Cimarex Reports 2013 First Quarter Results

                  Cimarex Reports 2013 First Quarter Results

- Production Up 10% Year-over-Year

- Expanding Opportunity in Multi-pay Delaware Basin

PR Newswire

DENVER, May 7, 2013

DENVER, May 7, 2013 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today
reported 2013 first quarter net income of $89.9 million, or $1.04 per diluted
share which included a non-cash hedging loss of $2.3 million, or $0.02 per
share. First quarter 2012, net income was $106.1 million, or $1.23 per
diluted share and included a hedging loss of $2.6 million, or $0.03 per share.

First quarter production grew ten percent to 661.1 million cubic feet
equivalent (MMcfe) per day compared to 2012 first quarter output of 603.5
MMcfe per day. Oil production grew 12% (20% when adjusted for asset sales)
and averaged 33,154 barrels per day. Current quarter volumes were comprised
of 50% gas, 30% oil and 20% NGLs.

Natural gas prices increased 16% to $3.38 per Mcf in the first quarter of
2013. Realized oil prices averaged $86.31 per barrel and natural gas liquids
(NGL) prices averaged $29.31 per barrel, decreases of 13% and 20%,
respectively.

Revenues from the sale of oil, gas and NGLs totaled $415.5 million versus
$411.3 million for the same period in 2012. Adjusted cash flow from
operations was $292.4 million versus $303.0 million a year ago(1). 

Cimarex invested $409 million on exploration and development in the first
quarter. Of these expenditures, 64% were on Permian Basin projects and 34% on
projects in the Mid-Continent.

At March 31, 2013, long-term debt was $870 million, comprised of $750 million
of senior unsecured notes and $120 million of bank debt. Debt to total
capitalization was 20%^(2). 

2013 Outlook
Production volume guidance for 2013 remains unchanged and is projected to
average 675-705 MMcfe per day, an increase of 8-13% over 2012. Mid-Continent
and Permian production volumes are projected to grow 11-15% over 2012,
averaging between 652-673 MMcfe per day.

Total volumes for the second quarter of 2013 are projected to average 667-692
MMcfe per day, a 13-17% increase over 2012. Second quarter 2013 Mid-Continent
and Permian production volumes are projected to increase 18-22%, to within a
range of 647-667 MMcfe per day.

Full-year 2013 capital expenditures are expected to be approximately $1.5
billion. Nearly all the 2013 capital is directed towards drilling oil and
liquids-rich gas wells in the Permian and Cana-Woodford.

Expenses for 2013 are expected to fall within the following ranges:
Expenses ($/Mcfe):
 Production expense                                 $1.10 - $1.22
 Transportation expense                              0.27 - 0.32
 DD&A and ARO accretion                              2.40 - 2.55
 General and administrative expense                  0.22 - 0.28
 Taxes other than income (% of oil and gas revenue) 6.0% - 6.5%

Permian Basin Update
First quarter 2013 production from the Permian Basin averaged 275.2 MMcfe per
day, an increase of 15% over first quarter 2012. Oil volumes increased 18% to
25,832 barrels per day.

Cimarex drilled and completed 35 gross (27 net) Permian Basin wells during the
first quarter. All were completed as producers. At March 31, 20 gross (13
net) wells were awaiting completion. Drilling took place mainly in the
Delaware Basin of Texas and southeast New Mexico, targeting the Bone Spring
and Wolfcamp formations.

In Culberson County, Texas, Cimarex is drilling both horizontal Wolfcamp and
Bone Spring wells. The company has now successfully drilled Wolfcamp C & D
and Bone Spring wells and sees the potential for two additional intervals to
be productive. Year-to-date, three gross (three net) Bone Spring wells have
been drilled and completed. Total Bone Spring wells drilled to date in
Culberson County have had per well 30-day average gross production of over 900
Boe per day (59% oil). Cimarex also drilled three gross (three net)
horizontal Wolfcamp wells in Culberson County in the first quarter, bringing
total Wolfcamp wells in the area to 34 gross (32 net). Per well first-30 day
production rates on all of the Wolfcamp wells drilled in the area have
averaged 6.4 MMcfe per day, comprised of 43% gas, 27% oil and 30% NGL
(assuming full NGL recovery).

First quarter 2013 New Mexico Bone Spring wells drilled and completed totaled
18 gross (11 net). Per-well 30-day gross production from these wells averaged
over 650 Boe per day (89% oil). Ward County, Texas Third Bone Spring drilling
totaled 7 gross (6.5 net) wells and had per-well 30-day average gross
production rates of over 970 Boe per day (77% oil).

Mid-Continent Update
Mid-Continent production averaged 360.6 MMcfe per day for the first quarter of
2013, a 15% increase over the first quarter 2012 average of 313.9 MMcfe per
day. Cana-Woodford represented 229.3 MMcfe per day of the first quarter 2013
total, a 42% increase versus the same period last year. During the first
quarter Cimarex drilled and completed 52 gross (20 net) wells, essentially all
of which were in the Cana-Woodford shale play. All were completed as
producers. At March 31, 42 gross (15 net) wells were awaiting completion.

Wells Drilled and Completed by Region
                                      For the Three Months
                                      Ended March 31,
                                      2013       2012
Gross wells
Permian Basin                         35         39
Mid-Continent                         52         33
Gulf Coast/Other                      -          1
                                      87         73
Net wells
Permian Basin                         27         27
Mid-Continent                         20         12
Gulf Coast/Other                      -          1
                                      47         40
% Gross wells completed as producers  100%       95%

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

                                For the Three Months Ended
                                March 31,
                                2013            2012
Gas (Mcf per day)
Permian Basin                   82,766          75,094
Mid-Continent                   236,220         216,825
Gulf Coast/Other                13,815          28,052
                                332,801         319,971
Oil (Barrels per day)
Permian Basin                   25,832          21,800
Mid-Continent                   6,291           5,891
Gulf Coast/Other                1,031           1,871
                                33,154          29,562
NGL (Barrels per day)
Permian Basin                   6,239           5,742
Mid-Continent                   14,443          10,283
Gulf Coast/Other                880             1,662
                                21,562          17,687
Total Equivalent (Mcfe per day)
Permian Basin                   275,192         240,346
Mid-Continent                   360,624         313,869
Gulf Coast/Other                25,279          49,251
                                661,095         603,466

Other
The company's bank group, as part of their regular annual review, increased
the credit facility borrowing base from $2.0 billion to $2.25 billion. Credit
facility commitments remain unchanged at $1 billion.

Cimarex has oil swaps and collars covering 12,000 barrels per day through
December 31, 2013. Mid-Continent natural gas collars on 80,000 MMBTU per day
have recently been added. The following table summarizes the current open
hedge positions:



   Oil Contracts
                                               Weighted Average Price
Period        Type    Barrels/day  Index^(3)  Floor    Ceiling    Swap
Apr.-Dec. 13  Swaps   6,000         WTI          NA       NA     $ 96.13
Apr.-Dec. 13  Collar  6,000         WTI        $ 85.00  $ 102.31 $ NA
                      12,000



   Gas Contracts
                                                  Weighted Average Price
Period              Type    MMBTU/day  Index^(2)  Floor      Ceiling
May – Jun. 13       Collar  30,000     PEPL          3.50        4.50
Jul. 13 – Dec. 14  Collar  80,000     PEPL       $  3.51    $   4.57

Cimarex accounts for commodity contracts using the mark-to-market (through
income) accounting method. First quarter 2013 had a realized gain of $0.7
million in cash received from oil swaps.

Conference call and webcast
Cimarex will host a conference call and webcast today at 11:00 a.m. Mountain
Time (1:00 p.m. Eastern Time). The webcast is available at www.cimarex.com.
To access the live, interactive call, please dial (877) 789-9039 and reference
call ID # 34840688 ten minutes before the scheduled start time. A digital
replay will be available for one week following the live broadcast at (855)
859-2056 and by using the conference ID # 34840688.

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 communication contains statements that constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are based on current expectations and beliefs and
are subject to a number of risks, uncertainties and assumptions that could
cause actual results to differ materially from those described in the
forward-looking statements. These risks and uncertainties are more fully
described in SEC reports filed by Cimarex. While Cimarex makes these
forward-looking statements in good faith, management cannot guarantee that
anticipated future results will be achieved. Cimarex assumes no obligation and
expressly disclaims any duty to update the information contained herein except
as required by law.

(1) Cash flow from operations is a non-GAAP financial measure. See below for
    a reconciliation of the related amounts.
    Reconciliation of debt to total capitalization, which is a non-GAAP
(2) measure, is: long-term debt of $870 million divided by long-term debt of
    $870 million plus stockholders' equity of $3,554.6 million.
    WTI refers to West Texas Intermediate oil price as quoted on the New York
(3) Mercantile Exchange. PEPL refers to Panhandle Eastern Pipe Line, Tex/Ok
    Mid-Continent index as quoted in Platt's Inside FERC.



RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS
                                            For the Three Months Ended
                                            March 31,
                                            2013            2012
                                            (in thousands)
Net cash provided by operating activities $ 247,078    $    251,892
        Change in operating assets
         and liabilities                 45,343          51,064
Adjusted cash flow from operations        $ 292,421    $    302,956

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,
                            2013            2012
 Gas - MMcf              29,952          29,117
 Gas - Mcf per day       332,801         319,971
 Gas price - per Mcf     $3.38           $2.92
 Oil - thousand barrels  2,984           2,690
 Oil - barrels per day   33,154          29,562
 Oil price - per barrel   $86.31          $99.28
 NGL - thousand barrels  1,941           1,610
 NGL - barrels per day  21,562          17,687
 NGL price - per barrel   $29.31          $36.66

OIL AND GAS CAPITALIZED EXPENDITURES
                                For the Three Months Ended
                                March 31,
                                2013            2012
                                (in thousands)
 Acquisitions:
 Proved                       $ —          $    51
 Unproved                       250             1,922
                                250             1,973
 Exploration and development:
 Land and Seismic               31,310          37,212
 Exploration and development    377,297         365,359
                                408,607         402,571
 Sale proceeds:
 Proved                         (818)           (171)
 Unproved                       (81)            (942)
                                (899)           (1,113)
                              $ 407,958    $    403,431

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(unaudited)
                                               For the Three Months Ended
                                               March 31,
                                               2013                2012
                                               (In thousands, except per share
                                               data)
Revenues:
 Gas sales                                   $ 101,121      $      85,153
 Oil sales                                     257,532             267,084
 NGL sales                                     56,875              59,014
 Gas gathering, processing and other, net      10,828              11,785
                                               426,356             423,036
Costs and expenses:
 Depreciation, depletion, amortization and     138,837             121,787
 accretion
 Production                                    69,386              67,625
 Transportation                                18,634              13,316
 Gas gathering and processing                  6,156               4,851
 Taxes other than income                       25,128              25,160
 General and administrative                    15,577              14,147
 Stock compensation                            3,605               4,534
 Loss on derivative instruments, net           1,603               4,088
 Other operating, net                          2,932               2,340
                                               281,858             257,848
Operating income                               144,498             165,188
Other (income) and expense:
 Interest expense                             12,186              7,959
 Amortization of deferred financing costs      1,020               709
 Capitalized interest                          (9,195)             (7,804)
 Other, net                                    (2,616)             (4,726)
Income before income tax                       143,103             169,050
Income tax expense                             53,176              62,943
Net income                                   $ 89,927       $      106,107
Earnings per share to common stockholders:
 Basic                                      $ 1.04         $      1.24
 Diluted                                     $ 1.04         $      1.23
Dividends per share                          $ 0.14         $      0.12
Shares attributable to common stockholders:
 Unrestricted common shares outstanding        84,920              83,937
 Diluted common shares                         85,016              84,307
Shares attributable to common stockholders
and participating securities:
 Basic shares outstanding                      86,459              85,777
 Fully diluted shares                         86,555              86,147
Comprehensive income:
 Net income                                  $ 89,927       $      106,107
 Other comprehensive income:
       Change in fair value of investments,    80                  399
       net of tax
 Total comprehensive income                  $ 90,007       $      106,506

CONDENSED CASH FLOW STATEMENTS (unaudited)
                                                    For the Three Months Ended
                                                    March 31,
                                                    2013            2012
                                                    (In thousands)
Cash flows from operating activities:
 Net income                                       $ 89,927      $   106,107
 Adjustment to reconcile net income to net cash
  provided by operating activities:
   Depreciation, depletion, amortization and        138,837         121,787
   accretion
   Deferred income taxes                            53,176          62,943
   Stock compensation                               3,605           4,534
   Derivative instruments, net                      2,329           4,088
   Changes in non-current assets and liabilities    3,374           2,239
   Amortization of deferred financing costs
       and other, net                               1,173           1,258
 Changes in operating assets and liabilities:
   Increase in receivables, net                     (30,576)        (2,144)
   Decrease in other current assets                 9,143           69
   Decrease in accounts payable and
       accrued liabilities                          (23,910)        (48,989)
          Net cash provided by operating            247,078         251,892
          activities
Cash flows from investing activities:
 Oil and gas expenditures                           (390,669)       (400,963)
 Sales of oil and gas assets and other assets       975             1,322
 Other expenditures                                 (19,523)        (10,300)
          Net cash used by investing activities     (409,217)       (409,941)
Cash flows from financing activities:
 Net increase in bank debt                          120,000         167,000
 Dividends paid                                     (10,356)        (8,576)
 Issuance of common stock and other                 1,489           1,625
          Net cash provided by financing            111,133         160,049
          activities
Net change in cash and cash equivalents             (51,006)        2,000
Cash and cash equivalents at beginning of period    69,538          2,406
Cash and cash equivalents at end of period        $ 18,532      $   4,406

CONDENSED BALANCE SHEETS (unaudited)
                                             March 31,          December 31,
Assets                                       2013               2012
                                             (In thousands, except share data)
Current assets:
   Cash and cash equivalents               $ 18,532         $   69,538
   Receivables, net                          333,550            302,974
   Oil and gas well equipment and supplies   73,035             81,029
   Deferred income taxes                     12,122             8,477
   Derivative instruments                    288                —
   Other current assets                      6,970              8,119
         Total current assets                444,497            470,137
Oil and gas properties at cost, using the
full cost method of accounting:
   Proved properties                         11,733,247         11,258,748
   Unproved properties and properties
   under development,
         not being amortized                 579,927            645,078
                                             12,313,174         11,903,826
   Less – accumulated depreciation,          (7,027,421)        (6,899,057)
   depletion and amortization
         Net oil and gas properties          5,285,753          5,004,769
Fixed assets, net                            164,727            152,605
Goodwill                                     620,232            620,232
Other assets, net                            54,740             57,409
                                           $ 6,569,949      $   6,305,152
Liabilities and Stockholders' Equity
Current liabilities:
   Accounts payable                        $ 83,274         $   103,653
   Accrued liabilities                       411,789            392,909
   Derivative instruments                    2,617              —
   Revenue payable                           147,945            149,300
         Total current liabilities           645,625            645,862
Long-term debt                               870,000            750,000
Deferred income taxes                        1,178,221          1,121,353
Other liabilities                           321,510            313,201
         Total liabilities                   3,015,356          2,830,416
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,
         86,449,746 and 86,595,976 shares    864                866
         issued, respectively
   Paid-in capital                           1,941,443          1,939,628
   Retained earnings                         1,611,732          1,533,768
   Accumulated other comprehensive income    554                474
                                             3,554,593          3,474,736
                                           $ 6,569,949      $   6,305,152

SOURCE Cimarex Energy Co.

Website: http://www.cimarex.com
Contact: Cimarex Energy Co., +1-303-295-3995, www.cimarex.com, or Mark Burford
, Vice President - Capital Markets and Planning, or Karen Acierno, Director -
Investor Relations