Cimarex Energy Company Earnings Call Insights: Oil Production Guidance and Locations

Thomas E. Jorden – Chairman, President and CEO: The other thing I want to add, because I’m guessing we will get the question, is on Q1 with our guidance being lower than Q4 will. Couple of things that play there and this is also impacting our total number. But the Permian Basin sales that we closed on at the very end of the month last year took about 15.5 million a day off our first quarter production. We also had a number of freezing issues and pipeline issues in – particularly in Culberson County in early January that – January to the tune of about 16 million a day that built into that number. We also had a handful of good strong fourth quarter wells that came on in October and November that we are on fairly good stream of decline here in November and early January that we were finding. And all of that when you add it all up says hey, we are going to be about flat with Q4 which was a strong quarter for us that we were at the upper end of our production guidance. All that said the models also saying that we anticipate production to start picking up here pretty quickly in February and our early indications are that production is doing just that. And when you take a look at our production guidance for the year and you look at 675 to 705 and you compare to where we were in Q1 and while we have given guidance in Q1, hey, it’s not a lot, like what we told you guys last year, that we were going to be kind of flat for the first half of the year and expect to ramp up here at the end of the year and lo and behold that happened. That’s what we are modeling this year. We are going to have a little bit of delayed start here in the first quarter primarily as a result of the property sale. But our model is saying that come around second quarter we are going to start to see some real nice production growth and ultimately I hope allow us to talk quarter-to-quarter about continued record numbers. So kind of long answer to your question, but I thought I’d knock off the second question because I thought it was going to get asked.

Phillip Jungwirth – BMO Capital Markets: Here’s a third question on the guidance. On the NGL production growth of 33% to 39% is any of that driven by change in processing contracts and reporting the NGL as opposed to leaving in on the gas trend?

Thomas E. Jorden – Chairman, President and CEO: Most of that is all due to the existing contracts which have already been modified. Most of the old contracts that could be rewritten or revised all that’s been done. So anything really showing up now is all through new adds.