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3Q 2018 Earnings Presentation – Continental Resources, Inc.

Continental Resources, Inc. · Oct 30, 2018 · 34 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. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 1
    Investor Update October 2018 PROPERTY OF CONTINENTAL RESOURCES, INC. REPRODUCTION AND DISTRIBUTION WITH WRITTEN PERMISSION ONLY
  2. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 2
    CLR: Continues To Deliver On Breakout Year 3Q18 Update Annual FCF Approaching 1 Billion(1) Generate Sustainable Annual ROCE 13-15%(2) Free Cash Flow & Returns Dividend Under Consideration Bakken up 23% YoY 20-24% Annual STACK…
  3. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 3
    CLRs Path to Sustainable, Positive Cash-Flow Growth Exploration / Asset Accumulation 400,000 STACK Asset Development SCOOP 290,000 - 300,000 300,000 Boepd Bakken 242,637 +22% 200,000 Legacy YoY 100,000 0 2010 2011 2012…
  4. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 4
    CLR: Lowest Cost, Oil-Weighted Growth & Peer-Leading Capital Efficiency (1) Lowest Cost Per Boe Highest Recycle Ratio 8.50 350% 8.00 95% of rigs focused on oil CLR 300% and liquids-rich assets 7.50 Avg. Unhedged Recycle…
  5. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 5
    Bakken 3Q18 Highlights 3Q18 Update Entire 2017 Bakken Program Paid Out Returns Better Than Ever by the End of 3Q18 (133 Operated Wells)(1) All CLR Top 10 30-Day Rate Bakken Wells in Past 12 Mos. Uplifted Well Performance 42…
  6. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 6
    CLR Bakken Production & Returns Delivering Record Results CLR: 1 Bakken Producer CLR: Bakken Returns Better Than Ever 300% 160,000 CLR is 12% of ND Bakken Production 1,200 MBoe Gross ND Bakken Production 250% 980 MBoe 800 MBoe…
  7. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 7
    Two More 30-Day Rate Bakken Wells Added To Top Ten List 84 Bakken 60-Stage Completions(1) vs. Type Curve Top 10 CLR-Operated Bakken Wells Cumulative Production (Boe) 300,000 250,000 200,000 150,000 100,000 50,000 60-Stage…
  8. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 8
    Uplifted Well Performance Continues To Expand Across Bakken Field Industry-Wide Bakken Units with Well(s) that Produced +100,000 Boe in First 90 Days 2000-2014 2015-2Q18 (First 15 Years) (Past 3.5 Years) 185 Wells 563 Wells (12…
  9. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 9
    SCOOP & STACK 3Q18 Highlights 3Q18 Update 3 Meramec Units Flow at Combined Jalou: Industry Record 4,234 Boepd Avg. per Well (58% Oil) 74,260 Boepd from 18 Wells(1) Homsey: 3,521 Boepd Avg. per Well (59% Oil) (Avg. 4,126…
  10. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 10
    STACK: 3 Meramec Units Flow At Initial Combined Rate Of 74,260 Boepd From 18 Wells(1) In Over-Pressured Window Per Unit Combined 24-Hour IP: 74,260 Boepd Zip Code Matters: All CLR STACK Units In Over-Pressured Window (Average 4,126…
  11. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 11
    STACK Meramec Over-Pressured Oil Window Jalou & Homsey Unit Wells Outperforming Unit Type Curve Jalou Unit Wells Producing 75% Above Type Curve(1) 6 Jalou Wells Outperforming Type Curve(1) 80,000 Combined unit 24-hour IP: Avg.…
  12. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 12
    STACK Meramec Over-Pressured Oil Window Maximizing Value Through Optimal Unit Development Jalou & Homsey unit wells outperforming STACK Meramec Over-Pressured Oil Unit Economic Model unit type curve by 15-75% Max. Economics Uplift…
  13. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 13
    STACK Meramec: Over-Pressured Condensate Window Simba Unit Wells Outperforming Parent Type Curve Simba Unit Wells Producing 35% Above Parent Type Curve(1) Combined unit 24-hour IP: 80,000 6 Simba Wells Outperforming Parent Type…
  14. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 14
    SCOOP Project SpringBoard Potential To Increase CLR Oil Production 10% Over Next 12 Months High Impact Oil Project Project SpringBoard Proceeding On Schedule 400 MMBoe resource potential(1) CLR-Operated Non-Operated Springer -…
  15. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 15
    SCOOP: SpringBoards Operational Advantage Cushing, OK SpringBoard Operational Efficiencies 1MM per well Woodford/Sycamore drilling savings realized from no intermediate casing string CLR Headquarters 100% oil, gas and water…
  16. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 16
    215MM In Proceeds Received From Minerals Venture Closing Mineral Ownership Creates New Growth Vehicle For CLR Capitalizing on CLRs proprietary knowledge Owning Minerals Enhances Returns By of assets and operations to increase…
  17. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 17
    CLR Vision For Adding Value Through Minerals Short Term: Enhanced Returns 4x 600MM total investment(1) Potential Value(3) Strategic focus on CLR-operated assets Accelerate value through strategic drilling CLR benefits from carry…
  18. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 18
    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:…
  19. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 19
    Reference Materials PROPERTY OF CONTINENTAL RESOURCES, INC. REPRODUCTION AND DISTRIBUTION WITH WRITTEN PERMISSION ONLY 20
  20. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 20
    2018 Guidance Production & Capital 2018 Guidance Capital expenditures budget (non-acquisition) 2.7 billion Production (Boe per day) 290,000 - 300,000 Exit rate production (Boe per day) 315,000 - 325,000 Operating Expenses…
  21. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 21
    2018 Drilling Program (1) ROR - 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%…
  22. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 22
    2018 Drilling Program (1) ROR - 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%…
  23. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 23
    2018 Drilling Program Area Type Curves vs. Actual Bakken Type Curve 10,000 STACK Over-Pressured Oil Type Curve 10,000 160 Well Count Well Count 200 1,200 MBOE Type Curve (Normalized to 9800' LL) 140 1,200 MBOE Type Curve (Normalized…
  24. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 24
    2018 Drilling Program Area Type Curves vs. Actual 10,000 SCOOP Woodford Condensate Type Curve 70 10,000 STACK Condensate Type Curve 40 Well Count Well Count 2,300 MBOE Type Curve (Normalized to 7500' LL) 60 2,400 MBOE Type Curve…
  25. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 25
    Continued Focus On Net Debt Reduction Completed Partial Call of 5% Senior Notes 2,000 Debt Maturities Summary Due 2022 on August 16, 2018 5.0% 4.5% (MM) 1,500 Represented 20% (400MM) of the 2B in aggregate principal amount then…
  26. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 26
    Continuing To Deliver Strong Margins(1) 2015 2016 2017 3Q 2018 (2) Crude oil net sales price (/Bbl) 40.50 35.51 45.70 65.78 (2) Natural gas net sales price (/Mcf) 2.31 1.87 2.93 3.12 Oil production (Bopd) 146,622 128,005 138,455…
  27. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 27
    Free Cash Flow/Outspend Reconciliation To GAAP Our presentation of free cash flow is a non-GAAP measure. We define free cash flow as cash flows from operations before changes in working capital items less capital expenditures, excluding…
  28. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 28
    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. Net debt should not be considered an alternative to, or more meaningful than,…
  29. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 29
    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 before interest expense, income taxes, depreciation,…
  30. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 30
    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 3Q 2018 TTM Net income…
  31. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 31
    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…
  32. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 32
    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),…
  33. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 33
    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…
  34. 3Q 2018 Earnings Presentation – Continental Resources, Inc. – slide 34
    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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