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.
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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.
Investor
Contact:
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Media
Contact:
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John J.
Kilgallon
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Kristin
Thomas
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Vice President,
Investor Relations
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Vice President,
Public Relations
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405-234-9330
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405-234-9480
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John.Kilgallon@CLR.com
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Kristin.Thomas@CLR.com
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Continental
Resources, Inc.
2015
Guidance
As of December 22,
2014(1)
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2015
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Production growth
(YOY)
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16% to
20%
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Capital expenditures
(non-acquisition, in $ billions)
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$2.7
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Operating
Expenses:
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Production expense per
Boe
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$5.50 to
$6.00
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Production tax (% of oil
& gas revenue)
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7.5% to
8.5%
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G&A expense per
Boe
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$2.00 to
$2.50
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Non-cash equity compensation
per Boe
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$0.75 to
$0.95
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DD&A per
Boe
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$20.00 to
$22.50
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Average Price
Differentials:
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NYMEX WTI crude oil (per
barrel of oil)
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($7.00) to
($10.00)
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Henry Hub natural gas (per
Mcf)
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+$0.75 to
$1.25
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Income tax
rate
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37%
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Deferred
taxes
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90% to 95%
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(1) Bold items above in guidance
denote a change from the previous disclosure.
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Continental
Resources, Inc.
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2015 Non-Acquisition
Capital Expenditures and
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Associated Operated
Rig Activity
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The following table
provides changes in 2015 non-acquisition capital expenditures and
associated operated rig activity as compared to guidance previously
disclosed on November 5, 2014.
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($ in
millions)
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Bakken
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SCOOP
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Other
Drilling
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Land
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Other
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Total
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Capex
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Rigs
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Capex
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Rigs
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Capex
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Rigs
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Capex
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Capex
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Capex
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Rigs
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2015
Budget
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$2,591
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19
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$1,325
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26
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$114
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5
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$300
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$270
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$4,600
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50
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Revised 2015
Budget
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$1,549
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11
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$722
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16
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$102
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4
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$180
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$147
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$2,700
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31
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Change
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($1,042)
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(8)
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($603)
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(10)
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($12)
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(1)
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($120)
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($123)
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($1,900)
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(19)
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/continental-resources-announces-revised-2015-capital-budget-and-guidance-300013373.html
SOURCE Continental Resources