It's great to see this in print.
CLR is delivering its oil to "premium markets." "More than 90 percent of our operated production is priced, apart from transportation costs, at a premium to West Texas Intermediate. WTI is an increasingly unrealiable reflection of the realized value of Bakken oil due to the chronic oversupply at Cushing," Mr. Hamm said. The majority of Continental's oil is sold for delivery by pipeline to Clearbrook, MN or Guernsey, WY, or delivered by railroad to various points including St. James, LA.There's something to be said for flexibility in ways and places to ship oil.
During the third quarter of 2011, Continental had 3.1 million barrels of oil production covered by derivative instruments, with fixed price swaps averaging $85.64 per barrel and collars in a weighted average range of $79.39 to $91.27. The Company expects to recognize a pre-tax unrealized gain on mark-to-market derivative instruments of more than $500 million for the quarter.
I've always said the key to success is effectively and efficiently managing the "business of the business."
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.