Cimarex to Cut Up to 60 Percent of Planned Capex

Cimarex to Cut Up to 60 Percent of Planned Capex
The company has deferred completion activities and will drop all but one drilling rig in May.

Due to the continued weakness in oil prices, Cimarex Energy Co. now expects a 55-60 percent reduction in its 2020 capex program from its original guidance of $1.25-$1.35 billion. In addition, the company has deferred completion activities and will drop all but one drilling rig in early May.

Cimarex also curtailed about 30 percent of its volumes for May due to weakness in realized prices.

"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,” Tom Jorden, Cimarex Chairman, President and CEO, said in a written statement. “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."

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. 

To contact the author, email bertie.taylor@rigzone.com.



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