This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cimarex Energy's CEO Discusses Q4 2011 Results - Earnings Call Transcript

Stocks in this article: XEC

On Slide 8, it shows our core operating areas, and many of you are familiar with this but just to recap, of that 2.05 Tcf equivalent, 98% are Mid-Continent and Permian reserves, and fully 89% of our production are Mid-Continent and Permian. So those are the engines.

On Slide 9, it shows us graphically. Slide 9 shows our proved reserves as they've increased in the last few years. We have a very solid reserve base. As Paul said, our investments have pulled us towards liquids-rich areas. That's in part tactical, a little strategic, but it's mostly driven by the invisible hand of the disconnect between gas and oil prices, and we are just in a very nice position with one of the best Permian assets amongst our peers, and we can emphasize that oil production by simply shifting our weight. As you can see in 2011, we ended the year 41% liquids; 59% gas, that's a nice healthy growth; compound annual growth rate of 54% of liquids growth, and we ended the year with 82% proved developed reserves, 18% proved undeveloped.

The next slide, Slide 10, shows our proved reserves by region, and this again shows the solid growth that we're seeing out of the Permian and Mid-Continent. We've been growing the last few years, a compound annual growth rate of 28%. In 2010, we did sell our Riley Ridge asset in Sublette County, Wyoming. That was 210 Bcf of proved undeveloped gas reserves. That's the gray bar there on your slide on 10. We replaced those reserves, and accounting for that still increased our proved reserves 9%. If net of that sale, if we get back that sale out, we increased our proved reserves 23%. So a very solid year on a reserve basis.

Read the rest of this transcript for free on

4 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs