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Last updated on April 16, 2014 at 21:24 EDT

Cimarex Energy Reports Third-Quarter 2012 Results

November 2, 2012

DENVER, Nov. 2, 2012 /PRNewswire/ — Cimarex Energy Co. (NYSE: XEC) today reported third-quarter 2012 net income of $84.3 million, or $0.97 per diluted share. This compares to third-quarter 2011 earnings of $128.2 million, or $1.49 per diluted share.

Third-quarter 2012 net income includes an unrealized non-cash loss on derivative instruments associated with 2012 oil hedges of $5.3 million, or $0.04 per share after-tax. Third-quarter 2011 net income had an unrealized non-cash gain on derivative instruments associated with 2011 oil and gas hedges of $5.4 million, or $0.04 per share after-tax.

Third-quarter 2012 production volumes averaged an all-time high 635.1 million cubic feet equivalent (MMcfe), per day, a 7% increase as compared to third-quarter 2011 output of 592.0 MMcfe per day. Oil production grew 23% to a record 32,456 barrels per day. Permian Basin oil production grew 42% to 25,000 barrels per day. Combined Permian and Mid-Continent third-quarter volumes averaged 598.8 MMcfe per day, growing 18% over the same period in 2011. Total third-quarter 2012 production volumes were 51% gas, 31% oil and 18% natural gas liquids (NGL).

Oil, gas and NGL revenue in the third quarter of 2012 totaled $397.4 million as compared to $419.7 million in the same period of 2011. Third-quarter 2012 adjusted cash flow from operations was $291.2 million versus $356.8 million a year ago(1).

The decrease in third-quarter revenues and cash flow is primarily a result of lower gas and NGL prices, partially offset by higher liquids production. Third-quarter 2012 realized gas price fell 39% to $2.79 per thousand cubic feet (Mcf) and NGL prices dropped 34% to $28.55 per barrel, as compared to a year ago. Oil prices for the third quarter of 2012 averaged $88.18 per barrel flat with the third-quarter 2011 average price of $87.64 per barrel.

For the nine months ended September 30, 2012, net income totaled $254.7 million, or $2.93 per diluted share, as compared to $413.1 million, or $4.79 per diluted share, for the first nine months of 2011. Year-to-date through September 30, 2012 adjusted cash flow from operations totaled $834.6 million versus $1.0 billion for 2011(1).

2012 Outlook
Total Company fourth-quarter 2012 volumes are estimated to average 652-677 MMcfe/d, an 8-13% increase over fourth-quarter 2011. Fourth-quarter 2012 Permian Basin and Mid-Continent (PB/MC) production is expected to average 622-642 MMcfe/d, an increase of 17-21% over fourth-quarter 2011. Gulf Coast volumes are estimated to average 30-35 MMcfe/d for fourth-quarter 2012.

The resulting full-year 2012, total Company volumes are projected to average 620-626 MMcfe/d, 5-6% growth over 2011. PB/MC 2012 production volumes are projected to average 581-585 MMcfe/d, growing 19-20% over 2011. Gulf Coast volumes are expected to average 39-41 MMcfe/d for 2012.

Full-year 2012 exploration and development (E&D) capital investment is expected to be approximately $1.6 billion. E&D capital for the first nine months of 2011 totaled $1.2 billion.

Expenses for 2012 are expected to fall within the following ranges:

    Expenses ($/Mcfe):
            Production expense                        $1.11 -  $1.16
            Transportation expense                 0.25  -  0.30
            DD&A and ARO accretion                 2.35  -  2.45
            General and administrative expense     0.25  -  0.30
             Taxes other than income (% of oil
             and gas revenue)                          6.0%  -  6.5%

Other
Long-term debt at September 30, 2012 was $830 million, comprised of $750 million 5.875% Senior Notes due in 2022 and $80 million of borrowings under its senior unsecured revolving credit facility. Debt to total capitalization ratio at quarter-end was 20% ((4)).

Cimarex’s hedge position is unchanged covering approximately 14,000 barrels of oil per day for the balance of 2012. The following table summarizes the open hedge positions:

     Oil Contracts                                      Weighted Average Price
     -------------                                      ----------------------
    Period               Type  Daily Volume(2)    Index(3)        Floor    Ceiling
    ------               ----   --------------     -------        -----    -------
    Months of  Oct.-Dec.
     12                  Collar    14,000      WTI         $80.00       $119.35

Cimarex accounts for commodity contracts using the mark-to-market (through income) accounting method. Third-quarter 2012 had a non-cash mark-to-market loss of $5.3 million and no cash settlements.

Exploration and Development Activity
Cimarex’s drilling activities are conducted within two main areas: Permian Basin and Mid-Continent. Permian activity is primarily directed to the Delaware Basin of southeast New Mexico and West Texas. The majority of our Mid-Continent drilling is in the western Oklahoma Cana-Woodford shale.

Cimarex drilled 253 gross (138 net) wells during the first nine months of 2012, completing 97% as producers. Exploration and development capital for the year has totaled $1.2 billion. Of total expenditures, 52% were invested in projects located in the Permian Basin; 44% in the Mid-Continent area; and 4% in the Gulf Coast and other.

    Wells Drilled and Completed by Region
                                          For the Three        For the Nine
                                          Months               Months
                                          Ended September      Ended September
                                           30,                30,
                                          ----------------   ----------------
                                             2012      2011     2012      2011
                                             ----      ----     ----      ----
    Gross wells
    Permian Basin                              37        35      131       106
    Mid-Continent                              55        42      119       128
    Gulf Coast/Other                            1         5        3         8
                                              ---       ---      ---       ---
                                               93        82      253       242
    Net wells
    Permian Basin                              24        23       88        79
    Mid-Continent                              23        20       49        52
    Gulf Coast/Other                            0         5        1         7
                                              ---       ---      ---       ---
                                               47        48      138       138
    % Gross wells completed
     as producers                              99%       94%      97%       95%

At quarter-end 39 net wells were drilled and awaiting completion: 28 Mid-Continent and 11 Permian Basin. Cimarex currently has 19 operated rigs running; 14 in the Permian Basin and five in the Mid-Continent.

Permian Basin
Cimarex drilled and completed 131 gross (88 net) Permian Basin wells during the first nine months of 2012, completing 96% as producers. At quarter-end, 18 gross (11 net) wells were awaiting completion. Drilling principally occurred in the Delaware Basin of Texas and southeast New Mexico, mainly targeting Bone Spring, Paddock and Wolfcamp formations. Third-quarter 2012 Permian production averaged 274.5 MMcfe/d, an increase of 33% over third-quarter 2011, which included 42% growth in oil volumes to 25,000 barrels per day.

Year-to-date 2012 New Mexico Bone Spring wells drilled and completed totaled 48 gross (24 net). Per-well 30-day gross production from the 2012 New Mexico Bone Spring wells averaged over 630 barrels equivalent (Boe) per day (86% oil). Texas Third Bone Spring drilling totaled 28 gross (18 net) wells, which had per-well 30-day average gross production rates of over 1,000 barrels equivalent per day (80% oil).

Cimarex continues to evaluate the Wolfcamp shale in the Delaware Basin, primarily in southern Eddy County New Mexico (White City) and northern Culberson County Texas. Year-to-date Cimarex has drilled and completed 11 gross (10 net) horizontal Wolfcamp wells, bringing total wells in the play to 29 gross (27 net). Per well first-30 day production rates on all the wells drilled to date have averaged 6.4 MMcfe/d, comprised of 2.8 MMcf/d gas, 275 barrels per day of oil and 330 barrels per day of NGLs (assuming full NGL recovery), or 43% gas, 26% oil and 31% NGL.

Mid-Continent
In the first nine months of 2012 Cimarex drilled and completed 119 gross (49 net) Mid-Continent wells. At quarter-end, 64 gross (28 net) wells were awaiting completion. Mid-Continent production averaged 324.3 MMcfe/d for the third quarter of 2012, a 7% increase over third-quarter 2011 average of 303.1 MMcfe/d.

Essentially all this year’s drilling activity has been in the Anadarko Basin, Cana-Woodford shale play, where Cimarex has drilled and completed 113 gross (47 net) wells. At September 30, 2012 there were 54 gross (24 net) Cana wells being completed or awaiting completion. At year-end 2011 there were 13 gross (4.9 net) wells waiting on completion in Cana. The increase in wells waiting on completion as compared to year-end is a result of commencing infill development drilling in 2012.

Since the Cana play began in late 2007, Cimarex has drilled or participated in 464 gross (177 net) wells. Third-quarter 2012 net Cana production averaged 184.3 MMcfe/d, a 32% increase versus the third-quarter 2011 average of 139.2 MMcfe/d.

Gulf Coast
Cimarex participated in three gross (0.8 net) outside operated Yegua/Cook Mountain wells in 2012, of which one gross well was successful. Gulf Coast production averaged 35.1 MMcfe/d for the third quarter of 2012, a 57% decrease as compared to the third-quarter 2011 average of 81.8 MMcfe/d. The decreased output is a result of natural decline in highly-productive wells drilled near Beaumont, Texas.

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

                For the Three Months  For the Nine Months
                        Ended                Ended
                    September 30,        September 30,
                    -------------        -------------
                                 2012                 2011    2012    2011
                                 ----                 ----    ----    ----
    Gas (Mcf
     per day)
    Permian
     Basin                     79,502               76,872  78,007  72,150
    Mid-
     Continent                224,009              209,459 218,411 197,688
    Gulf Coast/
     Other                     20,735               43,334  24,110  57,513
                               ------               ------  ------  ------
                              324,246              329,665 320,528 327,351

    Oil
     (Barrels
     per day)
    Permian
     Basin                     25,000               17,578  22,839  15,977
    Mid-
     Continent                  6,120                5,720   5,802   5,641
    Gulf Coast/
     Other                      1,336                2,986   1,602   4,954
                                -----                -----   -----   -----
                               32,456               26,284  30,243  26,572
    NGL
     (Barrels
     per day)
    Permian
     Basin                      7,501                3,921   6,523   3,231
    Mid-
     Continent                 10,598                9,885   9,934   8,866
    Gulf Coast/
     Other                      1,261                3,632   1,487   4,981
                                -----                -----   -----   -----
                               19,360               17,438  17,944  17,078
    Total
     Equivalent
     (Mcfe per
     day)
    Permian
     Basin                    274,508              205,866 254,179 187,398
    Mid-
     Continent                324,317              303,089 312,827 284,730
    Gulf Coast/
     Other                     36,318               83,045  42,644 117,127
                              635,143              592,000 609,650 589,255
                              =======              ======= ======= =======

Conference call and web cast
Cimarex will also host a conference call today at 11:00 a.m. Mountain Time (1:00 p.m. Eastern Time). To access the live, interactive call, please dial (877) 789-9039 and reference call ID # 37850869 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 # 37850869. The listen-only web cast of the call will be accessible via 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 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) Adjusted cash flow from operations is a non-GAAP financial measure. See below for a reconciliation of the related amounts.

(2) Average daily volume in barrels per day.

(3) WTI refers to West Texas Intermediate oil price as quoted on the New York Mercantile Exchange.

(4) Reconciliation of pro forma debt to total capitalization, which is a non-GAAP measure, is: pro forma long-term debt of $830 million divided by long-term debt of $830 million plus stockholders’ equity of $3,377.9 million.

                                                                                             RECONCILIATION OF ADJUSTED CASH FLOW FROM OPERATIONS
                                                                          For the Three Months Ended
                                                                                                                    For the Nine Months Ended
                                                                                 September 30,                               September 30,
                                                                                 -------------                               -------------
                                                                                                  2012                                        2011                                        2012                     2011
                                                                                                  ----                                        ----                                        ----                     ----
                                                                                       (in thousands)
    Net cash provided by operating
     activities                                                                               $261,216                                    $332,432                                    $836,148                 $971,523
             Change in operating assets
                 and liabilities                                                              29,957                                      24,372                                      (1,509)                  33,264

    Adjusted cash flow from operations                                                      $291,173                                    $356,804                                    $834,639               $1,004,787

    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                   For the Nine Months Ended
                                                                               September 30,                               September 30,
                                                                               -------------                               -------------
                                                                                                2012                                        2011                                        2012                     2011
                                                                                                ----                                        ----                                        ----                     ----

              Total gas production - Mcf                                                  29,830,627                                  30,329,145                                  87,824,541               89,366,754
              Gas volume - Mcf per day                                                       324,246                                     329,665                                     320,528                  327,351
              Gas price - per Mcf                                                              $2.79                                       $4.57                                       $2.71                    $4.59

              Total oil production - barrels                                               2,985,956                                   2,418,141                                   8,286,503                7,254,247
              Oil volume - barrels per day                                                    32,456                                      26,284                                      30,243                   26,572
              Oil price - per barrel                                                          $88.18                                      $87.64                                      $91.67                   $93.08

              Total NGL production - barrels                                               1,781,139                                   1,604,337                                   4,916,753                4,662,376
              NGL volume - barrels per day                                                    19,360                                      17,438                                      17,944                   17,078
              NGL price - per barrel                                                          $28.55                                      $43.11                                      $31.35                   $42.99

                                                                                                OIL AND GAS CAPITALIZED EXPENDITURES

                                                                          For the Three Months Ended                   For the Nine Months Ended
                                                                               September 30,                               September 30,
                                                                               -------------                               -------------
                                                                                                2012                                        2011                                        2012                     2011
                                                                                                ----                                        ----                                        ----                     ----
                                                                                   (in thousands)
             Acquisitions:
             Proved                                                $                               -                                     $12,439           $                               -                  $21,604
             Unproved                                                                          4,636                                       8,380                                      11,349                   20,427

                                                                                               4,636                                      20,819                                      11,349                   42,031
             Exploration and development:
             Land and Seismic                                                                 28,226                                      61,907                                      86,613                  146,832
             Exploration and development                                                     389,989                                     360,733                                   1,120,740                1,032,794

                                                                                             418,215                                     422,640                                   1,207,353                1,179,626
             Sale proceeds:
             Proved                                                                          (10,894)                                    (83,709)                                    (11,079)                (102,192)
             Unproved                                                                              -                                        (150)                                     (1,088)                  (1,971)

                                                                                             (10,894)                                    (83,859)                                    (12,167)                (104,163)
                                                                                            $411,957                                    $359,600                                  $1,206,535               $1,117,494
                                                                                            --------                                    --------                                  ----------               ----------

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (unaudited)

                                                                                                 For the Nine Months Ended
                                                                     For the Three Months Ended
                                                                                                       September 30,                          September 30,
                                                                                                       -------------                          -------------
                                                                                                                      2012                                  2011                                     2012                                     2011
                                                                                                                      ----                                  ----                                     ----                                     ----
                                                                                                 (In thousands, except per share data)

    Revenues:
                     Gas sales                              $83,208                                               $138,631                              $238,102                                 $410,331
                     Oil sales                              263,315                                                211,928                               759,609                                  675,239
                     NGL sales                              50,860                                                 69,169                               154,160                                  200,428
                      Gas gathering,
                      processing and
                      other, net                    9,529                               14,081                                 31,199                                41,620
                                                                                                                   406,912                               433,809                                1,183,070                                1,327,618
                                                                                                                   -------                               -------                                ---------                                ---------
    Costs and expenses:
                      Depreciation,
                      depletion,
                      amortization and
                      accretion                   139,499                              108,259                                384,964                               287,777
                     Production                             62,699                                                 62,333                               192,818                                  181,558
                     Transportation                14,481                               13,754                                 40,966                                41,559
                      Gas gathering and
                      processing                    5,496                                6,263                                 15,302                                17,472
                      Taxes other than
                      income                       24,095                               30,533                                 72,738                                98,625
                      General and
                      administrative               14,742                                9,390                                 41,523                                34,734
                      Stock compensation,
                      net                           8,301                                4,595                                 17,519                                13,962
                      (Gain) loss on
                      derivative
                      instruments, net              5,329                               (7,120)                                  (661)                              (11,353)
                      Other operating,
                      net                           2,236                                2,379                                  7,295                                 8,095
                                                                                                                   276,878                               230,386                                  772,464                                  672,429
                                                                                                                   -------                               -------                                  -------                                  -------

    Operating income                                                                                               130,034                               203,423                                  410,606                                  655,189

    Other (income) and expense:
                     Interest expense              12,191                                7,278                                 32,852                                22,192
                      Amortization of
                      deferred financing
                      costs                         1,032                                2,001                                  2,718                                 5,407
                      Capitalized
                      interest                    (9,231)                               (7,253)                               (26,154)                              (21,830)
                      Loss on early
                      extinguishment of
                      debt                                      -                                                      -                                16,214                                        -
                     Other, net                             (6,159)                                                 (3,604)                              (18,714)                                  (7,226)

    Income before income tax                                                                                       132,201                               205,001                                  403,690                                  656,646
    Income tax expense                                                                                              47,939                                76,849                                  149,019                                  243,583
                                                                                                                    ------                                ------                                  -------                                  -------

    Net income                                                                                                     $84,262                              $128,152                                 $254,671                                 $413,063
                                                                                                                   =======                              ========                                 ========                                 ========

    Earnings per share to common stockholders:

                     Basic                                                                $0.97                                  $1.49                                 $2.94                                    $4.81

                     Diluted                                                              $0.97                                  $1.49                                 $2.93                                    $4.79

    Dividends per share                                                                                              $0.12                                 $0.10                                    $0.36                                    $0.30
                                                                                                                     =====                                 =====                                    =====                                    =====

    Shares attributable to common stockholders:
                      Unrestricted common
                      shares outstanding            84,681                               83,736                                 84,681                                83,736

                      Diluted common
                      shares                       84,997                               84,115                                 85,021                                84,151

    Shares attributable to common stockholders and
     participating securities:
                      Basic shares
                      outstanding                  86,589                               85,806                                 86,589                                85,806

                      Fully diluted
                      shares                       86,905                               86,185                                 86,929                                86,221

    Comprehensive income:
                     Net income                            $84,262                                               $128,152                              $254,671                                 $413,063
                      Other comprehensive
                      income:
                      Change in fair
                      value of
                      investments,
                      net of tax                      238                                 (585)                                   502                                  (417)
                      Total comprehensive
                      income                      $84,500                             $127,567                               $255,173                              $412,646

    CONDENSED CASH FLOW STATEMENTS (unaudited)

                                                                                                                             For the Three Months Ended        For the Nine Months Ended
                                                                                                                                    September 30,                    September 30,
                                                                                                                                    -------------                    -------------
                                                                                                                                   2012             2011           2012           2011
                                                                                                                                   ----             ----           ----           ----
                                                                                                                                                  (In thousands)

    Cash flows from operating activities:
                                                Net income                            $84,262                  $128,152                        $254,671                      $413,063
                                                 Adjustment to
                                                 reconcile net income
                                                 to net cash
                                                 provided by operating
                                                 activities:
                                                          Depreciation,
                                                          depletion,
                                                          amortization
                                                          and accretion               139,499      108,259      384,964        287,777
                                                          Deferred income
                                                          taxes                        49,568      120,930      150,648        288,986
                                                          Stock
                                                          compensation,
                                                          net                           8,301        4,595       17,519         13,962
                                                          Derivative
                                                          instruments,
                                                          net                           5,329       (5,373)        (661)        (7,536)
                                                          Loss on early
                                                          extinguishment
                                                          of debt                           -            -       16,214              -
                                                          Changes in non-
                                                          current assets
                                                          and liabilities               2,815         (840)       7,930          3,719
                                                          Amortization of
                                                          deferred
                                                          financing costs
                                                          and other, net                1,399        1,081        3,354          4,816
                                                 Changes in operating
                                                 assets and
                                                 liabilities:
                                                          (Increase)
                                                          decrease in
                                                          receivables,
                                                          net                         (83,436)     (49,778)      24,398        (32,229)
                                                          Decrease in
                                                          other current
                                                          assets                       13,673       40,430        8,763         30,736
                                                  Increase
                                                          (decrease) in
                                                          accounts
                                                          payable and
                                                          accrued
                                                          liabilities                  39,806      (15,024)     (31,652)       (31,771)
                                                                                       ------      -------      -------        -------
                                                    Net cash
                                                                                    provided
                                                                                    by
                                                                                    operating
                                                                                    activities      261,216      332,432        836,148          971,523
                                                                                                    -------      -------        -------          -------
    Cash flows from investing activities:
                                                 Oil and gas
                                                 expenditures          (423,134)     (453,375) (1,181,742)  (1,152,676)
                                                 Sales of oil and gas
                                                 assets                   10,894       83,859       12,167      104,163
                                                Sales of other assets        142      111,495          550      111,837
                                                Other expenditures       (16,826)     (17,161)     (42,913)     (70,050)
                                                                                                                -------      -------      -------
                                                                                    Net cash
                                                                                    used by
                                                                                    investing
                                                                                    activities     (428,924)    (275,182)    (1,211,938)      (1,006,726)
                                                                                                   --------     --------     ----------       ----------
    Cash flows from financing activities:
                                                 Net increase in bank
                                                 debt                     80,000            -       25,000            -
                                                 Increase in other
                                                 long-term debt                -            -      750,000            -
                                                 Decrease in other
                                                 long-term debt                -            -     (363,595)           -
                                                 Financing costs
                                                 incurred                 (1,129)      (7,248)     (13,821)      (7,348)
                                                Dividends paid           (10,330)      (8,583)     (29,199)     (23,998)
                                                 Issuance of common
                                                 stock and other           7,646        2,591       10,410        9,583
                                                                                                                  -----        -----       ------
                                                                Net cash
                                                                     provided by
                                                                       (used in)
                                                                       financing
                                                                      activities       76,187      (13,240)     378,795        (21,763)
                                                                                       ------      -------      -------        -------
    Net change in cash and cash equivalents                                                                                     (91,521)          44,010          3,005        (56,966)
    Cash and cash equivalents at beginning of period                                                                             96,932           13,150          2,406        114,126
                                                                                                                                 ------           ------          -----        -------
    Cash and cash equivalents at end of period                  $5,411                 $57,160                    $5,411                         $57,160
                                                                ======                 =======                    ======                         =======

    CONDENSED BALANCE SHEETS (unaudited)

                                                                                            September 30,                                        December 31,
                                Assets                                                                              2012                                               2011
                                                                                                                    ----                                               ----
                                                                                  (In thousands, except share data)
    Current assets:
                      Cash and cash
                      equivalents                           $5,411                                                $2,406
                     Receivables, net                      335,011                                               359,409
                      Oil and gas well
                      equipment and
                      supplies                           77,879                                                85,141
                      Deferred income
                      taxes                               2,126                                                 2,723
                      Derivative
                      instruments                           416                                                     -
                      Other current
                      assets                              6,715                                                 8,216

                      Total current
                      assets                            427,558                                               457,895
                                                        -------                                               -------
    Oil and gas properties at cost, using the full cost
     method of accounting:
                     Proved properties                 11,116,783                                             9,933,517
                      Unproved properties
                      and properties
                      under development,
                      not being
                      amortized                         661,626                                               607,219
                                                        -------                                               -------
                                                                                                            11,778,409                                         10,540,736
                      Less - accumulated
                      depreciation,
                      depletion and
                      amortization                   (6,767,943)                                           (6,414,528)
                                                   ---
                      Net oil and gas
                      properties                      5,010,466                                             4,126,208
                                                      ---------                                             ---------
    Fixed assets, net                                                                                          134,776                                            118,215
    Goodwill                                                                                                   691,432                                            691,432
    Other assets, net                                                                                           49,023                                             34,827
                                                                                                                ------                                             ------
                                                                                                            $6,313,255                                         $5,428,577
                                                                                                            ==========                                         ==========
              Liabilities and Stockholders' Equity
    Current liabilities:
                     Accounts payable                    $64,988                                               $79,788
                     Accrued liabilities                    434,966                                               385,651
                      Derivative
                      instruments                                       -                                                   245
                     Revenue payable                    151,798                                               150,655

                      Total current
                      liabilities                       651,752                                               616,339
                                                        -------                                               -------
    Long-term debt                                                                                             830,000                                            405,000
    Deferred income taxes                                                                                    1,128,642                                            974,932
    Other liabilities                                                                                          324,914                                            301,693
                      Total
                      liabilities                     2,935,308                                             2,297,964
                                                      ---------                                             ---------
    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,
                      86,540,753 and
                       85,774,084
                      shares issued,
                      respectively                          865                                                   858
                     Paid-in capital                  1,931,583                                             1,908,506
                     Retained earnings                  1,445,011                                             1,221,263
                      Accumulated other
                      comprehensive
                      income (loss)                         488                                                   (14)
                                                                                                             3,377,947                                          3,130,613
                                                                                                             ---------                                          ---------
                                                                                                            $6,313,255                                         $5,428,577
                                                                                                            ==========                                         ==========

SOURCE Cimarex Energy Co.


Source: PR Newswire