Thursday, August 5, 2021

CLR -- Transcript -- 2Q21

William Berry: CEO

  • company record-breaking $634 million free cash flow
  • reduced net debt by $284 million
  • quarter ended with $4.59 billion in debt
  • at this rate, 16 quarters to pay off debt
  • ytd: $1.34 billion in fcf
  • ytd: reduced net debt by $892 million
  • exceeded production guidance, 167,000 boepd day and 1 billion cf of natural gas per day (1 billion / 6001 = 167K boepd -- :We exceeded our production guidance for the quarter, delivering 167,000 BOE a day and just over -- barrels of oil a day and just over 1 billion cubic feet of gas per day."
  • oil: unhedged;
  • natural gas: about 50% hedged through end of the year; 2022: no gas hedges beyond 2022;

Jack Stark: president and COO: assuming $60 WTI and $3 NYMEX gas

  • 2Q21:
    • brought on 70 gross operated wells in the Bakken; 38 in Oklahoma
  • takeaway in the Bakken
    • with the DAPL expansion, 1.6 million bbls of pipeline and local refining takeaway capacity excluding rail
    • approximately 500,000 bopd more than the Bakken produced in May, 2021
  • eleven of the 2Q21 Bakken completions were in the Long Creek unit;
    • coming in below guidance of $6.1 million / well
    • goal: 56 wells in this unit
    • 30% by year-end 2021; 50% in 2022; and the remaining 20% in early 2023
  • buybacks vs variable dividends
    • investors seem to prefer buybacks over variable dividends
    • Harold Hamm: "Because."
  • not a lot of "free float" available for buy backs

I'll quit here; much more at the transcript, but most of it interests me now. The corporate slides are most interesting and can be found at the CLR website. 

See this post.

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