Continental Resources Announces Record Proved Reserves And Production For 2013
1.08 Billion Boe in Proved Reserves at Year-End 2013, a 38% Increase over
Full-Year 2013 Production Totals 49.6 Million Boe, a 39% Increase over 2012
Continental Plans Fourth Quarter and Full-Year 2013 Earnings Announcement for
Wednesday, February 26, 2014
OKLAHOMA CITY, Feb. 7, 2014
OKLAHOMA CITY, Feb. 7, 2014 /PRNewswire/ -- Continental Resources, Inc. (NYSE:
CLR) (the "Company") today announced record proved reserves and production for
2013, as well as key fourth-quarter 2013 cost metrics and capital
"Our teams delivered another excellent year, achieving production and capital
expenditure guidance as promised," said Harold G. Hamm, Chairman and Chief
Executive Officer. "We accomplished our key 2013 goals across the board – to
generate top-tier organic oil production growth; to improve efficiency while
reducing drilling and completion costs; and to delineate the lower benches of
the Bakken and southern portions of the South Central Oklahoma Oil Province,
"In spite of abnormal winter weatherin December and January thatdelayed some
completions and deliveries, we still achieved our 2013 targets, and our annual
guidance is intact for strong growth in 2014, with production increasing in a
range of 26% to 32%," Mr. Hamm said.
Proved Reserves Increase 38% Year over Year
The Company reported proved reserves of 1.08 billion barrels of oil equivalent
(Boe) at December 31, 2013, an increase of 299 million barrels of oil
equivalent (MMBoe) or 38% compared with year-end 2012.^ Year-end 2013
proved reserves were 87% operated by the Company, 37% proved developed
producing (PDP), and 68% crude oil. Continental has grown its proved reserves
at a compound annual growth rate of 47% per year since year-end 2008.
In 2013, Continental's PDP reserves for the first time exceeded 400 MMBoe. PDP
reserves increased 31% from year-end 2012 to 405 MMBoe at December 31, 2013.
The Company had 2,330 gross (1,302 net) proved undeveloped (PUD) locations at
year-end 2013. The Bakken accounted for 84% of PUD locations at year end.
Continental's year-end 2013 proved reserves had a net present value discounted
at 10% (PV-10) of $20.2 billion, a 52% increase over the PV-10 of $13.3
billion for year-end 2012 proved reserves.
The strong increase in 2013 proved reserves reflected significant production
growth in the Bakken play of North Dakota and Montana. Continental pioneered
development of the upper Three Forks in 2008, and in the past year has led in
the exploration of the lower benches of the Three Forks, in addition to
leading the way with pilot down-space testing across the basin. The Bakken
accounted for 741 MMBoe of Continental's 2013 proved reserves, with a PV-10
value of $14.5 billion.
Continental's 2013 proved reserves were also augmented by accelerated
production in the SCOOP, an oil- and liquids-rich play in Oklahoma. SCOOP
accounted for 215 MMBoe of 2013 proved reserves, a 241% increase over proved
reserves of 63 MMBoe at year-end 2012. The PV-10 value of the Company's SCOOP
proved reserves was $3.3 billion as of December 31, 2013.
"We ramped up our SCOOP rig count early in 2013 and delivered strong results
in a capital-efficient manner within our budget for the year," said W. F.
"Rick" Bott, President and Chief Operating Officer.
Continental holds the dominant leasehold positions in the Bakken and SCOOP,
with 1.2 million net acres in the Bakken and 403,000 net acres in SCOOP as of
December 31, 2013. The Company also has the industry's most active drilling
program in each play.
Production Grows 39% Year-Over-Year Within Capital Budget
Estimated total production was 49.6 MMBoe for 2013, an increase of 39%
compared to 2012. Crude oil accounted for 71% of total production, or 35.0
MMBo, in 2013. Estimated natural gas production for the year was 87.7 billion
Capital expenditures excluding acquisitions for 2013 were just under the
budget of $3.6 billion, which included $3.1 billion for drilling and
completion operations. Acquisition capital expenditures were $270 million for
Fourth Quarter Production and Expenses
The Company announced production of 13.3 MMBoe for the fourth quarter of 2013,
a year-over-year increase of 35% compared with the fourth quarter of 2012.
Fourth quarter 2013 average production was 144,250 Boe per day, representing a
2% increase over the third quarter of 2013. The Company reached a new
production milestone of 150,000 Boe per day during November, prior to
experiencing winter weather delays. Continental has recently regained the
150,000 Boe per day production level.
"We had a great 2013," Mr. Bott said. "Weather affected the fourth quarter,
but the timing of production gains also reflects our continued shift to large,
multi-well drilling pads. This is a key driver of future efficiency gains and
"Such strong execution continues to underpin our confidence in achieving
Continental's five-year plan to triple production and proved reserves," he
Continental began 2014 with an inventory of more than 100 gross wells that
have been drilled, but are not yet producing, almost all of which are
associated with multi-well pads.
Fourth quarter 2013 oil differential (discount to WTI crude and inclusive of
all transportation) is expected to be approximately $13 per barrel, about
twice as high as the average for the first nine months of the year. Full-year
2013 differential is expected to be approximately $8.25 per barrel, compared
with annual guidance range of $6 to $8 per barrel.
Lower volumes due to winter weather delays and the Company's mix of wells in
the fourth quarter of 2013 also impacted production expense per Boe and
depreciation, depletion and amortization (DD&A) per Boe. Production expense
for the fourth quarter of 2013 is expected to be approximately $0.90 above the
third quarter 2013 level of $5.17 per Boe. DD&A for the fourth quarter of 2013
is expected to be approximately $1.50 above the third quarter 2013 level of
$18.87 per Boe. For 2013 as a whole, the Company expects both production
expense per Boe and DD&A per Boe to be within annual guidance.
The Company reaffirmed its 2014 guidance as announced in its third quarter
earnings release on November 6, 2013.
Fourth Quarter and Full-Year Earnings Announcement and Conference Call
Continental plans to announce fourth quarter and full-year 2013 earnings on
Wednesday, February 26, 2014, following the close of trading on the New York
Stock Exchange. The company plans to host a conference call to discuss
earnings results on Thursday, February 27, 2014, at 11 a.m. ET (10 a.m. CT).
Those wishing to listen to the conference call may do so via the Company's
website at www.CLR.com or by phone:
Time and date: 11 a.m. ET, Thursday, February 27, 2014
Dial in: 800 708 4539
Intl. dial in: 847 619 6396
Pass code: 36590660
A replay of the call will be available for 30 days on the Company's website or
Replay number: 888 843 7419
Intl. replay 630 652 3042
Pass code: 36590660
Continental plans to publish a fourth quarter and full-year 2013 summary
presentation to its website at www.CLR.com prior to the start of its earnings
conference call on February 27, 2014.
Members of Continental's management team will be participating in the
following upcoming investment conferences:
February 12, 2014 Credit Suisse 19th Annual Energy Summit, Vail
March 3, 2014 Raymond James Institutional Investors Conference, Orlando
March 26, 2014 Howard Weil 42nd Annual Energy Conference, New Orleans
The Company's presentations at the above Credit Suisse and Raymond James
conferences will be available via webcast, such webcasts to be available for
30 days on the Company's website described below. Instructions regarding how
to access the webcasts and presentation materials for all conferences will be
available on the Company's website at www.CLR.com on or prior to the day of
About Continental Resources
Continental Resources, Inc. (NYSE: CLR), based in Oklahoma City, is focused on
the exploration and production of onshore oil-prone plays and is a Top 10
independent oil producer in the United States. The Company has a long and
successful history of developing its industry-leading leasehold and production
in the nation's premier oil play, the Bakken of North Dakota and Montana, as
well as significant positions in Oklahoma in its recently discovered SCOOP
play and the Northwest Cana play. In 2014, the Company will celebrate 47
years of operation. Further information can be found at 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, 2012, 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 and production equipment and
services, environmental risks, drilling and other operating risks, 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, 2012, 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,
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.
CONTACTS: Continental Resources, Inc.
Warren Henry Kristin Miskovsky
VP Investor Relations VP Public Relations
John J. Kilgallon
Director, Investor Relations
Ryder Scott Company, L.P. evaluated properties representing 98% of the
1 Company's proved reserves and 99% of Continental's PV-10 at year-end 2013,
with Continental reserve engineers evaluating the remaining properties.
SOURCE Continental Resources
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