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4Q 2017 Investor Update – Continental Resources, Inc.

Continental Resources, Inc. · Feb 22, 2018 · 35 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 1
    Investor Update February 2018
  2. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 2
    2018: Breakout Year for CLR Top-Tier Production Growth w/ Up to 900MM in Free Cash Flow(1) 2018 Budget Highlights: 100% funded from internal cash flow 2.0 billion for D&C 2.3 billion capital 78% of D&C targeting Bakken and Springer…
  3. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 3
    CLR Has Transitioned to Sustainable Positive Cash-Flow Growth Annual Production Chart 2010-2014 Growing Bakken and SCOOP 350,000 285,000- 2015-2016 STACK 300,000 Growing STACK and SCOOP 300,000 SCOOP Building Bakken DUCs 242,637…
  4. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 4
    CLR Restoring Historical Returns and Debt Metrics Return on Capital Employed (ROCE)(1) 96 97 2015-2017 30% 95 95 100 No equity dilution to fund 25% 23.1% growth / reduce debt 21.9% 80 Build operating efficiencies and Avg. WTI…
  5. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 5
    CLR: Low-Cost, Oil-Weighted Producer Sustained Downward Shift in LOE and Oil % vs. Peers (3Q17) (Source: Public company filings) Production Expense per Boe 10 7 Exploration 6 Asset Optimization 8 5 4 6 LOE/Boe 3 2 4 1 CLR…
  6. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 6
    CLR: Low Costs Generate Strong Margins(1) 4Q17: Select Cash Costs Margin(4) and Recycle Ratio(5) vs. Peers(6) of 10.60 per Boe (Source: Stephens, Inc. August 2017) 60 30 Margin(1) Interest Production/Severance Tax CLR Avg.…
  7. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 7
    CLR: 4Q 2017 Highlights 4Q 2017: 286,985 Boe per day (59% oil); up 37% over 4Q 2016 Production Oil production up 44% over 4Q 2016 FY 2017: 242,637 Boe per day (57% oil); up 12% over FY 2016 Bakken: 39 gross operated wells…
  8. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 8
    CLRs Superior Oil-Weighted Assets Provide the Foundation for Future Growth 4Q 2017 Production: 286,985 Boe per day (59% oil) Play Net Reservoir HBP(1) Acres(1) NORTH Bakken: 802,000 90% 175,563 Boepd STACK: Meramec 212,500 58%…
  9. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 9
    Bakken Continues to Deliver Record Results 39 gross operated wells turned to production in 4Q17 Average 24-Hr IP: 2,180 Boe per day Tarentaise Fed. 1-19H Top 5 all-time 30-day rate Bakken wells Tarentaise Fed. 3-19H 30-Day Avg,…
  10. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 10
    Bakken Optimized Completions Continue to Uplift Performance & Economics Across Our Acreage 1,100 MBoe type curve supported by 134 optimized Optimized completions successful across completions broad area Generates 125% ROR(2) 10…
  11. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 11
    Bakken Differentials Continued to Improve in 4Q 2017 Benefiting Corporate Netbacks 4Q17 Bakken differential Bakken Oil Differentials to WTI improved 4.54 from 2015 14 average 11.83 12 10 9.21 Revised Bakken transportation 8.26 8.10…
  12. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 12
    STACK Density Results Providing Template for Future Development CLR Density Results Normally- Intermediate pipe required Pressured Over- Pressured Unit name Average 24- of wells Zones Blurton Verona hour IP per per zone tested…
  13. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 13
    Taking STACK to Next Level: Introducing Unit Economic Model for Over Pressured Meramec Oil Objective: Maximizing the Net PV-10 (PV-10)(1) of Unit Maximizing Unit Value 100 200% Preliminary Unit Economic Model for Meramec Oil Unit…
  14. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 14
    SCOOP Springer: Moving to Full Field Development in 2018, Guided by Density Test Results SCOOP Springer Fairway Three Density Pilots Completed Tested 4, 5 and 6 wells per unit Hartley Density (5-well unit) Third density test completed…
  15. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 15
    SCOOP Springer: Introducing Unit Economic Model Type Curve EUR up 28%, 175% ROR Updated Springer type curve for unit wells 1,200 MBoe Springer Type Curve 400 1,200 MBoe (75% oil), 7500 lateral 350 175% ROR(1) at 9.5 MM CWC 300…
  16. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 16
    SCOOP Woodford Oil Enhanced Completions Increase EUR 13% SCOOP Woodford Enhanced Completions 30+ enhanced completions outperform legacy offsets Pyle 1-36-25XH 13% increase in EUR to 1,520 MBoe per well for 2-mile lateral 55%…
  17. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 17
    Dicksion Project(1): Testing the Future of SCOOP Simultaneous Drilling & Completing Springer/Woodford/Sycamore Drilling Rig Template for full-unit Stimulation Crew development: Aerial photograph of Dicksion Unit Drilling…
  18. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 18
    CONTACT INFORMATION J. Warren Henry Vice President, Investor Relations & Research Phone: 405-234-9127 Email: Warren.HenryCLR.com Alyson L. Gilbert Manager, Investor Relations Phone: 405-774-5814 Email: Alyson.GilbertCLR.com Website:…
  19. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 19
    REFERENCE MATERIALS 20
  20. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 20
    Proved Reserves up 4% over YE 2016 Total Proved Reserves 1,500 STACK 1,331 Year-end 2017: SCOOP 13% Proved reserves were 1,331 MMBoe, 1,200 Bakken up 4% over YE 2016 proved reserves Legacy of 1,275 MMBoe MMBoe 900 37%…
  21. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 21
    2018 Guidance Builds on Successful 2017 Full-Year 2017 2018 Guidance as Production & Capital Performance of 2/21/18 Capital expenditures (non-acquisition) 1.995 billion 2.3 billion Production (Boe per day) 242,637 285,000 300,000…
  22. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 22
    2018 Drilling Program: CLR Oil Assets Bakken STACK Over-Pressured Oil 200% 200% Target EUR: 1,100 MBoe Target EUR for parent wells: 1,700 MBoe Avg. Lateral: 9,800 175% Avg. Lateral:9,800 160% 175% ROR 150% 120% 125% ROR…
  23. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 23
    2018 Drilling Program: CLR Condensate Assets 200% SCOOP Woodford Condensate 200% STACK Condensate Target EUR: 2,400 MBoe Target EUR: 2,300 MBoe 175% 175% Avg. Lateral: 9,800 Avg. Lateral: 7,500 150% 150% 125% 125% ROR ROR…
  24. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 24
    Optimized Oil Completions Type Curves Bakken Production STACK Over-Pressured Oil Type Curve 10,000 160 Well Count 10,000 Well Count 150 Actual Production (Normalized to 9800' LL) 140 1,100 Mboe Type Curve Act. Production Actual…
  25. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 25
    Optimized Condensate Completions Type Curves 10,000 SCOOP Woodford Condensate Type Curve 60 10,000 STACK Condensate Type Curve 60 Well Count Well Count Actual Production (Normalized to 9800' LL) 2,300 MBOE Type Curve (Normalized to…
  26. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 26
    Optimized Completions Unlock Bakken Value Generating 2.6MM First Year Incremental Cash Flow per Well(1) Evolution of Bakken Type Curves 150% 1,100 MBoe vs. 980 MBoe 1,100 MBoe; 7.9MM CWC 140% 980 MBoe; 7.0MM CWC 800 MBoe; 6.8MM CWC…
  27. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 27
    Continued Focus on Debt Reduction Upgraded to IG by S&P to BBB- Debt Maturities Summary 3,000 Financial Metrics 2,500 5.0% 1.9x: net debt(1) / 4Q 2017 annual 2,000 (MM) EBITDAX(1) 1,500 4.5% 2,657 Undrawn 3.8% 4.375% 2.7x:…
  28. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 28
    Continuing to Deliver Strong Margins(1) 2015 2016 4Q 2017 2017 Realized oil price (/Bbl) 40.50 35.51 51.16 45.70 Realized natural gas price (/Mcf) 2.31 1.87 3.30 2.93 Oil production (Bopd) 146,622 128,005 168,066 138,455 Natural…
  29. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 29
    Free Cash Flow/Outspend Reconciliation to GAAP Free cash flow/outspend is a non-GAAP measure. We define free cash flow/outspend as cash flows from operations before changes in working capital items less capital expenditures excluding…
  30. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 30
    Net Debt Reconciliation to GAAP Net debt is a non-GAAP measure. We define net debt as total debt less cash and cash equivalents as determined under U.S. GAAP. Management uses net debt to determine the Companys outstanding debt…
  31. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 31
    EBITDAX Reconciliation to GAAP We use a variety of financial and operational measures to assess our performance. Among these measures is EBITDAX. We define EBITDAX as earnings (net income (loss)) before interest expense, income taxes,…
  32. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 32
    EBITDAX Reconciliation to GAAP The following tables provide reconciliations of our net income (loss) and net cash provided by operating activities to EBITDAX for the periods presented: In thousands 2010 2011 2012 2013 2014 2015 2016 4Q…
  33. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 33
    ADJUSTED Earnings Reconciliation to GAAP Our presentation of adjusted earnings and adjusted earnings per share that exclude the effect of certain items are non-GAAP financial measures. Adjusted earnings and adjusted earnings per share…
  34. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 34
    Cash G&A Reconciliation to GAAP Our presentation of cash general and administrative (G&A) expenses per Boe is a non-GAAP measure. We define cash G&A per Boe as total G&A determined in accordance with U.S. GAAP less non-cash equity…
  35. 4Q 2017 Investor Update – Continental Resources, Inc. – slide 35
    Calculation of Return on Capital Employed (ROCE) The following table shows the calculation of ROCE: In thousands, except per share data 2010 2011 2012 2013 2014 2015 2016 2017 Net income (loss) 168,255 429,072 739,385 764,219…

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