CLR - Earnings call transcript Q4 2017 | Continental Resources Inc (OKLA)

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Operator

Good day, ladies and gentlemen, and welcome to the Q4 Year End 2017 Continental Resources Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. I'd would like to introduce your host for today's conference call, Mr. Warren Henry.

begin. may You

J. Warren Henry

Hart, and Ramiro be We'll and Kevin, statements President-Exploration; Hamm, will to joining materially Strategic SVP-Drilling; guidance. for Tony President; and Development; filings that everyone Resource Rangel, Gary and statements. the Initiatives; Also additional SVP-Land; Commodity Thank and Growth Hume, call call today's good SVP-Marketing; Bent, Vice may call from Pat today. concerning Longson, available Owen, Today's John address Stark, Jack risks. SVP-Production forward-looking SEC start Executive in later contain for information Please Harold of Vice Financial with Director us Officer. differ and Chief Gould, contained Actual on will you, Q&A Officer; morning results Chief Jeff remarks and Adam to Steve refer Barrett, Chairman company's statements of from these those projections, Research. assumptions, forward-looking the Chairman

not does levels for to this otherwise refer rates. production initial Continental this initial update to XX-hour morning, wells, we addition, which, Also maximum on made undertake stated new unless call. In test statements will forward-looking obligation are any

rates on of and also unless will are which based We reference per Mcf stated $XX otherwise WTI barrel gas. per return $X natural

call, the certain non-GAAP financial refer on we Finally, to will measures.

that, at With investor the For has reconciliation www.clr.com. of to these will been company's measures Mr. Accounting call Principles, presentation over that updated website Harold? on to refer to turn Generally please Hamm. Accepted posted the the I

Harold G. Hamm

and Oklahoma of you and and as We're to morning this from natural hope City. morning, well. are burn frozen-over everyone. We Warren, you, you lots good gas here Thank cold coming

XXX,XXX past oil. simply XXXX XX% on in Boe of being our we per yesterday, in months that fourth Boe And of the quarter, fourth day averaged exceptional. was As XX release the per production performance earnings threshold XXX,XXX with exceeded you day. saw quarter Continental's We the

production period, the growing quarter controlled to third from In-site XX% execution production over our stronger positive production quarter XXXX. even we oil predicted, while operate up same fourth XXXX demonstrating fourth Fourth was quarter. XX% As over XX% cash were properties. on quarter up was

We our at to of $X.XX grade. moved and end credit S&P January. at reduce Continental's billion the continued placed long-term investment debt to rating

the throughout to Finally improve well to Oklahoma. from we Dakota in last in our individual year, EURs continue North performance plays

Some reflecting twice, type continued of were technology. curve increased optimized our refinement completions EURs

on We focused oil. continue celebration. the Bakken We remain

exciting. poised the and free will the What's capitalizing achievements performance, harvest and free level Resources, So, XXXX million us, deliver We're of ramp-up prior cash in or however, was breakout flow year as just ahead strong exceptionally resource a flow, cash assembled oil-rich of prove we to to a be shaping steady just deep now be years. not to growth a even Continental have over world. year performance. we that activity years' for $XX million WTI up production change, more to XXXX best-in-class a $XXX is inventory on move XXXX $XXX in to

level Continental's a years in strategically we era history at We positioned new clearly have and to for a come. operate high entered are to many

are saying us. has the gains, before decades is exploration, position is been and accumulation, As the capitalizing strategic efficiency Today, long that market operational proverbial goes, Continental's making. manifest in of we which asset on strength.

is operating plan. largest the of XXXX Asset part development in our

asset Continental on has This base price strong with completes strong long-coming very ramp-up point XXXX a full of exploring cash key full occasionally growth a our high business a phenomenon. and we funded own. potential to on of our structural focus strategic ever the in unleashing not operating in machine. is delineating strong of rate plan, low was Technology development but plays, turned of internally a still which attractive in enables come. shift leasehold environment. and areas greater liquids-rich assets the is cycle, Continental organic the we're field While deliver now business for multiyear growth be This projects an prepared This will for and a to a return cost the platform. flow self-sustaining Continental's of years creation our

Our current love arise DNA, production opportunities stealth in our Entrepreneurial part goals in opportunistic free creation, exploration the best-in-class and a We we growth. as and is and our plays. are E&P still long-sighted. We'll is value drive assets. be flow and bold and of acquisition intend remain industry shareholder and U.S. cash of beyond in as large exploration, generation, nimble to terms

forth Rangel's the substantial for are liquids maximizing They marketing the Literally, negotiated in a in team dollars. tremendous will gas outstanding marketing completion this various all XXXX. excellence tremendous XXXX creating and are We tens Continental. as to oil have oil dry release, value our looking in delivering and we're our in team job marketing example set our our low an breakout Jack millions the discussed strengthened Even say that Continental's guidance outlets, and value drilling, marketing value highlight year in an more agreements recent gas. of less optionality and John gas to continued I'd We've to two is team gas gas and significantly this. the quarter, As for operation, north last Continental. in aspect anticipate with of additional both production, multiple prices, and the and on of But of like had the year natural gas south forward years leadership strategy, under a and of Ramiro growth doing. challenge to they're to

true That for December we got a differentials renegotiate in in discussing more DAPL and opportunity Pony year value-add a for than massive, below a late were the Well, new On the or we've XXXX our for Pipeline pipeline. oil given is oil $X to the that is result, as they outlook Express the commitment, with side, done in been Bakken shareholders. capacity almost what XXXX.

we $X to down our of continue Bakken addition, $X to Brent-WTI U.S. recently. abroad. premium-quality exports $X the served oil have to crude marketing spread shrink the In from

has oil professional team aboard. group from greater oil WTI's questioned were him addition as why a analytics. bringing some Our Adam the supply hedging demand were of in and suggested, not world take favor, in Continental the also peer pull remain fundamentals low-$XXs to the the operators marketing table. held trigger technical XXXX/XXXX were some working to, back, We is and lot science and we the did mid-XXXX, to the would understanding just Morgan we of (XX:XX) time hedging Clearly, market off back a not. seen of their we as welcome in as the Stanley, drug Longson Since in the Continental, a our and production. convinced mid-$XXs hedge our above saw to repeatedly risk we patient. if

a while are with world money OPEC production that with point oil as two up will encouraged producers limits as not the value benefit features. second event energy we time demand and gas in by by committed world-class has milestone do didn't leader, ban world only And $XX-plus. dominance balance part, U.S. in have learning to fully the relates, at to market while is the so in just Russia new our fact oil growth. is world's by run markets. numerous as rebalancing room This the point are achieved will is occurred demand. the hedge a led of leave the to on unexpected exports. enjoy shale the liquidity over discipline believe source milestone when ago U.S. too reduced robust is until Now, WTI historic price right on with to markets still oil match hedging the Continental up market finally, the American has being to our U.S. recovery production, prudently soon. just world sacrificing cooperating supply/demand production, emerged though stability, We we natural as Saudis as A we We especially do restrict with continuing shareholders our its shareholders. years table plan to delivering to support to maximum oil builds, shareholder as inventories lifted

for beyond. about excited Continental's very I'm So, opportunities XXXX and

of by avoided. our activities. oil We long to and very three to and I recognize years, gains, look execute recognize financially rich principles we shareholders our last on finance our sectors assets but cash down important term it's did and non-core bright in achievements applied through In portfolio think not and our discipline inventory divesting future to the company. I closing also as our growth back We through were and we as dilute Our to in efficiency all is debt employed, carefully our exploration our added we flow, technology as managed stable. missteps operating

addition, operating intact In we our at kept here teams Continental.

XXXX XXXX and to contemplate achievements very I'll as in on in it's mind, Continental what to these and exciting even satisfying With apart back be Jack. unfolds, achieved investors can more era our support. be look as leader. for further a with harvest setting the beyond an their going industry as thank call business usual the breakout great, to We great non-ramp a over turn year. It's year, And to that,

Jack H. Stark

good more morning, everyone. and our excited outlook Harold, I be couldn't Like for Thanks, XXXX. Harold, about

projected our highlights. some like will XXXX XX% XX% to to on CapEx from In get into production expect before entirely provide look in what breakout our So I billion I $X.X cash we color internally our quarter to fourth flow. in fund year want we growth the generated XXXX,

flow, to We XX% is unit reduction. of focused $X for $XXX further the with drilling up billion cash generate completions, which approximately million of and to free CapEx debt targeted targeted for also expect is on development.

this change for SCOOP, to this the inventory years. the to to the of the had our some enough structural past, of growth a opportunities reservoirs Bakken, future of no as we of Continental have mentioned, prior cash growth located is exploration fuel flow is It years this can't this development does shareholders. is harvest we a By in the positive best of of a heart more first STACK the we believe portfolio. Harold to means what in U.S. oil-weighted emphasize the we projects We beginning and percentage what intend year today marks As than decades several our as is high-quality provide optimize thing of that new test in and significant many continue begin two of plays. though. and exploratory than higher suggest in I

plays, Now, Bakken XX% gross and we the uncompleted program year-end expect XXX XXX approximately in plan of Springer, At towards XX% at complete wells. XXXX. gross gross In we'll and the to including of operated expect of wells completion have XXXX, in going various our Bakken and Bakken, SCOOP, XXX SCOOP Springer. the total our approximately in to development wells, wells is in approximately but approximately XXXX. the going stages XX drilled completion to SCOOP budget wells with complete operated gross a and expect with the XX% allocated complete to operated Combined In company-wide drilling oil-focused our inventory we other begin we drilling of operated activities XXXX. STACK to long-awaited to year-end

of be five focused in XXXX We keep to drilling XXXX. the expect eight two and rig one is these Springer, Woodford. only from average the XX which SCOOP Bakken, in the operated will Six up in of in rigs STACK, in an rigs

plan also six with four essentially the active crews flat allocated keep XX to STACK during of stimulation is to and the to allocated This Bakken average XXXX. We and with XXXX SCOOP. an

record quarter. of average of introduced some wells X.X of future our providing Bakken delivered Five the Overall, Rates success our performance. into We than our and results this rewriting type curve development. fourth type the in our look return the the is Bakken we The structural for have in like wells the Bakken, to where needed represent a Now, in stream in we step-change optimized density STACK the books at of is test economics the world-class continue are curve. the and in this type only Bakken the tapping Boe and best highest are oilfield. the average, parent the flowed XXX quarter Bakken. are children head-to-head great we fourth In quarter today thanks first outperform completed across outperforming Bakken news total, the Boe the curve I compete stands wells. has previous the Bakken never oil to consistently highlights the which with we are updated from SCOOP rate These our completions. uplifting company wells, on today XX perspectives mid-XXXX. know company-operated great ever five U.S. the operated the the for the around these wells I play and for reservoir XXX% day XX let's the alone and is the plays that demonstrating The running based have in fourth recorded before, widespread are Bakken XX-day at of are return wells XXXX across optimized the our completions believe are of U.S. is rate production in units these terms plays the brought XX-day repeatability, of days, XX% these XX cost. believe not an average of on of double more over per oil. wells rocks and rates well X,XXX changed, million Bakken the economics performance on results. and are wells since wells optimized have five In nature apart, miles located these the from during

Bakken than Luttrull for includes day lateral Boe flowing per crude the wells that XX,XXX-foot we reported growth of and The shareholders. the X,XXX step-out Bakken As to A Boe an in wells the pressure a have X,XXX of call now per online locations psi the for oil. its day to from has we our was been number flowing which X,XXX XX% November X,XXX quarter. days. In our programs. be production of completed inventory, the continue six couple flowed we over both X-XX-XXXH note testing X-X-XXH platform Continental great In one and Oklahoma, producer on STACK, Lorene step-out more density drilling and XXX success at continues with exceptional during with casing

our at During than results flow our XXX,XXX is have with we Meramec quarter casing the oil. important psi an impressive produced drilling day Springer X,XXX drawn density continues Perhaps and pressure this step-out at time, well flowing Lorene STACK conclusions XX% has ongoing Boe, from more and preliminary Boe being to SCOOP testing. X,XXX this per

that determine costs unit $XX and size million well rate meant PV-XX from X,XXX-foot these density eight tests, development XX% of drilled units. million believe and a provide assuming of window. the and on three, estimate results, years. of Well Compton, for were for in and factors. for the underlying eight geology, in well developed well to the and for seen to-date. lateral and dual-zone our SCOOP based return assets we PV-XX five and oil recover results can tested, in We fully parent coming XX of the of Springer the XX with PV-XX zone all, Blurton, on full unit, typical tests the unit X.X original the Meramec demonstrate four and in details window zone these densities have does of But these Meramec a and to Meramec Boe consistent slides from we and away Based PV-XX migrate $X.X maximizes we the wells Meramec unit. over-pressured recoveries a zones. not including STACK, you and one be preliminary the unit completed we've will economic but I on are template and million models these will fit the deck were tremendous should tests. of depending average approximately recent out are two to Verona, of generate density window, recognize wells we a oil that and a wells approximately well. with Today, oil introducing contain the is acreage over-pressured Ludwig, value to wells is average four, from point one vary slide on model for results This all will unit to our on wells other know, per Gillilan prices, economic As the reservoirs these and the current we In Bernhardt, tests comparisons. a in the on on six From purpose and expect from performance various oil and harvested maximize currently window acreage STACK per the models a child our the you Gillilan needed unit. optimum number currently in I'll we in a characterize estimate the wells our Verona refer of our Meramec economic expectations, our the and the

underlying units have In for Woodford addition, formation. over window we in four can the Meramec completed currently this to expect wells XX to ready in development oil at the time. over-pressured be We up

unit. the performance and located drilling unit six a the Simba be test XX The a the we wells with achieved Early wells The also over-pressured Meramec parent, the three well, the will of zone full this date the in Meramec the – consisted indicates quarter, X fourth in our in well developed This with equivalent lower half at Meramec. is on currently unit Trust. we window. in or Angus Simba with test six in are two first unit well wells per STACK density and density density, the the fully was the than three Meramec. attempted test wells children southwest the wells to the To define optimum fewer further three Meramec be per have Trust we During second lower reservoir. wells a Angus the aggressive mile condensate completed unit upper And in density Meramec wells half-unit upper the can of most test density XX wells a in per one maximum of children PV-XX unit.

oil to say pleased that is SCOOP Now, let's moved this I'm development prolific to underway. where reservoir Springer, of

prices. patiently the several you we know, of years, for better development Springer for waiting As oil many of deferred

strategic up long, During optimized historical laterals completions longer X,XXX this clearly longer foot laterals the months. these well we after tests well and for over optimized improved to optimized for type XX% X,XXX XXX and MBoe On conducted by outperformed wells and our performance. nine average, time, expected feet completions curve

the configurations four, three pilots that tested completed well also in Springer density and We six five reservoir.

Our results most X,XXX the Celesta wells our rate averaging day was at of unit test Springer combined most a X,XXX and on the test, should recent unit per The four in Comparing to-date. quarter Celesta, aggressive the per the a well. previous fourth have well our the PV-XX day four basis. flowed average results concluded we density Springer completed per Boe that density wells per from six with the from on or of in maximize six-well Boe reservoir tests, barrels was and the five unit

rigs So in six drilling Springer development today. underway, with the is

Our a Springer type lateral XX% well. million standalone for our Boe X.X MBoe has unit curve type Springer from been to curve a uplifted XXX for legacy X,XXX-foot X,XXX

than More completions. for importantly, our is delivered this the the rate double net of curve longer and optimized laterals Springer new XXX%, return curve. which more This clearly shows type of is by legacy type the our return effect

economic of per and return. the our optimized this $XX.X X.X XX% once oil again curve from X.X Springer life well this creation type our of of the well four-well curve Springer million, the Woodford a well delivers cost completions. a X,XXX-foot and of XX% will previous value In Boe and is oil. million unit window, a over approximately we type again the This reflects generate $X.X model uplifted new SCOOP of million unit wells Net our cost produce type assuming projects $XX is Boe per million of Our completed combined from lateral. up million rate PV-XX a a once curve of XX% to

We SCOOP. of call to stacked Springer thick. a wells the and testing our future wells as four this within close in reservoirs the up are future, with the the Now, talk Woodford, reality, three Springer. of and Woodford, looking top be in development as a in the reservoirs the at throughout SCOOP rock I'll with could unit. means now four are with of many wells up Simultaneous reservoirs This XX SCOOP. glimpse feet and of about Sycamore, in in these the column other often on we In to in in XX reservoirs of separately some my each we of is much in these unit mechanics Sycamore, the right X,XXX portion of areas wells Dicksion

back reservoir. simultaneously we wells stimulated flowing shareholders while our John currently were creating while are on It's from of let day I our I'll to call wells that, overlying Woodford for we're drilling were to We continue maximize know With details the to Springer in technology Sycamore assets – this our turn the we and to value over drilling that all that more the our value the about performance. every assets. and say push

John D. Hart

Thank morning. you this you, Jack. joining Hello, everyone, for and thank us

fourth Let some earnings estimates, or me quarter consistently meeting with performed accomplishments. for fourth on start well XXXX deliver our Back off call, guidance. provided quarter. these the the today few November beating estimates exceptionally We we a We on targets. against these

review. Let's

First, the oil quarter would that fourth to XX% in we growth compared the oil volume in to as achieve guided quarter. growth did at better coming we the XX% We in XX% third. of fourth

fourth was comment, XX% the up Boe to quarter, like Additionally, up by exceptional led third better in-site approximately over we did range XX% quarter to range. XXX,XXX was team's of earlier exhibiting once XX% by rate above compared XXXX performance. On gave per quarter and day, QX. fourth quarter and fourth and of amplify This growth STACK Bakken our an grew operated annual production oil our grew our exit to XX% per would Harold's I XXXX, of production we by the basis, compared quarter production to Fourth XX%. day, XXXX, from the grew XXX,XXX XXX,XXX to again. production a

XQ differentials, updated a per to $X.XX in in the achieved improvement Bakken. primarily $X.XX that differential better oil Bo, range than of we quarter oil. driven to barrel of solid fourth We by Third, our $X.XX at reflecting per

annualized a fourth X.X quarter. debt reduced at EBITDAX grew that remind up significant we as everyone the times these ratio company on X.XX our executes previous better exit would at Continental very guidance. is debt and to to the and under we noted a high ended times, that out improvement things quarter at XQ The we of focused annualized year I production than delivering cash and on Finally, a that from flow. point level is a

company a those a XXXX deliver of we commitments. and reliable we right. In should lot on different. are We All cases, outperformed. no be

in run $X.X from impact excluded from by for to and the the share. income of that community of through federal financial billion. estimates, all remove investment consensus. $XXX $XXX up fourth for we operations quarter few year of net solid Continental realizations average. by per reflecting me year operating of posted for share activities fourth above from quarter diluted income XX% quarter efficiency, total was was EBITDAX Boe cash XXX,XXX items million, provided those budget to annual I for Net resulting Production million, for from was $X.X million the $XXX an fourth billion, for the bringing non-acquisition Net averaged significantly cost came was per driven prior $XXX $X.XX the the net was million XX% to billion. $XXX a day reform. for in the diluted Let $X.XX operating tax beat full the a or for expenditures the by year per quarter was approximately Full more fourth adjusted the $X.XX the provided price production was Net $XXX activities the street million typically net was $X.XX billion. XX% cash the production share of at by diluted quarter approximately income adjusted capital XXX,XXX our published compared highlights strong Revenue reported full periods. $X XXXX, Adjusted items, income production for XXXX. production, quarter, expenditures share. per or Adjusted quarter, per fourth and Revenue $X.XX $XXX million million and Boe or growth and noted. and billion. of for full million $XXX EBITDAX capital million $X.XX for $X.X the the diluted third comes normal was year Non-acquisition fourth to year full Oil of per slightly and year previously year. or billion remove day. the excluded typically were $XXX increasing

proceeds, million. the were $XX year, $XXX For proceeds cash excluding flow divestiture divestitures. million, positive we're by about we Including positive from cash flow

improved XXXX debt December to million XX, XX. Our by to more billion than as $XXX position compared at $X.XX September

As January further cash million, debt total further improving by billion. We're of free further shareholder creating we additional debt therefore XX, flow reduction, decreased value. targeting $XX to to – targeting $X.XX

we last there to in agencies, S&P. saw regular other the returning communication investment-grade You that to are week on rating status back were raised investment-grade by as We well. we with remain and focused

and beyond, asset with and free cash flow We short-term XXXX our with combined to are billion well $X billion the planned are longer term or on on target our way getting to in focused lower. divestitures, $X our debt achieving goal we below of of projected

the deliver XX% towards Operating year. Full-year to aggressively have Boe quarter expense improvement impressive and targets Production costs strong throughout in the per working to $X.XX these We to a very to continued quarter, averaged per performance them fourth dropped are clear visibility an industry's Boe. while over expense best. strong production continuing the be $X.XX production third growth. – the among

$X.XX to Fourth total $X.XX Boe. Boe cash equity $X.XX G&A Boe was total $X.XX. low was per production for for excluding $X for compensation per is per G&A compensation $X.XX equity and Boe was Full-year compensation Non-cash Boe. of quarter robust per Boe. was $X.XX of a G&A $X.XX continued per per a guidance XXXX equity non-cash G&A Our full-year of

and interest compensation lease equity fourth including and cash were quarter, the we down the excluding and operating G&A full $X.XX per if the quarter include cash fourth and at XXXX, from X% expense, you lower expense for between costs equity Boe per and for XXXX between production expect $X.XX full-year year. per G&A tax, $XX.XX of the For $XX.XX to compensation. Selected range $X.XX Boe, $X.XX Boe

cost and operating into high As maintain XXXX, low we we margins. head expect to

As expected, improve of differential a throughout year. quarter XX%. our was full XX%. The year per The a improvement continued company oil year-over-year year-over-year differential fourth $X.XX improvement oil $X.XX, was of to barrel, the full

We and further are of Mcf, full fourth averaged XXXX year positive improvement was per a a while The barrel oil. a $X.XX differential guiding to XXXX gas in $X.XX expect to quarter differential to gas $X.XX of prices. range positive Mcf. negative attributable were a further the and positive per liquids flat are $X.XX to differential, guiding improvement we differentials improving Improving oil in expect of XXXX to $X.XX. per Similar to

to in like outlook bit of greater our a discuss XXXX I'd Now detail.

capital our billion up That's to XX% CapEx. flow positive of and $X generate with growth after funding of production Hub. budget WTI $X.X $XXX $XX million cash should XXXX, XX% to at Henry annual For

is guidance and announced the curves appropriately is in past. the of risked we've done updated Our type as as inclusive

have model. the hedged average of our been price of for hedging production at of of $X.XX. remainder XX% Gas in supportive has business excess the of gas We year our an

on for price participation in For side, XXXX, are The at allowing and the cash un-hedged we in realized remain money million oil the our significantly hedges. from XXXX We neutral in prices. instance, for the approximately is low the WTI in year. to an mid-XXs average on full we $XX gas hedges, budget

approximately $X to a move $X impacts a by $X.XX point, reference cash million flow gas and $XXX to our $XXX will WTI annual full-year million. impact flow $XX in in cash prices million a As move by million,

XXX,XXX The and both day, per XXX,XXX Bakken line. targets production Oklahoma. of throughout XXX,XXX production production production pad no but approximately and sensitivities a wide well the be the capital XXXX production, XXXX XX% of budget annual rate and benefit million low we are Boe instead budget providing, should a on scenarios. in $XXX in can we price commodity on coming and of but between breakeven rate the as Boe spent to timing XXXX of range As total the on cash wells XX% in and large contains will XXX,XXX will XXXX also projects a of This are that come the the impact you have day. positioned will between depending tell year, on exit per range XXXX, Oil price line by

first XXX,XXX quarter, production should range per the XXX,XXX and For day. between Boe

a we expects grow generating well sets you. cash ready XXXX, turn carrying XX% with year back which year. Q&A as projections. XXXX XXXX articulated. to it into With operator. call, while a XX% we're comparable Thank of to billion us Harold XXXX, with up currently $X.X be breakout I'll the that, free the was For to the expect budget and a This to billion year-over-year momentum to to $X.X flow begin of our strong capital significant great company over session to production

Operator

with Morgan Venker, question comes first from Stanley. Our Drew

J. Warren Henry

Hey, Drew.

Drew Venker

about cash looks target end outlook think so guys strong here. achieve the a about XXXX, flow you're of generation. The the leverage On everyone. generation least, And of numbers lot of you low flow in your think, to going free of Hi, a free at lot end I talked very our by XXXX. cash

cash free if some So that of flow I'm do wondering already right what I'm you just that thoughts if achieve offer reduction, can use than target by other any or debt when you this end additional there? something you – you've you have the of for year, do,

John D. Hart

for in. math, great be be here but math. timing will be there, our I part next towards a that's late in revolver mean, of or we'll of you short is I here this quarter Kind think, our off have a a year, this can to further see mid a very well, path $X – billion, below be We paid few your may example. as see a position aggressive will our instance quarter, coming achieving getting that early months. targets

So, obviously occurring debt rapidly. very is reduction

grow forward, – that we inventory have a go deploy up we base the long capital more of that we that we amount at a – stronger a larger future into We those optionality. us some even we a to targets, if to could in could flow. lot still putting achieve choose gives deep gives as cash choose while to of company certainly rate As significant us

things to returns What talk drive shareholder things things that frequently. flow, right and on the and now debt, and We other about actively we're also have we company Those that various decision formal are generating further a options and the continuing consider. made reducing returns. strengthen on. focused that strong we've They're is not with shareholder cash we'll

Drew Venker

one play a new really the And organic flexibility lot of differentiated of And that, on think there's Thanks Continental things for you I guys generation. John. that have. years obviously focusing the is that's over

use think partly So I fund potentially it those. some you is great of really to was wondering if cash a of

on and on earlier said that guys some front the stealth speak stealth you that plays consider anything just You on the play if that But really could call you're really return that you would shareholder mentioned. working you to and you option. that like

Harold G. Hamm

We reservoirs. so of doing, a that we're it's that. with rock do point. technology learning and going year, some to to just plays, to think new have place a put coming we're this that That's we it. drilling good good we've planned we tight for Drew, everything horizontal like a applying and testing certainly be lot Yes, And

As of we more. through inventory lot a years, add burn bit little up the a

Drew Venker

Harold. Thanks for that,

Harold G. Hamm

Yes.

J. Warren Henry

Drew. Thanks,

Operator

Singer comes question next Our with Goldman Sachs. Brian from

Brian Singer

Good you. morning. Thank

J. Warren Henry

Brian. Hey,

Harold G. Hamm

Good morning.

Brian Singer

I wanted to start in Bakken. the

what and the wells if diameter type have in and recent is improvements of curve strong further type implications wells. the of the or any return some the to you some drivers better I do of curve, What's increases on of or strong And already at among simply recovery rates highlighted XX-mile You it scope think any potential and the to wells inventory all? have? for changes just recent a

Jack H. Stark

the our wells. type that at can need level where Gary represents But have the we our beyond those us of push what deck really across here. push performance. In and always page we've a continue now to of these with these we'll board we're to some some performance to I how see can Well, a everything do starting really to XXX confidence on another and we're to to see we map from optimized the done continue XX, get talk slide where of give – whole out strong, you taken – got regularly the the to type deeper about But that's on you play because area, back, inventory see this curve in trying to that the we curve clearly, the strong we've optimized that stims stims.

push out this And, been economic see core because – technology that line Gary, is remarkable the to core of the basically, just talk throughout comments? it's I the a I about really, of what envelope mean, uplift. play. people – continue whole you all is the is we'll Bakken. – we expanding any have Bakken So essentially Bottom it's mean,

Gary E. Gould

pounds And seeing what averaged foot. great was see We average early and averaged on. than per you we per have, XX stages. the XX XX% quarter, Fourth like higher between quarter. we We Boe X,XXX which No. X,XXX we're IP day third

really and say results. Brian by It remarkable amazing initial we after always that play we're really starting our are, It's So just being, starting resource. potential the true to unleash a truly in XX years is very oil. here we're XX% encouraged and this of oilfield, it's I now this

Brian Singer

for realizations. the you have regards my on as side. that trying bit as you're of regards Great, color in guys particularly some piece being follow-up versus that of to areas in your advantage to think I could the gas which of And some wondered example, that the And ensure work much is natural two-stream expectations thanks. at in you doing opening what of just that the Harold, face for second better uplift we've question NGLs with look a on gas is operating? an natural And remarks, in little you have realizations as some an flagged a more to seen with how from reporting midstream. differentials of XXXX, your wider you we the been add if I would

Harold G. Hamm

a team wonderful job. our done Well, has

that a optionalities, in we stay step guys big which a the have hopefully, liquids. that coming is of pick gone right, you're the return. the They we've did we front guys job Ramiro itself and team in a with these forward to As and do have here and lot the trying of we're value a up these on has and companies production of on. a been great liquids. work open, guarantee facilities we to it, need we like of – of we the of do the job. lot but bulk these could done of increased if always rate out did we to the And else of don't we're early handle there, that to lot a lot they always, somebody slack – We're were have wanted his don't bulk value they wave some in but

Mcf. moving on And so they to went to a unit basis

commodity future off in will go now took that's And as so but the forward. we and the we good risk, paying really

exceptionally well. and So out that a was good it move worked

Brian Singer

Great. Thank you.

J. Warren Henry

Thanks, Brian.

Operator

Neal question next Dingmann comes Our SunTrust. with from

Neal D. Dingmann

gentleman. morning, Good

I'm XX, Gary, the you your there? wells, just EURs Jack, I'm parent of type you parent and slide years four each look wondering where child Looking how or those look? when the do for of either wells how lay of child at at one say, look the after, out the versus wells sort for five both wondering, of just guys, those to

Gary E. Gould

means first communities. this Sure. a key take value us expand and investment XX an time a PV-XX. for described slide really to gas the The us. ever to working the page on is entire more the for bit that show for company is maximize XX. an are And time maximizing on we little I'll slide important That This little some bit is That we has the oil that and this unit. probably more.

to I'll go I'll top a So bullets first left. point few out take through on a time it. little the

to the well and top XX% apart unit. type spread well as for curves shows high the of and bottom see see what the and produce. in see you On of which question left order eight the continues EUR that address left, your maximize IP Boe the curves unit to of to very at return entire comparison is optimum and optimum And count between closer unit those the specifically, well. To well for we at optimum a then parent of a rate X.X an look we an together PV-XX, the can million are

of do million a about upper unit So kind X.X well compared the with have average right. XX% is very we a EUR on about to describe lower a about what to see with EUR, million overall parent XX% I provided parent the average. for And calls. our early prior well these And in on, process we on and our information well see Boe are little similar lower the than of quarterly numbers earnings might chart we for finish X.X Boe in IP single of more a

On what represent bars six right, represent from left some different that move bars the unit And we is those PV-XX. see the in upper that well right. increase as to you count cases

the generates that PV-XX So million an as count company. counts we we maximum of at of see move is PV-XX $XX which from X well maximum the for to X XX, well a

million a at a rate count or very high for X with well of so return generating XX% X.X a barrels EUR of X.X we're that unit or of And Boe average point, million per well. an

on. it. And see And about then to so address goes we early your on time impact. life the impact look over at about question, again how But XX% we as see that's well, of XX% the we

Neal D. Dingmann

Bakken both again, your guys your believe But between a gone I of you and just of then outside M&A little And Mid-Con. wondering the certainly Great, now for have I my inside follow-up, big obviously – bit great at outside you footprint you've and details, when the acreage Gary. basin. a was basin, sort look of your

as the your far Just basins. as at additional and looking acreage thoughts in out of

Harold G. Hamm

are those leasing have we're be either and in zones in exploratory opportunities tested. Well, opportunities that be still that Neal, on of a our of blocks and DNA need in == literally, and additional of been this so, – you below for there going everything leased on dollars has a developing some some to be and know year dollars our new budget is lot for ideas there to And always to our will testing on not both above current we've there got looking test we're exploration and ideas. there's because outside new

are won't team us that's ventures high-grading future, existing new important really a we even doing but got to from constantly finding We So, great our it's inventory. opportunities it's to totally new on It's a we focused important and stop and looking. our question, that.

Neal D. Dingmann

guys Thanks, much. good. Very so

Harold G. Hamm

you. Thank

J. Warren Henry

you. Thank

Operator

from Arun Our next question JPMorgan. Jayaram comes with

Arun Jayaram

Bakken. start first in I Yeah, good wanted the to morning.

could as think You announced XXXX? you completions in views can your of some of non-core the enhanced the the some about on And talk comment of or XX versus wells acreage these fourth are results Tier your you doing acreage? you the about core acreage how on quarter. in X the And best repeatability

Jack H. Stark

As far really wells, area. these a as mean, of performance the you can see the, I guess over broad I it's

the say very can we're that's from comparable now. in thing talking if page miles XX you key that can I Montreal and McKenzie here being And map XX, right and miles think about south – that results on on you area, of see west from XX County.

that's a tracking And got type nicely. footprint, the this they you've this is here that curve, type that it to we've I'll are you, and so tell huge wells. very And thing XXX obviously realize, got really on curve is based those

XXX on they're there, as there fact, see In out days really see past say chart you on get that outperforming. page as that can you XX, you

other operators that from uplifted outside operators you'll play footprint whole to from due The these have and are the out here. stimulations comparable has Bakken seeing And you're some of what been very results too type encouraged continuing seeing. that this what your an we question big to equation of of into you longer find all. And push might to we're well just to type see of area So the envelope, with we're but put we're got how performance, that very (XX:XX).

the and So see I these that this expect uplift over a basin my double in you or point in just rate alone. We've field of to a economics. the seen areas return a is can think is

going the play. whole see that expect across to I think, to you're

Arun Jayaram

these does bigger your spacing are change assumptions same you And, here? Jack, you as it spacing or to the you're completions, using doing cause

Jack H. Stark

that less development to we are XX% XX% This based year our plan being feet. X,XXX these our to same feet. XXX we results the about of that development than year program our about on coming type this for of at in than spacing results less that example. was on completed well of And spacing those feet, include XXX X,XXX be of spacing will have and And on

similar results in in program really expect tested XX% XXXX, we of already our and in we've So XXXX.

Arun Jayaram

the revision you the really capital exploration change STACK. thinking on follow-up, transparency type appreciate well how the the tests density And on the another portfolio, allocating think about the about Okay. to efforts? my curve broader perhaps we and your STACK, basin in Does

Jack H. Stark

No, are at gosh. XX%, this Springer mean, and we've if inventory. my our you're can I see looking the added or unit XX% And to excellent. you economics Oh just that's year

it but discussion quite about had we've the any while. sidelines had haven't We a yet, on for Springer

to X STACK we're as prolific that And down there. asset on we going so down rigs rigs oil bringing but Springer X as the maintaining in have start in the well we're area,

improve obviously been So on allocation this ready this. for we're a emphasis that's we're sitting to from Springer have. more start to year, because they get but reservoir And it's and waiting oil sidelines standpoint, an that putting prices to on little the talking

Arun Jayaram

a Great. lot. Appreciate it. Thanks

Jack H. Stark

You bet.

Operator

Our next question from Nat Alliance. comes Leo Mariani with

Leo P. Mariani

was a play to I Hey, guys. on the in little hoping talk bit more STACK detail here.

looking I around the of so, you in Just you your at XX kind wells brought net to online guys, fourth results, guys think wells or I think quarter.

community quarter. consternation looking respect going you looks barrels XXXX these to wells a Your during day the terms expecting some for of rise prior quarter. with came STACK at but there's more kind good been a run it continue have I to bit to you're here. I a XX,XXX years the kind it the throughout down be on think, to might production come? expected in counts might based guys on XXXX, little of late certainly guess I versus Maybe guess be little quarter, for was asset well a in growth up, something bit STACK that's Is fourth rate versus I of that. of the to like for roughly some investment certainly the

John D. Hart

had I John. in showed a give to be production to that. are you XX% I'm little We going on XXXX XXXX. appreciate going in to is volumes asset over to in is compared that going This a growth to XXXX STACK huge color XXXX. the Yeah. question. STACK grow what you XXXX year-over-year XX%

have did you exit a obviously, we number indicated. come quarter as in the on look fourth you rate, the to If

But lot XX% quarter still to later Some alluded XQ XX%, of quarter XXXX come as what over pulling rigs exit a to rate it's of targeting. you in to. projecting got XQ fourth of X XXXX growth. it. not XX% XXXX those grow the compared to That's in just to to on we're of is STACK. XX% did We've XXXX We're out and going

We Bakken those focusing we're XX% little oil a into got are the more on the XX%, putting Springer fairways because and we've that there.

productivity see So where it's growth very a of going remain play about, and out excited of we a and enthusiastic, you're lot it. to

Leo P. Mariani

right. to going are sure. bit asset kind up basically little of maybe big that's guys All about in at year? little program? sort of helpful you dollars bit from hundred a the them raise are the deal think And more and you look very a Is more these on Maybe sale talk could pretty individually. that wrap this But your the first to the Recognize million asset in that guys talk aggregate, company a can of program. for I half That's you just still aren't you're several something that trying of status sales huge that. when a you

John D. Hart

glad to. be I'd Yeah.

the We asset are fronts very on active a of front. number on divestiture

I over out you'll few of that. next the stuff think months see some

not that may I I be very think about. some have but expected, that see things might think pleased and you'd enthusiastic novel are you you very

don't anything those correct obviously get ongoing price. We get have are to our to do targets. want So and the to to we debt

$XXX,XXX to million year, just the at mean, off we'll the end to $X.X be I when down without progress. that shows That and not accelerates million that the take million better. $XXX,XXX You you you math. the it's adding we we're million further debt back it of on any great are making $X.X and those of on by year, end And if continuing around divestitures and work the them

Harold G. Hamm

might I sales these on will that of have your add we're anticipating, any you that these books... not And

John D. Hart

Yeah.

Harold G. Hamm

assets. ...as

sold not we have past, probably may surprised they we're in the even ever probably it. owned So,

John D. Hart

novel some to very be I the that impressed was you'll think with. That allusion things Yeah.

to proper value and we're the right on focused deals proper partner. getting time the the with proper So it takes done, done deals the and getting get

enthusiastic. and ongoing, we're it's So

Leo P. Mariani

That's you. great color. Thank

Harold G. Hamm

Yeah.

John D. Hart

Thanks, Leo.

Operator

Good Our from next (USA), Capital Grigel Hi. - question Paul Grigel Paul morning. Inc. with comes Macquarie Macquarie.

XXXX and the incentivized expecting With management the is an akin that free or flow is flow, be could new and ultimately the that well should XXXX around it that cash strategy to feature focus we metric as ROCE we see cash free for something explicitly team?

John D. Hart

Yeah.

metrics are I with the compensation look – something market we've pleased focus executive that. very and you think if the the around frankly discussion to been on that

have significant shareholder holdings we a If would in the shareholder in XX% you all to Continental, his of has on than value go we're family. have we there all very significant that team, look Continental. we focus Then broader excess is because I at in shareholders. you nothing say driving management more

Continental and at We're that the focusing we returns that as focus drive – So production take has historically. have top-end and the capital pleased When you think and measures an growth that as industry performs the investor significant efficiency we we're can industry the flow type employed on glad that we exceptionally can well, to we cash is with drives that we deliver, on other combined that high frankly level. that. have, the free exceptional generation shifted obviously cost

So with that. we're pleased

have yet. here factors one that file or we something you'll another of our form is or process. XXXX that Those in a when component statement finalized in metrics the We be That see that, will bonus the not proxy spring. in of is budget significant types and

certainly that yes, for guess more have not comments that. guys conceptually changing come emphasis Paul set is have, hedging. you'll in but a No, then and with appropriate realizing asking would you time an there. discussion? hedge Macquarie Harold the I metrics. do that of maybe Inc. – Interesting align that (USA), specific how determination tone So, that, the on And see to for the it appreciate price, we Grigel - always Capital we When

Harold G. Hamm

call to hedging right a also I'll a science We attention Adam liquidity comment lot market there. of the give on pay is here backwardated that's Well, to out The and two. of or very now. to market

comment So, Adam, you that. on to want may

Adam Longson

Yeah.

it's in to mix offering risk-reward there the hedging ratios a relative partly structures is technically. out and you what market see the think of you different that fundamentally I

fairly to fundamental to as date that it. see challenges our been view of our skew hedging risk-reward that one So has unattractive has been relative we

things tail as do One more see than downside on we've that tail been keen of risk. the very our not because is upside risk capping now of we upside

in low right are direction heading outages the are the geopolitical inventories world growth, still with example, despite For around rising U.S. risk.

in are markets world said, Harold economic is robust growth As backwardated everywhere synchronizing. and the demand is and

a particularly downside still the have point this of you out there. is price the in And to So tail then out pretty there. lot relative at options modest positives in that cycle, contrast, and are hedging risk the

but cycle, hedge approach I way item that And we types market we and of hedge. hedging these there element Capital we'll continue and key yet. not things, obviously sorts it's - doing Inc. we only – think ahead, of (XX:XX:XX). Sorry, go here are we just not part blind in those how And it, but that's the the determine the of there fundamentals risk Grigel watch the a (USA), it opportunities, to profile Macquarie when So we just assessments monitor will where not thinking about of but we're ultimately Paul

John D. Hart

we think place. also in natural I Paul, have a hedge

on at off, And in we're breakeven that budget opportunity some significant capital free oil with well? allows the thanks, the overextending hold And John. element leverage as to we're the an flow that hedging the our for market lower off in a $XX markets on Capital have the Inc. and prices. ourselves, least (USA), not us desire We of cash that no, putting that low-to-mid we - Paul level the move obviously price see range. participate and positive of Macquarie or tightening does No, those within play ability to Grigel

John D. Hart

I would get say on leverage, I want to that don't misconstrued.

very absolute on lowering dollar are debt. We focused

market the the dime metrics. we improving, on obviously view debt driving. That and every that, we benefits fundamentals So see not we're spending the we're

an gave We're very leverage our opportunities debt appreciate a so vast not continue that Macquarie We the of So it. indication. positive to much. you improving, to lower see drive know and just saw have we you the on why we quarter the improvement market's down being us on to now ratio array That's drives I a don't leverage. hedge. – number fourth gave as Thanks you - No, (USA), the a We Grigel Capital in also January debt. significant Inc. Paul trajectory.

John D. Hart

Paul. Thanks, Sure.

Operator

Our from comes Lynch. with Merrill Bank Leggate America next Doug question of

Doug Leggate

Good slipped into guys. Thanks. actually morning. It's afternoon,

good So everybody. afternoon,

the of you've market think in talking got because well it's a which to comment. we've And want for going this front just in to about change, for getting for to time. issue growth some in back I really commend first force think front at November. that capital-efficient Harold, been of look I a child I you

two, and wells basically thank XX for five you the for one got Jack a I've John. that. Jack, for Bakken days. day, X,XXX in So the one My barrels questions,

does those curve what an we X,XXX What fraction. you learning already to How STACK-Springer? And that got only of type that completion as day, I'm well? a wells? dramatically. optimum different maybe for forward? completions there in at obviously a follow-up going characterize Your repeatable I is in completions? lot if still John, Where I've or the those quick a a a is evolution barrels as different changed if Are about wondering But the chart is could the please. situation five go at go it's looking just add-on, was Bakken's there right. the know was in I'm

Jack H. Stark

Okay. Gary, want you here out may to help a me bit.

Gary E. Gould

Sure.

Jack H. Stark

The I they're we're about talking is rock. my I their and when miles to miles XX wells further south Monroe's top off comparison the don't actual even is significantly just here connecting there, this is have But obviously, another these those mean they don't of at guess that all I apart, thing stimulations top key I but with the were ones there in – it. different. you're the performance look wells and the XX think those rock, That's the are more it, south. XX, of head, they're you look Tarentaise at that the

the isn't so The that that's for something probably think is way it technology the And unique looking for and this me to the and difference. I fact making haven't it's better changed. answer are the just unique people rocks

shift when a we've a good the a rock so that broad perform technical in see technology. you of will a over area, way And this fundamental because had response that shift, says

at is. this repeatable? it for will surely not, it but to repeatable it I is level? Is So believe me. Maybe record it work close

Doug Leggate

go But but on before the you Jack, Gary, wanted check, to just to – topic. just I leave

completions the barrels a that risk weren't your the day? day a if So what BOEs profile XX-day, of X,XXX or that say different, does on

Jack H. Stark

I think there's... Well, don't

Harold G. Hamm

you're going have a Doug uplift? curve here going you're I is think asking are type where we think to I

Doug Leggate

of on Basically, the front-end the curve?

Jack H. Stark

before, ask every probably said And as Gary I of... I've that week

Doug Leggate

from passes there. it And on

Jack H. Stark

really But you're guess – mean it very we type good are more. point though. I'd I just do and pointing need important I performance, mobility here, think to we upward seeing at our really strong there's and is I very, say curve, get a in

before with But get little wells to we're these seeing. history us, I'm bit next encouraged take like know you As we we more level. the a behind to what

Doug Leggate

ahead. Go Gary. Sorry,

Gary E. Gould

And your question far other what our additional as about seeing type as as then as are far optimum curves. in areas we

year. last has job completions in our an over optimizing excellent the team done Our

just Oklahoma. type If at all you across our in curves Dakota our North plays look improved both plays, our in and we've

we're we're with very pleased so And at. where

be We play. won't design continuing and every every the place There to experiment. are same

And to variations optimum tweaking so now little come within up right with really it's about them completion the play. a with

think on I here we're that's where really centered from out.

Doug Leggate

still. $XXX John, Thank that, that generate million philosophical $XX million hopefully The to it's more is oil. quick a idea a to than you guys. you for really The backwardated kind could cash for $XXX follow-up, question. hedging free follow-up of of curve at My fairly question the one of John.

not to use swaps? how and leave curious to philosophically, order just wouldn't Just why about of lock the there? that downside it get in thinking in it opposed end in I'll and collars targets, So your why growth lower you Why least debt-adjusted to lock at the you. risk? the as I'm recognition to try market support you are for Thank uplift

John D. Hart

about hasn't positive. on you that the sets skew that skew kind the with Adam earlier dynamics on been I collars of the to think as of on downside, all take market really look downside upside collars, some the talked where you is, of And determine then then that, that at can collar. the the

that's spoke to. coming I and path the I up with feel we of in to breakeven as frankly, low bit basis don't the lock a the towards an potential it mid-XXs market more down clear a earlier, operating $XX the come want on on see debt say low And on down, at And compelled natural we further, going the hedge, that. move price, cap continuing absolute the from to for low So upside. to me downside, in to

we've get looked pretty that, from Beyond Those at costly and things. perspective. that puts other

So our and the we're structure things way that via now hedging participate. activity cetera, managing and and physical et we're to cost with us enables

up may and beyond, given that their the to or low-XXs upside. some and the have and budget have been all with that contrast out compelled hedge go spending frankly, in You full felt

It of lot a flexibility. got closely. watch we is we've So something very

As oil not there in philosophical with going we're will of there companies are that forward. see some what seeing other we we're Harold said, markets And again are the because significant us. category upside we the that broader that same and but hedge yet, it's in

Doug Leggate

dividend a horizon the point? at is John, any on

John D. Hart

of put debt are going forward. we're a as do the the not if philosophical into one-year do on flow back at or today. is spoke XXXX going or going to company, potentials. XXXX. is going generate could a a cash some growing that that have but more we There of ability just that something We we other This certainly said, future. do there the we're cash into lot as cash we'll generation we a to in have What's potential. I The remain also, faster is Whether will It's not down. growth little not we're strong little that's a positive activity and then we're for positioning is What more to not, chose And us. a broadening today be to the getting flow going some and or key isolated thing. constant lot to even opportunities that we're of point focused a to is things. to It's long-term

Doug Leggate

time, Congrats, guys. your again. Thanks. Appreciate

John D. Hart

you, you. Doug. Thank Thank

Harold G. Hamm

Thank you.

Jack H. Stark

Doug. Thanks,

Operator

next from Simmons/Piper Kashy with Our question Jaffray. comes Harrison

Kashy Harrison

and sliding everyone, thanks at the afternoon, here me Good for in end.

free with production years exceptional strong corporate over growth. outlined returns cash So next an you several flow have the coupled and outlook all

in confirm all And updated into so reflected risked Bakken type somewhat I Oklahoma remarks. forward you then in Were incrementally, what in And think the I the in highlighting just the and wanted guidance? heard to incorporated outperformance I you the forward guidance? your curves prepared that your were fully have

John D. Hart

guidance Friday. We last put out the

of everything talking is certainly about it inclusive we're So, that today.

that again the in We yes, always We've a variety are ways. forecast our curves there. of risk year. in updated new this done So, type

in the periods done number past. we've a seen You've of that than outperformed our better We've risking. in because

factored past. as third maybe question there? the risked That was well. what – I'm I've your too So there we've hard in part is in lost the certainly the sorry,

Kashy Harrison

Bakken. Outperformance in the

John D. Hart

are curves. the those outperformance type as The type they We're outperforming curves are. there in in The Bakken.

And type about results. what may future? these You've There the earlier we curve that. certainly outperform records. of may question reflective some is a We of see. see some the seen fully in was We'll

Kashy Harrison

well efficiency from standpoint. project then shift It of gain interesting to exploring think terms you great just That's gears a Dicksion switching it. a could about. through accomplish ultimately multi-horizon you of And little all an Got bit the the cost, help Could this in us color you you there. that extremely talked what in kind looks think development? by

Pat Bent

cost Pat. similar This we (X:XX:XX) the Dicksion. improvement drilling Yeah. is improvement in What at somewhere anticipate neighborhood we've is our time full seen the unit and stock XX% of on development historically a so would

John D. Hart

once wells. that's has growth Dicksion XX to developing the it. the and call this Woodford out flowing in efficiency. we're wells Yeah. on And to out Springer deck, of times back watch happening just put obviously Sycamore really potentially while picture because it's page get the This been production of really some these drilling into here cycle really here project we And shorten in units smooth what and now you right lumpiness a XX-well we're exciting and our potential you

see what's it on happening and actually out the ground can You see efficient operation. there it's extremely and here,

Gary E. Gould

just teams been plays. put we're been what timing, and This of layers more value we've opportunities and is type these Gary. And what to of the can even it on next these about, taking some all in gone been talking I on becoming our fast efficient on of plays multiple doing like has And Pat drilling all have through even might now that on realizing is the we've we to order working our plays efficiencies level our accelerate how on add more.

Kashy Harrison

Thank That it. you. Got for me. it was

J. Warren Henry

you. Thank

Operator

RBC Our next Capital. question comes from Brad Heffern with

Brad Heffern

Hi. Afternoon, in STACK everyone. I was a more. to hoping dig on little the density test

over-pressured the degradation. of on would terms worse the tests of two a than seems in of the test that really surprising at XX-hour sort performance Looking just that significantly X-well X-well IP test. to zone kind window, in the per was me you see window, It

going versus or as as were test like was X-well So or far the anything apples-to-apples? on in they test that there unique X-well anything completion truly that

Jack H. Stark

that in the that we would one same wells had I add time. at had production also it, more in test some Gillilan the vertical which for

from well. some So there been as impact that may have

Gary E. Gould

significant in the we to we enough an believe. unit were some vertical on Yeah, and Yeah. have impact the there believe production it's performance,

bit I things going. also vertical just couple and production. historical little too So, A some well got at think, there of a spacing we've tight

Brad Heffern

side on could as containment far or or that. sort Got Thanks about as eight-wells something at guys thinking then Okay. along is that And those point? pursuing are frac per make is landing lines the on move for that this section, it up set it. you that anything there of time over just

Jack H. Stark

Based I page density different we've described XX. on tests had as – several on

in a leader this figuring so, far we're density. believe play as well out as And we

this is And we're so, at where this at, time.

Gary E. Gould

Yeah. these mean and density tests. a wells There are tests what partial we've oil window, have six close-spaced the that full lot been of there density we've tests done here I and out densities in basically that done, is are just they done

would went look we understand development perform. to a need So it how plan what it into the that and like, with unit density we would

you consider. And aspect "the have to wells," that don't so, unbounded

you're Here, like. what seeing unit development a actually full looks

knowledge what from enabled us our these And expect units. it's so, to we accelerate and could

that's And – so, that's whole the thing. why

us approximately XX% our of with capital in unit it, at XXXX on look development. is you If focused

and step we line well and community bottom and be We getting change us to parent And first or you from well the need the an an well, this unit narrative industry need be on as focused economics. unit as analyst, focused need unit performance, and unit is to there. to to investment economics on so is, and child wells in

Brad Heffern

Appreciate Okay. the color. Thanks.

J. Warren Henry

Thanks, Brad.

Operator

with Whitfield question Our Derrick comes from Stifel. next

Derrick Whitfield

and could in me afternoon, to the Good regard remind the views, in your other your all. pilot the versus that average? the interval the the you on thickness in field in Celesta basin units of With pilots Springer area Thanks. thickness

Pat Bent

going XX pretty and I'm XX to I say Tony, were comparable. feet they to that... XX about think feet, is

Tony Barrett

That's correct, yeah.

Pat Bent

was into Yeah. pretty least to designed that and that some that They I are kind – density good comparative of isn't one, of we it mean, comparable, was have part you metrics, other and hate we go a our way, just – representative I the plan. so that of very pilot can't so, at

Derrick Whitfield

view? on it then question results degradation that And you just with that to field announced, fair curve and and included SCOOP a therefore should revision development non-related is bounded that a experience type based under that, full revision type curve Okay. assume guys less quick data well was

Gary E. Gould

Yes. That's said. correct. you Exactly, what

see we put well. go those full from were road, the unbounded significant it right, in we're saw wells. – down what like planning won't said impacts just these from you and road These You development Springer. that based we unit and Exactly development full when on units the

Derrick Whitfield

all That's Thanks. for me.

J. Warren Henry

Thank you.

Operator

Palmer. from David comes question with and next Beard Coker Our

David Earl Beard

attributed back unit-type little Appreciate of be and X.X? page the rock is Hey. been how just squeezing curve And possibly the A give your lot rate? difference appreciate completion the ground you of afternoon. of a type much I geology? me Thanks. can Good covered in. can the the everyone. that parent morning, curve obviously. even of color or STACK good XX, page flow you difference much of between How and to or has But – X.X design on XX to

Jack H. Stark

always the in out that to variability and start I'll there's say degree. geology some just

out. can't reservoir within fairly Meramec itself. you the throw So it development in general, in – the just of unit, geology we're But seeing consistent

have you as I thinking anyways, – said, there, doesn't with came about do – So that want that's color. little to page XX, I'm Gary sorry was to never in one (X:XX:XX). sorry, – a I'm that might what you add But It's we've me mind.

Gary E. Gould

These Yeah. are really spacing. well that impacts the we're based on seeing

the not these very much as the that's entire optimized impact. for completion play. an As completion designs far of STACK as at designs, significant been We've

is seeing so what on well here we're based spacing. And

David Earl Beard

All I time. right. That's appreciate great. Thanks it. for the

Operator

at to like questions not I'm this And back Mr. turn further showing I'd time. to Hamm. any the over call

Harold G. Hamm

class you Yes. retirement nothing want thank best years I Thank has the creation to moment service a but company. very your you of tremendous nothing wish you your of Warren wish been the nothing value Continental phenomenal, much. with the to Warren. of That's for Warren short throughout the on farm his of in of pup. years greatly. been I We Continental a these to short XX years shareholders. all representation for just and in act of take

blessed great so are We and thank day, today. Warren. IR. you, your distinguished in to for career us Continental get everyone you again joined Thanks a chose who Have

Operator

Ladies this does presentation. conclude and today's gentlemen,

You may now disconnect and have a wonderful day.

Continental Resources Inc (CLR) 22 Feb 182017 Q4 Earnings call transcript