Cimarex Announces Reduction in 2020 Capital Plans
DENVER, March 17, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that, due to the recent drop in oil prices, it expects a 40-50 percent reduction in its 2020 capital investment program from its original guidance of $1.25-$1.35 billion.
Cimarex Chairman, President and CEO, Tom Jorden, said, "We are taking action in these challenging times. Our top priority is to preserve our balance sheet strength. Our revised outlook assumes $30 per barrel WTI price for the remainder of 2020. Under this scenario, Cimarex will not incur additional debt in 2020 and will generate sufficient free cash flow to preserve payment of our dividend to our shareholders." He went on to say, "This capital level holds annual oil production flat with 2019 levels and the investments we are making significantly exceed our hurdle rate of return, a testament to the quality of our assets."
Cimarex will continue to monitor commodity price developments and will adjust capital spending plans in response to this dynamic environment. The company plans to provide a more comprehensive update as part of its first quarter earnings release in May.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.
SOURCE Cimarex Energy Co.