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Continental Resources Second Quarter 2022 Results

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Continental Resources, Inc. announced its second quarter 2022 operating and financial results, declared a quarterly dividend, and updated various 2022 guidance metrics and differentials.

Highlights:

Strong 2Q22 Results

• $1.74 B Cash Flow from Operations (CFO) & $1.23 B Free Cash Flow (FCF) (Non-GAAP)

• $1.21 B Net Income; $3.35 per Diluted Share ($1.25 B Adj. Net Income; $3.47 per Adj. Share (Non-GAAP))

• $265.2 MM Total Debt Reduction and $814.2 MM Net Debt (Non-GAAP) Reduction in 2Q22

• Declaring $0.28 per Share Quarterly Dividend

Updating Various 2022 Guidance Metrics & Differentials

• Increasing Projected Return on Capital Employed (ROCE) to ~32% from Previous ~31%

• Improving 2022 Crude Oil Differentials per Barrel of Oil to Average ($2.25) to ($3.25) from ($2.50) to ($3.50)

•  Improving 2022 DD&A per Boe to $12.00 to $14.00 from $14.00 to $16.00

• Updating 2022 Production Expense per Boe to $3.75 to $4.25 from $3.50 to $4.00

Overview

The Company reported net income of $1.21 billion, or $3.35 per diluted share, for the quarter ended June 30, 2022. In second quarter 2022, typically excluded items in aggregate represented $42.8 million, or $0.12 per diluted share, of Continental's reported net income. Adjusted net income for second quarter 2022 was $1.25 billion, or $3.47 per diluted share (non-GAAP). Net cash provided by operating activities for second quarter 2022 was $1.74 billion, and EBITDAX was $2.20 billion (non-GAAP).

Adjusted net income, adjusted net income per share, EBITDAX, free cash flow, net debt, net sales prices, and cash general and administrative (G&A) expenses per barrel of oil equivalent (Boe) presented herein are non-GAAP financial measures. Definitions and explanations for how these measures relate to the most directly comparable U.S. generally accepted accounting principles (GAAP) financial measures are provided at the conclusion of this press release.

2Q22 Production Update

Second quarter 2022 total production averaged 400.2 MBoepd. Second quarter 2022 oil production averaged 198.3 MBopd. Second quarter 2022 natural gas production averaged 1,211 MMcfpd. The following table provides the Company's average daily production by region for the periods presented:

2Q22 Results Overview

Declaring $0.28 per Share Quarterly Dividend

The Company today announced that its Board of Directors has declared a quarterly dividend of $0.28 per share on the Company's outstanding common stock, payable on August 22, 2022 to stockholders of record on August 8, 2022. This equates to an approximately 1.7% dividend yield¹.

Updating Various 2022 Guidance Metrics & Differentials

The Company is updating various 2022 guidance metrics and differentials. The Company's projected 2022 return on capital employed is increasing to approximately 32% from approximately 31%. The Company is improving its 2022 DD&A per Boe to $12.00 to $14.00 from $14.00 to $16.00, reflecting strong well productivity, capital efficiency and an upward revision in proved reserves due in part to higher commodity prices. The Company is improving its 2022 crude oil differentials guidance per barrel of oil to average ($2.25) to ($3.25) from ($2.50) to ($3.50), given strong pricing realizations. Finally, the Company is updating its 2022 production expense per Boe to $3.75 to $4.25 from $3.50 to $4.00, given increased workover activity and inflationary pressure.