The company targets conventional resource basins and invests significant amounts of capital in the exploitation and development of mature oil and gas fields. In an effort to minimize risks and mitigate expenses, Cimarex invests two-thirds of its annual budget in low-cost, moderate-risk drilling activities in the Mid-Continent and Permian Basin and approximately one-third of its budget in precarious but potentially high yield. drilling in the Gulf Coast region. The company's focus is on continued drilling in existing basins and prefers not to rely solely on acquisitions" (Kowalsky, 2015, pp.