                              42.23             94.53

                   NGL ($ per
                   Bbl)                              17.26                41.90


    Total Company

                   Gas ($ per
                   Mcf)                               2.77                 5.32

                  Oil ($ per Bbl)                              42.50             92.22

                   NGL ($ per
                   Bbl)                              15.71                39.94

Conference call and webcast

Cimarex will host a conference call Tuesday, May 5, at 11:00 a.m. EDT. The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To participate in the live, interactive call, please dial 866-367-3053 five minutes before the scheduled start time (international callers dial 1-412-902-4216). A replay will be available for one week following the call by dialing 877-344-7529 (international callers dial 1-412-317-0088); conference I.D. 10063893. The replay will also be available on the company's website or via the Cimarex App.

Investor Presentation

For more details on Cimarex's first quarter 2015 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 Mid-Continent and Permian Basin areas of the U.S.

This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the company is providing revised "2015 Outlook", which contains projections for certain 2015 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/A for the year ended December 31, 2014, 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 volatility; declines in the values of our oil and gas properties resulting in impairments; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; the potential for production decline rates to be greater than expected; performance of acquired properties and newly drilled wells; costs and availability of third party facilities for gathering, processing, refining and transportation; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing; higher than expected costs and expenses, including the availability and cost of services and materials; unexpected future capital expenditures; economic and competitive conditions; 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; compliance with environmental and other regulations; derivative and hedging activities; risks associated with operating in one major geographic area; the success of the company's risk management activities; title to properties; litigation; environmental liabilities; 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 (loss) and
                     adjusted cash flow from
                     operations are non-GAAP
                     financial measures.  See below
                     for a reconciliation of the
                     related amounts.


             (2)    Reconciliation of debt to total
                     capitalization, which is a non-
                     GAAP measure, is:  long-term
                     debt of $1.5 billion divided by
                     long-term debt of $1.5 billion
                     plus stockholders' equity of $4.1
                     billion.




                                           RECONCILIATION OF ADJUSTED NET INCOME (LOSS)


                                                                For the Three Months Ended

                                                                        March 31,
                                                                        ---------

                                                                       2015                             2014
                                                                       ----                             ----

                                                              (in thousands, net of tax, except
                                                                          per share data)


    Net income (loss)                                         $(414,941)                        $138,457

                   Impairment of oil and gas
                   properties                                      383,225                                -

                   Mark-to-market loss on
                   open derivative positions                             -                           6,886

    Adjusted net income
     (loss)                                                    $(31,716)                        $145,343
                                                                ========                         ========

    Diluted earnings
     (loss) per share                                            $(4.84)                           $1.59
                                                                  ======                            =====

    Adjusted diluted
     earnings (loss) per
     share                                                       $(0.37)                           $1.67
                                                                  ======                            =====


    Diluted shares
     attributable to
     common stockholders
     and participating
     securities                                                   85,770    *                      87,177
                                                                  ======                           ======

    Estimated tax rates
     utilized                                                      36.5%                           37.1%
                                                                    ====                             ====



    Adjusted net income (loss) and adjusted
     diluted earnings (loss) per share
     excludes the noted item because
     management believes this item affects
     the comparability of operating results.
     The company discloses these non-GAAP
     financial measures as a useful adjunct
     to GAAP earnings because:


                a) Management uses adjusted net
                 income (loss) to evaluate the
                 company's operational trends
                 and performance relative to
                 other oil and gas exploration
                 and production companies


                 b) Adjusted net income (loss) is
                 more comparable to earnings
                 estimates provided by research
                 analysts


           *     Participating securities and
                 other dilutive shares are not
                 included in the diluted share
                 computation when a loss exists




                      RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS




                                             For the Three Months Ended



                                                      March 31,
                                                 ---------

                                             2015                  2014
                                             ----                  ----



                                              (in thousands)

    Net cash provided by
     operating
     activities                                      $113,173              $348,024

               Change in operating
               assets and liabilities                    73,772                60,868


    Adjusted cash flow
     from operations                                 $186,945              $408,892
                                                     ========              ========



    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



                                                     March 31,
                                                ---------

                                           2015                    2014
                                           ----                    ----


    Gas:

           Total production (MMcf)                       40,125            31,973

           Daily production (MMcf)                          446               355

           Price (per Mcf)                                $2.77             $5.32


    Oil:

           Total production (Bbls)                    4,611,655         3,525,129

           Daily production (Bbls)                       51,241            39,168

           Price (per Bbl)                               $42.50            $92.22


     NGLs:

           Total production (Bbls)                    2,901,821         2,252,479

           Daily production (Bbls)                       32,242            25,028

           Price (per Bbl)                               $15.71            $39.94



                                  OIL AND GAS CAPITALIZED EXPENDITURES


                                              For the Three Months Ended

                                                       March 31,
                                                       ---------

                                                                    2015       2014
                                                                    ----       ----

                                                    (in thousands)

     Acquisitions:

     Proved                                                          $30 $        -

     Unproved                                                      1,869          -

                                                                   1,899          -


     Exploration and development:

     Land and Seismic                                             22,690     65,325

     Exploration and development                                 285,527    401,702

                                                                 308,217    467,027


     Sale proceeds:

     Proved                                                      (1,145)         -

     Unproved                                                          -         -

                                                                 (1,145)         -


                                                                $308,971   $467,027
                                                                ========   ========




                                            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited)


                                                                                                                      For the Three Months Ended

                                                                                                                               March 31,
                                                                                                                               ---------

                                                                                                                                            2015                                 2014
                                                                                                                                            ----                                 ----


                                                                                    (in thousands, except per share
                                                                                                 data)


    Revenues:

                       Oil sales                                        $196,005                                                                 $325,071

                       Gas sales                                         110,962                                                                  170,097

                       NGL sales                                          45,600                                                                   89,957

                        Gas gathering and
                        other, net                            8,435                                                                      14,091

                                                                                                                                         361,002                              599,216
                                                                                                                                         -------                              -------

    Costs and expenses:

                        Impairment of oil
                        and gas properties                  603,599                                                                           -

                        Depreciation,
                        depletion,
                        amortization and
                        accretion                           218,514                                                                     177,149

                       Production                                       82,211                                                                   75,141

                        Transportation,
                        processing, and
                        other operating                      39,642                                                                      44,248

                        Gas gathering and
                        other                                 8,864                                                                       8,784

                        Taxes other than
                        income                               21,981                                                                      33,621

                        General and
                        administrative                       15,938                                                                      20,712

                       Stock compensation                     5,155                                                                       3,724

                        (Gain) loss on
                        derivative
                        instruments, net                                                                    -                                            15,735

                        Other operating,
                        net                                     524                                                                         103

                                                                                                                                         996,428                              379,217
                                                                                                                                         -------                              -------


    Operating income (loss)                                                                                                      (635,426)                             219,999


    Other (income) and expense:

                       Interest expense                      20,137                                                                      13,044

                        Amortization of
                        deferred financing
                        costs                                 1,119                                                                         998

                        Capitalized
                        interest                            (9,417)                                                                    (7,290)

                       Other, net                                        (3,585)                                                                 (6,955)



    Income (loss) before income tax                                                                                              (643,680)                             220,202

    Income tax expense (benefit)                                                                                                 (228,739)                              81,745
                                                                                                                                  --------                               ------


    Net income (loss)                                                                                                           $(414,941)                            $138,457
                                                                                                                                 =========                             ========


    Earnings (loss) per share to common
     stockholders:


                       Basic                                                                                $(4.84)                                             $1.59


                       Diluted                                                                              $(4.84)                                             $1.59



    Dividends per share                                                                                                              $0.16                                $0.16
                                                                                                                                     =====                                =====


    Shares attributable to common
     stockholders:

                        Unrestricted common
                        shares outstanding                   85,770                                                                      85,443


                        Diluted common
                        shares                               85,770                                                                      85,579



    Shares attributable to common
     stockholders and participating
     securities:

                        Basic shares
                        outstanding                                              N/A*                                                                    87,042


                        Fully diluted
                        shares                                                   N/A*                                                                    87,177



    Comprehensive income (loss):

                       Net income (loss)                 $(414,941)                                                                   $138,457

                        Other comprehensive
                        income:

                        Change in fair
                        value of
                        investments,
                        net of tax                              101                                                                          40

                        Total comprehensive
                        income (loss)                    $(414,840)                                                                   $138,497






           *     Due to the
                 net loss,
                 shares of
                 87,682,
                 which
                 include
                 participating
                 securities,
                 are not
                 considered
                 in the loss
                 per share
                 calculation



    CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited)


                                                                                                                       For the Three Months Ended

                                                                                                                               March 31,
                                                                                                                               ---------

                                                                                                                                             2015                     2014
                                                                                                                                             ----                     ----

                                                                                                                             (in thousands)


    Cash flows from operating activities:

                            Net income (loss)                                               $(414,941)                                 $138,457

                             Adjustment to reconcile net income (loss) to net cash
                             provided by operating activities:

                                                                                               603,599                                         -

                            Impairment of oil and gas properties

                                                                                               218,514                                   177,149

                             Depreciation, depletion, amortization and
                             accretion

                                                                                             (228,739)                                   81,745

                            Deferred income taxes

                                                                                                 5,155                                     3,724

                            Stock compensation

                                                                                                     -                                   15,735

                            (Gain) loss on derivative instruments

                                                                                                     -                                  (4,787)

                            Settlements on derivative instruments

                                                                                                 1,046                                   (4,207)

                            Changes in non-current assets and liabilities



                             Amortization of deferred financing costs and
                             other, net                                                          2,311                                     1,076

                            Changes in operating assets and liabilities:

                                                                                                72,397                                  (35,529)

                            Receivables, net

                                                                                                 9,894                                  (16,772)

                            Other current assets

                                                                                             (156,063)                                  (8,567)

                            Accounts payable and other current liabilities

                                                                                                             113,173                                         348,024



                                                  Net cash provided by operating activities


    Cash flows from investing activities:

                            Oil and gas expenditures                                         (371,106)                                (420,040)

                            Sales of oil and gas assets and other assets                             1,180                                       104

                            Other capital expenditures                                        (18,848)                                 (19,854)


                                                                                                           (388,774)                                      (439,790)



                                                  Net cash used by investing activities


    Cash flows from financing activities:

                            Net bank debt borrowings                                                 -                                  101,000

                            Dividends paid                                                                    (13,947)                                       (12,143)

                            Issuance of common stock and other                                   4,618                                     2,908


                                                                                                             (9,329)                                         91,765



                                                   Net cash provided by (used in) financing
                                                   activities


    Net change in cash and cash equivalents                                                                                                          (284,930)               (1)

    Cash and cash equivalents at beginning of period                                                                                                   405,862              4,531
                                                                                                                                                       -------              -----

    Cash and cash equivalents at end of period                                                                                                        $120,932             $4,530
                                                                                                                                                      ========             ======



    CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

                                                                                           March 31,                   December 31,

                                                                                           2015                           2014
                                                                                           ----                           ----

                                            Assets                                                      (in thousands, except share
                                                                                                                         data)

    Current assets:

                                                  Cash and cash
                                                  equivalents               $120,932                       $405,862

                                                 Receivables, net             339,711                        412,108

                                                  Oil and gas well
                                                  equipment and
                                                  supplies                    81,462                         89,780

                                                  Deferred income
                                                  taxes                       10,077                         13,475

                                                  Other current
                                                  assets                       9,003                         10,579


                                                  Total current
                                                  assets                     561,185                        931,804
                                                                             -------                        -------

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

                                                 Proved properties          14,761,734                     14,402,064

                                                 Unproved properties
                                                  and properties
                                                  under development,
                                                  not being
                                                  amortized                  713,409                        759,149


                                                                                                          15,475,143                       15,161,213

                                                 Less - accumulated
                                                  depreciation,
                                                  depletion,
                                                  amortization and
                                                  impairment             (9,067,931)                    (8,257,502)


                                                  Net oil and gas
                                                  properties               6,407,212                      6,903,711
                                                                           ---------                      ---------

    Fixed assets, net                                                                                  213,358                          211,031

    Goodwill                                                                                             620,232                          620,232

    Other assets, net                                                                                   58,064                           58,515
                                                                                                        ------                           ------

                                                                                                          $7,860,051                       $8,725,293
                                                                                                          ==========                       ==========

       Liabilities and Stockholders' Equity

    Current liabilities:

                                                 Accounts payable             $74,749                       $138,051

                                                 Accrued liabilities             336,606                        447,384

                                                 Revenue payable             141,840                        190,892


                                                  Total current
                                                  liabilities                553,195                        776,327
                                                                             -------                        -------

    Long-term debt                                                                                   1,500,000                        1,500,000

    Deferred income taxes                                                                            1,522,629                        1,754,706

    Other liabilities                                                                                  198,089                          193,628

                                                  Total
                                                  liabilities              3,773,913                      4,224,661
                                                                           ---------                      ---------

    Commitments and contingencies

    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,
                                                  87,673,459 and
                                                  87,592,535 shares
                                                  issued,
                                                  respectively

                                                                     877                         876

                                                 Paid-in capital           2,011,454                      1,997,080

                                                 Retained earnings           2,072,603                      2,501,574

                                                  Accumulated other
                                                  comprehensive
                                                  income                       1,204                          1,102

                                                                                                           4,086,138                        4,500,632
                                                                                                           ---------                        ---------

                                                                                                          $7,860,051                       $8,725,293
                                                                                                          ==========                       ==========

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cimarex-reports-first-quarter-2015-results-300077133.html

SOURCE Cimarex Energy Co.