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1Q 2018 Earnings Presentation – Continental Resources, Inc.

Continental Resources, Inc. · May 2, 2018 · 38 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. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 1
    Investor Update May 2018 PROPERTY OF CONTINENTAL RESOURCES, INC. REPRODUCTION AND DISTRIBUTION WITH WRITTEN PERMISSION ONLY
  2. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 2
    2018: Breakout Year For CLR Delivering Sustainable, Cash-Flow Positive Growth 2018 Outlook 1Q18 Update 287,410 Boepd average production, up 34% over 1Q17 17% to 24% annual production growth Oil production up 37% over 1Q17 (1)…
  3. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 3
    CLRs Path to Sustainable, Positive Cash-Flow Growth Exploration / Asset Accumulation Asset Optimization 350,000 Annual Production STACK 285,000-300,000 300,000 SCOOP Boe per Day 250,000 Bakken 242,637 200,000 Legacy…
  4. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 4
    CLR Restoring Historical Returns And Debt Metrics (3) Return on Capital Employed 30% Average WTI Price 100 96 97 95 Average WTI Price(3) 25% 95 23.1% 21.9% 80 20% 79 18.8% 16.1% (ROCE)(1) 16.9% 60 60 15% 10% -…
  5. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 5
    CLR Outperforming Peers (2) (3) Highest Production Per Debt- Highest CROACI Performance Highest ROACE Performance Adjusted Share Performance 60% 60% 60% CLR CLR CLR 2014YE Current Share Price Performance (1) 2014YE Current…
  6. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 6
    CLR: Low-Cost, Oil-Weighted Producer Sustainable downward shift in production expense LOE and Oil % vs. Select Peers (4Q17)(1) (Source: Public Company Filings) LOE lowest amongst select peers 10 Guiding to 3.00 to 3.50 for…
  7. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 7
    CLRs Superior Oil-Weighted Assets Provide Sustainable, Positive Cash-Flow Growth 90% of Activity Focused on Oil and Liquids-Rich Assets Through Year End CLR Play Net Reservoir Acres(1) Bakken 796,000 Bakken 161,356 Boepd…
  8. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 8
    Bakken Continues to Deliver CLR Record Results 1Q18 Bakken Production and Operating Highlights CLR 1 producer in the Bakken Production 1Q18 average production: 161,356 Boepd, up 48% over 1Q17 4.31 per barrel Bakken oil…
  9. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 9
    CLR: Undisputed Leading Bakken Producer 5,000,000 CLR Monthly Gross Operated Oil Production (BO) 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Source: NDIC…
  10. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 10
    Optimized Completions Unlock Bakken Value Bakken Returns Better Than Ever 2018: 1,100 MBoe Type Curve 200% 430 MBOE Model Economics 180% 603 MBOE Model 800 MBOE Model Latest ROR(1) uplifted to 140% 160% 980 MBOE Model 140%…
  11. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 11
    3 of Top 5 CLR All-Time 30-Day Rate Bakken Wells In 1Q18 Average 164 Optimized Completions(1) Top 10 CLR-Operated Bakken Wells Cumulative Production (Boe) 300,000 250,000 200,000 150,000 100,000 1,100 Mboe Type TC Curve…
  12. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 12
    Improved Well Performance Rapidly Expanding Across Bakken Field Distribution of Industry-Wide Bakken Wells or Units that Produced Over 100,000 Boe in 90 Days 2000 - 2014 2015 - 2017 (15 Years) (3 Years) Wells or units with…
  13. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 13
    Structural Improvement In Bakken Oil Differential 1Q18 Bakken oil differentials improved 47% over 1Q17 Bakken Oil Differential to WTI 2015 2016 2017 1Q'18 o Netbacks up by 3.79 per barrel over 1Q17 0 o 43 million additional cash…
  14. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 14
    SCOOP & STACK Increasing Focus On Oil 1Q18 SCOOP & STACK Production and Operating Highlights 30 gross operated wells completed in 1Q18 Production SCOOP/STACK production: 115,373 Boepd; up 26% over 1Q17 SCOOP/STACK daily oil production…
  15. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 15
    Project SpringBoard (1) 400 MMBoe Resource Potential (70% - 85% Oil) Phase I: Springer Development (85% Oil) 9+ Miles Row 1 70 square miles of contiguous leasehold 45,000 gross acres (31,000 net) Row 2 CLR operated Row 3 75%…
  16. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 16
    SCOOP Springer Maximizing Value Through Unit Development (1) SCOOP Springer Unit Economic Model Maximum PV-10 Achieved With 4 Wells Max. PV-10 achieved with 4 wells 100 (1) 250% 183% ROR (1) 80 200% Unit PV-10 ( in MM)…
  17. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 17
    SCOOP Woodford Oil Drilling Costs Reduced By 1 Million Per Well Updated SCOOP Woodford oil well design: SCOOP Woodford Optimized Completions Eliminates need for intermediate casing string Reduces CWC by 1 MM to 11.7 MM per well ROR…
  18. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 18
    STACK Meramec Accelerating Development Of Oil And Liquids-Rich Assets Moving 3 rigs out of STACK gas window 2018 Planned STACK Infills Going forward: Unit Target Est. 1st Prod 5 rigs in over-pressured oil window 2 rigs in gas…
  19. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 19
    STACK Meramec Maximizing Value Through Unit Development (1) STACK Meramec Unit Economic Model Maximum PV-10 Achieved With 8 Wells Max. PV-10 achieved with 8 wells (1) 100 200% 2 zones/unit; 4 wells/zone Unit PV-10 ( in MM)…
  20. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 20
    Additional 400 MMcfd Of Firm Transportation Secured For SCOOP/STACK Project Wildcat Pipeline: Provides access to a new premium market in North TX via Tolar Hub SCOOP/ STACK Adds optionality to maximize the value of CLRs existing…
  21. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 21
    1Q18 Corporate Differentials Continued Improvement Benefiting Corporate Netbacks Corporate Oil Differential Corporate Oil Differential to WTI 1Q18 corporate oil differential improved 45% over 1Q17 2015 2016 2017 1Q'18 0.00 o Netbacks…
  22. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 22
    Contact Information Rory Sabino Vice President, Investor Relations Phone: 405-234-9620 Email: Rory.SabinoCLR.com Website: www.CLR.com/Investors PROPERTY OF CONTINENTAL RESOURCES, INC. REPRODUCTION AND DISTRIBUTION WITH WRITTEN…
  23. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 23
    Reference Materials PROPERTY OF CONTINENTAL RESOURCES, INC. REPRODUCTION AND DISTRIBUTION WITH WRITTEN PERMISSION ONLY 24
  24. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 24
    2018 Guidance 2018 Guidance as Production & Capital of 5/2/18 Capital expenditures (non-acquisition) 2.3 billion Production (Boe per day) 285,000 300,000 Exit rate production (Boe per day) 305,000 315,000 Operating Expenses…
  25. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 25
    2018 Drilling Program (1) Top-Tier Rates of Return by Play Bakken Type Curve STACK Over-Pressured Oil 200% Target EUR: 1,100 MBOE 200% Target EUR: 1,200 MBOE Avg. Lateral: 9,800 Avg. Lateral: 9,800 175% 175% 150% 150% 125% 125%…
  26. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 26
    2018 Drilling Program (1) Top-Tier Rates of Return by Play 200% SCOOP Woodford Condensate 200% STACK Condensate Target EUR: 2,300 MBOE Target EUR: 2,400 MBOE 175% Avg. Lateral: 7,500 175% Avg. Lateral: 9,800 150% 150% 125%…
  27. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 27
    2018 Drilling Program Area Type Curves vs. Actual Bakken Production STACK Over-Pressured Oil Type Curve 10,000 160 Well Count 10,000 200 Well Count 1,200 MBOE Type Curve (Normalized to 9800' LL) 140 1,100 Mboe Type Curve 175 Actual…
  28. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 28
    2018 Drilling Program Area Type Curves vs. Actual SCOOP Woodford Condensate Type Curve STACK Condensate Type Curve 10,000 60 10,000 60 Well Count Well Count 2,300 BOE Type Curve (Normalized to 7500' LL) 2,400 MBOE Type Curve…
  29. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 29
    Continued Focus On Debt Reduction Recent CLR Investment Grade Ratings 2,500 Debt Maturities Summary Fitch Assigned IG Rating on 04/30/18 2,000 5.0% (MM) 4.5% S&P Upgrade to IG to BBB- on 02/12/18 1,500 3.8% 4.375% 1,000 2,000…
  30. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 30
    Continuing To Deliver Strong Margins(1) 2015 2016 2017 1Q 2018 (2) Crude oil net sales price (/Bbl) 40.50 35.51 45.70 58.98 (2) Natural gas net sales price (/Mcf) 2.31 1.87 2.93 2.98 Oil production (Bopd) 146,622 128,005 138,455…
  31. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 31
    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…
  32. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 32
    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 obligations…
  33. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 33
    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,…
  34. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 34
    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 2017…
  35. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 35
    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…
  36. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 36
    Net Sales Prices Reconciliation To GAAP On January 1, 2018, we adopted Accounting Standards Update 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),…
  37. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 37
    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…
  38. 1Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 38
    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) 168,255 429,072 739,385 764,219 977,341…

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