Cimarex Energy Co. today announced that the Tulsa County District Court entered a final judgment in the H.B. Krug, et al. v. Helmerich & Payne, Inc. ("H&P") case. In November 2008, the jury found that up to $6.845 million should be awarded to plaintiff royalty owners. The jury also rendered an advisory ruling to the Court that up to $61.622 million should be paid to disgorge H&P's alleged profits since 1989 resulting from its possession of the $6.845 million.
On January 8, 2009, the Court issued a judgment for damages of $6.845 million. The Court also increased the jury's $61.622 million disgorgement of profits award to $119.523 million based on the Court's calculation of the alleged profits H&P earned on the $6.845 million (for a total award of $126.368 million).
Pursuant to the 2002 spin-off transaction to shareholders of H&P by which Cimarex became a publicly-traded entity, Cimarex assumed the assets and liabilities of H&P's exploration and production business.
Cimarex will appeal the district court's judgments.
This lawsuit originally was filed in 1998 and addresses H&P's conduct pertaining to a 1989 take-or-pay settlement, along with potential drainage issues and other related matters.