Oct. 22, 2009 (PR Newswire) --
DENVER, Oct. 22 /PRNewswire-FirstCall/ -- Cimarex Energy Co. (NYSE: XEC) today announced third-quarter oil and gas production volumes averaged 441.5 million cubic feet equivalent per day (MMcfe/d). Average daily equivalent production was comprised of 306.8 million cubic feet of gas and 22,439 barrels of oil.
Third-quarter 2008 production averaged 484.9 MMcfe/d and second-quarter 2009 averaged 453.9 MMcfe/d. Daily production decreased as expected and is the result of reduced drilling. Cimarex's third-quarter 2009 operated rig count averaged nine as compared to 43 in the comparable period of 2008.
Third-quarter 2009 average realized prices are expected to be in the range of $3.75 to $3.85 per thousand cubic feet (Mcf) of gas and $63.25 to $63.75 per barrel of oil.
Cimarex will release its third-quarter 2009 financial results on Tuesday, November 3, 2009, before the market opens.
Bank-Credit Facility
Cimarex's bank group, as part of the regularly scheduled fall review, reaffirmed the Company's $1.0 billion borrowing base related to its credit facility maturing in April 2012. Bank group commitments of $800 million also remain unchanged. As of September 30, 2009, Cimarex had borrowings outstanding of $156 million, which is $183 million less than the second-quarter balance of $339 million. The reduction in borrowings was funded from non-core property sales, tax refunds, lower capital spending relative to cash flow and a net positive working capital change.
Immediately after quarter-end, Cimarex completed the sale of its interest in a Texas secondary recovery oil field for $81 million, which further reduced bank borrowings to $115 million. Year-to-date proved property sales total $117 million, with associated proved reserves of 28 billion cubic feet equivalent and 8 MMcfe/d of production.
Oil and Gas Hedges
Cimarex has oil and natural gas hedge contracts for October 2009 through December 2010. Calendar 2010 hedges cover on average 11,000 barrels of oil per day and 160,000 MMBtu of gas per day, representing slightly less than half of expected production.
