Cimarex running 13 rigs: 10 in the Permian, 3 Mid-Con
Cimarex Energy Co. (ticker: XEC) reported first quarter 2018 net income of $186.3 million, or $1.96 per share. Total company production for the quarter came in at the high end of guidance, Cimarex said, averaging 206.1 MBOEPD, with oil production averaging 65,212 BPD.
Cimarex invested $313 million in exploration and development (E&D) during the first quarter, 61% in the Permian and 38% in the Mid-Continent. Out of $313 million, $264 million went to D&C activities. According to the company, Q1 investments were funded with cash flow from operations.
Permian, Mid-Continent
During the quarter, Cimarex brought 54 gross (15 net) wells on production – 17 gross wells were in the Permian, and the remaining 37 were in the Mid-Continent. As of March 31, 2018, 125 gross (48 net) wells were waiting on completion.
Permian
Production from the Permian region averaged 114,218 BOEPD in the first quarter, a 19% increase from first quarter 2017. Oil volumes averaged 49,845 BPD, representing 44% of the region’s total equivalent production, and a 21% increase from first quarter 2017.
Activity in the Permian for the quarter included nine wells completed in the Wolfcamp, Avalon and Bone Spring formations. In Lea County, New Mexico, two Avalon wells were brought on-line during the first quarter:
- The Coriander AOC 1-12 State 1H, with a 10,000-foot lateral, had an average peak 30-day initial production rate of 3,333 BOEPD
- The Thyme APY FED 19H, with a 5,000-foot lateral, had an average peak 30-day initial production rate of 2,059 BOEPD
Mid-Continent
As for the Mid-Continent, production averaged 91,433 BOEPD for the quarter, up 13% versus Q1 2017 and up 4% sequentially.
Overall, the company is currently operating 13 drilling rigs, with 10 rigs/three completion crews in the Permian and three rigs/two completion crews in the Mid-Continent.
Outlook
Second quarter 2018 production volumes are expected to average 200-209 MBOEPD. Total daily production volumes for full year 2018 remain unchanged at 211-221 MBOEPD, Cimarex said. Full-year estimated exploration and development capital investment also remains unchanged at $1.6-$1.7 billion.
