CIMAREX ENERGY CO. (NYSE:XEC) Files An 8-K Completion of Acquisition or Disposition of Assets
ITEM 2.01COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS

On May23, 2018, Cimarex Energy Co. (“Cimarex,” “we,” or “us”) entered into a Purchase and Sale Agreement with Callon Petroleum Operating Company (“Callon”) to which we agreed to sell, and Callon agreed to purchase, oil and gas properties principally located in Ward County, Texas (the “Ward County assets”) for $570.0 million. The transaction closed on August31, 2018. The purchase price was adjusted to $544.5 million to reflect the resolution of all asserted defects. Adjusting for the $28.5 million deposit we received from Callon and $5.9 million of post effective date net revenue and expenditures, Cimarex received $510.1 million at closing. Final settlement, which will reflect any other post-closing adjustments, will occur within 120 days of closing.

ITEM 7.01REGULATION FD DISCLOSURE

On September4, 2018, we issued a news release reporting the closing of the Purchase and Sale Agreement with Callon described in Item 2.01, Completion of Acquisition or Disposition of Assets, above. A copy of this news release is furnished as Exhibit 99.2 to this report.

In accordance with General Instruction B.2. of Form 8-K, the information in the news release shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS

(b)Pro Forma Financial Information

The pro forma financial statements of Cimarex Energy Co. reflecting the closing of the sale of the Ward County assets are filed as Exhibit99.1 to this Current Report on Form8-K and incorporated herein by reference.

(d)Exhibits

Exhibit No.Description

CIMAREX ENERGY CO Exhibit
EX-99.1 2 exhibit991.htm EXHIBIT 99.1 Exhibit Exhibit 99.1CIMAREX ENERGY CO.INTRODUCTION TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATEDFINANCIAL STATEMENTSOn May 23,…
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About CIMAREX ENERGY CO. (NYSE:XEC)

Cimarex Energy Co. is an independent oil and gas exploration and production company. The Company’s segment is exploration and production. Its operations are located mainly in Oklahoma, Texas and New Mexico. Its operations are focused in approximately two main areas, such as the Permian Basin and the Mid-Continent region. Its Permian Basin region includes west Texas and southeast New Mexico. Its Mid-Continent region consists of Oklahoma and the Texas Panhandle. Its Permian Basin efforts are located in the western half of the Permian Basin known as the Delaware Basin. It is focused on drilling horizontal wells that yielded oil and liquids-rich gas from the Wolfcamp shale, the Bone Spring formation and the Avalon shale. The Permian region produces approximately 542 million cubic feet equivalent per day. In the Mid-Continent region, it is focused in the Cana-Woodford shale and the Meramec horizon. The Mid-Continent region produces approximately 432 million cubic feet equivalent per day.