Cimarex Energy (XEC) Update - April 16

[dan_s]

DENVER, April 15, 2020 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that, due to the continued weakness in oil prices, it now expects a 55-60 percent reduction in its 2020 capital investment program from its original guidance of $1.25-$1.35 billion.

The company has deferred completion activities and will drop all but one drilling rig in early May. < All upstream companies s/b doing this. They should only be selling oil up to hedged volumes if possible. Keep oil in the ground until prices increase.

Cimarex Chairman, President and CEO, Tom Jorden, said, "The pressure on oil prices resulting from the sudden and severe drop in demand, has caused us to defer activity in the Delaware Basin, further reducing our capital investment in 2020. Cimarex retains the flexibility to adjust our investment in the second half of 2020 as conditions change. Our balance sheet continues to be our focus and allows us to maintain a long-term perspective during this unprecedented time."

Cimarex also announced that is has curtailed approximately 30 percent of its volumes for the month of May due to weakness in realized prices.

The company plans to provide a more detailed update as part of its first quarter earnings release on May 6th.