CORPORATE PRESENTATION May 2018 Forward-looking Statements This - PowerPoint PPT Presentation

CORPORATE PRESENTATION May 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

XEC – Statistical Summary Market Cap 1 $ 9 billion Debt/Adj. EBITDA 2 1.2x 206 MBOE Daily Production (1Q 18) Proved Reserves (YE 17) 559 MMBOE — % Natural gas 48% — % Proved Developed 83% — R/P Ratio 8.0x Quarterly Dividend $0.16/share 1 As of May 7, 2018 2 As of and for the twelve months ended 3/31/18. See Appendix for non-GAAP definitions and reconciliations to nearest comparable GAAP measure. 3

Who is Cimarex? Returns driven E&P company   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 – $464 million in cash at March 31, 2018 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  Result: infill development that preserves returns while adding locations (NPV) 5

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% 164 161 – Oil growth estimated at 30–35% 145 4Q18 vs 4Q17 33% 30% 31% 28% 30% 2014 2015 2016 2017 2018E Oil NGL Natural Gas 6

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 ~30% $1.3 – 1.4 billion Woodford Wolfcamp  Additional $80 – 90 million budgeted for midstream/other  Operating 13 drilling rigs Avalon Bone – Ten in Permian Spring – Three in Mid-Continent  Five completion crews – Three in Permian – Two in Mid-Continent 7

2018 Production Growth Daily Production Net Wells Online (MBOE) 50 49 211-221 200-209 206 190 34 23 15 1QA 2QE 3QE 4QE Wells 2017A 1QA 2QE 3QE 4QE 2018E Drilling or WOC at 12/31/18 Oil Permian Mid-Continent 8

2018 Delaware Basin Plans Activity by Area Economies of Scale Total D&C Capital Ward Single Bone well Reeves Spring Eddy Avalon 80 Net Wells $885 – 935mm Multi-well Lea Culberson Wolfcamp 9

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  Upper Wolfcamp Bone Spring – Lea County  ~32,000 net acres – Ward County  ~16,000 net acres  195 total Wolfcamp wells drilled – 109 long laterals (>7,000’) 10

Culberson / White City Wolfcamp Details Lower Wolfcamp Upper Wolfcamp Operated SWD  100,000+ net acres; JDA with Chevron in Culberson County  72 long lateral wells  Seattle Slew spacing pilot Owl Draw 12 producing 2,521 BOE/d (1,393 b/d)  Animal Kingdom infill – drilling  Positive results from Western Culberson Upper Wolfcamp delineation – Five wells with average 30-day peak initial production of 2,724 Charismatic 5 BOE/d (56% oil) 3,271 BOE/d (1,882 b/d) 11

Well Productivity Improvements Long Lateral Upper Wolfcamp Wells  52 –10,000-ft. lateral Upper Completion Generation IP180 (BOE/d) Wolfcamp wells drilled since 2013 2,000  Improvement in well productivity seen through enhanced completion design 1,500  Returns get better with each design change 1,000 – Current wells have IRRs that range from 90-140% ATAX  Provides strong fully burdened returns 500  10,000-ft. infill wells have IP180s that are 90% of parent wells 0 Gen 1 Gen 2 Gen 3 Gen 4 Infill Oil (b/d) 12

Resilient Long Lateral Returns Culberson Long Lateral Wolfcamp BTAX IRR* 300% 200% 100% 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 13

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 400 – Animal Kingdom currently drilling 300 Tim Tam spacing 200 Lower Wolfcamp 100 1,756’ 200’ 1,756’ 0 0 60 120 180 240 300 360 Days Animal Kingdom spacing Parent well (lower landing) Lower Wolfcamp Tim Tam Infill well (lower landing) 225’ 1,216’ Parent well ( upper landing) 225’ 1,216’ Tim Tam Infill well (upper landing) 14

Reeves County Focus Area  34 long lateral wells – Targeting Upper Wolfcamp  28 – 10,000-ft. laterals producing – Average 30-day peak IP of 1,809 BOE/d (49% oil) Dixieland State 55-6  Two downspacing pilots producing 2,505 BOE/d (1,464 b/d) – Wood State (12 wells/section) – Pagoda State (16 wells/section)  Snowshoe development waiting on Snowshoe completion Pagoda State – 8 wells; 3 landings (18 wells/section) Wood State Upper Wolfcamp Operated SWD 15

Reeves County – Strong Infill Well Results Cumulative 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 16% 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’ 16

Lea County Thyme APY  Exciting multi-pay area 2,059 BOE/d (1,416 b/d)  $225 million capital spend in 2018  Two Avalon wells brought online in Coriander AOC 1-12 3,333 BOE/d 1Q 18 (2,248 b/d) – Coriander AOC 1-12 State 1H with average 30-day peak IP of 3,333 BOE/d (67% oil) Triste Draw – Thyme APY Fed 9H with average 30-day peak IP of 2,059 BOE/d (69% oil) Red Tank  Avalon activity Red Hills – 24,000 net prospective acres – Triste Draw infill spacing pilot waiting on completion Hallertau  Wolfcamp activity Upper Wolfcamp – 32,000 net prospective acres Avalon Bone Spring – Hallertau infill spacing pilot producing 17

Permian Basin – Residue Gas Takeaway  Sales agreements in place – >98% of forecasted production through October 2019 – El Paso or Waha index pricing  Own and operate two gas gathering systems – Triple Crown – Culberson/Eddy Counties – Matterhorn – Reeves County – Connected to multiple gas processors with inter- and intrastate outlets – Long-term sales agreements in place for NGL volumes 18

Permian Basin – Oil Takeaway  Sales agreements in place for oil volumes through 2018 & 2019  Strategic partnerships in core areas – Pipelines in place – Purchase obligations – Midland index pricing  ~70% oil production on pipe Gas Plains pipeline Plains pipeline (under construction) Oil NGL Energy Transfer pipeline Offloading Site Q1 18 Permian Revenue 19

Permian Basin Water Management  Own and operate salt water Saltwater Disposal System disposal (SWD) systems in Culberson, Eddy and Reeves – Improves operating costs  Recycling produced water for completion operations – 40% of total water procured in 2017 was recycled – Cost savings of ~$1.10/bbl of water  Culberson Wolfcamp wells use 87% recycled water for completions; Reeves Wolfcamp wells use 46%  Secured SWD agreements in Lea County 20

Mid-Continent Basin 2018 Outlook Activity by Area Total D&C Capital Economies of Scale Other Meramec Woodford Meramec Woodford Single well $375 – 425 41 Net Wells million Multi-well Lone Rock 21

Mid-Continent Overview  Meramec and Woodford Stacked Targets  Meramec: 116,500 net prospective acres – 100% HBP  Woodford: 136,500 net undeveloped acres (88% HBP) Meramec play outline Woodford play outline Cana core 22