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CLR Investor Update – Continental Resources, Inc.

Continental Resources, Inc. · Mar 21, 2014 · 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. CLR Investor Update – Continental Resources, Inc. – slide 1
    CLR Investor Update March 2014 Property of Continental Resources, Inc. Reproduction and distribution only with written permission.
  2. CLR Investor Update – Continental Resources, Inc. – slide 2
    CLR: Organic Growth through Exploration, Development and Advances in Technology CLR Resource Plays: 1 Oil Producer in the Rockies Bakken, MT (2003) Bakken, ND (2004) Red River, NYSE Listed: CLR ND (1995) 26.7B EV (22B Market…
  3. CLR Investor Update – Continental Resources, Inc. – slide 3
    Outstanding Full-Year Execution Full-year 2013 production: 49.6 MMBoe, up 39% over 2012 (71% oil) 144,250 Boe per day in 4Q13: up 35% over 4Q12 Bakken: 93,330 Boe per day, up 38% over 4Q12 SCOOP: 23,750 Boe per day, up 233% over…
  4. CLR Investor Update – Continental Resources, Inc. – slide 4
    Year-End 2013 Proved Reserves 38% Increase in Proved Reserves since YE12: Year-End Reserves are 87% Operated and 68% Crude Oil MMBOE 1,200 1,100 1,080 1,000 900 800 785 700 600 500 508 400 365 300 257 200 100 0 YE09…
  5. CLR Investor Update – Continental Resources, Inc. – slide 5
    Drilling Efficiencies Drive Production Growth 300 1,200 c ND & MT Rigs Total Bakken & Three Forks Rigs: 179 275 Oil (Bo per day) 1,100 Gas (Boe per day) 250 Gas 1,000 16% Production (Mboe per day) 225 900 200 800 Rig…
  6. CLR Investor Update – Continental Resources, Inc. – slide 6
    1 Leaseholder in the Bakken 1.2 million net acres at 3Q13 98% HBP on de-risked leasehold at YE2013 96% HBP for both de-risked and exploratory leasehold by YE2017 Continentals Acreage Growth 120 Miles 1,400 Year-End Net…
  7. CLR Investor Update – Continental Resources, Inc. – slide 7
    Theres Only One Bakken: Getting Bigger & Better Three Forks Thickness Map CLR leading basin-wide efforts to optimize oil recovery 1,320 Tangsrud* LTF 660 Lawrence** 2014 plan: 290 net wells (870 gross) Operating 22 average rigs…
  8. CLR Investor Update – Continental Resources, Inc. – slide 8
    1,320 & 660 Pilot Density Projects: 2013-14 1,320 ft. same-zone spacing 660 ft. same-zone spacing 3 project areas: 4 project areas: Hawkinson, Tangsrud, and Rollefstad Wahpeton, Lawrence, Mack, and Hartman 34 new wells (gross) 31…
  9. CLR Investor Update – Continental Resources, Inc. – slide 9
    Strong Early Performance from Hawkinson Unit Industry landmark: First unique production from 4 different producing intervals spaced 1,320 feet apart Validates CLR vision for full-field development and demonstrates the vast resource…
  10. CLR Investor Update – Continental Resources, Inc. – slide 10
    Continental Goes Ears Back in Antelope Plan to drill 350-400 wells over the next five years utilizing mega-pads 50 wells budgeted for 2014, with large production impact in 2015 Full-field development includes MB, TF1, TF2 and…
  11. CLR Investor Update – Continental Resources, Inc. – slide 11
    CLR: The Premier Bakken Operator Historical Target 9.50 9.20 9.00 Increasing Rates of Return with Lower Average Well Costs Completed Average Well Costs (MM) 8.50 8.20 8.00 0.15 8.00 0.15 0.20 7.50 7.50 7.00…
  12. CLR Investor Update – Continental Resources, Inc. – slide 12
    SCOOP: A New, High-Impact Resource Play South Central Oklahoma Oil Province (SCOOP) NW Cana STACK World-class resource shale Cana Field Up to 400 of oil-rich shale Dual reservoir target Excellent siliceous and highly fractured…
  13. CLR Investor Update – Continental Resources, Inc. – slide 13
    SCOOP: Continued Exploration and Appraisal SCOOP Oil , Condensate and Gas Window Map Gas Condensate Oil 4Q13 net production: 23,750 Boe per day Up 18% sequentially, up 233% over 4Q12 Plan to operate 18 average rigs in 2014 40%…
  14. CLR Investor Update – Continental Resources, Inc. – slide 14
    Progress Report for CLRs Five-Year Plan Metrics and Measurements of Success Status/Forecast 2013 2014 2015 2016 2017 Objective Triple production by 2017 Triple proved reserves by 2017 Exploration: - Confirm lower Three Forks -…
  15. CLR Investor Update – Continental Resources, Inc. – slide 15
    CLR Clear Vision for Growth Production Proved Reserves MMBoe 300 MMBoe 120 MBoepd 100 108+ 1500 80 136 1000 1,080 60 MBoepd 64 98 MBoepd 50 785 40 500 36 508 20 0 0 2012 2013 2014* 2015 2016 2017 2011 2012 2013…
  16. CLR Investor Update – Continental Resources, Inc. – slide 16
    2014 Total Capex Budget: 4.05B 2014 Capex Breakout (MM) Key Drilling Areas Net Wells Capex % of Total ND & MT Bakken 290 2,530 62% Other Areas of Operation SCOOP 70 865 21% Exploratory, Other Areas Other Areas of Operation 25 145…
  17. CLR Investor Update – Continental Resources, Inc. – slide 17
    CLR: Production, Reserve and Stock Growth Share Annual Proved Price Production Reserves 1.08 B 49.6 YE13 MMBOE 18 *Closing stock price as of March 20, 2014 Property of Continental Resources, Inc. Reproduction and…
  18. CLR Investor Update – Continental Resources, Inc. – slide 18
    Appendix
  19. CLR Investor Update – Continental Resources, Inc. – slide 19
    SCOOP One-Mile Lateral Economics Condensate Fairway EUR = 1,190 MBoe (61% liquids)** 100% Rates of Return & Target* Oil 24% 90% Gas 39% 80% 70% NGL 60% 37% 50% 40% Oil Fairway Completed Wells Costs Oil Window 9.0MM EUR =…
  20. CLR Investor Update – Continental Resources, Inc. – slide 20
    SCOOP is Premium Woodford Cana Field SCOOP Upper Woodford 100 100 200 200 Lower Woodford 300 300 SCOOP = 6X the reservoir volume of Cana Field 400 400 Oil-prone and liquid-rich Woodford Eroded Gas Oil Condensate…
  21. CLR Investor Update – Continental Resources, Inc. – slide 21
    Bakken Well Economics 90% Average operated CWC 7.5 MM CWC 8.0MM (YE13 target achieved 80% 3 months early) 8.0 MM CWC 7.5MM or less YE14 target 70% 603 MBoe EUR ND Bakken Type Curve ROR* 60% 21 700 Monthly Oil Equiv…
  22. CLR Investor Update – Continental Resources, Inc. – slide 22
    Americas Premium Light Sweet Crude API Crude Quality Sulfur % wt Improved Refinery Yield 45 0.90 100% 40 0.80 90% 35 0.70 80% 30 0.60 70% Distillation 60% Cuts 25 0.50 50% Light Ends 20 0.40 Gasoline 40% Jet Fuel 15 0.30…
  23. CLR Investor Update – Continental Resources, Inc. – slide 23
    How Refiners See Bakken (Relative Netbacks) Product Yield (/bbl) 116.00 Total Yield (/bbl) 112.00 108.00 104.00 100.00 Bakken Qua Iboe LLS 40's Blend Hibernia WTI W. Can. Select (WCS) 24 *NYH Product Prices…
  24. CLR Investor Update – Continental Resources, Inc. – slide 24
    Refinery Distillation Yields Product Yield (/bbl) 120.00 100.00 80.00 Distillation Cuts Light Ends 60.00 Gasoline Jet Fuel 40.00 Distillate Vac. Resid. Fuel Oil 20.00 0.00 Bakken Qua Iboe LLS 40's Blend Hibernia WTI…
  25. CLR Investor Update – Continental Resources, Inc. – slide 25
    The Market for Bakken Premium Quality Growing faster than production Seattle New York Cushing Los Angeles Houston 26 Property of Continental Resources, Inc. Reproduction and distribution only with written…
  26. CLR Investor Update – Continental Resources, Inc. – slide 26
    Williston Basin Evacuation Capacity 3.5 TransCanada East (42) TransCanada Keystone XL 200 Rig Forecast* High Sierra - Donnybrook Red River - Williston 250 Rig Forecast* 88 Oil - Guernsey Great Northern - Fryburg Bentek Forecast…
  27. CLR Investor Update – Continental Resources, Inc. – slide 27
    Tight Oil Resource Plays: Larger than We Thought Prior to Lower TF: 577 BBo in place (2010) 24 BBoe recoverable** 2010 20 BBo (3.5% recovery factor) 320-acre spacing per zone 2012 308 Now: Estimate +57% 903 BBo in place…
  28. CLR Investor Update – Continental Resources, Inc. – slide 28
    Strong Liquidity and Financial Profile Financial Ratios and Ratings 12/31/2013 2013 Agency Credit Ratings Net Debt/TTM EBITDAX 1.65x Cash Margin 53.52 Moodys Baa3 Net Debt/Proved Reserves 4.23 All-in F&D (/Boe) 11.02 S&P BBB- Net…
  29. CLR Investor Update – Continental Resources, Inc. – slide 29
    2014 Operational and Financial Guidance As of February 26, 2014* 2014 Production growth (YOY) 26% to 32% Capital expenditures (non-acquisition) 4.05B Operating Expenses: Production expense per Boe 5.60 to 6.10 Production tax…
  30. CLR Investor Update – Continental Resources, Inc. – slide 30
    Quarterly Cash Flow (Unaudited) Three months ended December 31, Year ended December 31, In thousands 2013 2012 2013 2012 Net income 132,824 220,511 764,219 739,385 Adjustments to reconcile net income to net cash provided by…
  31. CLR Investor Update – Continental Resources, Inc. – slide 31
    Cost Discipline Driving Excellent Margins 2009 2010 2011 2012 4Q 2013 2013 Realized oil price (/Bbl) 54.44 70.69 88.51 84.59 84.47 89.93 Realized natural gas price (/Mcf) 3.22 4.49 5.24 4.20 5.49 5.25 Oil production (Bopd) 27,459…
  32. CLR Investor Update – Continental Resources, Inc. – slide 32
    EBITDAX Reconciliation to GAAP We use a variety of financial and operational measures to assess our performance. Among these measures is EBITDAX. EBITDAX represents earnings (net income) before interest expense, income taxes,…
  33. CLR Investor Update – Continental Resources, Inc. – slide 33
    EBITDAX Reconciliation to GAAP (contd) The following tables provide reconciliations of our net income and operating cash flows to EBITDAX for the periods presented: In thousands 2009 2010 2011 2012 4Q 2013 2013 Net income 71,338…
  34. CLR Investor Update – Continental Resources, Inc. – slide 34
    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…

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