Cimarex Energy Provides Third Quarter Update

Cimarex Energy reports expected third-quarter 2005 production volumes, oil and gas price realizations and derivative mark-to-market expense.

Cimarex's third-quarter 2005 oil and gas production volumes increased by 102 percent over the same period a year earlier to 445.8 million cubic feet equivalent per day (MMcfe/d). Gas production rose 92 percent to 337.8 million cubic feet per day and oil volumes increased 145 percent to 18,000 barrels per day.

Average realized prices for the third quarter are expected to range between $7.80 to $7.95 per thousand cubic feet of gas and $59.30 to $59.60 per barrel of oil.

The significant increase in this quarter's production is principally a result of closing the Magnum Hunter acquisition on June 7, 2005. However, third quarter production volumes were negatively impacted by Hurricanes Cindy, Dennis, Emily, Katrina and Rita.

Cimarex expects to recognize an $82 million pre-tax charge in the third quarter related to oil and gas derivative contracts, which equates to $0.63 per basic share after tax, associated with swaps and collars assumed as part of the Magnum Hunter acquisition which do not qualify for hedge accounting. The charge includes both non-cash mark-to-market derivative losses as well as cash settlements. Cash payments related to these contracts that settled in the third quarter totaled $15.6 million. The following is a summary of the company's open derivative contracts as of September 30, 2005:

     Commodity       Type      Volume/Day       Duration           Price

     Natural Gas    Collar    40,000 MMBtu   Oct 05 - Dec 05     $4.00-$6.25
     Natural Gas    Collar    10,000 MMBtu   Oct 05 - Dec 05     $4.25-$6.60
     Natural Gas    Collar    10,000 MMBtu   Oct 05 - Dec 05     $5.00-$9.50
     Natural Gas     Swap     20,000 MMBtu   Oct 05 - Dec 05        $6.25
     Natural Gas    Collar    20,000 MMBtu   Jan 06 - Dec 06     $5.25-$6.30

     Crude Oil       Swap     1,000 Bbl      Oct 05 - Dec 05        $34.90
     Crude Oil      Collar    1,000 Bbl      Oct 05 - Dec 05    $35.00-$55.00
     Crude Oil      Collar    1,000 Bbl      Jan 06 - Dec 06    $30.00-$35.85

Cimarex will release its third-quarter 2005 financial and operating results on Thursday November 3, 2005 before the market opens and will host a follow-up conference call and web cast at 11 a.m. Mountain Time (1:00 p.m. Eastern Time). To access the live, interactive conference call, please dial 888-858-4710 ten minutes before the scheduled start time. The listen-only web cast of the call will be accessible via

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