|Cimarex Reports First Quarter 2017 Results|
Total Production up 11% sequentially
Total company production came in above the high end of our guidance and averaged 1,063 million cubic feet equivalent (MMcfe) per day during the first quarter. This was a nine percent increase over first quarter 2016 and a 11 percent increase sequentially. Oil production averaged 52,181 barrels per day, a 15 percent increase sequentially.
Commodity prices improved significantly from a year ago and had a positive impact on Cimarex's financial results for the quarter. Realized oil prices averaged
Cimarex is increasing its full-year production estimate for 2017 to 1.09 – 1.13 Bcfe per day, a midpoint increase of 15 percent over 2016 volumes. Second quarter output is expected to average 1.08 – 1.13 Bcfe per day, with oil production expected to outpace total company volume growth and rise 6 - 10 percent sequentially. Exploration and development capital for 2017 remains unchanged at
Expenses per Mcfe of production for the remainder of 2017 are estimated to be:
Cimarex brought 25 gross (16 net) wells on production in the Permian region during the first quarter. Of note, Cimarex completed an Upper Wolfcamp well in its White City area in Eddy County, New Mexico. The Pintail 23-26 Fed Com 10H had average peak 30-day initial production of 1,557 BOE (9.3 MMcfe) per day of which 1,000 barrels per day (64 percent) was oil. This well further delineates the Upper Wolfcamp to the north of
There were 14 gross (11 net) wells waiting on completion on March 31. Cimarex is currently operating eight rigs in the Permian region.
During the first quarter Cimarex completed and brought on production 45 gross (10 net) wells in the Mid-Continent. At the end of the quarter, 68 gross (15 net) wells were waiting on completion. We currently operate six rigs in the region.
Production by Region
The following table summarizes the company's current open hedge positions:
Conference call and webcast
A replay will be available on the company's website and via the Cimarex App.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the company is providing revised "2017 Outlook", which contains projections for certain 2017 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
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; higher than expected costs and expenses, including the availability and cost of services and materials; compliance with environmental and other regulations; risks associated with operating in one major geographic area; environmental liabilities; the ability to receive drilling and other permits and rights-of-way in a timely manner; development drilling and testing results; declines in the values of our oil and gas properties resulting in impairments; 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, emissions and disposal of produced water; 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; 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; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the
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Cimarex Energy Co., Karen Acierno, 303-285-4957, www.cimarex.com