Tuesday, October 9, 2012

CLR's Investor Day Presentation

The presentation can be found at CLR's website. I had a fairly fast wi-fi connection at the Belmont, MA, Starbucks, and it still took about twelve minutes to download. Be prepared.

CLR's legacy of success:
  • Cedar Hills field: first field developed completely with horizontal drilling
  • Elm Coulee field: unlocked the code with horizontal drilling and open hole frac
  • ND Bakken: first economic well that was horizontally drilled with a staged frac
  • ND Bakken: proved the Three Forks as a separate reservoir
  • Anadarko Woodford: extended the play significantly northwest and southeast
  • today: extending laterals up to three miles (2012)
Goals, past (production):
  • 2010: 3x production year-end 2009 through year-end 2013, to 112 million boepd
  • the 2010 goal will be achieved 18 months early (July, 2012)
  • the 2009 production had been 13.6 million boepd; the 2014 goal was 41 million boepd
Other operators (as of 2Q12) - oil production
  • CLR: #1 oil  producer in the Williston Basin - 8 million bbls
  • HES: 6 million bbls
  • WLL: 5.2 million bbls
  • EOG: 4.9 million bbls
  • COP: 3 million bbls
  • CLR and Hess accelerating; WLL, EOG, COP fairly flat
Goal, past (proved reserves):
  • 3x proved reserved year-end 2009 through year-end 2014
  • proved reserves, 2009: 257 million boe
  • proved reserves, 2014, goal: 771 million boe
Ten-year growth strategy:
  • accelerate oil-rich inventory
  • capitalize on growth platforms in place (Bakken, Anadarko Woodford)
  • generate new oil plays
Growth potential, growing the Bakken through exploration
  • USGS, 2008: 3.7 billion bbls technically recoverable oil
  • CLR, 2010: 24 billion bbls technically recoverable oil
  • CLR, 2012: 903 billion bbls of oi in place
CLR net acreage in the Bakken:
  • 2009: 645,347
  • 2010: 855, 936
  • 2011: 915,863  
  • 2012: 972,056
CAPEX, 2013 - 2014 (rounded):
  • $850 million: $235 development; $60 dev pilot; $80 lower TF accelerated de-risking; $60 other northern region new plays; $150 southern region new plays; $240 leasehold;
  • 110 net wells
Wells costing $9.5 to $11.3 million; target -- $8.2 million

Slide 33: demand for Bakken growing faster than production

2012 goal
  • 3x production by year-end 2017: from 97K boepd today to 300,000 boepd in 2017
  • 3x proved reserves by year-end 2017: from 508 million boe to 1.524 billion boe in 2017
  • CLR will move from independents (CXO, DNR, PXD, WLL, XEC, SD) to join the super-independent (EOG, DVN, APC, APA)

2 comments:

  1. It is a good event. They have some new substance, some new people, and loads of optimism. Nice weather and nice people.

    Anon 1

    ReplyDelete
    Replies
    1. Some new substance... including a few more net acres in the Bakken.... a slight increase...and CLR always seems to deliver on its promises.

      Delete

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