Cimarex records 4Q net income instead of loss

 

Things turned around for Denver-based Cimarex Energy as the company reported fourth quarter 2020 net income of $24.7 million or 25 cents a share.

It came after the company also reported its entire 2020 loss totaled more than $1.9 billion or $19.73 compared to the 2019 net loss of $124.6b million or $1.33 per share.

The adjusted net income for the fourth quarter 2020 was $91.3 million or 89 cents a share compared to $120.4 million or $1.18 a share a year ago.

Full-year 2020 adjusted net income took a sharp drop from a year earlier, falling from nearly $449 million or $4.46 a share in 2019 to more than $142 million or $1.39 share.

Total debt at December 31, 2020 consisted of $2.0 billion of long-term notes.  Cimarex had no borrowings under its revolving credit facility and a cash balance of $273.1 million at year-end.

The company’s oil volumes were also down in the fourth quarter, averaging 67.8 thousand barrels a day while the entire 2020 average was 76.7 MBbls, a drop of 11% over the year.

Cimarex invested more than $577 million in 2020 in exploration and development including its operations in Oklahoma.

During 2020, Cimarex participated in the drilling and completion of 149 gross (51.0 net) wells.  At year-end, 77 gross (39.6 net) wells were waiting on completion, of which 25 gross (0.5 net) were in the Mid-Continent and 52 gross (39.1 net) were in the Permian.  Cimarex is currently operating six drilling rigs and two completion crews.

Click here for Cimarex press release