In a long note like this, there will be content and typographical errors. If this is important to you, go to the source.
CLR is scheduled to report 3Q21 earnings, November 1, 2021.
EPS: previous two quarters:
- estimate, both quarters: 55 cents:
- actual, both quarters: 91 cents
EPS: 3Q21, forecast: $1.17
This might be a good time to remind folks of CLR's 2Q21 earnings call. Transcript here.
Some highlights, facts and comments interspersed; hard to tell the difference:
- earnings call focused mostly on the Bakken;
- no mention of the Tuscaloosa Marine Shale; watch for that in the 3Q21 earnings call; my hunch: won't be mentioned
- significant free cash flow being returned to shareholders
- quarterly dividend increased to 15 cents per share; previous 11 cents
- opted for $1 billion share buyback vs larger dividend
- record-breaking $634 million free cash flow
- reduced net debt by $284 million; 2Q21 debt: $4.59 billion
- $284 million / $4.59 billion = at this rate, only 16 quarters to go, or four years -- in the big scheme of things, that seems pretty amazing;
- ytd: $1.34 billion in free cash flow
- most recent quarter accounted for 21%; straight-line: 25%
- exceeded production guidance; currently delivering 167,000 boepd
- hedging
- unhedged on crude oil
- natural gas: 50% of CLR's volume currently hedged
- but no hedging whatsoever in 2022
- free cash flow
- as of the end of 2Q21, CLR had already generated free cash flow forecast for the entirety of 2021
- free cash flow potential this year: $2.4 billion; that would be at a slightly fast rater than first half 2021;
- CAPEX: has not changed; reinvestment rate is trending toward 35%
- debt outlook looks great at $50 - $55 WTI
- production forecast, for 2021:
- 900,000 to one million bcf/day (that needs to be fact checked; transcript error)
- reminder: new futures contract to start trading by end of year: the Midland WTI American Gulf Coast
- task force led by Harold Hamm; along with efforts by Magellan and EPD
- operations
- brought on 108 gross operated wells: 70 - Bakken; 38 - Oklahoma
- Bakken type curves right on track
- 45% more boe per $1,000 spent in the first twelve months than CLR did in 2018
- DAPL: 1.6 million bopd; Bakken produced on average 1.1 million bopd in May, 2021
- Long Creek Unit: eleven completions in 2Q21; costing $6.1 million / well
- most interesting: CLR feels there is an excess of five million bbls/day crude oil production on a global basis;
