![]() Deutsche Bank 2008 Small and Mid Cap Growth Conference Exhibit 99.1 |
![]() 1 Forward Looking Statements This presentation includes forward-looking information that are subject to a number of risks and uncertainties, many of which are beyond our control. All information, other than historical facts included in this presentation, regarding our strategy, future operations, drilling plans, estimated reserves, future production, estimated capital expenditures, projected costs, the potential of drilling prospects and other plans and objectives of management are forward-looking information. All forward-looking statements speak only as of the date of this presentation. Although the Company believes that the plans, intentions and expectations reflected in or suggested by the forward- looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Actual results may differ materially from those anticipated due to many factors, including oil and natural gas prices, industry conditions, drilling results, uncertainties in estimating reserves, uncertainties in estimating future production from enhanced recovery operations, availability of drilling rigs and other services, availability of oil and natural gas transportation capacity, availability of capital resources and other factors listed in reports we have filed or may file with the Securities and Exchange Commission. |
![]() 2 Company Overview Completed IPO on May 14 at $15 (CLR on NYSE) $4 billion market capitalization Founded 1967 by Harold Hamm, Chairman & CEO Harold Hamm, family and management own 82% Organic growth strategy focused on unconventional resource plays 3Q 2007 daily production 29,474 boe > 2X 2004 level of 14,121 boepd >500 hz wells drilled targeting unconventional formations >700,000 net undeveloped acres concentrated in emerging plays Strong financial results 3Q 2007 EBITDA $132,187 > full year 2004 $116,498 9M 2007 cash operating margin of $42/boe ($7/Mcfe) - $66 NYMEX $156 million of bank debt outstanding as of 9/30/07 |
![]() 3 Investment in Asset Base Capex ($mm) Production (boepd) 2007 Capex by Region ($mm) 2008 Capex by Region ($mm) |
![]() 4 Operational Overview Mid-Continent Proved reserves: 24.3 MMboe Gulf Coast Proved reserves: 0.3 MMboe Red River Units 50% Bakken Field 25% Other Rockies - 7% Mid-Continent 11% Gulf Coast <1% Total proved reserves (12/31/07) = 134.6 MMboe 74% PD / 77% oil / 11.1 R/P / Operate 93% of PV-10% Unconventional 82% Red River Units 46% Bakken Field 30% Other Rockies - 6% Mid-Continent 14% Gulf Coast 1% Avg. daily production (Q3 2007) = 29.5 Mboepd Unconventional 79% 1,223 net producing wells with >1,000 net drilling locations Rockies Proved reserves: 110.0 MMboe Proved Reserves by Geography Production by Geography Woodford - 3% Woodford - 7% Headquarters Regional office Counties with acreage holdings are highlighted |
![]() 5 Key Drilling Projects Development (41% 2008 capex) Red River Units 50% proved reserves / 46% production Montana Bakken Shale 20% proved reserves / 26% production Emerging Plays (42% 2008 capex) North Dakota Bakken Shale 300,000 net acres Oklahoma Woodford Shale 45,000 net acres Red River Units MT Bakken ND Bakken Woodford Counties with acreage holdings are highlighted Regional office Headquarters Development Emerging Plays |
![]() 6 Red River Enhanced Recovery Units 67.9 MMboe proved reserves 13,524 net boepd in 3Q 2007 Cedar Hills discovered in 1995 Developed with hz drilling 2003 enhanced recovery operations 2008 Plans $168MM capex Infield horizontal drilling and re-entry drilling program to accelerate production and enhance sweep efficiency Develop Cedar Hills on 320 acre / producer Forecast 2009 peak at ~19 net Mboepd Cedar Hills North Unit Cedar Hills West Unit Buffalo Units Medicine Pole Hills West Unit Medicine Pole Hills South Unit Medicine Pole Hills Unit 25 Miles CLR operated units Others units |
![]() 7 Montana Bakken Shale Significant unconventional oil resource play Represents ½ of Montana’s oil production CLR largest producer (7,637 net boepd) Developed through horizontal drilling and advanced fracture stimulation 2008 Plans $55MM capex 13 net wells Opportunities: 320-acre infill drilling Expansion of field with tri-lateral 640-acre wells Enhanced recovery 2 to 3 drilling rigs CLR acreage 35 miles Horizontal Bakken producer Williston Basin Richland Co., MT Bakken Outline of potential Bakken Production Vertical Bakken producer |
![]() 8 Richland County, Montana Bakken Focus of 320-acre spacing drilling Focus of Tri-lateral drilling 3-D defined Red River C drilling Sinclair Discovery 300 bopd |
![]() 9 North Dakota Bakken Shale Emerging unconventional oil resource play 300,000 net acres strategically located on Nesson Anticline Significant reserve and production growth potential ND oil prod. highest in 20 years 40+ industry-operated rigs Amerada Hess Marathon EOG Resources ConocoPhillips 2008 Plans $125MM capex 20 net wells 6 to 8 drilling rigs (including Conoco Phillips JV) CLR acreage 35 miles Horizontal Bakken producer Williston Basin Outline of potential Bakken Production Vertical Bakken producer |
![]() 10 North Dakota Bakken LEGEND CRI OPERATED CRI NONOPERATED NO CRI INTEREST Normandy Rocket Galaxy Norse Valhalla Pontiac Focus of 2008 drilling (consistent economic results) Encouraging results using un-cemented liners and multi-staged fracs Testing un-cemented liner and multi-staged fracs 3 CLR rigs 3 COP rigs Dev/Step-outs 1 CLR rig Bakken, Fryburg 1 CLR rig Bakken, Winnipegosis EOG Parshall Area |
![]() 11 Oklahoma Woodford Shale Outline of potential Woodford production 07 CLR Locations 07 Woodford hz Spud CLR Producer Woodford Producer CLR Acreage Exploration Development step-outs/ downspacing Emerging unconventional gas resource play 30+ industry-operated rigs Newfield Antero Devon 45,000 net acres Significant reserve and production growth potential Caney Shale upside 2008 Plans $103MM capex 20 net wells 5 to 6 drilling rigs 6 miles |
![]() 12 ND Bakken and OK Woodford Shale potential 222 MMboe 400,000 556 OK Woodford Total ND Bakken 98 MMboe 256,000 384 320 MMboe Reserve potential 940 Net boe/well Net potential unbooked locations (1) (1) Assumed 640 acre spacing for ND Bakken and 80 acre for Woodford Shale 34% 27% $70/bbl & $6/Mcf Pre-tax IRR 50% 400,000 $5,000,000 OK Woodford ND Bakken 38% 256,000 $4,750,000 $80/bbl & $7/Mcf Pre-tax IRR Net boe/well Estimated average D&C |
![]() 13 Other ongoing and emerging plays Rockies: 175,000 net undeveloped acres Red River, Winnipegosis, Fryburg, Phosphoria, Lewis Shale Midcontinent: 180,000 undeveloped acres Morrow-Springer, Atoka, Mississipian, Hunton, Woodford Shale, Trenton/Black River Gulf Coast: 5,000 net undeveloped acres Frio, various GC sands 360,000 net undeveloped acres (~50% of total undeveloped acreage) Recent discoveries: MI – Trenton/Black River SD – Red River B MT – Red River C ND – Winnipegosis Counties with acreage holdings are highlighted Regional office Headquarters |
![]() 14 Financial and Operating Summary 1 See page 9 of the prospectus and third quarter 2007 earnings release for a reconciliation of net income to EBITDAX. 2 Operating statistics per Boe sold. Oil sales volumes are 96 MBbls and 47 MBbls less than oil production volumes for 2006 and 2007, respectively. Year ended December 31, 2004 2005 2006 9M 2007 Realized oil price ($/Bbl) $37.12 $52.45 $55.30 $58.92 Realized natural gas price ($/Mcf) $5.06 $6.93 $6.08 $5.82 Oil production (boepd) 10,104 15,638 20,493 24,224 Natural gas production (Mcfd) 24,093 24,674 25,274 31,499 Total production (boepd) 14,121 19,751 24,707 29,474 EBITDAX ($ thousands)¹ $116,498 $285,344 $372,115 $332,472 Key Operational Statistics ($/boe) 2 Oil and gas revenue $35.20 $50.19 $52.09 $54.68 Production expense 8.49 7.32 6.99 7.53 Production tax 2.39 2.22 2.48 2.89 G&A (excluding non-cash equity compensation) 2.02 2.43 2.24 1.95 Total cash costs $12.90 $11.97 $11.71 $12.37 Net operating margin $22.30 $38.22 $40.38 $42.31 |
![]() 15 Summary High quality, proved reserve base Crude oil-concentrated, long-lived, high operated % Track record of drill bit growth at low cost Annual EBITDAX > Capex over past 3 years Low risk production growth in Red River Units ~5,500 boe/d expected production growth over next 1+ year (~18% of current daily production for entire company) Significant future production and reserve growth opportunities in two large emerging plays – ND Bakken and OK Woodford Shales 320 MMboe potential reserves Low cash costs with one of highest net operating margins Significant valuation and competitive advantage |