Cimarex Energy Company Report Developed by GlobalData

27 Jul 2012 • by Natalie Aster

Cimarex is aggressively focusing on its E&D activities in order to consolidate its reserve and production base. The company evaluates its drilling prospects through a detailed analysis involving potential reserve size, geologic and mechanical risks, expected costs and future production profiles. These exploratory activities of Cimarex are primarily focused in the Permian basin and the Mid-Continent regions. In 2011, the company drilled 54 net wells in the Bone Spring area in the Permian basin region. Furthermore, in 2011, the company participated in more than 330 wells in the Cana-Woodford shale play in the Mid-Continent region. These activities indicate that the company is intensively involved in several exploratory programs in order to strengthen its reserve base. The figure below shows various parameters related to the E&D activities of Cimarex between 2008 and 2011.

Cimarex Energy Co., Exploration and Development Parameters, 2008–2011
 
Cimarex Energy Co., Exploration and Development Parameters, 2008–2011 
 

The new report “Cimarex Energy Co., Company Intelligence Report” by GlobalData states that the company consistently added reserves through revision, extension and discoveries, and improved recovery between 2008 and 2011. The total reserves added organically by Cimarex in 2008, 2009, 2010 and 2011 were 9.7 MMboe, 64.4 MMboe, 93.3 MMboe and 96.6 MMboe, respectively. Furthermore, these organic reserve additions were higher than the peer group average of -5.7 MMboe, 51.4 MMboe, 67.7 MMboe and 61.4 MMboe in 2008, 2009, 2010 and 2011, respectively. The growth in the E&D activities of Cimarex can be primarily attributed to its consistent allocation of capex for these activities. The company’s E&D capex averaged around $1,135.5m between 2008 and 2011. The net productive exploratory and development wells drilled by the company between 2008 and 2011 were in line with its exploration and development capex. The total net productive exploratory and development wells drilled by the company in 2008, 2009, 2010 and 2011 were 252.4, 59.7, 120.8 and 161.4, respectively.

Furthermore, the company is has a huge inventory of undeveloped acreage which will drive the growth in the reserve base of the company in the long term. Cimarex’s total net undeveloped acreage in 2008, 2009, 2010 and 2011 was 3.3 million acres, 4.3 million acres, 6.0 million acres and 6.1 million acres, respectively, which was significantly higher than the acreage of its peer group average during the same period. The figure below shows the net undeveloped acreage of the company between 2008 and 2011 compared to the peer group.

Report Details:

Cimarex Energy Co., Company Intelligence Report
Published: April, 2012
Pages: 103
Price: US$ 1.000,00

The company’s strategy of consolidating its reserve base through organic reserve additions along with the huge inventory of net undeveloped acreage is expected to provide a strong potential advantage to its reserve base. The increase in the proved reserves of the company will further help it to achieve the targeted production levels between 2012 and 2016.

More information can be found in the report “Cimarex Energy Co., Company Intelligence Report” by GlobalData.

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