Cimarex issued the following announcement on April 15.
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.
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 it 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.
Current Hedge Position
| Oil Hedges | 2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 |
| WTI Oil Collars1 | |||||||
| Volumes (Bbl/d) | 34,341 | 41,000 | 41,000 | 33,000 | 23,000 | 14,000 | 14,000 |
| Weighted Average Floor | 48.29 | 40.91 | 40.91 | 38.71 | 34.00 | 29.71 | 29.71 |
| Weighted Average Ceiling | 58.96 | 49.84 | 49.84 | 46.70 | 41.33 | 36.86 | 36.86 |
| WTI Oil Basis Swaps2 | |||||||
| Volumes (Bbl/d) | 27,648 | 32,000 | 32,000 | 24,000 | 18,000 | 13,000 | 13,000 |
| Weighted Average Differential3 | 0.38 | 0.18 | 0.18 | 0.00 | (0.19) | (0.65) | (0.65) |
| Gas Hedges | 2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 |
| PEPL Gas Collars4 | |||||||
| Volumes (MMBtu/d) | 63,297 | 80,000 | 80,000 | 60,000 | 50,000 | 30,000 | 30,000 |
| Weighted Average Floor | 1.89 | 1.75 | 1.75 | 1.72 | 1.69 | 1.73 | 1.73 |
| Weighted Average Ceiling | 2.28 | 2.17 | 2.17 | 2.12 | 2.08 | 2.14 | 2.14 |
| El Paso Perm Gas Collars5 | |||||||
| Volumes (MMBtu/d) | 33,297 | 70,000 | 70,000 | 50,000 | 50,000 | 30,000 | 30,000 |
| Weighted Average Floor | 1.41 | 1.36 | 1.36 | 1.36 | 1.36 | 1.51 | 1.51 |
| Weighted Average Ceiling | 1.82 | 1.64 | 1.64 | 1.63 | 1.63 | 1.80 | 1.80 |
| Waha Gas Collars6 | |||||||
| Volume (MMBtu/d) | 33,297 | 50,000 | 50,000 | 50,000 | 50,000 | 30,000 | 30,000 |
| Weighted Average Floor | 1.56 | 1.32 | 1.32 | 1.32 | 1.32 | 1.50 | 1.50 |
| Weighted Average Ceiling | 1.95 | 1.58 | 1.58 | 1.58 | 1.58 | 1.75 | 1.75 |
| 1WTI refers to West Texas Intermediate oil prices as quoted on the New York Mercantile Exchange |
| 2Index price on basis swaps is WTI Midland as quoted by Argus Americas Crude |
| 3Index price on basis swaps is WTI NYMEX less weighted average differential shown in table |
| 4PEPL refers to Panhandle Eastern Pipe Line Tex/OK Mid-Continent as quoted on Platt's Inside FERC |
| 5El Paso Perm refers to El Paso Permian Basin index as quoted on Platt's Inside FERC |
| 6Waha refers to West Texas Natural Gas Index ("Waha") as quoted in Platt's Inside FERC |
Original source can be found here.