Resolute Energy — Merger or Acquisition (November 2018)
11 slides from Resolute Energy's merger presentation, Nov 19, 2018
Slide 1: Safe Harbor Cautionary Statements Regarding Forward-Looking Information
Safe Harbor Cautionary Statements Regarding Forward-Looking Information This presentation contains certain “forward-looking statements” within the meaning of federal securities laws. Words such as “anticipates,” “believes,” “expects,” “intends,” “will,” “should,” “may” and similar expressions may be
Slide 2: Complementary Acquisition in Delaware Basin Adds 21,100 Net Acres in Reeves County
Complementary Acquisition in Delaware Basin Adds 21,100 Net Acres in Prolific Reeves County, TX Full-Cycle Returns Compete for Capital with Existing Portfolio Accretive on All Relevant Financial Metrics Acquired Assets are Self-Funding in 2019 3
Slide 3: Cimarex acquires Delaware Pure-Play Resolute Energy
Cimarex acquires Delaware Pure-Play Resolute Energy TRANSACTION HIGHLIGHTS $1.6 billion transaction 60% stock / 40% cash after assumption of $710MM debt - Pro forma, XEC and REN shareholders own 94.4% / 5.6% - Unanimously approved by both Boards ACQUISITION HIGHLIGHTS ~21,100 net acres in Reeves Cou
Slide 4: Transaction Overview
Transaction Overview 1At the election of Resolute shareholders: (I) 0.2366 of an XEC share + $14.00; (II) 0.3943 of an XEC share; or (III) $35.00. Consideration mix subject to pro ration 2Based on11/16/18 closing prices 3Face value at September 30, 2018 4Potential maximum cash paid of $385mm pursuan
Slide 5: Strategic & Financial Benefits
Strategic & Financial Benefits 6 Strategically Sound Adds 21,100 net acres in Reeves County Applies Cimarex proven best practices to maximize value Increases oil weighting and substantially all acquired production on pipe Financially Robust Full-cycle returns compete for capital with existing portfo
Slide 6: Expands Delaware Footprint
Expands Delaware Footprint ASSET HIGHLIGHTS Acquired assets have 79% average W.I.; 83% HBP 35 MBoe/d (45% oil)1 36 horizontal wells completed Takeaway in place RECENT XEC UPPER WOLFCAMP WELL RESULTS Snowshoe development (8 wells): 30-day peak avg IP of 2,508 Boe/d, 1,174 Bo/d Dixieland: 30-day avg p
Slide 7: Cimarex Wells See Continued Productivity Gains
Cimarex Wells See Continued Productivity Gains REEVES COUNTY WELL PRODUCTIVITY 10,000’ Laterals Cumulative Production - MBoe 2018 wells outperforming 16/17 results Technical advances driving increased productivity: – – – Completion design Optimization of landing zone Spacing/well configuration Sever
Slide 8: Cimarex is a Leader vs Peers in Delaware Basin
Cimarex is a Leader vs Peers in Delaware Basin 180-day Average Production per Well BOE 180-day Average Production per Well Barrels of Oil D A B CD E F GH I A F E C B GH I XEC REN XEC REN Cimarex and Resolute have demonstrated strong well results compared to peers Resolute assets compete for capital
Slide 9: Complementary Acquisition in Delaware Basin Adds 21,100 Net Acres in Reeves County
Complementary Acquisition in Delaware Basin Adds 21,100 Net Acres in Prolific Reeves County, TX Full-Cycle Returns Compete for Capital with Existing Portfolio Accretive on All Relevant Financials Metrics Acquired Assets are Self-Funding in 2019 10
Slide 10: Contact Info
Contact Info 11 Contact Karen AciernoCimarex Energy Co. Director – Investor Relations1700 Lincoln Street, Suite 3700 kacierno@cimarex.comDenver, CO 80203 303-285-4957303-295-3995
Slide 11: XEC Investor Relations Contact
AE XEC LISTED NYSE Karen Acierno Cimarex Energy Co. Director — Investor Relations 1700 Lincoln Street, Suite 3700 kacierno@cimarex.com Denver, CO 80203 303-285-4957 303-295-3995 | COM ARE Na ieee siete esse es ete eae net ee edt eet ee erste)
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