|Cimarex Reports Second Quarter 2017 Results|
Total company production came in above the high end of our guidance averaging 1,156 million cubic feet equivalent (MMcfe) per day (192.7 thousand barrels oil equivalent (MBoe) per day) during the second quarter. This was a 19 percent increase over second quarter 2016 and a nine percent increase sequentially. Oil production averaged 57,871 barrels per day, an 11 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 maintaining its estimated full-year exploration and development capital investment of
Expenses per Mcfe of production for the remainder of 2017 are estimated to be:
Production from the
Of note, Cimarex completed a successful four-well downspacing project testing 16 wells per section in the Upper Wolfcamp. Located in Reeves County, the Pagoda State project was brought on production in late April. The four 10,000-foot lateral wells had an average peak 30-day initial production of 1,922 BOE per day of which 956 barrels per day (50 percent) is oil. Please see our latest presentation (posted at www.cimarex.com) for more detail.
Cimarex brought 11 gross (10 net) wells on production in the Permian region during the second quarter. There were 27 gross (13 net) wells waiting on completion on June 30. Cimarex currently operates eight rigs in the Permian region.
Production from the Mid-Continent averaged 509 MMcfe per day for the second quarter, up ten percent versus second quarter 2016. Sequentially, crude oil volumes were up eight percent, natural gas production grew four percent and NGL volumes increased seven percent.
During the second quarter, Cimarex completed and brought on production 40 gross (8 net) wells in the Mid-Continent. At the end of the quarter, 71 gross (16 net) wells were waiting on completion. Cimarex is currently operating six rigs in the region.
In addition to its continued delineation in the Meramec play, the company recently began completion of an increased density pilot in the Woodford formation. The project consists of eight wells that are testing both 16 and 20 Woodford wells per section. Results from this test are expected in the second half of 2017 and will help determine well spacing in upcoming Woodford developments.
Production by Region
Cimarex's average daily production and commodity price by region are summarized below:
The following table summarizes the company's current open hedge positions:
Conference call and webcast
Cimarex will host a conference call tomorrow at
A replay will be available on the company's website.
For more details on Cimarex's second quarter 2017 results, please refer to the company's investor presentation available at www.cimarex.com.
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the "2017 Outlook" 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 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; the effectiveness of controls over financial reporting; and other factors discussed in the company's reports filed with the
Cimarex Energy Co., Karen Acierno, 303-285-4957, www.cimarex.com