OKLAHOMA CITY, March 19, 2020 /PRNewswire/ -- In response
to the significant drop in commodity prices, Continental Resources,
Inc. (NYSE: CLR) ("Continental" or the "Company") today announced a
revised 2020 capital budget of $1.2
billion, representing a 55% decrease in capital spend from
the Company's original budget of $2.65
billion. The Company expects to be cash flow neutral under
$30 per barrel WTI.
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The Company will be reducing its average rig count from 9 to
approximately 3 in the Bakken and 10.5 to approximately 4
in Oklahoma. The Company has taken
action to implement cost saving initiatives across its operations
as part of its ongoing commitment to remain free cash flow
positive.
"With a solid balance sheet, peer-leading operating costs and
minimal long-term service or supply contracts, Continental will
remain flexible and nimble as we optimize development and monitor
market conditions," said Bill Berry,
Chief Executive Officer. "Continental has a proven track record of
adjusting activity and delivering cost savings to maximize cash
flow generation in lower price environments."
Harold Hamm, Executive Chairman,
said, "This budget adjustment has been precipitated by the collapse
of crude oil prices due to the market manipulation of Saudi Arabia and Russia. Illegal dumping of crude oil by these
countries began earlier this month at a time of low demand during
this unprecedented pandemic of Coronavirus. The U.S. Department of
Commerce has been asked by U.S. Senator James Inhofe, Chairman of the Senate Armed
Services Committee, to initiate an immediate investigation and to
take action under Section 232 of the Trade Expansion Act of 1962 to
protect national security and counter this illegal activity. We
believe this is a short demand cycle which could see some near-term
correction when this illegal dumping practice is halted."
With the revised budget, the Company anticipates 2020 production
to be down less than 5% year-over-year. The Company plans to
provide additional details surrounding its 2020 guidance updates as
part of its first quarter 2020 earnings release, based on its
ongoing evaluation of evolving business and market conditions.
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 are forward-looking statements, including, but not limited to,
statements, information, forecasts or expectations regarding the
Company's business and future plans, including those relating to
its share repurchase program, payment of dividends, debt reduction
goals, free cash flow generation and liquidity expectations, and
its expectations regarding the achievement of ROCE goals. When used
in this press release, the words "could," "may," "believe,"
"anticipate," "intend," "estimate," "expect," "project," "budget,"
"target," "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 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
given that such expectations will be correct or achieved or that
the assumptions are accurate. The risks and uncertainties include,
but are not limited to, commodity price volatility; the geographic
concentration of our operations; financial market and economic
volatility; the inability to access needed capital; the risks and
potential liabilities inherent in crude oil and natural gas
drilling and production and the availability of insurance to cover
any losses resulting therefrom; difficulties in estimating proved
reserves and other reserves-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 sustain
production; the availability or cost of equipment and oilfield
services; leasehold terms expiring on undeveloped acreage 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 of development
expenditures; the availability and cost of transportation,
processing and refining facilities; legislative and regulatory
changes adversely affecting our industry and our business,
including initiatives related to hydraulic fracturing; increased
market and industry competition, including from alternative fuels
and other energy sources; and the other risks 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, 2019, 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 on
which such statement is made. 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.
Except as otherwise required by applicable law, the Company
undertakes no obligation to publicly correct or update any
forward-looking statement whether as a result of new information,
future events or circumstances after the date of this report, or
otherwise.
About Continental Resources
Continental Resources (NYSE: CLR) is a top 10 independent oil
producer in the U.S. Lower 48 and a leader in America's energy
renaissance. Based in Oklahoma
City, Continental is the largest leaseholder and the largest
producer 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 Woodford and SCOOP Springer discoveries and the STACK
plays. With a focus on the exploration and production of oil,
Continental has unlocked the technology and resources vital to
American energy independence and our nation's leadership in the new
world oil market. In 2020, the Company will celebrate 53 years of
operations. For more information, please visit
www.CLR.com.
Investor
Contact:
|
Media
Contact:
|
Rory
Sabino
|
Kristin
Thomas
|
Vice President,
Investor Relations
|
Senior Vice
President, Public Relations
|
405-234-9620
|
405-234-9480
|
Rory.Sabino@CLR.com
|
Kristin.Thomas@CLR.com
|
|
|
Lucy
Guttenberger
|
|
Investor Relations
Analyst
|
|
405-774-5878
|
|
Lucy.Guttenberger@CLR.com
|
|
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SOURCE Continental Resources