Tuesday, August 8, 2017

CLR -- Breaks Even -- August 8, 2017

From a press release:

Company raises 2017 production guidance and lowers costs while targeting cash neutrality for the year:
  • exit rate raised to 260,000 to 275,000 barrels of oil equivalent per day, up 24% to 31% over 4Q 2016
  • annual production raised to 230,000 to 240,000 boe per day
  • oil differential improved by $1.00 per barrel and operating costs lowered
  • capital expenditures adjusted to a range of $1.75 billion to $1.95 billion, targeting cash neutrality at $45 to $51 WTI
Company delivers solid second quarter production and cost performance:
  • production averaged 226,213 boe per day, up 6% from 1Q 2017
  • oil differential dropped 11% to $6.31 per barrel from $7.09 per barrel in 1Q 2017
  • total G&A declined to $1.89 per boe, compared with $2.45 per boe in 1Q 2017
Optimized completions increase both estimated ultimate recoveries (EUR) and rates of return (ROR):
  • Bakken ROR uplifted to 82%, based on new 1,100 MBoe type curve EUR
  • STACK Condensate type curve announced at 80% ROR, based on 2,400 MBoe EUR
  • SCOOP Springer Cash 1-26H well yields over 100% ROR, 25% higher EUR
Company announces new record STACK well in condensate window of the play

Company agrees to sell non-strategic leasehold and property for $147.5 million, with proceeds targeted to reduce debt

Financial notes:
  • reports a net loss of $63.6 million , or $0.17 per diluted share, for the quarter ended June 30, 2017
  • adjusted, a net loss for the second quarter was $1.8 million , or $0.00 per diluted share

Glenn Campbell dead at age 81.


President Trump responded verbally to North Korea's threats today. Those remarks finally got, perhaps, a bit of reaction out of the market.

From my perspective:
  • his remarks were not meant for NOKO, but rather for China and Russia, but mostly China
  • if "something" does happen, no one can suggest that President Trump did not telegraph his patience was running out
  • President Trump will work with regional allies; his UN ambassador will work with the UN, but Trump won't go to the UN for approval for any action
  • Trump will look for any "excuse" to make good on his remarks 
  • NOKO cannot afford one misstep; if one of his missiles goes ballistic and hit Japan's mainland, reaction will be swift
  • US military may know NOKO's capabilities better than Kim Jong-un
  • regardless how it plays out, NOKO's not getting any more money or breaks from the US as it did come the last several administrations

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