Tuesday, August 23, 2016

CLR: 2Q16 Presentation -- August 23, 2016

Technically, this is not the 2Q16 corporate presentation but it was a presentation for an investment conference based on 2Q16 data. At some point, this presentation will disappear from the CLR website.

BAKKEN

Net acreage: 985,000 net acres

Average EUR:
  • 2015: 800,000 boe
  • 2016: 900,000 boe
Enhanced CWC: $6.2 million
  • Targeting $6.0 million by year-end 2016
DUCs
  • Projecting 190 DUCs at year-end 2016
  • average EUR: 850,000 boe
  • $3.5 million incremental completion cost
  • over 100% ROR for incremental completion cost for DUCs a $45 WTI and $2.50 gas
Enhanced completions (30-stage wells in Williams and McKenzie counties)
  • 60% slickwater: 54 wells -- 100,000 boe at 180 days
  • 45% hybrid: 72 wells -- 90,000 boe at 180 days
  • Conventional completion in offsetting wells: 60,000 boe at 180 days
Takeaway
  • It appears that even without the Dakota Access Pipeline, 85% of CLR Bakken bbls are shipped by pipeline
Costs
  • $11.01 / bbl: production expense, cash G & A, tax, interest
  • $15.35 / bbl: cash margin
  • Total: $26.36 oil
Financial strength
  • No near-term debt maturities; earliest is $500 million in 11/2018
  • Average interest rate: 4.3%
  • Current liquidity at $2.75 billion; ability to upsize to $4.0 billion
Goals
  • $40 oil: pay down debt
  • $50 oil: DUC completions
  • $60 oil: add rigs
Breakeven for single wells in North American oil plays
  • 30 NA plays listed (independent agency source)
  • #1: SCOOP liquids ($35)
  • #2: Bakken - 800,000 boe EUR ($40)
  • #3:
  • #4:
  • #5:
  • #6: STACK ($40)
  • #7: SCOOP Springer ($40)
  • #12: Bakken - 600,000 boe EUR ($50)  
CLR production expense and cash G&A
  • Of 11 peers: CLR is #1 (lowest) in production cost, cash G&A
  • "Select" peers include: EOG, OAS, WLL, WPX
OKLAHOMA
 
Oklahoma CLR net acreage:
  • STACK Meramec/Osage: 183,000 net acres
  • STACK Woodford: 168,000
  • SCOOP Woodford: 413,000
  • SCOOP Springer; 206,000 (EURs of 2 million boe)

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