Cimarex (XEC) Announces Expiration Of 5.875% Senior Notes
Zacks Investment Research | Apr 09, 2017 09:31PM ET
Cimarex Energy Co. (NYSE:XEC) recently declared that its earlier announced cash tender offer to purchase any and all of the outstanding aggregate principal amount of its 5.875% Senior Notes, due 2022, expired on Apr 7, 2017.
As of the expiry time (5:00 pm, New York City time, on Apr 7), $253,423,000 aggregate principal amount of the Notes (34%) were validly tendered. This, however, does not include $194,000 aggregate principal amount of the Notes that are subject to guaranteed delivery procedures.
Cimarex is likely to accept for payment all Notes validly tendered and not validly withdrawn in the tender offer. The company is anticipated to make payment for the Notes on Apr 10, 2017. According to the terms of the tender offer, Notes that have not been tendered in the offer will remain outstanding.
Cimarex is likely to send a redemption notice for any and all outstanding Notes following the terms of the indenture, as revised and supplemented, governing the Notes on Apr 12, 2017. All the remaining outstanding Notes will be redeemed (subject to the terms thereof) on May 12, 2017.
Cimarex Energy is an independent oil & gas exploration and production firm. The company’s operations are located mainly in Oklahoma, Texas and New Mexico. Its exploration and production (E&P) activities take place primarily in two areas – the Permian Basin and the Mid-Continent region.
The company has established a track record of focused and disciplined exploration and production capital spending. This has driven profitable growth over the past many years. Management’s conservatism can be gauged by the fact that the company does not recognize undeveloped reserves as part of its proven reserves for reporting purposes. As a result, almost all of the company’s reserves are developed.
However, Cimarex Energy’s price chart shows weakness. Shares of the company depreciated 17% in the last three months, while the Zacks categorized Zacks Investment Research
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