Cimarex Energy Co. (NYSE: XEC) is an independent oil and gas exploration and production company with principal operations in the Mid-Continent, Permian Basin and Gulf Coast areas of the U.S. Year-end 2007 proved reserves totaled 1.47 trillion cubic feet equivalent (76% natural gas and 79% proved developed). Approximately 78% of our total proved reserves are concentrated in the Mid-Continent and Permian Basin regions which generally have stable production, reliable reserve estimates and low production decline rates.
Our business approach is centered on increasing shareholder value through consistent profitable growth in proved reserves and production through our drilling program. We maintain a geographically and geologically diverse portfolio of low-to-moderate risk development and higher risk exploration projects. A cornerstone to our approach is detailed evaluation of each drilling decision based on its risk-adjusted discounted cash flow rate of return on investment. Our analysis includes estimates and assessments of potential reserve size, geologic and mechanical risks, expected costs and future production profiles. Acquisitions may be made from time to time, but our principal strategy is growth through the drill-bit.
Our technical expertise and attention to detail is what differentiates Cimarex. We have proven teams of geologists, geophysicists, engineers and land professionals working in each of our core regions. It is these teams of local experts who generate and execute our drilling program that drives our growth.
Cimarex is headquartered in Denver, CO, and has exploration offices in Tulsa, Midland, New Orleans, Dallas and Houston.
