Cimarex launches 2019’s plans for capital investment

The estimated capital investment on development and exploration of the firm is around 1.35 to 1.45 billion US Dollars. This is inclusive of the capital of around 1.1 to 1.2 Billion US Dollars on the drilling and the completion. The growth of production for the year is likely to be somewhere around 13 percent to as much as 22 percent. This growth in the production is majorly led by the growth in the oil sector of around 15 to 30 percent. The flow of cash is neutral at around 52.50 oil including the dividend and $50 without the dividend.

Cimarex Energy Corporation declared the projected Exploration and Development of capital investment for the following year of around 1.35 to 1.45 billion US dollars; this is around 10 percent lesser than the midpoint of the year 2018.  60 to 70 million US dollars of extra capital are allocated by the firm for the infrastructure and midstream related tasks.  All estimations that are announced depend on the closing acquisition of Resolute Energy Corp. which is due on 1st March 2019.

The total production of the firm is likely to be somewhere around 250’000 to as much as 270’000 barrels of oil per day, whereas, the expected production of oil is supposedly going to average at around 78 thousand to 88 thousand MBO for every day.

Chairman and Chief executive officer of Cimarex, Mr. Tom Jorden claimed: “Cimarex is using a $50 to $55 per barrel NYMEX oil price sensitivity for planning capital investments in 2019 and beyond.  As we see it today, our planned activity for 2019 results in Cimarex being cash flow neutral at $52.50 per barrel NYMEX including the payment of our dividend.  More importantly, the level of spending planned for this year puts us in a strong position to generate free cash flow at $50 per barrel of oil including payment of the dividend in 2020-21.”

The CEO further added that “We continue to seek out capital efficiencies and are determined to execute our 2019 capital plans, including the payment of our dividend, within cash flow.  Of course, oil prices and associated price differentials have the largest impact on our cash flow and our ability to achieve this goal, but we have other levers to pull as well. As has been the case, our continued success will be the result of the things at which we excel–thorough evaluation, careful planning, and solid execution.”