Investor Update. January 2015

Transcription

1 Investor Update January 215

2 215: Embracing Market Change Revised 215 capex and production guidance $2.7 billion capex (reduced 41%) Targeting cash flow neutrality by mid year 215 Other Drilling, $12MM Leasehold, $18MM Other, $147MM 16% 2% YOY production growth Priorities Maintain strong balance sheet and financial flexibility Align capex near discretionary cash flow Maximize returns and growth by focusing on high rate of return (ROR) inventory Opportunities Reduce well and service costs Build efficiencies Remain opportunistic SCOOP Drilling, $722MM Bakken Drilling, $1,549MM Non Acquisition Capital Expenditures: $2.7B 4

3 Two World Class Platforms for Growth: Leading positions in both the Bakken and SCOOP Largest leasehold owner Bakken 1.2 million net acres SCOOP 471, net acres Captured core of the basin leasehold as an early entrant and first mover in both plays Production Growth (Boe per Day) 2, 182,335 18, 16, Decades of repeatable, low risk inventory to fuel future growth Bakken 4.1 Billion Boe net unrisked resource potential (11,817 net unrisked potential locations) 1 years of inventory averaging 775 MBoe/well* 25 years of inventory averaging 6 MBoe/well* SCOOP 3.6 Billion Boe net unrisked resource potential (~4,75 net unrisked potential locations) Boe/Day 14, 12, 1, 8, 6, 4, 2, 37,324 43,318 61,865 97, , Q 214 Legacy Bakken SCOOP * Based on current run rate of 188 net wells /year 6

4 High Quality Assets Provide Optionality 14% ROR vs. Oil Price: Current & Expected Lower CWC Comparison Bakken Oil Bakken Oil 15% CWC Reduction NW Cana Gas with Carry NW Cana Gas With Carry 15% CWC Reduction SCOOP Woodford Condensate SCOOP Woodford Condensate 15% CWC Reduction Springer Oil Springer Oil 15% CWC Reduction SCOOP Woodford Oil SCOOP Woodford Oil 15% CWC Reduction 12% 1% 8% ROR 6% 4% 2% Gas Price = $3.5 % $4 $45 $5 $55 $6 $65 $7 $75 $8 $85 $9 Oil Price, $/BBL Area EUR, MBoe Lateral Length, ft Bakken Oil 8 9,8 Springer Oil 94 4,5 Woodford Condensate 1,725 7,5 Woodford Oil 65 7,5 NW Cana Gas 1,525 7,5 7

5 SCOOP Woodford: Continues to Grow Excellent production extended another 12 miles south Connell XH: IP 1,951 Mcfd and 518 Bopd 9,5 lateral Ritter XH: IP 11,747 Mcfd 6,5 lateral Rich gas 1,1+ BTU Continue to encounter strong production moving west Wilkins 1 29H: IP 11,461 Mcfpd and 51 Bopd Wilbern 1 15H: IP 8,21 Mcfpd and 47 Bopd Both average 4,5 laterals Plan to average ~1 13 operated rigs in 215 CLR: George 1 17H IP: 279 Bopd & 4,773 Mcfpd CLR: Wilbern 1 15H IP: 47 Bopd & 8,21 Mcfpd CLR: Wilkins 1 29H IP: 51 Bopd & 11,461 Mcfpd CLR: Ritter XH IP: 11,747 Mcfpd (1,1+ BTU) CLR: Connell XH IP: 518 Bopd & 1,951 Mcfpd CLR Completions Peer Completions CLR Acreage Oil Fairway Condensate Fairway Gas Fairway Oklahoma City CLR: Galvin XH IP: 739 Bopd & 1,74 Mcfpd CLR: Love XH IP: 291 Bopd & 6,691 Mcfpd 11

6 Higher Returns With Extended Laterals Woodford Condensate Fairway Approximately 7% of 215 wells will be extended laterals 7,5 on average (1, where possible) EUR: 1,725 MBoe (normalized to 7,5 ) Current completed well cost: $12.2 MM Anticipate ~15% or greater reduction during 215 Condensate Fairway (53% Liquids) Gas 47% Oil 13% NGL 4% Boepd 1,8 1,6 1,4 1,2 1, Producing Months 1,725 MBoe Model Parameters 7,5 lateral length Oil IP Rate, Bbl/day 28 Oil 3 day IP Rate, Bbl/day 262 Oil Initial Decline 61% Oil b factor 1.1 Oil EUR, MBo 295 Gas IP Rate, Mcf/day 7, Gas 3 day IP Rate, Mcf/day 6,595 Gas Initial Decline 58% Gas b factor 1.2 Gas EUR, MMcf 8,58 Equivalent EUR, MBoe 1,725 Minimum Decline 6% Capital, $MM 12.2 Condensate Fairway Type Curve 4,5' Act. Well Count Ext. Act. Well Count 4,5' Act. Production Ext. Type Curve (Normalized to 7,5' LL) Ext. Act. Production (8,8' Avg LL) ROR 1% 8% 6% 4% 2% Condensate ROR vs Gas Price 15% CWC Reduction Current CWC ($12.2 MM) % $2 $3 $4 $5 $6 Gas Price, $/MCF Oil Price: $6/BBL Well Count 12

7 SCOOP Springer: Expanding Oil Discovery Continued success with oil fairway step outs Schoof 1 17H: IP 1,465 Boepd Lyle Land 1 25H: IP 1,134 Boepd Martha 1 34H: IP 934 Boepd Wells average ~4,5 laterals and 75% oil First extended lateral underway 195, net acres in the heart of SCOOP 118, net acres in oil fairway 46, net acres de risked 127 MMBoe net unrisked resource potential 188 net (252 gross) operated locations 27 net (147 gross) non operated locations 72, net acres of additional upside being tested 77, net acres in gas/condensate fairway to be tested 6 rigs currently drilling Plan to average ~3 6 operated rigs in 215 CLR: Schoof 1 17H IP: 1,465 Boepd 12 Miles CLR: Lyle Land 1 25H IP: 1,134 Boepd Springer Fairway SCOOP CLR: Martha 1 34H IP: 934 Boepd SCOOP Outline Springer Fairway CLR Leasehold CLR 213 Key Delineation Wells CLR Springer Shale Producers Non Op. Springer Shale Producer 13

8 SCOOP Springer Oil: Exceptional Economics Current EUR/Well Model: 94 MBoe 4,5 lateral Current completed well cost: $9.7 MM Expect ~15% or more reduction in cost during 215 Boepd Springer Shale Type Curve Well Count Type Curve (Normalized to 4,5' LL) Act. Production (4,275' Avg LL) Install Tubing and Gas Lift Producing Months Well Count Springer Fairway (84% Liquids) NGL 17% Gas 16% Oil 67% 94 MBoe Model Parameters 4,5 lateral length Oil IP Rate, Bbl/day 67 Oil 3 day IP Rate, bbl/day 618 Oil Initial Decline 62% Oil b factor 1.25 Oil EUR, MBo 735 Gas IP Rate, Mcf/day 867 Gas 3 day IP Rate, Mcf/day 81 Gas Initial Decline 56% Gas b factor 1.4 Gas EUR, MMcf 1,23 Equivalent EUR, MBoe 94 Minimum Decline 6% ROR 14% 12% 1% 8% 6% Oil ROR vs Oil Price 15% CWC Reduction Current CWC ($9.7 MM) 4% Gas Price: $3.5/MCF 2% $4 $5 $6 $7 $8 $9 $1 Oil Price, $/BBL 14

9 Incremental Value Captured Through NW Cana JV Formed JV with SK E&S (South Korean based) Sold 49.9% interest in 44, acres and 37 producing wells for total consideration of $36 million $9 million cash at closing 5 year $27 million carry for 5% of CLR s future D&C capital NW Cana STACK Cana Field Plan to operate 4 rigs in 215 Blaine County Carried returns of 85% for current CWC and over 1% for target CWC at $3.5/Mcf & $6 oil EUR: 1,872 MBoe CWC: $11.8 MM 25 Miles SCOOP Dewey County Carried returns of 84% at current CWC and over 1% for target CWC at $3.5/Mcf and $6 oil EUR: 1,525 MBoe CWC: $1.3 MM Woodford Shale Thickness 5 ft 1 ft >2 ft Oklahoma Texas 15

10 215 Capital Expenditures Budget Non Acquisition Capital Expenditures: $2.7B Other Drilling, $12MM Leasehold, $18MM Other, $147MM Drilling capital allocation: Bakken: 65% SCOOP: 31% Woodford: 24% Springer: 7% NW Cana JV & Other: 4% SCOOP Drilling, $722MM Bakken Drilling, $1,549MM Average 31 operated rigs in YOY production growth of 16 2% Average Operated Rigs Net Wells (1) Bakken SCOOP Woodford 1 13 ~63 SCOOP Springer 3 6 ~18 NW Cana JV & Other 4 11 Totals 31 ~28 (1) Includes operated and non operated wells with first production 16

11 Woodford Thickness Expands Across Leasehold North Development Program Initiated Exploratory Program South Hunton W o o d f o r d Hunton Gamma Ray 25 Mi. Brittleness 23

12 NW Cana Joint Venture 1,5 Blaine Type Curve Actual Well Count 6 1,2 Dewey Type Curve Actual Well Count 45' Actual Prod. 6. Gross BOE Rate, bbls/d 1, 5 Actual Prod. (435' Avg LL) Extended Type Curve (Normalized to 75') BOE 45' Type Curve BOE 4 Well Count 2 Gross BOE Rate, bbls/d 8 4 Actual Prod. (3475' Extended Avg LL) Type Curve (Normalized Extended Type to Curve 75') (Normalized BOE to 75') BOE 45' Type Curve BOE 45' Type Curve BOE 45' Actual Well Count 4. Well Count Producing Months Producing Months Blaine Gas 7,5 Lateral Length Oil IP Rate, Bbl/day 1 Oil 3 day IP Rate, bbl/day 1 Oil Initial Decline 79% Oil b factor 1.4 Oil EUR, MBo 1.2 Gas IP Rate, Mcf/day 8,9 Gas 3 day IP Rate, MCF/day 8,34 Gas Initial Decline 59% Gas b factor 1.3 Gas EUR, MMcf 11,222 Equivalent EUR, MBoe 1,872 Minimum Decline 6% ROR 2% 15% 1% 5% % Blaine ROR vs. Gas Price (with Carry) Current CWC ($11.8 MM) 15% CWC Reduction $2 $3 $4 $5 Gas Price, $/Mcf Oil Price= $6 Dewey Gas 7,5 Lateral Length Oil IP Rate, Bbl/day 99 Oil 3 day IP Rate, bbl/day 91 Oil Initial Decline 66% Oil b factor 1.3 Oil EUR, MBo 96 Gas IP Rate, Mcf/day 5,998 Gas 3 day IP Rate, MCF/day 5,74 Gas Initial Decline 53% Gas b factor 1.3 Gas EUR, MMcf 8,581 Equivalent EUR, MBoe 1,525 Minimum Decline 6% ROR 2% 15% 1% 5% % Dewey ROR vs. Gas Price (with Carry) Current CWC ($1.3 MM) 15% CWC Reduction Oil Price= $6 $2 $3 $4 $5 Gas Price, $/Mcf 24