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Barclays Global CEO Energy Power Conference – Continental Resources, Inc.

Continental Resources, Inc. · Sep 4, 2018 · 40 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. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 1
    Barclays 2018 Global CEO-Energy Power Conference September 2018 Harold Hamm, Chairman & CEO Jack Stark, President Continental Resources PROPERTY OF CONTINENTAL RESOURCES, INC. REPRODUCTION AND DISTRIBUTION WITH WRITTEN PERMISSION…
  2. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 2
    Harold Hamm Chairman & Chief Executive Officer PROPERTY OF CONTINENTAL RESOURCES, INC. REPRODUCTION AND DISTRIBUTION WITH WRITTEN PERMISSION ONLY 3
  3. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 3
    Continental Resources: Consistent Capital-Efficient Growth Fueled By Exploration DNA Boepd CLR: Bellwether For E&P Production Growth 315 - 325,000 2018 Exit Rate CLR Production Growth PROPERTY OF CONTINENTAL RESOURCES, INC.…
  4. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 4
    The U.S. Is No Longer A Global Oil Supply Bystander 11,000 Broad Expansion Of U.S. Crude Oil Production 105 EIA World Liquid Fuels Consumption (MMBpd) As Global Demand Continues To Move Higher EIA Monthly U.S. Crude Oil…
  5. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 5
    Now Is The Time For U.S. Energy Investment 150% S&P 500 Energy Underperformance Has Created An Opportunity 120% For Both Growth & Value Investors 90% 60% 30% S&P Energy 0% -30% -60% S&P 500 Sector Weight: Tech vs. Energy…
  6. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 6
    Strong YTD 2018 Energy Earnings Wave: Setting The Stage For Next Crude Oil Investment Super Cycle 0% 20% 40% 60% 80% 100% Energy Energy Materials YTD 2018 Earnings Growth YTD 2018 Revenue Growth Telecom Services Financials…
  7. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 7
    OPEC Spare Capacity Approaching Historically Low Levels Leaving Market Open For Sustained U.S. Supply 9.0 OPEC Spare Capacity % of Global Liquids Supply (RHS) 12% 8.0 % of Global Liquids Supply (RHS) 10% OPEC Spare Capacity…
  8. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 8
    Key Drivers Of U.S. Oil Investment Super Cycle: 2018 2025 Low excess crude oil capacity (est. 1.5 million barrels) Global demand for light, sweet crude U.S. access to global markets Global long-lead project underinvestment…
  9. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 9
    Jack Stark President PROPERTY OF CONTINENTAL RESOURCES, INC. REPRODUCTION AND DISTRIBUTION WITH WRITTEN PERMISSION ONLY 10
  10. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 10
    CLR = Capital Efficient, Oil-Weighted Growth Sustainable, Cash Flow Positive Growth CLRs Value & Growth Drivers 20% - 24% production growth (2018) 315 MBoe - 325 MBoe projected exit rate (Dec. 2018) Bakken 800MM - 900MM projected…
  11. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 11
    CLRs Path to Sustainable, Positive Cash-Flow Growth Exploration 400,000 STACK Development 300,000 SCOOP 290,000 - 300,000 Boepd Bakken 242,637 +22% 200,000 Legacy YoY 100,000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018E…
  12. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 12
    CLR: Lowest Cost, Oil-Weighted Growth (1) Lowest Cost Per Boe Highest Recycle Ratio 2Q18 LOE per Boe: 3.49 8.5 350% 8.0 Budget breakeven CLR 300% 7.5 Avg. Unhedged Recycle Ratio(3) low 40s WTI 7.0 250% LOE per Boe…
  13. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 13
    CLR Minerals: 220MM Divestiture & Strategic Relationship Formed With FNV New Vehicle for Growth Minerals Enhance Returns(4) Capitalize on CLRs proprietary knowledge of assets and operations Operator Enhanced Accelerate value…
  14. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 14
    CLR Vision For Adding Value Through Minerals Short Term 4x 600MM total investment(1) Potential Value(3) Strategic focus on CLR operated assets CLR benefits from carry structure/enhanced NRI Accelerate value through strategic…
  15. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 15
    Bakken Performance Uplifted Once Again 60-Stage Completions = Higher EUR Type Curve Bakken Returns Better Than Ever Updated Type Curve Highlights 200% 430 MBOE Model 603 MBOE Model 1,200 MBoe EUR 180% 800 MBOE Model New 980 MBOE…
  16. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 16
    Bakken Type Curve Uplift Supported By 70 60-Stage Optimized Completions 300,000 Average Optimized Completions(1) Top 10 CLR-Operated Bakken Wells Cum. Production (Boe) 250,000 200,000 150,000 100,000 50,000 1,200 Mboe…
  17. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 17
    Step Change In Well Performance Rapidly Expanding Across The Bakken Field Industry-Wide Bakken Wells or Units that Produced Over 100,000 Boe in 90 Days 2000-2014 2015-1Q18 (First 15 Years) (Past 3 Years) 12 Wells/Year 157…
  18. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 18
    CLRs Advantaged Bakken Crude Barrel Growing infrastructure brings better pricing Bakken Oil Differential to WTI 2014 2015 2016 2017 1H18 0 Marketing options benefit Bakken (5) DAPL & scalable rail capacity to coastal (6.14) (4.72)…
  19. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 19
    SCOOP Project SpringBoard 400 MMBoe Resource Potential(1) 9+ Miles High Impact Project with Potential to Increase 9+ Miles CLR Oil Production 10% Over Next 12 Months Project 70-square miles of contiguous leasehold SpringBoard…
  20. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 20
    SCOOP Project SpringBoard Row Development = Additional Operational Efficiencies Unit Development Timing: Operational Efficiencies: 1MM savings already accomplished for Woodford/Sycamore Phase I: Springer wells no intermediate casing…
  21. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 21
    SCOOP Project SpringBoards Marketing Advantage Crude Oil Marketing Advantage Cushing, OK High quality, 46o API crude with low water cut Benefiting from existing pipeline infrastructure CLR Headquarters Oil netbacks below…
  22. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 22
    STACK Accelerating Development Of Oil And Liquids-Rich Assets Recent Company Operated Well Results STACK Over- Normal- Swaim 3-14H: 3,476 Boepd (2,596 Bopd) Pressured Pressured SCOOP Madeline 2-4-9XH: 3,540 Boepd (2,548 Bopd)…
  23. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 23
    CLR: Consistent Capital-Efficient Growth Fueled By Exploration 360,000 STACK 15-20% YoY SCOOP 320,000 Bakken 290-300,000 Legacy 280,000 242,637 240,000 Boepd 200,000 160,000 120,000 80,000 40,000 0 2010 2011…
  24. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 24
    Contact Information Rory Sabino Vice President, Investor Relations Phone: 405-234-9620 Email: Rory.SabinoCLR.com Lucy Guttenberger Senior Investor Relations Associate Phone: 405-774-5878 Email: Lucy.GuttenbergerCLR.com Website:…
  25. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 25
    Reference Materials PROPERTY OF CONTINENTAL RESOURCES, INC. REPRODUCTION AND DISTRIBUTION WITH WRITTEN PERMISSION ONLY 26
  26. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 26
    Updated 2018 Guidance Updated Production & Capital 2018 Guidance 2018 Guidance Capital expenditures (non-acquisition) 2.3 billion 2.7 billion Production (Boe per day) 285,000 - 300,000 290,000 - 300,000 Exit rate production (Boe…
  27. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 27
    2018 Drilling Program (1) Top-Tier Rates of Return by Play Bakken STACK Over-Pressured Oil 300% Target EUR: 1,200 MBOE 200% Target EUR: 1,200 MBOE 275% Avg. Lateral: 9,800 Avg. Lateral: 9,800 175% 250% 225% 150% 200% 125%…
  28. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 28
    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% 125%…
  29. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 29
    2018 Drilling Program Area Type Curves vs. Actual Bakken Type Curve STACK Over-Pressured Oil Type Curve 10,000 160 Well Count 10,000 80 Well Count 1,200 MBOE Type Curve (Normalized to 9800' LL) 140 1,200 MBOE Type Curve (Normalized…
  30. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 30
    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 2,400 MBOE Type Curve (Normalized to 9800' LL) 2,300 MBOE Type Curve…
  31. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 31
    Continued Focus On Net Debt Reduction Completed Partial Call of 5% Senior Notes 2,500 Debt Maturities Summary Due 2022 on August 16, 2018 5.0% 2,000 400 Represented 20% (400MM) of the 2B Called (MM) 4.5% 1,500 in aggregate…
  32. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 32
    Continuing To Deliver Strong Margins(1) 2015 2016 2017 2Q 2018 (2) Crude oil net sales price (/Bbl) 40.50 35.51 45.70 63.35 (2) Natural gas net sales price (/Mcf) 2.31 1.87 2.93 2.65 Oil production (Bopd) 146,622 128,005 138,455…
  33. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 33
    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…
  34. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 34
    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…
  35. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 35
    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,…
  36. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 36
    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 2015 2016 2017 2Q 2018 TTM Net income…
  37. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 37
    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…
  38. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 38
    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),…
  39. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 39
    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…
  40. Barclays Global CEO Energy Power Conference – Continental Resources, Inc. – slide 40
    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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