Cimarex publicizes capital funding plans for 2021 and pointers on manufacturing and expenditure

DENVER, February 22, 2021 / PRNewswire / – Cimarex Power Co. (NYSE: XEC) at the moment introduced its deliberate 2021 whole capital funding (together with center capital) of $ 650 – 750 million. The desk under presents a breakdown of the projected capital by class:

Capital expenditure

Orientation 2021

Drilling and Completion (D&C)

$ 500 to $ 600 million

Center Stream / Saltwater Elimination (SWD)

~ $ 40 million


~ $ 110 million

Whole capital funding

650 to 750 million {dollars}

*Capitalized overheads, manufacturing, NPL and expertise

In 2021, oil manufacturing is predicted to common 75 to 81,000 barrels of oil (MBbl) per day, up 2% at midpoint from 2020 ranges. Whole equal manufacturing is predicted to common between 235 and 255,000 barrels of oil equal (MBOE) per day. Oil manufacturing within the first quarter of 2021 is predicted to common 65-69 MBbl per day. Whole manufacturing for the primary quarter is predicted to common between 205 and 225 MBOE per day. The primary quarter forecast contains an estimated 5-7% unfavourable impression on manufacturing volumes resulting from downtime related to current climate situations within the Permian and mid-continent areas.

Tom jorden“Stated the Chairman and CEO of Cimarex,” We stay dedicated to a disciplined funding strategy and goal for a reinvestment price of 70 to 80%. $ 35 WTI flat oil value, we count on to generate free money circulate after dividend at $ 700 million midpoint of our deliberate capital funding for 2021. At current money costs, this identical plan interprets right into a considerably decrease price of reinvestment, with extra free money circulate potential focused in direction of debt discount. “The price construction and group permit us to generate important returns, free money circulate and worth for our house owners.”

Cimarex intends to take a position $ 500 – € 600 million on the drilling and completion of wells in 2021 with 73 web wells anticipated to begin producing throughout the interval. Over 90% of D & C’s capital shall be invested within the Permian area and the rest within the heart of the continent. Permian actions will proceed to deal with the lengthy Wolfcamp and Bone Spring facet wells in Culberson and Reeves counties Texas, and in Lea and Whirlpool New Mexico counties.

Listed here are the web wells anticipated to return on stream in 2021 by quarter:






Permian Basin






Center of the continent










Expenditures for 2021 per unit are anticipated to fall inside the following ranges:

($ / BOE)

Recent from manufacturing

$ 3.10 – $ 3.60

Transportation and different working prices

2.20 – 2.50

DD&A and ARO Accretion

6:00 a.m. – 7:00 a.m.

Common and administrative bills

0.90 – 1.10

Taxes apart from revenue (% of oil and gasoline revenues)

5.5% – 6.5%

About Cimarex Power

DenverCimarex Power Co. is an impartial oil and gasoline exploration and manufacturing firm with major operations within the Permian Basin and mid-continent areas of the US.

This press launch incorporates forward-looking statements, together with statements relating to projected outcomes and future occasions. These forward-looking statements are primarily based on the judgment of administration as of the date of this press launch and contain sure dangers and uncertainties. Please confer with the Firm’s Annual Report on Type 10-Ok for the 12 months ended December 31, 2019, filed with the SEC, the annual report on Type 10-Ok for the 12 months ended December 31, 2020 to file with the SEC, and different paperwork, together with our present experiences on Type 8-Ok and Quarterly experiences on Type 10-Q, for an outline of sure threat elements that will have an effect on these forward-looking statements.

Precise outcomes might differ materially from the Firm’s projections and different forward-looking statements and could also be affected by a wide range of elements past the Firm’s management, all of which can be magnified by the COVID-19 pandemic and its unpredictable nature, together with amongst different issues: fluctuations within the value we obtain for our oil, gasoline and NGL manufacturing, together with native market value differentials, which will be exacerbated by the destruction of demand ensuing from COVID-19 ; disruptions within the availability of employees and contractors resulting from diseases and residential assist orders linked to the COVID-19 pandemic; the price and availability of assortment, pipeline, refining, transportation and different intermediate and downstream actions and our capacity to promote oil, gasoline and NGLs, which can be negatively impacted by the COVID-pandemic- 19, excessive climate situations and different dangers and result in a scarcity of obtainable markets; the supply of provide chains and important gear and provides; greater than anticipated prices and bills, together with availability and price of providers and supplies; compliance with environmental and different rules, together with new rules that will consequence from the current change in federal and state administrations and legislatures; legislative or regulatory modifications, together with initiatives associated to hydraulic fracturing, emissions and disposal of produced water, which can be negatively affected by the current change in presidential administration or legislatures; the power to obtain boreholes and different permits or approvals and rights of means in a well timed method (or in no way), which can be negatively impacted by the impression of COVID-19 restrictions on regulatory staff who cope with and approve permits, different approvals and rights of means and which can be restricted by new presidential and secretariat orders, in addition to by rules and laws; reductions within the quantity of oil, gasoline and NGLs bought and the costs acquired resulting from declining demand and / or manufacturing reductions associated to mechanics, transportation, storage, capability, advertising and marketing, climate situations, the COVID-19 pandemic or different points; the decline within the SEC PV10 worth of our oil and gasoline properties, which resulted in write-downs of the total value cap check of the carrying worth of our oil and gasoline properties; the effectiveness of our inner management over monetary reporting; success of enterprise threat administration actions; availability of financing and entry to monetary markets; estimates of confirmed reserves, exploitation potential or the dimensions of exploration prospecting; greater than anticipated charges of decline in manufacturing; the timing and quantity of future oil, gasoline and NGL manufacturing; cybersecurity threats, technological system failures and information safety points; the shortcoming to move, course of and retailer oil and gasoline; the hedging actions and viability of our hedging counterparties, a lot of which have been adversely affected by the COVID-19 pandemic; financial and aggressive situations; lack of insurance coverage obtainable; money circulate and anticipated liquidity; continued compliance with the monetary clause contained in our amended and up to date credit score settlement; the lack of sure federal tax deductions; litigation; environmental tasks; new federal rules relating to species or habitats; the exploration and improvement alternatives we search might not lead to economical and productive oil and gasoline properties; drilling of wells; the outcomes of improvement drilling and testing; the efficiency of acquired properties and newly drilled wells; the power to get trade companions to collectively discover sure alternatives, and the willingness and talent of those companions to satisfy their capital obligations on demand; unexpected future capital expenditures; quantity, nature and timing of capital expenditures; proof of undeveloped space and continued manufacturing on leases; unexpected liabilities related to acquisitions and inclinations; establishing valuation allowances on our web deferred tax belongings; potential funds for failure to satisfy minimal commitments to ship or promote oil, gasoline, NGLs or water; elevated financing prices resulting from a big improve in rates of interest; the dangers related to the focus of operations in a single giant geographic space; availability and price of capital; property title; capacity to conduct actual property gross sales or different transactions; and different elements mentioned within the firm’s experiences filed with the SEC. Cimarex Power Co. encourages readers to think about the dangers and uncertainties related to projections and different forward-looking statements. Additional, the corporate assumes no obligation to publicly revise or replace any forward-looking statements primarily based on future occasions or circumstances.

SOURCE Cimarex Power Co.

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