2019 BofAML Global Energy Conferencefilecache.investorroom.com/mr5ir_clr/297/download/2019...PROPERTY OF CONTINENTAL RESOURCES, INC. REPRODUCTION AND DISTRIBUTION WITH WRITTEN PERMISSION

Bank of America2019 Global Energy ConferenceNovember 2019

Jack Stark, PresidentContinental Resources

PROPERTY OF CONTINENTAL RESOURCES, INC. REPRODUCTION AND DISTRIBUTION WITH WRITTEN PERMISSION ONLYPROPERTY OF CONTINENTAL RESOURCES, INC. REPRODUCTION AND DISTRIBUTION WITH WRITTEN PERMISSION ONLYPROPERTY OF CONTINENTAL RESOURCES, INC. REPRODUCTION AND DISTRIBUTION WITH WRITTEN PERMISSION ONLY

Cautionary Statement for the Purpose of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995

This presentation 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 presentation other than statements of historical fact, including, but not limited to, forecasts or expectations regarding the Company’s business andstatements or information concerning the Company’s future operations, performance, financial condition, production and reserves, schedules, plans, timing of development, ratesof return, budgets, costs, business strategy, objectives, and cash flows, are forward-looking statements. When used in this presentation, the words “could,” “may,” “believe,”“anticipate,” “intend,” “estimate,” “expect,” “project,” “budget,” “target,” “plan,” “continue,” “potential,” “guidance,” “strategy,” and similar expressions are intended to identifyforward-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 andtiming of future events. Although the Company believes these assumptions and expectations are reasonable, they are inherently subject to numerous business, economic,competitive, regulatory and other risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control. No assurance can be giventhat such expectations will be correct or achieved or the assumptions are accurate. The risks and uncertainties include, but are not limited to, commodity price volatility; thegeographic concentration of our operations; financial, market and economic volatility; the inability to access needed capital; the risks and potential liabilities inherent in crude oiland natural gas exploration, drilling and production and the availability of insurance to cover any losses resulting therefrom; difficulties in estimating proved reserves and otherrevenue-based measures; declines in the values of our crude oil and natural gas properties resulting in impairment charges; our ability to replace proved reserves and sustainproduction; our ability to pay future dividends or complete share repurchases; the availability or cost of equipment and oilfield services; leasehold terms expiring on undevelopedacreage before production can be established; our ability to project future production, achieve targeted results in drilling and well operations and predict the amount and timing ofdevelopment expenditures; the availability and cost of transportation, processing and refining facilities; legislative and regulatory changes adversely affecting our industry and ourbusiness, including initiatives related to hydraulic fracturing; increased market and industry competition, including from alternative fuels and other energy sources; and the otherrisks described under Part I, Item 1A Risk Factors and elsewhere in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, registration statementsand 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 on which such statement is made. Should one or more of therisks or uncertainties described in this presentation occur, or should underlying assumptions prove incorrect, the Company’s actual results and plans could differ materially fromthose expressed in any forward-looking statements. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. Except as expresslystated above or otherwise required by applicable law, the Company undertakes no obligation to publicly correct or update any forward-looking statement whether as a result ofnew information, future events or circumstances after the date of this presentation, or otherwise.

Readers are cautioned that initial production rates are subject to decline over time and should not be regarded as reflective of sustained production levels. In particular,production from horizontal drilling in shale oil and natural gas resource plays and tight natural gas plays that are stimulated with extensive pressure fracturing are typicallycharacterized by significant early declines in production rates.

We use the term "EUR" or "estimated ultimate recovery" to describe potentially recoverable oil and natural gas hydrocarbon quantities. We include these estimates todemonstrate what we believe to be the potential for future drilling and production on our properties. These estimates are by their nature much more speculative than estimates ofproved reserves and require substantial capital spending to implement recovery. Actual locations drilled and quantities that may be ultimately recovered from our properties willdiffer substantially. EUR data included herein remain subject to change as more well data is analyzed.

Forward-Looking Information

2

PROPERTY OF CONTINENTAL RESOURCES, INC. REPRODUCTION AND DISTRIBUTION WITH WRITTEN PERMISSION ONLYPROPERTY OF CONTINENTAL RESOURCES, INC. REPRODUCTION AND DISTRIBUTION WITH WRITTEN PERMISSION ONLY

Continental Resources:Built For The New Era Of Oil And Natural Gas Investment

3

Proven Oil-Weighted Portfolio Bakken / SCOOP / STACK

Routinely Lowest Cost Operator Among Oil-Weighted Peers(1)

Proven Ability to Grow Organically through Exploration

Building Value-Added Assets Minerals Portfolio & Water Facilities

Capitalizing on Global Markets

Sustainable Cash Flow Positive Growth

Returns Compete with Broader Market

Increasing Shareholder Returns Initial Quarterly Dividend (Nov. 2019)

Initial Share Repurchases ($187MM YTD Oct. 2019)

Solid Balance Sheet~$1.6B Net Debt(2) Reduction Last ~3 Years

Seasoned Management Team

Unmatched Shareholder AlignmentSuperior Assets & Operations

1. Statement is based on information presented under heading “Low Cost per Boe” on slide 5.2. Net Debt is a non-GAAP measure. See slide 22 of the CLR October 2019 Investor Update, which can be found at investors.clr.com/presentations, for a definition of this measure and a reconciliation of historical amounts to the most comparable

U.S. GAAP measure.


1. Source: Jefferies. 2019 maintenance capital is the estimated capital allocation necessary to hold production flat 4Q19/4Q18. Assuming maintenance programs, 2019 implied free cash flow yields are based on $60 Brent and $2.80 HH.2. See the calculation of ROCE for historical periods on slide 28 of the CLR October 2019 Investor Update, which can be found at investors.clr.com/presentations.3. Average WTI price is the SEC price used for reserve calculations; rounded to the nearest dollar.4. Net Debt and EBITDAX are non-GAAP measures. See slides 22-24 of the CLR October 2019 Investor Update for definitions and reconciliations of historical amounts to the most comparable U.S. GAAP financial measures. With respect to projected

amounts, please see slides 22-24 of the CLR October 2019 Investor Update for an explanation of the factors that make a quantitative reconciliation of these forward-looking estimates to U.S. GAAP not possible.5. Source: Bloomberg as of April 10, 2019. Data is calculated as net income plus minority interest plus after-tax interest expense divided by the average of current and prior capital employed. Data represents an average of quarterly return over the trailing

4 quarters as of 4Q18. E&P: S&P 500 Exploration & Production Index; OFS: S&P 500 Oil Field Services Index; Tech: S&P 500 Info Tech Index; Industrials: S&P 500 Industrials Index; Cons. Disc.: S&P 500 Consumer Discretionary Index; Healthcare:S&P 500 Health Care Index.

CLR: Delivering Competitive Returns & Driving Down Debt

4

15%13% 12%

8% 8%7%

0%0%

4%

8%

12%

16%

CLR 2018 Corporate Returns vs. the Market(5)

(Source: Bloomberg)

2019 Maintenance Capital Implied FCF Yields(1)

(Source: Jefferies)

APA

NBL XECOAS

WLL WPX FANG PXD EOG CXO CLR

-15%

-10%

-5%

0%

5%

Impl

ied

FCF

Yiel

d

$7.1B $6.6B

$6.3B

$5.5B $5.5B

$4.2B

3.6x 3.5x

2.7x

1.5x 1.6x

1.0x

0.0x0.5x1.0x1.5x2.0x2.5x3.0x3.5x

2015 2016 2017 2018 3Q19 2023E

Net

Deb

t/TTM

EB

ITD

AX(4

)

CLR Net Debt Continues to Decline

-2% -1%

4%

14%

9-12%$50

$43

$51

$66

$55 (Est)

2015 2016 2017 2018 2019E-4%

0%

4%

8%

12%

16%

Avg. WTI Price(3) ($)

CLR ROCE(2): 9-12% at $55 WTI in 2019


CLR Continues To Be The Low Cost Leader Amongst Oil-Weighted Peers

5

1. Source: Public company filings as of 1H19. 2. Source: Tudor, Pickering & Holt estimates for full-year 2019.

APA

CXO

DVN

ECAEOG FANG

MRONBL

OASPXDWLL

WPX

XEC

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

20% 30% 40% 50% 60% 70% 80%

Low Cost Per Boe(1)

Source: Public Company Filings

1H19 Oil Production % (Excludes Liquids)

1H19

LOE

per B

oe

CLR 1H19

APACXO

DVN

EOG

MRO

NBL

PXD

ECA

WPX

XEC OAS

WLL

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

$1.25 $1.75 $2.25 $2.75 $3.25 $3.75

2019

E G

&A

/ EB

ITD

A

2019E G&A / Boe

Top-Tier G&A(2)

Source: Tudor, Pickering & Holt

CLR 2019E

CLR YTD: $3.68 CLR YTD: $1.57


CLR Bakken: Exceptional Assets And ExecutionDelivering Consistent, Industry-Leading Results

6

Since Moving into “Multi-Zone Unit Development” • 440 Gross Operated Unit Wells Completed (2017-2019 YTD)• ~2,300 Boepd Avg/Well Initial Rate(1)

• 80% Oil• Widely Distributed Results • 2017 & 2018 Programs Paid Out in ~1 Year

CLR Developed Bakken Units 2017- 2019 YTD

2017 Units2018 Units2019 YTD Units

CLR Bakken Units

0

50,000

100,000

150,000

200,000

250,000

300,000

0 50 100 150 200 250 300 350

Avg

. Cum

ulat

ive

Boe

Days

2017 (133 Wells)

2018 (160 Wells)

2019 YTD (147 Wells)

Average Cumulative Production per Well2017, 2018 & 2019 YTD Drilling Programs

1. Maximum average 24-hour IP rate.


CLR South: Oil Production Up 62% Year-Over-Year

7

Oklahoma SCOOP and STACK Assets Continue to Deliver Outstanding Results

Driven by Geologically Superior Oil-Rich Acreage Position & Operational Expertise

80 Gross Operated Wells Completed in 3Q19 (63 SCOOP; 17 STACK)

Record South Production: 133,266 Boepd (44,854 Bopd) in 3Q19

Normal-Pressured

CLR SOUTH: SCOOP & STACK

CLR Wells with > 1,500 Boepd IP30

CLR Acreage

Anadarko Basin Petroleum System

Over/Normal-Pressured Windows

3Q19 Units:Reba Jo &

Schulte

SCOOP

CLR Headquarters

Over-Pressured

STACK

Anadarko Basin Petroleum System

Project SpringBoard

Oklahoma


SCOOP SpringBoard Hits 23,641 Net Bopd in 3Q19 31% Above Target

8

1,300

5,260

8,700

15,100

23,641

~24,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

3Q18 4Q18 1Q19 2Q19 3Q19 4Q19Target

Sprin

gBoa

rd O

il Pr

oduc

tion

(Bop

d)

Average Production

Exceeded 3Q19 Target by 31%

+31%

4Q19 Oil Target Raised to ~24,000 Net Bopd

Increased Targ

et

100

1,000

10,000

0 30 60 90 120 150 180

Boe

pd

Days

Woodford Wells Perform as Expected

32 Woodford Well Average (~77% Oil)

100

1,000

10,000

0 10 20 30 40 50 60

Boe

pd

Days

SpringBoard Range of Well Outcomes1.3 MMBoe Springer Type Curve52 Springer Well Average

Springer Rows 1, 2 & 3 Perform as Expected

52 Springer Well Average (~80% Oil)


0 10 20 30 40 50 60

20

40

60

80

100

120

140

Producing Days

Avg.

Cum

ulat

ive

MB

oe

Oil Unit Wells Outperforming Unit Type Curve

STACK: Continued Outstanding Results57,292 Boepd (67% Oil; 38,320 Bopd) From 2 New Units

9

Reba Jo & Schulte Units• 14 Total Wells: Over-Pressured Oil Window

• 3-4 Wells in Both Upper and Lower Meramec Reservoirs

• Avg/Well Initial Rate(1): 4,092 Boepd (67% Oil)

8 Units Completed Since Shift to Full Field Development• Outperforming Expectations and Type Curves

• Proper Density and Superior Reservoir Quality

Normal-PressuredOver-Pressured

JalouHomsey

Boden

Simba

Tolbert

Lugene

CLR STACK: Oil & Condensate Units in Over-Pressured Window

CLR Meramec Wells > 1,500 Boepd IP30CLR AcreageOver/Normal-Pressured Line

CLR Condensate Unit CLR Oil Unit

Reba Jo

Schulte

0 20 40 60 80 100 1200

100

200

300

400

Producing Days

Avg.

Cum

ulat

ive

MB

oe

Condensate Unit Wells Outperforming Parent Type Curve

1. Maximum average 24-hour IP rate.


$10.00

$30.00

$50.00

$70.00

$90.00

$110.00

+137%

+70% +262%

+108%

$33.99$30.95

$16.04

$30.03 $31.4711/12/19

WTI Oil Price ($)

ValueOpportunity

CLR Stock Sees Strong Rebound Following Cyclical Lows

10

Source: Bloomberg as of November 12, 2019.

CLR Value Opportunity • Depth of Oil-Weighted Inventory

• Consistent/Repeatable Results from Assets/Operations

• Sustainable Cash Flow Positive Growth

Documents

2019 BofAML Global Energy Conferencefilecache.investorroom.com/mr5ir_clr/297/download/2019...PROPERTY OF CONTINENTAL RESOURCES, INC. REPRODUCTION AND DISTRIBUTION WITH WRITTEN PERMISSION