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)