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2012 INVESTORS DAY – Continental Resources, Inc.

Continental Resources, Inc. · Oct 9, 2012 · 133 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. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 1
    JWH 9/13/12 2012 Investors Day October 9, 2012
  2. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 2
    Continental Resources 2012 Investors Day Welcome Todays objectives: Share our vision of Continentals unique growth opportunities Communicate plans to accelerate value Set growth targets for 2013 and the next five years Provide…
  3. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 3
    CLRs Legacy of Success Cedar Hills Field: 1st field developed completely with horizontal drilling. 4
  4. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 4
    CLRs Legacy of Success Elm Coulee Field: Unlocked the code with horizontal drilling and open hole frac. 5
  5. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 5
    CLRs Legacy of Success ND Bakken: First economic well that was horizontally drilled with a staged frac. 6
  6. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 6
    CLRs Legacy of Success ND Bakken: Proved the Three Forks as a separate reservoir. 7
  7. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 7
    CLRs Legacy of Success Anadarko Woodford: Extended play significantly NW and SE. 8
  8. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 8
    CLRs Legacy of Success Today were going to new lengths in precision horizontal drilling, extending laterals up to three miles. 9
  9. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 9
    2010 Goal: 3X Production YE2009-YE2014 25% CAGR June Nov Dec 2009 Prod. 2014 Goal 13.6 MMBoe 41 MMBoe 10
  10. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 10
    Goal Will Be Achieved 18 Months Early 37% CAGR June Nov Dec 2009 Prod. 2014 Goal 13.6 MMBoe 41 MMBoe 11
  11. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 11
    10/8/2012 12
  12. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 12
    2010 Goal: 3X Proved Reserves YE2009 -YE2014 Goal: 771 MMBoe 41% CAGR 257 365 508 610 MMBoe MMBoe MMBoe MMBoe +42% +39% +20% MY2012* *Unaudited; estimate at mid-year 2012 13
  13. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 13
    Success Is Driving Stock Value CLR +62%* NYSE Oil & Gas Index +16%* * CLR close of 77.31 on Oct. 2, 2012; NYSE Oil & Gas Index, compared with values on Oct. 14, 2010. 14
  14. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 14
    10-Year Growth Strategy Accelerate development of our deep oil-rich inventory Delivering exceptional production and reserves growth Capitalize on growth platforms in place Bakken Anadarko Woodford/SCOOP Seasoned team of…
  15. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 15
    Clear Vision of a Great Company 16
  16. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 16
    JWH 9/13/12
  17. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 17
    Clear Vision of 2013-2017 Growth Develop premier assets Operating excellence with continued improvement Assure transportation/infrastructure gets built as we grow Implement marketing strategy to reach premier markets Bring value…
  18. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 18
    Realizing CLRs Growth Potential Exploration: Its in our DNA Assembled an exceptional asset base that will support decades of growth Continuing to build new growth opportunities 19
  19. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 19
    Realizing CLRs Growth Potential Exploration: Growing the Bakken. 24 BBoe technically recoverable BBo of oil in place 3.7 BBo technically BBo of oil recoverable in place USGS CLR Est. CLR Est. 20
  20. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 20
    Realizing CLRs Growth Potential Expanding leasehold in premier plays. 21
  21. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 21
    Realizing CLRs Growth Potential Expanding leasehold in premier plays. 22
  22. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 22
    Realizing CLRs Growth Potential Expanding leasehold in premier plays. 23
  23. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 23
    Realizing CLRs Growth Potential Expanding leasehold in premier plays. *Percent increase from YE2009. 24
  24. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 24
    Realizing CLRs Growth Potential Unrisked Potential Net Wells Unbooked Net Resource Potential (Net Wells) (MMBoe) 18,000 16,950 8,000 7,000 16,000 7,000 14,000 6,000 12,000 Other Other 5,000 10,000 8,850 NW Cana 4,100 NW Cana SCOOP…
  25. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 25
    Realizing CLRs Growth Potential Exploration: Seeking the next opportunity 2013 Capex Budget Exploration Capex 3.4B, ex-acquisitions 543MM Bakken Three Forks Lower TF 320-acre development 160-acre development Development Capex Land…
  26. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 26
    Exploration Budget: 2013-2014 824MM Million 110 net wells 900 800 238mm 700 600 154mm Leasehold 500 400 61mm Southern 77mm Northern Region other: 300 Region other: new plays 61mm Lower TF accelerated new plays 200 233mm…
  27. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 27
    Realizing CLRs Growth Potential Leader in precision horizontal drilling Continued technical innovation Cycle time reductions of 25% to 50% Increased efficiencies per rig Effective management of mature assets: Red River Units…
  28. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 28
    Low-Cost Bakken Operator Million 12 Historical Target 11.3 2.1 10 0.4 0.3 0.3 9.5 9.2 8 18% 8% 8.2 Increase Increase 6 4 2 0 OSO Average CLR Cost ISO Average Completion Drilling Multi-Well Pads Targeted ISO Well Cost…
  29. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 29
    Social License and Good Stewardship Leveraging Innovation Operational efficiencies Reduced footprint with larger ECO-Pads Water recycling Greener completions Landowner relationships Investing in the Future Health: Hospital and…
  30. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 30
    Realizing CLRs Growth Potential Assure transportation capacity availability Its not just pipe its integrated development Rail Gathering systems Roads Water-handling systems Utilities 31
  31. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 31
    Realizing CLRs Growth Potential Expand access to coastal markets Increase market recognition of the superior quality of Bakken oil Establish the Bakken as the preferred supply source 32
  32. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 32
    10/8/2012 33
  33. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 33
    5-Year Target: Another Triple Production Proved Reserves MMBoe MMBoe 120 2000 1,524 108+ 90 1500 60 1000 48 36 610* 508 30 500 0 0 2012* 2013** 2014 2015 2016 2017 2011 MY2012 2013 2014 2015 2016 2017 97 300 MBoepd…
  34. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 34
    The Next Super-Independent 35
  35. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 35
    JWH 9/13/12 2012 Investors Day October 9, 2012
  36. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 36
    Financial Philosophy Focus on high-margin projects Maintain capital discipline Low leverage Ample liquidity and flexibility Utilize hedging to stabilize cash flows Capitalize on our exceptional long-term assets Accelerate growth…
  37. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 37
    Strong EBITDAX and Cash Margins EBITDAX (TTM1) (MM) Cash Margins 76% 1,800 75% 1,626 75% 1,600 74% 74% 1,400 1,304 73% 73% 1,200 72% 1,000 811 71% 800 70% 600 69% 451 69% 400 68% 200 67% 0 66% 2009 2010 2011 6/30/12…
  38. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 38
    Capital Efficiency Recycle Ratio Industry Leader(1)(2) 6 5.0x 5 4 3.2x 3 2.7x 2.3x 2.1x 2 1.8x 1.7x 1.2x 1.1x 1 0 CLR Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 1 Recycle ratio is calculated as the…
  39. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 39
    Capital Markets Activity Capital Markets Activity and Credit Availability Offering Amount Revolver Commitments (Millions) 1,500 1,500 1,250 1,250 1,000 3.6B 750 capital 750 raised 553 since 500 2009 250 300 200 400 685…
  40. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 40
    Attractive Bond Offerings 10% 9.76% Record 10-year 9% HY offerings 8.375% 8.03% 8.36% 7.88% 8% 7.125% CLR Bond Yield 7.50% 7.02% B Index YTW 7% 7.00% 6.90% BB Index YTW 6% 6.46% 5.33% 5% 5.00% 5.00% 4.624% 4% Sep-09…
  41. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 41
    2013 Capital Expenditures Budget Total Capital Expenditures (3.4B) Drilling Capital Allocation (2.9B) Other Development Exploratory Drilling Other Exploratory 4% 430MM 460MM 15% SCOOP 15% Development Drilling 2,510MM…
  42. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 42
    2013 Guidance Capital expenditures budget, excluding acquisitions 3.4 Billion Production growth 30% to 35% Net well count 300 Price differentials WTI crude oil (/Bo) 8 to 11 Henry Hub natural gas (/Mcf) +1.00 to 1.50 premium 43
  43. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 43
    Summary Results Delivering current five-year plan 18 months early Outpacing the competition (NYSE Oil & Gas Index) Vision and Strategy Accelerate value of premier oily assets Maintain capital discipline and efficiency Focus on…
  44. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 44
    JWH 9/13/12 The Bakken
  45. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 45
    CLR Bakken Production: Accelerating Growth (MMBoe) 4.9 MMBoe 5 4 3 2 0.8 1 MMBoe 0 2
  46. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 46
    Bakken: King of Tight Oil Fields Continuous oil field of unprecedented magnitude 15,000 sq. miles, 87% proven productive 24 BBoe technically recoverable (Oct. 2010) Field continues to grow Deeper intervals Down-spacing True oil…
  47. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 47
    Bakken: True Oil Field 85% 63% 15% gas crude oil crude oil 37% gas Eagle Ford Bakken Crude oil = Liquids at wellhead, percentages based on June 2012 monthly production totals: DI Desktop (HPDI) 4
  48. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 48
    CLR: King of the Bakken 1 Bakken producer, driller Cumulative Gross Operated Oil Production July 2011 through June 2012 and leasehold owner (MMBo) 13% production 25 10% rigs 10% acreage 20 22.2 Net unrisked potential (MB 17.5 17.3…
  49. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 49
    CLR Bakken Growth Outpacing Competitors (Million Barrels) Gross Operated Production per Quarter 7 CLR 6 HES 5 WLL EOG 4 3 STO 2 1 0 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 Source : DI Desktop…
  50. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 50
    CLR Bakken Assets Continue to Grow Vertically Lower Three Forks exploration and development Geographically Step-out and exploration drilling Strategically Bolt-on acquisitions, leasing and field consolidation 7
  51. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 51
    CLR Bakken Value Continues to Grow Efficiencies Reduced drilling and completion cycle times ECO-Pad optimization Longer laterals Oil and gas marketing strategies 8
  52. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 52
    CLRs Next Bakken Catalysts Accelerated Lower TF exploration/appraisal Pilot density tests 320-acre development of 4 reservoirs in 1280-acre unit (3 locations) 160-acre development of 4 reservoirs in a portion of a 1280-acre unit (1…
  53. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 53
    Gamma Ray Resistivity The Bakken Paradox Lodgepole Exploring while developing Upper 17 Producers BAKKEN MBKKN (since January 2008) Middle 4,298 Producers BAKKEN PETROLEUM SYSTEM Lower Development Program 1 752…
  54. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 54
    MB + TF1: Early Stages of Full Development 13,000 sq. miles under Full Development development Mode 202 rigs operating Less than 1 well per 1280-acre unit on average 120 Miles 4-to-8 wells per zone for full development…
  55. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 55
    MB+TF1: Development Drilling Just Beginning Industry Continental Resources 5,050 wells completed 1,526 gross wells, 46% operated 576 net wells 81% operated 3,988 potential net wells 52,000 potential wells on 320-acre…
  56. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 56
    CLR: 4.5 BBoe Bakken Resource Potential Unrisked Potential Net Wells Unbooked Net Resource Potential (Net Wells) (MMBoe) 14,000 13,285 5,000 4,472 4,500 12,000 4,000 10,000 3,500 2,836 8,000 3,000 6,718 TF3/TF4 2,500 TF3/TF4…
  57. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 57
    Expanding Elm Coulee Field with Technology Extended field an average New Field Limit 2011-2012 of 8 miles north New Field Limit Drilling 2008Program Economic Currently Testing Field Limit 97,000 gross acres of proven…
  58. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 58
    CLR: Three Forks Pioneer Three Forks Isopach Map Drilled 25% of all TF wells Development area Proved separation of MB + TF1 10-well coring program Sunline 11-1TF (TF2) 1,341 Boepd IP Cores show oil in TF2, TF3 + Charlotte 2-22H…
  59. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 59
    Bakken Petroleum System Redefined Charlotte 1-22H core photos Lodgepole (UV light) 308, with 154 of oil fluorescence Upper Shale Middle Bakken Lower Shale Three Forks 1 TF2 TF3 TF4 Nisku 16
  60. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 60
    Lower TF Increases OOIP 57% Gamma Ray Resistivity Lodgepole Upper 577 BBo in place (2010) BAKKEN MBKK BAKKEN PETROLEUM SYSTEM N Middle 24 BBoe recoverable Lower 2010 20 BBo (3.5% recovery factor) 1 320-acre…
  61. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 61
    TF2 First Producers in the Play (Cumulative Boe) 100,000 Sunline 11-1TF 90,000 85 MBoe in 6 months 80,000 EUR: 696 MBoe Current rate: 242 Boepd Charlotte 2-22H 70,000 87 MBoe in 9.8 months 60,000 EUR: 561 MBoe Current rate: 167…
  62. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 62
    Well Performance Continues to Improve Normalized Curves by Year 12,000 Barrels of Oil Equivalent (BOE) 10,000 8,000 6,000 4,000 2,000 0 0 12 24 36 48 60 72 84 96 108 120 Months 2006 BOE 2007 BOE 2008 Present BOE…
  63. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 63
    Historical Performance EURs have improved with the increased number of stages. 2,000 1,800 1,600 1,400 1,200 Decline Curve 1,000 EUR (MBoe) 800 600 400 200 0 0 5 10 15 20 25 30 35 40 Stages 20
  64. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 64
    Single Well Economics 21 Bakken Type Curve 700 18 600 Type curve 15 500 Cum 10,000 lateral / 30 stages Monthly 12 400 Oil 603 MBoe EUR Oil Equiv 9 300 Equiv (MBOE) Completed well costs (CWC) (MBoe) 6 200 3 100 Single well…
  65. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 65
    Exploration and Appraisal Catalysts to Accelerate Growth Three Forks Isopach Map 320-acre development Lower TF exploration and TF2, TF3, TF4 appraisal 2013-2014 Capex: 70MM TF2, TF3 Pilot 320-acre development 4 wells per zone…
  66. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 66
    Results Support 320-Acre Spacing 312-well database (156 pairs) No interference between: 1320 spaced wells in same zone 660 offset pairs 23
  67. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 67
    CLR: First Full-Pattern 320-Acre Development Pilot 3 tests (Nov 2012-Feb 2014) 14 wells per 1280 unit 4 MB, 3 TF1, 4 TF2, 3 TF3 Micro-seismic monitoring 1320 same zone inter-well spacing/660 offset 1320 68 660 1 MILE 24
  68. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 68
    Third-Party* Simulation Supports160-Acre Spacing Conclusions of third party simulation: 8 wells per zone 1st well recovers 1.0 MMBoe 8 wells recover 5.6 MMBoe 8 wells average 700 MBoe per well (70% of 1-well scenario) 1280-acre…
  69. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 69
    First Full Pattern 160-Acre Development Pilot 14 wells drilled in one 1280 (Mar 2013-Mar 2014) 4 MB, 3 TF1, 4 TF2, 3 TF3 660 inter-well spacing between same-zone wells 660 68 330 1 MILE 26
  70. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 70
    Drilling Efficiencies Result in 40% More Wells Per Rig Wells per Wells/Year Rig/Year 300 15 250 12 11 200 10 8 150 7 262 100 235 Wells/Year 5 175 50 135 Wells/Year 0 0 27
  71. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 71
    Drilling Efficiency Components Bakken Cycle Times in Days Increased knowledge sharing 150 23% Vertical section 130 improvement Curve section 120 Lateral section 100 Rig move optimization 90 26% Upgrading rig fleet improvement…
  72. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 72
    Integrated Approach Results in Drilling Efficiencies 60 1.0 /4 Avg. Trips per Well 3.7 38% 45 0.8/3 Sidetracks Trips Days Drilling 0.5 2.3 30 Avg. Sidetracks per Well 0.5 /2 15 0.3/1 15.5 0.2 Avg. Lateral Days per…
  73. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 73
    CLR ECO-Pad Drilling Times Reduced 25% in 2012 2012 ECO-Pad Avg. Drill Days per Well 30 2012 Single well average: 28 days 25 23.3 22.1 21.3 21.0 20 19.0 15 10 5 0 30
  74. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 74
    Glimpse of the Future Days 1 11 21 31 41 51 61 71 81 91 101 111 121 131 141 151 161 171 181 191 201 0 20,000 7.5MM Drilling Savings with Pad Drilling 40,000 6 single wells Footage Drilled 201 days 60,000 29.3MM spud to…
  75. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 75
    Accessing Environmentally Sensitive Areas Extended reach laterals Multi-well pad Minimize surface footprint Allows for improved economics
  76. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 76
    SIMOPS Decreased Time to Production JWH 9/11 2 wells drilled and producing in 72 days Completing 2 wells South 33
  77. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 77
    VIDEO IN PROGRESS
  78. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 78
    Completion Cost-Reduction Drivers Vendor relationships Stimulation Trucking Rigs Operating efficiencies Economies of scale Direct purchase of materials Proppant Chemicals Design changes 35
  79. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 79
    Significant Decrease in Completion Time Rig Release to First Production Long-range planning (Days) Single Well 80 Equipment availability 76 25% Cycle time improvement Execution 70 Reduced cost 60 57 50 40 30 20 10 0…
  80. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 80
    Decreasing Stimulation Costs per Stage* Thousands Per Stage 140 124 120 114 111 108 98 100 80 60 40 20 0 *Costs include pumping services, wireline, water, packers and plugs. 3Q 2012 through August. 37
  81. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 81
    Results of Evolving Technology Barrels of oil per day Normalized Daily Production 700 600 Dvirnak 3-7H 125,500 Bo in 11 months 500 (multi-stage completion) 400 300 Dvirnak 14-6H 200 130,000 Bo in 63 months (open hole…
  82. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 82
    Bakken Infrastructure Investment Saltwater disposal systems 6 active operated SWD wells 46,000 Bwpd capacity exceeds current production 3 additional SWD wells planned for 2013 SWD control resulting in 2/bbl savings Additional SWDs…
  83. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 83
    Growing and Rapidly Developing Acreage 2010 855,936 net acres 2012 972,056 net acres Leasing 30,100 net acres added in 2012 120 Miles Strategic acquisitions 83,722 net acres over 14 months Project by YE2013 85% HBP in ND…
  84. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 84
    JWH 9/13/12 Oil and Gas Marketing
  85. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 85
    Infrastructure ONEOK Gathering & Processing 2012 Infrastructure investment 275 MMcfd compression capacity 145 miles large diameter gathering lines 4 processing plants Garden Creek I & II (200 mmcfd) Stateline I & II (200 mmcfd)…
  86. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 86
    Infrastructure Hiland Gathering & Processing 2012 Infrastructure investment 150 MMcf/d processing capacity MT Bakken plant ND Norse plant ND Watford City plant 73,000 horsepower compression 1,000 miles of gathering lines 267 wells…
  87. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 87
    North Dakota Net Price Forecast 14 Anticipated pipeline startups: 12 Nymex Henry Hub Gas with NGL Value ONEOK NGL pipeline (2Q13) Wellhead /Mcf & Nymex /MMBtu 10 Alliance wet gas pipeline Tioga lateral (3Q13) 8 Vantage…
  88. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 88
    Crude Oil Marketing Guiding Principles Reliability: Move 100% of production every day Diversification: Portfolio approach to transportation modes and outlets Optimize: Anticipate market dynamics Maximize Value: Improve Bakken basis…
  89. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 89
    Where Are We Now Where Are We Going California and Puget Sound U.S. East Coast and Canada U.S. Gulf Coast Midcontinent Rockies Ability to deliver Bakken Premium Quality (BKN) to all regional transportation systems Have secured…
  90. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 90
    Bakken Premium Quality Improving the health of the N. American refining industry by: 1. Replacing higher-priced foreign sweet & Alaskan N. Slope supplies. 2. Supplying quality blendstock to heavy/sour refiners to assist in meeting…
  91. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 91
    Improved Refinery Yields vs. Other Benchmarks Crude Quality: Distillation Cuts API Gravity & Sulfur 45 1.20 100% 90% 40 1.00 80% 35 70% 30 0.80 60% Light Ends 25 50% Gasoline 0.60 20 Jet Fuel 40% Distillate 15 0.40 30% Resid 10…
  92. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 92
    Bakken Premium vs. Other Sweet Crudes 45 0.90 40 0.80 35 0.70 30 0.60 25 0.50 API 20 0.40 15 0.30 Sulfur % wt 10 0.20 5 0.10 0 0.00 Bakken Qua Iboe LLS WTI 40's Blend 49
  93. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 93
    Improved Refinery Yields vs. Other Benchmarks Distillation Cuts 100% 90% LLS 80% Qua Iboe 129.75 130.40 70% 60% Light Ends 50% Gasoline Bakken 40% Jet Fuel 130.90 30% 40s Blend Distillate WTI 120.00 20% Resid 127.30 10% 0%…
  94. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 94
    The Big 2 North American Tight Oil Plays What quality will you receive Bakken crude oil: Consistent quality 42 API lowest sulfur Crude Blend 44.7 API Eagle Ford Light Blend 57.0 API crude/condensate: 28 to Condensate 60.0 API…
  95. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 95
    Bakken Transportation Analysis 2009-2012 2009 Rail 1% Pipe 99% 52
  96. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 96
    Bakken Transportation Analysis 2009-2012 2011 Rail 31% Pipe 69% 53
  97. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 97
    Bakken Transportation Analysis 2009-2012 Sept. 2012 Rail 56% Pipe 44% 54
  98. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 98
    1st Mile Infrastructure (Thousands) 100 100% Wellhead gathering 90 90% Montana Gathering Four Bears 80 80% Market Center Cost savings Percent Piped from Well 70 70% Operated Sales - Bopd 1.50 to 2.00/bbl 60 60% Goal 50…
  99. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 99
    Williston Basin Evacuation Capacity 3.5 3.5 TransCanada East (42) Enbridge Sandpiper (24) OneOk Bakken Express (24) TransCanada Keystone XL SB - High Prairie (16) Western Fuels - NewTown Enbridge - Berthold Plains - Ross 3.0 Hess…
  100. 2012 INVESTORS DAY – Continental Resources, Inc. – slide 100
    CLR Going Directly to North American Refiners Reliable supplier to a wide cross-section of refiners Anacortes, WA - 2012 United States and Canada Albany, NY - 2010 All five U.S. PADDs* ADU Capacity (B/D)** Westville, NJ - 2011 3…

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