March 22, 2012 / 4:01 PM / 6 years ago

TEXT-S&P rates Cimarex Energy notes 'BB+'

March 22 - Standard & Poor's Ratings Services today assigned its 'BB+'
senior unsecured issue rating to Denver-based Cimarex Energy Co.'s 
proposed $650 million senior unsecured notes due 2022. The recovery rating on
the notes is '3', indicating our expectation of meaningful (50% to 70%) recovery
in the event of a payment default. Cimarex's 'BB+' corporate credit rating and
stable outlook are unaffected. The exploration and production company intends to
use proceeds to repurchase its existing $350 million notes due 2017, repay
outstanding debt on its credit facility and for general purposes. As of Dec. 31,
2011, Cimarex had about $405 million in balance sheet debt. 	
	
The ratings on Denver-based Cimarex Energy Co. reflect the company's "fair" 	
business profile (as our criteria define the term) as a midsize exploration 	
and production company in the volatile and capital-intensive oil and natural 	
gas industry, its moderate reserve life, and good operating performance. The 	
rating also reflects the company's "intermediate" financial risk, given 	
Cimarex's consistently strong financial measures (which mitigate its lack of 	
scale relative to larger peers), its moderate financial leverage, and strong 	
liquidity. (For the complete corporate credit rating rationale, see our 	
summary analysis on Cimarex published on Dec. 13, 2011.) 	
	
RELATED RESEARCH AND CRITERIA	
Assumptions: Revised Assumptions For Assigning Recovery Ratings To The Debt Of 	
U.S. Oil And Gas Exploration And Production Companies, Sept. 30, 2010	
	
	
RATINGS LIST	
Cimarex Energy Co.	
 Corporate credit rating                   BB+/Stable/--	
	
New Rating	
 Proposed $650 mil sr unsecd nts due 2022  BB+	
  Recovery rating                          3	
	
Complete ratings information is available to subscribers of RatingsDirect on 	
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 	
by this rating action can be found on Standard & Poor's public Web site at 	
www.standardandpoors.com. Use the Ratings search box located in the left 	
column.

Our Standards:The Thomson Reuters Trust Principles.
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