OKLAHOMA CITY, Dec. 22, 2014 /PRNewswire/ -- Continental Resources, Inc. (NYSE: CLR) ("Continental" or the "Company") today announced a revised 2015 non-acquisition capital expenditures budget of $2.7 billion. This level of activity is projected to yield 16% to 20% production growth in 2015 compared to estimated 2014 production.
Harold G. Hamm, Chairman and Chief Executive Officer, commented, "This revised budget prudently aligns our capital expenditures to lower commodity prices, targeting cash flow neutrality by mid-year 2015. This budget also maintains our financial flexibility and strong balance sheet while continuing to grow production in our core Bakken and SCOOP plays. The depth and quality of our asset base coupled with our financial strength allows us to be adaptable in a variety of price environments."
The Company plans to decrease its current average operated rig count from approximately 50 to approximately 34 by the end of first quarter 2015 and average approximately 31 operated rigs for full-year 2015. Allocation of operated rigs include 16 in the SCOOP Woodford/Springer plays, 11 in North Dakota Bakken and four in Northwest Cana, where 50% of the costs applicable to the Company's interest is being carried by a JV partner.
The revised 2015 budget is based on completing 81 net wells for the SCOOP Woodford/Springer plays with no change to previous estimated ultimate recovery ("EUR") targets. In the Bakken, the Company now expects to complete 188 net wells focused primarily in its core acreage, targeting an increased average EUR of 800,000 barrels of oil equivalent per well. In the Northwest Cana play and other areas, the Company plans to complete 11 net wells. Completed well cost estimates are expected to average at least 15% below 2014 averages as service costs adjust to lower commodity prices.
An updated table of the Company's 2015 guidance can be found at the conclusion of this release.
Additionally, the Company plans on presenting at the Goldman Sachs Global Energy Conference on January 7, 2015 in Miami, FL. An updated presentation will be available on the Company website prior to the event.
About Continental Resources
Continental Resources (NYSE: CLR) is a Top 10 independent oil producer in the United States and a leader in America's energy renaissance. Based in Oklahoma City, Continental is the largest leaseholder and one of the largest producers in the nation's premier oil field, the Bakken play of North Dakota and Montana. The Company also has significant positions in Oklahoma, including its SCOOP and Springer discoveries and the Northwest Cana play. With a focus on the exploration and production of oil, Continental has unlocked the technology and resources vital to American energy independence and is a strong free market advocate including lifting of the domestic crude oil export ban. In 2014, the Company celebrated 47 years of operations. For more information, please visit www.CLR.com.
Cautionary Statement for the Purpose of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements included in this press release other than statements of historical fact, including, but not limited to, statements or information concerning the Company's future operations, performance, financial condition, production and reserves, schedules, plans, timing of development, returns, budgets, costs, business strategy, objectives, and cash flow, are forward-looking statements. When used in this press release, the words "could," "may," "believe," "anticipate," "intend," "estimate," "expect," "project," "budget," "plan," "continue," "potential," "guidance," "strategy," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on the Company's current expectations and assumptions about future events and currently available information as to the outcome and timing of future events. Although the Company believes the expectations reflected in the forward-looking statements are reasonable and based on reasonable assumptions, no assurance can be given that such expectations will be correct or achieved or that the assumptions are accurate. When considering forward-looking statements, readers should keep in mind the risk factors and other cautionary statements described under Part I, Item 1A. Risk Factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, registration statements and other reports filed from time to time with the Securities and Exchange Commission ("SEC"), and other announcements the Company makes from time to time.
The Company cautions readers these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control, incident to the exploration for, and development, production, and sale of, crude oil and natural gas. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling, completion and production equipment and services and transportation infrastructure, environmental risks, drilling and other operating risks, lack of availability and security of computer-based systems, regulatory changes, the uncertainty inherent in estimating crude oil and natural gas reserves and in projecting future rates of production, cash flows and access to capital, the timing of development expenditures, and the other risks described under Part I, Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, registration statements and other reports filed from time to time with the SEC, and other announcements the Company makes from time to time.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, the Company's actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that the Company, or persons acting on its behalf, may make.
Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements to reflect events or circumstances after the date of this press release.
John J. Kilgallon
Vice President, Investor Relations
Vice President, Public Relations
Continental Resources, Inc.
As of December 22, 2014(1)
Production growth (YOY)
16% to 20%
Capital expenditures (non-acquisition, in $ billions)
Production expense per Boe
$5.50 to $6.00
Production tax (% of oil & gas revenue)
7.5% to 8.5%
G&A expense per Boe
$2.00 to $2.50
Non-cash equity compensation per Boe
$0.75 to $0.95
DD&A per Boe
$20.00 to $22.50
Average Price Differentials:
NYMEX WTI crude oil (per barrel of oil)
($7.00) to ($10.00)
Henry Hub natural gas (per Mcf)
+$0.75 to $1.25
Income tax rate
90% to 95%
(1) Bold items above in guidance denote a change from the previous disclosure.
Continental Resources, Inc.
2015 Non-Acquisition Capital Expenditures and
Associated Operated Rig Activity
The following table provides changes in 2015 non-acquisition capital expenditures and associated operated rig activity as compared to guidance previously disclosed on November 5, 2014.
($ in millions)
Revised 2015 Budget
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SOURCE Continental Resources