Page 11 - NorthAmOil Week 08 2021

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UPSTREAM quarter and averaged 252.5 mboe per day for oil wells also targeting initial production in
the year. mid-2021. The recent acquisitions come on
Cimarex reports fourth- averaged $40.09 per barrel, down 27% from the heels of US Energy deploying more than
In the fourth quarter realised oil prices
$100mn in new projects over the past 12
quarter and full-year 2020 the $54.80 per barrel received in the fourth months. The firm continues to actively search
for additional investment opportunities and
quarter of 2019. Realised natural gas prices
results averaged $1.69 per 1,000 cubic feet (mcf), up joint ventures in 2021.
“The Shetland and WarWink projects
42% from the fourth quarter 2019 average of
Cimarex Energy today reported net income $1.19 per mcf. NGL prices averaged $14.02 are instrumental in US Energy’s continued
for fourth quarter 2020 of $24.7mn, or $0.25 per barrel, down one% from the $14.13 per growth and expansion in the Permian Basin,”
per share, compared to a net loss of $384.1mn, barrel received in the fourth quarter of 2019. said Jordan Jayson, chairman and CEO,
or $3.87 per share, in the same period a year For the full year, Cimarex realised $35.59 per US Energy. “These projects offer favorable
ago. For the full year, Cimarex reported a barrel of oil, down 33% from 2019, $1.05 per valuations, desirable locations and strong
net loss of $1,967.5mn, or $19.73 per share, mcf of natural gas and $10.53 per barrel of projected returns. They rank amongst the
compared to 2019 net loss of $124.6mn, or NGLs sold. most attractive projects we have seen in our
$1.33 per share. Both fourth quarter and full CIMAREX ENERGY, February 22, 2021 40 year history.”
year results were negatively impacted by a Energy projects located in opportunity
non-cash charge related to the impairment US Energy Development zones, like the Shetland project, provide
of oil and gas properties. Fourth quarter additional tax benefits to investors.
2020 adjusted net income (non-GAAP) Corporation continues to Opportunity zones allow qualified investors to
was $91.3mn, or $0.89 per share, compared defer short or long-term capital gains, receive
to adjusted net income (non-GAAP) of expand its projects in the 10% of their deferral tax free, while also
$120.4mn, or $1.18 per share in the same qualifying for tax-free gains on investments
period a year ago1. Full year 2020 adjusted Permian Basin held longer than 10 years. This is in addition
net income (non-GAAP) was $142.2mn, or to the traditional tax benefits oil and gas
$1.39 per share, compared to $448.8mn, or US Energy Development Corporation, an projects receive.
$4.46 per share in 20191. Adjusted cash flow exploration & production (E&P) firm which “Some of the best areas for oil and gas
from operations (non-GAAP) was $256.6mn provides direct investments in energy, has production are located in opportunity zone
in fourth quarter 2020 compared to $416.0mn announced the acquisition of interests in census tracts,” noted Matthew Iak, executive
in the same period a year ago1. Full year 2020 the Shetland and WarWink oil development vice president of US Energy.
adjusted cash flow from operations (non- projects. Both assets are core Permian projects US ENERGY DEVELOPMENT CORPORATION,
GAAP) was $944.2mn compared to $1.46bn located in the Delaware Basin close to the February 23, 2021
in 20191. Texas and New Mexico state lines.
Oil volumes in the fourth quarter were Located in an opportunity zone in Eddy EP Energy closes divestiture
sequentially lower, averaging 67,800 barrels County, New Mexico, the Shetland project
per day. For the full year, Cimarex reported contains an interest in 14 producing wells of Southern Midland Basin
average daily oil volumes of 76,700 barrels, and six recently proposed oil wells targeting
an 11% year-over-year decrease. Cimarex initial production in mid-2021. The WarWink assets
produced 229.5 thousand barrels of oil project is located in Winkler County, Texas,
equivalent (mboe) per day in the fourth and contains an ownership interest in two EP Energy Corporation announced today that
it has closed the divestiture of its Southern
Midland Basin assets.
EP Energy’s go-forward portfolio will
consist of approximately 410,000 gross
(270,000 net) acres in the Uinta Basin in
Northeastern Utah and the Eagle Ford.
Average daily net production for the fourth
quarter 2020 pro-forma for the transaction
was 44,000 barrels of oil equivalent per day
and 28,000 barrels of oil per day. End of year
2020 Net Debt and Liquidity, pro-forma for
the transaction was approximately $95mn and
$465mn, respectively.
President and chief executive officer Russell
Parker said: “We are very pleased to close this
transaction that enables EP Energy to core up
its portfolio and significantly reduce debt. EP
Energy has industry leading leverage metrics,
a strong liquidity position, and an asset base
that generates attractive returns and free cash
flow in the current price environment.”
EP ENERGY CORPORATION, February 24, 2021

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