CORPORATE PRESENTATION February 2018 Forward-looking Statements - PowerPoint PPT Presentation

CORPORATE PRESENTATION February 2018

Forward-looking Statements This presentation contains projections and other forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These projections and statements reflect the Company’s current views with respect to Contact: future events and financial performance. No Karen Acierno assurances can be given, however, that Director – Investor Relations these events will occur or that these kacierno@cimarex.com 303-285-4957 projections will be achieved, and actual Cimarex Energy Co. results could differ materially from those 1700 Lincoln Street, Suite 3700 projected as a result of certain factors. A Denver, CO 80203 303-295-3995 discussion of these factors is included in the Company’s periodic reports filed with the U.S. Securities and Exchange Commission. 2

Who is Cimarex? Market Cap 1 $ 10 billion Debt/Adj. EBITDA 2 1.3x 201 MBOE/d Production (4Q 17) Proved Reserves (YE 17) 559 MMBOE — % Natural gas 48% — % Proved Developed 83% — R/P Ratio 8.0x Quarterly Dividend $0.08/share 1 As of February 14, 2018 2 As of and for the twelve months ended 12/31/17. See Appendix for non-GAAP definitions and reconciliations to nearest comparable GAAP measure. 3

What’s Important  Returns drive our decisions  Balanced portfolio of assets – Premier position in the Delaware Basin and Mid-Continent region – Flexibility through commodity cycles Continuous idea generation   Strong, disciplined execution  Solid financial position – Conservative debt levels and ample liquidity – $401 million in cash at December 31, 2017 4

2017 Achievements  Improved well performance – Enhanced completion design – Allows tighter development well spacing  Six successful spacing pilots announced in 2017 – Additional spacing tests underway  14-wells/section Lower Wolfcamp in Culberson County  18-wells/section Upper Wolfcamp in Reeves County  Wolfcamp and Avalon tests in Lea County, NM  Woodford spacing in Lone Rock  Result: infill development that preserves returns while adding locations (NPV) 5

2017 Growth in Production and Reserves Debt-adjusted production growth  Daily Production (MBOE) per share of 15% year-over-year 30%  Oil led the way growing 27% and Total 45% grew 36% 4Q17 vs 4Q16 190 MBOE/D  Total E&D capital – $1.28 billion 25% – D&C capital of $980 million Oil NGL Natural Gas – 98 net wells brought on Proved Reserves production (MMBOE)  Proved reserves – 559 MMBOE 559 522 485 482 – Increase of 16%: PUDs now 416 17% of total proved – Replaced 211% of 2017 production 2013 2014 2015 2016 2017 Oil NGL Natural Gas 6

2017 Net Wells Online 98 net wells completed in 2017 47 30 26 24 18 1QA 2QA 3QA 4QA Wells Drilling & Waiting on Completion at Permian Basin Mid-Continent 12/31/17 7

Return driven production growth continues in 2018 Daily Production (MBOE)  High return projects expected to 211-221 generate 2018 production growth of 11 – 16% 190  Oil expected to grow 21 – 26% in 164 161 2018 145 – Oil growth estimated at 29 – 34% 4Q18 vs 4Q17 33% 30% 31% 28% 30% 2014 2015 2016 2017 2018E Oil NGL Natural Gas 8

2018 Capital Investment Program  E&D Capital of $1.6 – 1.7 billion – 29% increase from 2017 – Within cash available Other  D&C Capital $1.3 – 1.4 billion Meramec – 82% of Total E&D capital – Permian Basin ~70% D&C Capital – Mid-Continent Region ~30% $1.3 – 1.4 billion Wolfcamp  Additional $80 – 90 million Woodford budgeted for midstream  Currently operating 14 rigs Avalon Bone – Ten in Permian Spring – Four in Mid-Continent 9

2018 Net Wells Online 127 net wells planned in 2018 51 48 32 31 13 1QE 2QE 3QE 4QE Wells Drilling & Waiting on Completion at Permian Basin Mid-Continent 12/31/18 10

2018 Delaware Basin Plans Wells Drilled by Economies of Scale Total D&C Capital Area Ward Single Bone well Spring Reeves Eddy Avalon 83 Net Wells $890 – 940mm Multi-well Lea Culberson Wolfcamp  ~90% multi-well drilling or takes advantage of existing facilities 11

Delaware Basin Wolfcamp Overview  ~216,000 net acres in the fairway  Multiple Wolfcamp Targets – Culberson/White City Area  ~100,000+ net acres  Upper & Lower Wolfcamp  JDA with Chevron – Reeves County 2017/18 wells Lower Wolfcamp  ~63,000 net acres Upper Wolfcamp Bone Spring  Upper Wolfcamp – Lea County  ~32,000 net acres – Ward County  ~16,000 net acres  188 total Wolfcamp wells drilled – 103 long laterals (>7,000’) 12

Culberson / White City Wolfcamp Details Lower Wolfcamp Wigeon Upper Wolfcamp 2,359 BOE/d Operated SWD  100,000+ net acres; JDA with (30% oil) Chevron in Culberson County  68 long lateral wells  Seattle Slew spacing pilot producing  Animal Kingdom infill drilling  Positive results from Western Culberson Upper Wolfcamp American Pharoah 3,047 BOE/d (53% oil) delineation – Four wells with average 30-day peak initial production of 2,587 Sir Barton BOE/D (56% oil) 3,035 BOE/d (54% oil) Lord Murphy Kingman 45 – Fifth well on production 2,207 BOE/d 2,057 BOE/d (58% oil) (60% oil) 13

Improving Upper Wolfcamp Results Culberson Area Long Lateral Upper Wolfcamp  Changes to completion design Cumuative Production (MBOE) have resulted in better wells  Fifteen wells with new frac 700 design have average 30-day 600 peak IP of 2,172 BOE/D (52% oil) 500 – ~30% increase in first year cumulative production 400  Now testing new landings within 300 Upper Wolfcamp zone 200 100 0 0 60 120 180 240 300 360 Days Old Completion New Completion 14

Production Improvement - Upper Wolfcamp Delaware Basin Upper Wolfcamp Wells 180 day Average Daily Production per Well (BOE) 2,000 1,749 1,482 1,500 1,239 1,000 871 731 500 0 2013 2014 2015 2016 2017 Average Lateral 5,058 5,309 6,926 8,409 9,750 Length (ft) 15

Resilient Long Lateral Returns Culberson Long Lateral Wolfcamp BTAX IRR* 200% 150% 100% 50% 0% $30 $40 $50 $60 $70 Realized Oil Price Upper Wolfcamp - $2/Mcf Lower Wolfcamp - $2/Mcf Upper Wolfcamp - $1/Mcf Lower Wolfcamp - $1/Mcf *Assumes full NGL recovery, NGL price is 30% of oil price 16

Culberson County – Tim Tam Development Lower Wolfcamp Cumulative Production  Tim Tam infill wells generated (MBOE) 67%+ ATAX return 700  Infills have surpassed parent wells in both landing zones 600  Results lead to 14 wells per 500 section test – Animal Kingdom now drilling 400 300 Tim Tam spacing Lower Wolfcamp 200 1,756’ Parent well (lower landing) 100 200’ Tim Tam Infill well (lower landing) 1,756’ Parent well ( upper landing) Tim Tam Infill well (upper landing) - 0 60 120 180 240 300 360 Animal Kingdom spacing Days Lower Wolfcamp 225’ 1,216’ 225’ 1,216’ 17

Culberson County – Upper Wolfcamp Development Extrapolated Average Cumulative Production per 7,500 ft well (MBOE)  Similar, strong early cumulative per-well production testing 6, 8 or 12 wells per section 200  Upper Wolfcamp development to begin in 2018 – Two developments planned 100 0 0 60 120 180 Days Gato average well (6 wells/section) Sunny's average well (8 wells/section) Seattle Slew average well (12 wells/section) 18

Reeves County Focus Area  32 long lateral wells – Targeting Upper Wolfcamp  26 – 10,000 ft laterals producing – Average 30-day peak IP of 1,774 BOE/D (49% oil)  Two downspacing pilots producing – Wood State (12 wells/section) – Pagoda State (16 wells/section)  Snowshoe development drilling Snowshoe – 8 wells; 3 landings (18 wells/section) Pagoda State Wood State Upper Wolfcamp Operated SWD 19

Reeves County – Strong Infill Well Results Daily Production (MBOE)  Upper Wolfcamp 600 – 10,000 ft laterals  Wood State: 6 wells testing 12 wells 500 per section – Surpassed Big Timber, previously 400 best long lateral to date 300 – Average well performing 28% above parent well 200  Pagoda State: 4 wells testing 16 wells per section 100 – Average well performing 20% above parent well 0 0 60 120 180 240 300 360 Days Pagoda spacing Wood State spacing Big Timber well Wood State parent well 880’ 680’ Upper Wolfcamp Upper Wolfcamp Average Wood State well 340’ 340’ Average Pagoda State well 880’ 680’ 20

Lea County  Exciting multi-pay area  $225 million capital spend in 2018  Avalon activity Triste Draw – 24,000 net prospective acres – Triste Draw infill spacing pilot currently drilling  Wolfcamp activity Red Tank – 32,000 net prospective acres – Hallertau infill spacing pilot waiting Red Hills on completion Hallertau Upper Wolfcamp Avalon Bone Spring 21

Mid-Continent Basin 2018 Outlook Activity by Area Total D&C Capital Economies of Scale Other Woodford Meramec Woodford Meramec Single well $370 – 420 43 Net Wells million Multi-well Lone Rock  ~75% multi-well drilling takes advantage of existing facilities 22