Cimarex Energy : Reports Second Quarter 2018 Results

DENVER, Aug. 7, 2018 /PRNewswire/ --

• Daily production averaged 211.4 MBOE; oil production up seven percent year-over-year
• 2018 capital guidance unchanged
• • Oil production expected to grow 20-25 percent year-over-year
• Ward County asset sale expected to close August 31, 2018

Cimarex Energy Co. (NYSE: XEC) today reported second quarter 2018 net income of $141.0 million, or $1.48 per share, compared to $97.3 million, or $1.02 per share, in the same period a year ago. Second quarter adjusted net income (non-GAAP) was $151.9 million, or $1.59 per share, compared to second quarter 2017 adjusted net income (non-GAAP) of $101.0 million, or $1.06 per share¹. Net cash provided by operating activities was $321.2 million in the second quarter of 2018 compared to $255.3 million in the same period a year ago. Adjusted cash flow from operations (non-GAAP) was $349.5 million in the second quarter of 2018 compared to $278.8 million in the second quarter a year ago¹.

The previously announced sale of assets in Ward County, Texas, for $570 million (before any purchase price adjustments), is expected to close on August 31, 2018. The impact of the sale has been factored into our production guidance starting in September.

Total company volumes for the quarter averaged 211.4 thousand barrels of oil equivalent (MBOE) per day. Oil production averaged 61,651 barrels (bbl) per day, up seven percent from the same period a year ago and down five percent from first quarter 2018 levels. Driven by the number of wells expected to be brought on production in the second half of 2018 (86 wells versus 38 wells in the first half), and pro forma for the sale of assets in Ward County, Texas, Cimarex continues to expect oil production growth of 20-25 percent year-over-year. (See Pro Forma Production Reconciliation table below.)

Realized oil prices averaged $60.99 per barrel, up 38 percent from the $44.14 per barrel received in the second quarter of 2017. Realized natural gas prices averaged $1.65 per thousand cubic feet (Mcf) down 41 percent from the second quarter 2017 average of $2.82 per Mcf. NGL prices averaged $22.29 per barrel, up 22 percent from the $18.24 per barrel received in the second quarter of 2017. Realized prices for 2018 reflect the adoption of Accounting Standards Codification 606 (ASC 606). See table below (Impact of ASC 606) for comparison of realized prices for 2018 for pre- and post-ASC 606.

Both oil and natural gas prices were negatively impacted by local price differentials. Market conditions in the Permian Basin caused the realized differential for Midland priced oil and the differential for Permian Basin gas to widen. Our realized Permian oil differential to WTI Cushing averaged $(8.05) per barrel in the quarter, compared to $(3.12) per barrel in the first quarter of 2018 and $(4.14) per barrel in the second quarter of 2017. Cimarex's average differential on its Permian natural gas production was $1.31 per Mcf below Henry Hub in the second quarter of 2018 compared to $0.42 per Mcf lower in the second quarter of 2017. In the Mid-Continent region, realized gas prices were $1.03 per Mcf below the Henry Hub index versus $0.34 per Mcf below Henry Hub in the second quarter of 2017 due to abnormally wide differentials on the ONEOK index (OGT) where approximately 75 percent of the company's second quarter Mid-Continent gas volumes were priced.

As previously discussed, Cimarex has taken a number of steps to ensure the flow of our oil and natural gas volumes out of the Permian Basin with sales agreements in place for our projected oil and natural gas volumes through 2019.

Cimarex invested $375 million in exploration and development (E&D) during the second quarter, of which $322 million is attributable to drilling and completion activities. Second quarter investments were funded with cash flow from operations and cash on the balance sheet. Total debt at June 30, 2018 consisted of $1.5 billion of long-term notes. Cimarex had no borrowings under its revolving credit facility and a cash balance of $411 million. Debt was 34 percent of total capitalization².

2018 Outlook
Adjusting for the previously announced sale of assets in Ward County, Texas (assuming an August 31 close), third quarter 2018 production volumes are expected to average 206 -215 MBOE per day with oil volumes estimated to average 61,500 - 64,500 barrels per day. The total 2018 daily production volumes are now expected to average 214 - 221 MBOE per day with annual oil volumes now estimated to average 66,000 - 68,000 barrels per day.

On a pro forma basis (excluding Ward volumes entirely), Cimarex expects 2018 total production (MBOE per day) and oil production (barrels per day) to grow 14-18 percent and 20-25 percent over 2017 volumes, respectively. Additionally, the company expects oil volumes in the fourth quarter to average 75,000 - 81,000 barrels per day, or 33-43 percent higher than the pro forma fourth quarter 2017 average. (See Pro Forma Production Reconciliation table below.)

Pro Forma Production Reconciliation
(excludes Ward volumes for all periods)
	2018E				2017		% Growth
Daily Production (MBOE/d)	209	-	216		183.1		14-18%
Daily Oil Production (MBbls/d)	62.4	-	64.6		51.8		20-25%

Estimated 2018 exploration and development investment remains unchanged at $1.6 - 1.7 billion.

Expenses per BOE of production for the remainder of 2018 are estimated to be:

Production expense	$3.80 - 4.30
Transportation, processing and other expense*	2.40 - 3.00
DD&A and ARO accretion	7.50 - 8.10
General and administrative expense	1.15 - 1.45
Taxes other than income (% of oil and gas revenue)	5.75 - 6.25%

*Reflects adoption of ASC 606 (see Impact of ASC 606 table below).

Operations Update
Cimarex invested $375 million in E&D during the second quarter, 59 percent in the Permian Basin and 41 percent in the Mid-Continent. Cimarex brought 89 gross (23 net) wells on production during the quarter. At June 30, 141 gross (57 net) wells were waiting on completion. Cimarex currently is operating 13 drilling rigs.

WELLS BROUGHT ON PRODUCTION BY REGION
	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Gross wells
Permian Basin	32		11		49		36
Mid-Continent	57		40		94		85
	89		51		143		121
Net wells
Permian Basin	13		10		22		26
Mid-Continent	10		8		16		18
	23		18		38		44

Permian Region
Production from the Permian region averaged 121,744 BOE per day in the second quarter, a 13 percent increase from second quarter 2017. Oil volumes averaged 48,797 barrels per day, a six percent increase from second quarter 2017. Total production increased seven percent sequentially, with oil production down two percent.

Cimarex completed 32 gross (13 net) wells in the Permian region during the second quarter. There were 45 gross (32 net) wells waiting on completion at June 30.

Activity in the region for the quarter included twelve wells completed in the Wolfcamp and Bone Spring formations. Of note, in Lea County, New Mexico, the six-well Hallertau 5 FED Upper Wolfcamp infill pilot was brought on-line during the quarter. The infill pilot, which included six short laterals (4,230' average) testing 12 wells per section, had an average peak 30-day initial production rate of 1,295 BOE (783 barrels of oil) per day, with results ranging from 1,855 BOE (1,096 barrels of oil) per day to 937 BOE (564 barrels of oil) per day.

Cimarex currently is operating ten drilling rigs and five completion crews in the region.

Mid-Continent Region
Production from the Mid-Continent averaged 88,864 BOE per day for the second quarter, up five percent versus second quarter 2017 and down three percent sequentially.

During the second quarter, Cimarex completed 57 gross (10 net) wells in the Mid-Continent region. At the end of the quarter, 96 gross (25 net) wells were waiting on completion. Cimarex currently is operating three drilling rigs and one completion crew in the region.

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

DAILY PRODUCTION BY REGION
	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Permian Basin
Gas (MMcf)	240.5		219.8		239.2		210.4
Oil (Bbls)	48,797		45,828		49,318		43,446
NGL (Bbls)	32,865		24,996		28,817		23,319
Total Equivalent (BOE)	121,744		107,456		118,002		101,829
Mid-Continent
Gas (MMcf)	297.0		295.4		296.2		290.2
Oil (Bbls)	12,473		11,893		13,841		11,475
NGL (Bbls)	26,894		23,693		26,927		22,926
Total Equivalent (BOE)	88,864		84,827		90,142		82,774
Total Company
Gas (MMcf)	539.5		516.7		537.1		502.0
Oil (Bbls)	61,651		57,871		63,422		55,042
NGL (Bbls)	59,857		48,731		55,810		46,281
Total Equivalent (BOE)	211,424		192,720		208,752		184,998

AVERAGE REALIZED PRICE BY REGION
	Three Months Ended June 30,				Six Months Ended June 30,
	2018*		2017		2018*		2017
Permian Basin
Gas ($ per Mcf)	1.49		2.77		1.86		2.83
Oil ($ per Bbl)	59.83		44.15		59.79		45.94
NGL ($ per Bbl)	22.80		16.65		21.93		17.38
Mid-Continent
Gas ($ per Mcf)	1.77		2.85		2.04		2.97
Oil ($ per Bbl)	65.70		44.10		62.87		45.39
NGL ($ per Bbl)	21.66		19.90		20.67		21.16
Total Company
Gas ($ per Mcf)	1.65		2.82		1.96		2.91
Oil ($ per Bbl)	60.99		44.14		60.45		45.82
NGL ($ per Bbl)	22.29		18.24		21.32		19.26

*Realized prices for 2018 reflect the adoption of ASC 606. See Impact of ASC 606 table for a comparison of 2018 realized prices on a pre- and post-ASC 606 basis.

Other
The following table summarizes the company's current open hedge positions:

		3Q18		4Q18		1Q19		2Q19		3Q19		4Q19
Gas Collars:	PEPL(3)
	Volume (MMBtu/d)	130,000		100,000		90,000		90,000		60,000		30,000
	Wtd Avg Floor	$	2.19	$	2.12	$	2.08	$	2.08	$	1.92	$	1.90
	Wtd Avg Ceiling	$	2.48	$	2.42	$	2.39	$	2.39	$	2.26	$	2.33
	El Paso Perm(3)
	Volume (MMBtu/d)	100,000		80,000		70,000		70,000		50,000		20,000
	Wtd Avg Floor	$	1.92	$	1.81	$	1.73	$	1.73	$	1.50	$	1.35
	Wtd Avg Ceiling	$	2.14	$	2.03	$	1.95	$	1.95	$	1.74	$	1.55
	Waha(3)
	Volume (MMBtu/d)	10,000		10,000		10,000		10,000		10,000		10,000
	Wtd Avg Floor	$	1.35	$	1.35	$	1.35	$	1.35	$	1.35	$	1.35
	Wtd Avg Ceiling	$	1.56	$	1.56	$	1.56	$	1.56	$	1.56	$	1.56
Oil Collars:	WTI(4)
	Volume (Bbl/d)	35,000		29,000		23,000		23,000		16,000		8,000
	Wtd Avg Floor	$	49.80	$	51.03	$	51.83	$	51.83	$	53.50	$	57.00
	Wtd Avg Ceiling	$	60.49	$	61.74	$	63.77	$	63.77	$	67.13	$	68.04
Oil Basis Swaps:	WTI Midland(5)
	Volume (Bbl/d)	27,000		22,000		19,000		19,000		14,000		6,000
	Weighted Avg Differential	$	(3.89)	$	(4.56)	$	(5.17)	$	(5.17)	$	(6.84)	$	(10.73)

Conference call and webcast
Cimarex will host a conference call tomorrow, August 8, at 11:00 a.m. EDT (9:00 a.m. MT). The call will be webcast and accessible on the Cimarex website at www.cimarex.com. To join the live, interactive call, please dial 866-367-3053 ten minutes before the scheduled start time (callers in Canada dial 855-669-9657 and international callers dial 412-902-4216).

A replay will be available on the company's website.

Investor Presentation
For more details on Cimarex's second quarter 2018 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 '2018 Outlook' contains projections for certain 2018 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 for the year ended December 31, 2017, 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 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 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 and adjusted cash flow from operations are non-GAAP financial measures. See below for reconciliations of the related GAAP amounts.
2	Debt to total capitalization is calculated by dividing long-term debt by long-term debt plus stockholders' equity.
3	PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent index, El Paso Perm refers to El Paso Permian Basin index, and Waha refers to West Texas (Waha) Index, all as quoted in Platt's Inside FERC.
4	WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange.
5	Index price on basis swaps is WTI NYMEX less the weighted average WTI Midland differential, as quoted by Argus Americas Crude.

RECONCILIATION OF ADJUSTED NET INCOME

The following reconciles net income as reported under generally accepted accounting principles (GAAP) to adjusted net income (non-GAAP) for the periods indicated.

	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
	(in thousands, except per share data)
Net income	$	140,997			$	97,262			$	327,315			$	228,234
Mark-to-market loss (gain) on open derivative positions	14,169				(22,166)				(2,379)				(72,087)
Loss on early extinguishment of debt	-				28,169				-				28,169
Tax impact	(3,259)				(2,257)				552				16,469
Adjusted net income	$	151,907			$	101,008			$	325,488			$	200,785
Diluted earnings per share	$	1.48			$	1.02			$	3.44			$	2.40
Adjusted diluted earnings per share*	$	1.59			$	1.06			$	3.41			$	2.11
Weighted-average number of shares outstanding:
Adjusted diluted**	95,428				95,179				95,451				95,172

Adjusted net income and adjusted diluted earnings per share exclude the noted items because management believes these items affect the comparability of operating results. The company discloses these non-GAAP financial measures as a useful adjunct to GAAP measures because:

a) Management uses adjusted net income to evaluate the company's operating performance between periods and to compare the company's performance to other oil and gas exploration and production companies.

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

* Does not include adjustments resulting from application of the 'two-class method' used to determine earnings per share under GAAP.

** Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding stock options.

RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS

The following table provides a reconciliation from generally accepted accounting principles (GAAP) measures of net cash provided by operating activities to adjusted cash flows from operations (non-GAAP) for the periods indicated.

	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
	(in thousands)
Net cash provided by operating activities	$	321,246			$	255,286			$	704,339			$	504,800
Change in operating assets and liabilities	28,265				23,507				12,406				39,827
Adjusted cash flow from operations	$	349,511			$	278,793			$	716,745			$	544,627

Management uses the non-GAAP financial measure of adjusted cash flow from operations as a means of measuring our ability to fund our capital program and dividends, without fluctuations caused by changes in current assets and liabilities, which are included in the GAAP measure of net cash provided by operating activities. Management believes this non-GAAP financial measure provides useful information to investors for the same reason, and that it is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.

IMPACT OF ASC 606

Effective January 1, 2018, Cimarex adopted the provisions of Accounting Standards Codification 606, Revenue from Contracts with Customers ('ASC 606'). Application of ASC 606 has no impact on our net income or cash flows from operations; however, certain costs classified as Transportation, processing, and other operating expenses in the statement of operations under prior accounting standards are now reflected as deductions from revenue under ASC 606. The following tables present certain Pre- and Post-ASC 606 amounts:

REVENUES
		Three Months Ended June 30,
		2018								2017
		Pre-ASC 606 Adoption				Post-ASC 606 Adoption				As Reported
		(in thousands)
Oil sales		$	342,184			$	342,184			$	232,453
Gas sales		$	84,727			$	80,787			$	132,474
NGL sales		$	125,126			$	121,415			$	80,886

		Six Months Ended June 30,
		2018								2017
		Pre-ASC 606 Adoption				Post-ASC 606 Adoption				As Reported
		(in thousands)
Oil sales		$	693,907			$	693,907			$	456,519
Gas sales		$	197,404			$	190,508			$	264,419
NGL sales		$	230,739			$	215,412			$	161,312

AVERAGE REALIZED PRICE BY REGION
		Three Months Ended June 30,
		2018						2017
		Pre-ASC 606 Adoption			Post-ASC 606 Adoption			As Reported
Permian Basin
Gas ($ per Mcf)		1.62			1.49			2.77
Oil ($ per Bbl)		59.83			59.83			44.15
NGL ($ per Bbl)		23.81			22.80			16.65
Mid-Continent
Gas ($ per Mcf)		1.81			1.77			2.85
Oil ($ per Bbl)		65.70			65.70			44.10
NGL ($ per Bbl)		21.94			21.66			19.90
Total Company
Gas ($ per Mcf)		1.73			1.65			2.82
Oil ($ per Bbl)		60.99			60.99			44.14
NGL ($ per Bbl)		22.97			22.29			18.24
		Six Months Ended June 30,
		2018						2017
		Pre-ASC 606 Adoption			Post-ASC 606 Adoption			As Reported
Permian Basin
Gas ($ per Mcf)		1.97			1.86			2.83
Oil ($ per Bbl)		59.79			59.79			45.94
NGL ($ per Bbl)		23.62			21.93			17.38
Mid-Continent
Gas ($ per Mcf)		2.08			2.04			2.97
Oil ($ per Bbl)		62.87			62.87			45.39
NGL ($ per Bbl)		22.01			20.67			21.16
Total Company
Gas ($ per Mcf)		2.03			1.96			2.91
Oil ($ per Bbl)		60.45			60.45			45.82
NGL ($ per Bbl)		22.84			21.32			19.26

TRANSPORTATION, PROCESSING, AND OTHER OPERATING EXPENSES
		Three Months Ended June 30,
		2018								2017
		Pre-ASC 606 Adoption				Post-ASC 606 Adoption				As Reported
		(in thousands, except per BOE)
Transportation, processing, and other operating expenses		$	59,584			$	51,933			$	58,624
Per BOE		$	3.10			$	2.70			$	3.34
		Six Months Ended June 30,
		2018								2017
		Pre-ASC 606 Adoption				Post-ASC 606 Adoption				As Reported
		(in thousands, except per BOE)
Transportation, processing, and other operating expenses		$	119,321			$	97,098			$	113,647
Per BOE		$	3.16			$	2.57			$	3.39

OIL AND GAS CAPITALIZED EXPENDITURES
	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
	(in thousands)
Acquisitions:
Proved	$	-			$	255			$	62			$	260
Unproved	77				792				2,236				3,825
	77				1,047				2,298				4,085
Exploration and development:
Land and seismic	$	10,327			$	33,302			$	20,424			$	110,487
Exploration and development	365,097				262,575				668,469				491,042
	375,424				295,877				688,893				601,529
Sales proceeds:
Proved	$	(4,577)			$	(1,957)			$	(29,541)			$	(1,892)
Unproved	(441)				(2,305)				(5,301)				(7,271)
	(5,018)				(4,262)				(34,842)				(9,163)
	$	370,483			$	292,662			$	656,349			$	596,451

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
		2018				2017				2018				2017
		(in thousands, except per share information)
Revenues:
Oil sales		$	342,184			$	232,453			$	693,907			$	456,519
Gas and NGL sales		202,202				213,360				405,920				425,731
Gas gathering and other		11,888				10,639				23,581				21,378
		556,274				456,452				1,123,408				903,628
Costs and expenses:
Depreciation, depletion, amortization, and accretion		145,441				108,844				279,360				206,280
Production		79,215				62,578				150,486				124,999
Transportation, processing, and other operating		51,933				58,624				97,098				113,647
Gas gathering and other		9,467				8,647				19,290				17,074
Taxes other than income		27,930				17,477				58,118				38,790
General and administrative		19,739				19,762				43,060				37,796
Stock compensation		3,095				6,293				9,825				12,581
Loss (gain) on derivative instruments, net		21,699				(22,509)				17,540				(66,370)
Other operating expense, net		5,252				266				5,455				882
		363,771				259,982				680,232				485,679
Operating income		192,503				196,470				443,176				417,949
Other (income) and expense:
Interest expense		16,895				20,095				33,678				41,147
Capitalized interest		(4,850)				(5,442)				(9,660)				(12,083)
Loss on early extinguishment of debt		-				28,169				-				28,169
Other, net		(2,605)				(2,231)				(7,172)				(4,441)
Income before income tax		183,063				155,879				426,330				365,157
Income tax expense		42,066				58,617				99,015				136,923
Net income		$	140,997			$	97,262			$	327,315			$	228,234
Earnings per share to common stockholders:
Basic		$	1.48			$	1.02			$	3.44			$	2.40
Diluted		$	1.48			$	1.02			$	3.44			$	2.40
Dividends declared per share		$	0.16			$	0.08			$	0.32			$	0.16
Weighted-average number of shares outstanding:
Basic		93,728				93,402				93,713				93,396
Diluted		93,759				93,435				93,748				93,431
Comprehensive income:
Net income		$	140,997			$	97,262			$	327,315			$	228,234
Other comprehensive income:
Change in fair value of investments, net of tax		192				224				2				626
Total comprehensive income		$	141,189			$	97,486			$	327,317			$	228,860

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
		2018				2017				2018				2017
		(in thousands)
Cash flows from operating activities:
Net income		$	140,997			$	97,262			$	327,315			$	228,234
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, amortization, and accretion		145,441				108,844				279,360				206,280
Deferred income taxes		42,783				58,617				99,732				136,929
Stock compensation		3,095				6,293				9,825				12,581
Loss (gain) on derivative instruments, net		21,699				(22,509)				17,540				(66,370)
Settlements on derivative instruments		(7,530)				343				(19,919)				(5,717)
Loss on early extinguishment of debt		-				28,169				-				28,169
Changes in non-current assets and liabilities		1,613				57				713				1,076
Other, net		1,413				1,717				2,179				3,445
Changes in operating assets and liabilities:
Accounts receivable		(29,710)				(16,483)				15,012				(61,145)
Other current assets		283				(8,139)				1,886				(11,104)
Accounts payable and other current liabilities		1,162				1,115				(29,304)				32,422
Net cash provided by operating activities		321,246				255,286				704,339				504,800
Cash flows from investing activities:
Oil and gas capital expenditures		(327,352)				(270,331)				(650,807)				(582,172)
Sales of oil and gas assets		5,018				4,262				34,842				9,163
Sales of other assets		93				349				525				394
Other capital expenditures		(37,056)				(10,127)				(56,112)				(18,209)
Net cash used by investing activities		(359,297)				(275,847)				(671,552)				(590,824)
Cash flows from financing activities:
Borrowings of long-term debt		-				748,110				-				748,110
Repayments of long-term debt		-				(750,000)				-				(750,000)
Call premium, financing, and underwriting fees		-				(29,009)				-				(29,035)
Dividends paid		(15,199)				(7,576)				(22,801)				(15,153)
Employee withholding taxes paid upon the net settlement of equity-classified stock awards		(641)				(277)				(946)				(1,215)
Proceeds from exercise of stock options		904				-				1,249				36
Net cash used by financing activities		(14,936)				(38,752)				(22,498)				(47,257)
Net change in cash and cash equivalents		(52,987)				(59,313)				10,289				(133,281)
Cash and cash equivalents at beginning of period		463,810				578,908				400,534				652,876
Cash and cash equivalents at end of period		$	410,823			$	519,595			$	410,823			$	519,595

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
		June 30, 2018				December 31, 2017
Assets		(in thousands, except share and per share information)
Current assets:
Cash and cash equivalents		$	410,823			$	400,534
Accounts receivable, net of allowance		444,655				460,174
Oil and gas well equipment and supplies		53,375				49,722
Derivative instruments		72,943				15,151
Other current assets		8,346				10,054
Total current assets		990,142				935,635
Oil and gas properties at cost, using the full cost method of accounting:
Proved properties		18,112,548				17,513,460
Unproved properties and properties under development, not being amortized		532,715				476,903
		18,645,263				17,990,363
Less - accumulated depreciation, depletion, amortization, and impairment		(15,000,443)				(14,748,833)
Net oil and gas properties		3,644,820				3,241,530
Fixed assets, net of accumulated depreciation of $312,927 and $290,114, respectively		238,964				210,922
Goodwill		620,232				620,232
Derivative instruments		2,330				2,086
Other assets		34,905				32,234
		$	5,531,393			$	5,042,639
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	95,239			$	98,386
Accrued liabilities		370,371				351,849
Derivative instruments		90,480				42,066
Revenue payable		180,869				187,273
Total current liabilities		736,959				679,574
Long-term debt:
Principal		1,500,000				1,500,000
Less - unamortized debt issuance costs and discount		(12,261)				(13,080)
Long-term debt, net		1,487,739				1,486,920
Deferred income taxes		201,350				101,618
Derivative instruments		11,511				4,268
Other liabilities		207,336				201,981
Total liabilities		2,644,895				2,474,361
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, 95,392,547 and 95,437,434 shares issued, respectively		954				954
Additional paid-in capital		2,770,532				2,764,384
Retained earnings (accumulated deficit)		112,811				(199,259)
Accumulated other comprehensive income		2,201				2,199
Total stockholders' equity		2,886,498				2,568,278
		$	5,531,393			$	5,042,639

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SOURCE Cimarex Energy Co.