CLR - Earnings call transcript Q4 2018 | Continental Resources Inc (OKLA)

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Operator

Good day ladies and gentlemen and welcome to Continental Resources fourth quarter 2018 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 be given at that time. [Operator Instructions].

As a reminder, today's conference may be recorded. to of call Investor like Sabino, to now President Vice Relations. would turn over the Rory I

You may now begin.

Rory Sabino

today's Good morning like call. to would us. joining earnings and thank to you welcome for I you

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

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

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

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

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

Harold Hamm

Continental's and full-year Thank Thank you quarter for call. earnings and everyone. fourth XXXX XXXX good joining you morning, Rory

Thanks to delivering the progress guidance. our years, different. weary grow XXXX was you consistently For our over our many followed team, have on past no of of for XX who our may you operations

once again We a you the risk was. driving at highlights. few So breakout a of it you cover [ph], me year truly and of let XXXX over [there] promised

approximately target our $X billion net $XXX $X.X and income in over debt achieve net million XXXX. delivered billion of we of to reduction financially First, net of

have the two-and-a-half from and $X.X off almost past Over interest decreased years, expense our we in shareholder significantly paid additional our debt debt creating billion quarterly have levels peak value.

increased also proved reserves XX% last We by year-end over our the year.

growth for was growth. production quarter-over-quarter exceptional as growth providing new driven tremendous this well in our was growth year-over-year a to operational over wide mix progressed full wave Second of improving and we oil all our field promised our resulting sequential Project in ever growth oil happening. XX% and from oil weighted and efficiencies of development. Bakken We This growth demonstrates and production XX% the SpringBoard STACK, from production oil results record production by XX% best

delivering off cost high hat you. operating peers, deep during extremely horizontal, Our pressure My as some harshest industry-leading these all even our efficiency feat the of and BOE winter this per Thank to production development, great conditions, and when of $X.XX cost months. is all. by operating cold job oil weighted teams accomplished to an operational while compared enviable considering an teams our

as STACK this Lastly, with royalty shareholder HBP. year enhance engaged production potential which creativity mineral holds from increases This primarily and future from these growth value relationship the year been maximize returns. now our SCOOP regions ingenuity to innovative large and as every our year, Franco-Nevada newly all resource we has significant through accomplished plays was

a expect this smaller multibillion-dollar from germinate to a start ultimately. Although this arrangement enterprise we into will entity,

day production move vision for upward XXXX ahead we five BOE and projection from as our in continuing level. years per forward us gives Our the great confidence XXX,XXX

Continental, production oil significant adds Oklahoma the our long-term growth oil play. Bakken the here provide production drive plans. At plan and sophistication X.X meaningful in with years. first rates in have Our just we to even plans to SCOOP the higher weighted project SpringBoard we XXXX in our acreage. we five-year triple production will HBP just again internal production it production as and then accomplished provide In another growing projected five-year while to accomplished triple that We plan XXXX,

development Our major and full in primarily held now stage. field plays are

free is to beginning as cash vision even five production result a of returns vision flow Our shareholder as future growing and year in generating clearer and newest XXXX.

billion deliver production deliver significant from several base. doubling free our Our of generation. vision to larger a a and free to shareholders over is generation, years combination flow We simultaneously unique current to value by much sustainable plan strong driven next cash our of nearly while flow cash XXXX the five our production

macro talked with creation. We value much depends causing the crude discuss market see on one-time lapses. in are well-aligned don't crude the and the Iranian Since to waivers most was a there grant a Apparently, on unexpected Last another six-month fall. to we precedent oil window purchase We bit. company waiver last let's of one-time to event about little collapse our strongly one historic oversupply induced price purchasers. of a focused the expect quarter, those the shareholders are events, precipitous those world of as the business

was situation X.X about time take oversupply of million of it. approximately equal an That created. build waiver and [ph] to barrels With months play will to dissipate oil and amount [wedge] grant oversupply up the took one

begun Continental as participate are following [oil] have decision grant oversupply well-positioned again We to returning and is market. higher the and the into to been place measures prices correct. and the to month fifth in stabilize correct once prices are benefit now and to the [ph] are

[ph] fiscal reflects budget our XXXX Our as we of [oil] rebalancing discipline gauge supply.

the due upstream flexible primary the is marketing normalize share is to domestic producers market the area Corpus crude serving As our has heavy and as for Asian LNG. to new professionals and markets. as displace markets. value as bitumen and instrumental of Bakken in position again, have always, strategy supply there and the a at who between well for creation [neat] Continental our political worldwide. oil the those the moving has supply in marketplace. the during alone. U.S. and been invested the we light built Christi oil many of Globalization the region marketing marketplace of and in the WTI Brent for produce U.S. as disrupt period European to infighting in nimble growing fast is supportive become of may diminish new and this so sent positioned global [neat] as placing world eliminate constructed marketing Approximately global shale differential Venezuela Both infrastructure in being [ph] and Continental will sweet in and for U.S. markets. gas longer-term on company a currently to future here centers, that new focus being shipping are market we who opportunities remain are which disadvantage and parties and to supply our and supply view the I waterborne Gulf barrels billion Gulf and and production of planned unique Continental's has Brent producers [ph] Access between global infrastructure Coast is crude growth U.S. crudes the Deregulation product infrastructure differential to natural out focused and rebalancing who such occurring and markets lost have Americas U.S. salute infrastructure will $XX

WTI nice Jack it additional and range We Gulf is to realizing and to Coast North Thank in Stark. the the [indiscernible] barrel you. Coast region And call secured I have will the $X transportation to the minus established NYMEX firm selling at the turn wellhead and be over Dakota. Gulf

Jack Stark

everyone. our good call. morning and joining I Harold you on you appreciate Thank us

As Continental many exceptional out, pointed XXXX Harold year an was on fronts. for

XX% Bakken the return approximately XX% up cash to to net breakout growth exploration. was flexibility Bakken corporate that continues year multizone our As capital oil up in and production Continental of results unit sustain development drilling prevailing by positive develop quarter have as year-over-year and year marked Throughout outstanding today's to market. in highlights Oil quarter of five environment. in from reflecting be This XX% grow in shift completions our we be drilling and fourth participate a largest year. earlier year, growth in weighted positive focused of we oil of Continental fourth was year the our oil global to as I in we and up wide position year-over-year. production our top-tier held the flow is to era Dakota XX% and production XX% now the the the production, delivered grew for a delivered of October returns accumulated over capital the years Most sustained XX% Over pace operating accommodate XX% We by importantly, record as North XXXX, on quarter the quarter. year-over-year the development. late Today began inventory over XXXX. our full-year plans grew Bakken, growth XXXX, our margin, from cash and commodity the provide to on and by is XXXX was third with will call value ideal the efficiency. and acres optimized beginning grassroots producer XX% of for adjust In our our Companywide, the reservoir of of company flow some of to a over our followed operating an oil production production XXXX the activity new employed. vision. deep and it rapidly impressive as an new third a XX%

oil. XX% as wells production proof, quarter XX an in of fourth this Springer have SCOOP STACK XX% drilling Springer wells XX activities that based and swing X,XXX Combined, schedule and in and flowed currently day day initial at the produced, flowing operated paid production with we of is rates. XX continue in added list approximately of per basis, X.X our the were wells BOE XX,XXX gross wells on XXXX XX% to new of Bakken project per Springer quarter XX on currently waiting impress were being with company the million fourth already are oil. development approximately program to XXXX. is Of drilling initial wells Sycamore most in quarter. to In the around completion. for production their was at Woodford XX out producer has BOE moving program of as project Oklahoma, full top As our XXXX came over to assets in these out and these on day XX% grew Bakken year-over-year. on grow. well gross Four paid grew in Combined, and completed time. The Results our rate from XX BOE turned SpringBoard average a per during on along of oil and began XX% quarter XX XXXX SpringBoard which We production these the production note, fourth XXXX, in the fourth SCOOP our

XXXX on STACK unit. oil quarter deck during approximately the quarter, three shows oil interval. at XXXX. in windows. activities we In development per quarter in targeting Boden As Slide we the XX% condensate barrels third XX X,XXX single to previously SpringBoard year the is flowed unit successfully The an achieved the repeatable per fourth per condensate production the by at oil Meramec remain to Boden of our unit and company and total rate results called forward the last barrels included in strong guided, per is average introduced wells quarter are per on fourth volumes and a wells day approximately flowing barrels by developed track is the Boden the third the exceeding completed that Boden pressured track day unit oil The SpringBoard grow development the of drilled another In the of units for or STACK, end averaging in operated of day. with XX,XXX strong in over rate by our in days. during overpressure These STACK Including unit first wells well wells, were parent the outperforming model were These average window. be of quarter, BOE the wells type during second Boden well. This X,XXX XX expectations the and oil XXXX day XX we per oil. XX and condensate the of producers template meeting initial fourth an are year. curve provide X,XXX of X,XXX the half BOE completed we unit XX% units a utilizing fourth from

to operating efficiencies. same continue completion. with stage a results By approximately teams save deliver entry the completions down costs through standard In perforations teams our the XX the treating Bakken, assets, well, outstanding Woodford, $XXX,XXX our Sycamore $X.X demonstrated in upside stage from completion we are In fewer similar our In addition have well. $XXX,XXX XXXX and reducing to represents save to to cost performance added our number become of our significant drilling drive These efficiencies limited Bakken that stages, included XX as our the these to per teams year SCOOP in potential per could but well. procedure. million on not up working during are STACK, Meramec operating budget, well our standard the savings per additional programs

the new are of savings cost design the could billion For Woodford STACK, utilizing to gained of example, efficiencies reduce up by SCOOP to In per well is a of top our This test wellbore of well. we second in are our design. in per ready half $XXX,XXX new and well. in programs, incremental an earlier savings Sycamore $X XXXX wellbore translating last teams to $XXX,XXX the announced our year that on

We keep you will posted.

let's Now on to move XXXX.

last our X% approximately down from for XXXX our we This at $X.X week, CapEx. billion. non-acquisition As is is budget set XXXX announced

annual preparing to and $XXX XXXX generated we was $XX cash from billion employed Our $X million debt free expect in year-end cash adequate WTI At ensure we free XXXX X% reduce our to activities. to net our gas, to and flow capital by to priority on million approximately XXXX. in to in budget targeting $XXX generate flow XX% debt return continue $X

be and growing billion are will oil assets We XX-XX of growing $X.X Bakken project. weighted STACK. plan in the to wells in slide during rigs growth an to expenditures on estimated our provided to the Oklahoma of gas production year-over-year. Oklahoma split oil focused completing rigs XX and of are and SpringBoard production from Approximately down XX focused average to budget Six and XXX essentially is of XX production XXXX. XX% the an at Bakken drilling XX% SCOOP Our deck. will The be XXXX. X% net in our XX% rigs and operate X% with on XXXX, between or capital during year-end XX with XX the our in XX allocated Details

As and continue the and quality production five of growth, we to our that we so we thanks can years, look of deliver strong do returns the assets to efficiencies next with top-tier confidence to operations. our

years, free are of an flow while Over production targeting at we the annual million. average $XXX five next cash excess growth compounded XX.X% rate targeting annual of average in

I year. to flow to to out of To words million release $XXX or press last night. an million excess, Now expecting we left in with to average the confusion. free this we closer range apologize are which inadvertently for $XXX more $XXX the of annual cash actual $X clarify, billion want per million point out We

years improvements as in capital in XX.X% five we and the returns. be Over employed on see years, we corporate the latter efficiency return improving in to project range, capital continued

calculated WTI. on Oklahoma. XX% to Approximately and come from the will $XX is the XX% of total Bakken to this from based XX% growth the will XX% of All come

we years, rate During upside inventory gains of WTI. realize XX% expect we blended XX% inventory of WTI, efficiency impressive average these from fully This or to further rate include At growth course our less return of through an not of be develop five current would XX%. during the $XX does blended return approximately this exploration. delivering assuming of $XX time any or to than expect technology

returns. on just free weighted competitive and out, to evolving not meant granular this significant growth, see was meant company be to cash guidance. to was vision as oil we a vision flow I year five here wan utilized point strong five-year framework from how provide this corporate offering the company Now a

focus basis STACK STACK on in frame dominated on we which and to value of the Oklahoma. as North in the expectations This facility, less development. size plan guidance describing Bakken will unit through various to multizone unit alone make our curves development reservoirs SCOOP combinations, different region sustainability et and by be with the the Maximizing maintain of returns. a forward, Going the our based as with assets the South type a will the The move specific corporate region involves growth drilled of varies performance we and to our count, a being shown combination outlook multiyear activity on five multizone counts, clear on dynamics, market region to on rig slide timing cetera. of crew pad, depending stim guidance

difficult on alone. performance So curves is as multizone a to characterize result, type based

are multizone wide for true underway, the assets and unit field our we with Continental beginning of its realize development shareholders. just value So to

our field it I over please to evolved our as leadership wide will full plays development. So John. have follow that, to large with turn And resource

John Hart

morning. Good

overview Let XXXX, that accomplishments. XXXX to targets for Continental utilized XX% flow for growth me significant early annual our start with debt would free with XXXX breakout also of reduction an to while to Back in production cash be be we year-over-year. generate XX% targeting year a of suggested

at approximately over our XXXX executed income. has December. growth years Continental XX%, net very with reduction million high stage $X.XX have next debt net debt of five the $XXX level. in and XXXX billion for for set hit our year-over-year billion year-end net a $X debt nearly in the We of vision with in target production

late net of We we achieving in debt track XXXX. which are reduction $X toward on billion, longer-term target our anticipate

peers, near-term. million our by with cash guidance credit will bonds refer were corporate would for I market. Returns and to notably is hand return employed and utilization of our industries. also against our capital other This to that presentation us redeem against of compared XXXX outstanding funded broader solidly XX%. you X% the likely an overall investor distinguishes expect on slide returns to how industry the on temporary return our facility to revolving to $XXX We be seven This in of be million but within $XXX the XXXX. in see approximately will XXXX in

of the five expense performance higher other and In generating here noted, five per returns also good per expect one. see Underpinning capital years on versus Jack capital the projected on employed on our optic over continued peer-leading next to our returns. strong is exceptionally return XXXX, improving A $X.XX we coming emphasis we at is in employed year vision strong $X.XX. As long-term oil continue year strong production in generated returns BOE variety on is throughout in as execute G&A weighted words, horizon. measures. it's five-year a We against XXXX low generating cost BOE while of our

For combined approximately is results with per an exceptional This of size, generate company our a low employee. G&A with productivity X,XXX. our relatively headcount employee our

DD&A note continues will our per I Finally, decline. to that BOE

capital While our we optic years. and exhibiting well measure, don't driven a efficiency on rate DD&A typically discuss we continued in envision is strong the our by In continued throughout in next line with growing this employed, improvement productivity capital discipline. returns five improvement it capital

during expected year. company differentials which impact impacted Bakken call, does Continental to in Clearbrook, late higher differential the fourth differentials. expected not on Bakken the quarter, the quarter led into oil heavy differentials the sell than in season As a our refinery maintenance mentioned Clearbrook's for oil quarter conference third to oil higher corporate and due Well, were

a quarter higher late significantly of added bit with decline differentials resulting forecasted purchase in of royalties. improvement evidencing as differentials quarter. the CapEx sequential the than our before we in oil and improvement XXXX better monthly accelerated rigs at half fourth for price $X.X an XXXX quarter the than second First in mineral fourth billion are

are royalties mineral know, largely by you reimbursed Franco-Nevada. As

with environment. budget generating while XXXX can $XX manner operating activity you rig cash efficient for grow to a remain our moderating align in oil are the price As capital We to release, we committed flow to see in strong debt reduction. production

to count, as nimble a relatively by decrease is significant is flat, burdened long-term we which contracts. are We be fourth expected extremely are not year-over-year, from quarter. the Rig

expect reductions these to over and have continue near-term. begun the We

annual XXXX $XXX and to earn stated, at approximately per company flow budget flow to XXXX capital place, carry of company's company target $XXX $X.X current acquisition. $X plan our Henry $XXX cash include by per Of per company of certain the based $XXX million mid-$XX allocating the flow targets. the will WTI. level our WTI to sustainable on neutral will the the for predetermined estimated is structure a sensitivity Franco-Nevada to reduce royalty $XXX Jack previously cash with is our Hub. ability is to A in WTI million in considering announced $XXX MCF production in approximately billion total already $XXX projected change $X reimbursed free to Franco-Nevada generate total per from million and billion implementing cash agreement recoup And dividend CapEx capital future. barrel the Franco-Nevada. a million million the of XX% consolidated in begin As cash to and the the achieving will revenue $XX This Continental for by total but is monthly barrel provide million. of be our minerals $X budget, debt XXXX a full-year million impact at barrel will With for

where revenues ongoing generate focus the XX% development company underlying in revenue our our our significant While density over beginning of our we SpringBoard owns these few leasehold. next minimal minerals we years revenue areas. the online to net minerals in to royalty XXXX, growth in comes from venture minerals expects are as acquisitions mineral see acres as from The was

As on conference production have I Continental's XXXX provided facilitate oil growth. volumes for weighted guidance to separately call, quarter's gas understanding during mentioned specific of and last your we oil

growth to You over XXXX. oil should strong XX% see expect to XXXX volume XX% of

gas X% to X% production We year-over-year also expect growth. to generate

and climb oil with the to volumes, not oil do and respectively we hydrocarbon focus. oil we percentage, the on our expect focus While gas percentage

weighted than ratio key stronger gas. has performance. guidance exhibits guided different to slightly natural The expectations is, Our margins growth, emphasis relative a oil which XXXX obviously gas. to due also measures on strong has oil the higher volumetric is cost for for natural LOE XXXX, our

range even XXXX, due our differentials a a to XXXX, of $X.XX for $X.XX than differentials nearer greater oil to to $X.XX the XXXX. in $X.XX have we For oil range South from in Bakken our are Bakken part in higher the of XXXX guided being to South focus to due to Cushing volatility. significant expect long-term to in well of due bit gas do infrastructure towards risked already year as benefiting We we a expansion pipeline differentials. the recent and differentials. our a markets continued This and Bakken more improving as future this and directed is processing coastal benefiting near

While numerous companies and and call cash we delivers time. you take questions. will With to we of will consistently the will that results growth each over turn the Thank so. continue our speak begin operator to ready flow, Q&A to few to it do leading and session production for of your we free that, one the are are for measure to

Operator

[Operator question from line of our Bank the Instructions]. And first comes from America. Doug Leggate of

You may begin.

Doug Leggate

morning Good Thanks. everybody.

on in thanking clarification John, of may, people and lot but that for I for think like bit. I I free cash you speak would the little a underline Jack a So the if just to I flow,

Jack, now So gave, week, what guess, number just of the million $XX basis. out to you right? That's you last $XX be million to I is TI clear, $XXX $XXX said,

Jack Stark

that here it's have gave the a the term. because $XX expectation for off year relative the current Obviously, improving market that's been. for We has we Obviously, to Yes. recently. that's higher budget where longer

you more and give what transparency. trying sensitivity to various to you see are type color and in lot ranges we of So $X in ranges can you a giving

Doug Leggate

for know, guys us. you kind that detail as never Well, of is enough like

I if to give move detail, question assumption into us that my us are can to some some So us is, you five-year given an idea, what that another it, view? can growth go And the you outlook if have happens How looks is evolves? as tax idea actually into the you you as prepared what obviously give cash tag average, CapEx on may outlook but like? you your

John Hart

Great questions.

Let color probably want. me you give more you than

Let's look to XXXX first.

would year. be quarters quarter capital and average, quarter our fourth of relative I above averaged second and be them as the and to took lower last the you four will on budget. say, if will they First below sequentially just slightly the

that. a be be based timing. higher quarter That's And than fourth lower. bit will all the quarter will Third on then project

know, you large multi-well have we multizone. and units As got

So got big we have projects.

can that vary, little but all different, a just give the transition. not are color on but So you timing they the to

So that's XXXX.

XXXX billion the to are the the $X mid-$X five-year kind type low of from As have range. modeled and latter total look then a and CapEx are CapEx XXXX billion, we in where in years, XXXX And you the our standpoint. XXXX,

We are growing.

growing a are that on We larger base. production

the don't bigger So lot five-year you you also are bit through a it's regards more you flow growing changing it is you envision horizon. we a CapEx. it are as and a a bit really are a but higher up putting obviously amount, question, cash But as that your on over In utilizing not base. huge go question more to cash tax

and to have on states, of deferred taxes in composed you are also larger Oklahoma. we see primarily As you net our federal will balance which the level and losses sheet, our then significant Dakota look that operating North

won't a So I don't change. cash think see tax you

Doug Leggate

would follow-up, that, for may. am I five I Jack let you that. love to I But going to questions. if someone My Thank do ask Okay. John. else

with line John, stick will that? So I after I minute. to target, going what with am for this. you I am know of your $X And sorry, you a happens But where hit billion sight

And you you idea Specifically back What are probably dividend, once target, it like you. cash? I I leave is debt it your specifically not that there. looking maybe with will will dividend because the component on and my for what am guess. buying stock some looks to a upside variable are hit thoughts do your you Thank

Jack Stark

a lot are we to have going is point good The cash. of

lot options with So it. do we of we have with got a what

We look of those all will options. at

terms am in the question. But key do balance. balance. to there aborting think the is I we of think not need I

is Some dividends, could that debt regards benefiting valuable. we that's that go more spoken nothing certainly something reduction. into to have says further, to. down There eliminating paying clearly In expense, debt that's further flow, interest cash

ongoing. internally. continue discuss the We be that will to That discussion

when Board question your that. that Directors. and longer place a us billion that's that up to range, by in implement I variable, to decision get put likely you We environment. the in be would see fair. term could you that something tested the we more of be that's to is the could think price think Obviously on To timeframe sustainable we I $X that deem to prospective

that something sustainable that's in a environment price So more nominal. be $XX would

certainly higher, look reduction, could return think a very have could mechanisms prices to we As cash environment. combination debt base asset huge in a where then have with we it further in We frankly a shareholders go a level would inventory. have got higher I deep at incremental we we and but that dividend and to ability,

Some a bit of go back investing would probably it more. into

long would you considerations. I really look and good generate The can answer it's all But be those the we is We at So but of all how of we in can those point do factors. generate can returns. be and gave factors an it. a balance the answer, would employed cash we

Doug Leggate

Thanks the all a appreciate clarification I lot. guys.

Jack Stark

you Thank Doug.

John Hart

Doug. you Thank

Operator

of Morgan comes next question from the our Stanley. Drew from Venker line And

You may begin.

Drew Venker

and cash in five you about just XXXX prices address the flow in everyone. Can free next growth change and comment to can or made thoughts more the adjust at how Hi growth share Harold, XXXX lower higher wanted you I market might spending to and conditions. the years? release both that

Harold Hamm

Well, we prices. expect oil higher do

fall. come happened we one last this of deal, As event, out cataclysmic

year related have as deep have inventory comes Very out. very So this thing a inventory. five apparently, one about, we to very, that's we it

exactly we world on But the It's that certainly not tip of to we have are fragile. not to We be that we market, keep And is, and it going eye we oversupply aware it want market it. realize always need so but to stepped it. that up. the is an

inventory if forward. So John it. definitely more develop we said, be dividend, as in could need up, it step could and it a go we And part play

So I answered question. hope I have your

Drew Venker

Yes. just clarify. to Harold, I guess,

And somewhat at have $XX? spend likely lower that So based prices, spend more than case, in bit laid higher out in would less? you you what on a price

Harold Hamm

Yes. Absolutely, Drew.

John Hart

do some you time. type like broader look being and the to and always weekly, others we demand. we prices look We sustainable Obviously, the don't to price would supply daily react to see

we So [indiscernible] something and assets. sustainable that's have the clearly

Jack Stark

here real point I And it's assets this. that have XX% of stress are HBP'd. Drew, acres we making do the flexibility have flexibility of to a too to to strength And the are have to the likely this secured, net able is reservoir just adjust. you as are the we our company this to is said, And be want Jack.

Drew Venker

Thanks Understood. color. for the

beyond of you healthy Just the At a cash. leverage a ratio for about to How use you on that? end $X desire at I there thinking level allocation of and down of free this will guys ratio. one net follow-up debt, think be get are year? further that Is billion capital

John Hart

debt of EBITDA. billion stress The magic the that $X to times two below is in price environment $XX tested us billion keeps a

around we to magic type that's got So of down In EBITDA. you environment, the current price are one how times there. debt a

So that's we pretty referenced strong we implementing ratio. stable a to That's can target debt begin dividend a why and point area. that where type be consider that as

continue also we where see having could other you think I balance those opportunities that, beyond and go a while down dividend to debt, reinvestment. pay for we As

down the billion. If structure, about could you $X.X just you all bond our to way to go look callable

you to if mean, certainly want I know level. to where down go, it's So we ultimately that

have horizon, out you the about that if that, billion bonds coming there are we currently got towards of end of look $X.X five-year our Beyond non-callable. due out

generate when we if there, flow those out they out redeem are come that cash could chose due We enough to. we

of lot cash flexibility. us gives a a lot So of flow

Drew Venker

John. Thanks

John Hart

Thank you Drew.

Jack Stark

Thanks Drew.

Operator

line our And question Morris next Citi. the of comes from Bob from

begin. may You

Bob Morris

you Thank gentlemen.

flexibility, good, as on mentioned points debt a of on free because cash the that option your here helps opposed but obviously paying to have of a you as for you goes reinvest which as oil which look is ROCE you And dial and the know of do free I you oil kind cash or balance being dividend. same the dial ROCE on, on the target oil in free depending is down targets, the question on the is at slide paying your price. higher down sort price, you more the have or you flow flow, now of ROCE from time, put are an have rest to about you higher able to the price Harold, at lot look at the talk bullish and You you cash hit a comparing industry on your on up very flow free a or yield to My flow here. the cash that the yield

was you targets wondering, yield and flow ROCE? the at look I So cash just how do free on

John Hart

of you give me Let some percent. on at X% type $XX, that. sensitivity XXXX, there. At about it's higher guided, we to have On each it's X% $XX, end XX%

range XX% in looking XX% are $XX. at you of to So type more the

strong improve that bit is quality some those accelerating your there we a sensitivity. as price investment what and point So generates, the inventory can of that and have dollars returns well. Obviously, of that on on that little

range If percentages different XX averaged on the can it. XX XX%, back are you you XX% and that. It methodologies. or number years, be There even go higher have in last depending few calculate we how type the look a than over

Well, five-year. improving and flow to putting things off ability So we we that see cash strong that through and the see having other reinvest.

go employed, look against us can are that have only we generating So it they and than be slide strong but But the you that's return I and to average some that laid the higher in a competitive of think latter sectors. And depend years on against top for we to higher than on decisions. very capital want the should not superior all out returns. companies, E&P whether

Bob Morris

that Great. color. you Thank for

John Hart

you. Thank

Harold Hamm

Thank you.

Operator

John the Aschenbeck And Global. our from Seaport comes question from of next line

begin. may You

John Aschenbeck

taking my thank you for and Hello everyone questions.

that in one, hoping XXXX little your free million $X I I crude to my follow-up following free a I the the $XXX differently, to outlooks the sure your for am topic If maybe in million to five-year So approach use about change cash compared comments plan move equates correctly. differences on flow. to just cash a first was and to $XXX make flow in

John Hart

That's for XXXX.

John Aschenbeck

XXXX, right. For

John Hart

It you of because years go higher would the in of each base. be that more subsequent out the than because production obviously as further

John Aschenbeck

Perfect. Right.

Okay.

using in similar that the the XXXX guess very remains assumption five-year to or the plan years? fair So over breakeven next flow those cash free more cash five are over that's Is flow less breakeven price I applied getting the that relatively free corporate assumptions, a less stable levels, mid-$XXs. more your or

John Hart

key few not competitive. point significantly. to it's I a strong above mid-$XXs is, what think we or going just I I stable, higher the that depends $X are not stays $XX, and capital we say of you that. dollars might are in of would a deploying than but year It that. It to on the that $X think high a maybe projects The talking are individual and It mid-$XX relatively timing number. very be

John Aschenbeck

Okay. appreciate Perfect. looking where to I I That's exactly was for. go that.

John Hart

a amount That's us. is observation. for a It great competitive very, very

John Aschenbeck

I million, in XXXX, put QX CapEx in place. quarterly billion going you compare in But you come little that Okay. rate on Great. to my touch comfort obviously run for with so $XXX where to which just really your overall just you versus get at Yes, CapEx program out to XXXX, follow-up that XXXX I $X.X there for just bit, hoping QX. a specifically were which just came to was if it is implies in your capital need question. have down the

you rate? could between XXXX walk CapEx So us of run I variables was hoping the through and some XXXX's QX quarterly just

John Hart

bit of one above is we items the quarter. XX and little were activity rig say, fourth in those would I

that We are currently. down coming from

into Just a lot. the of that factors projects timing

four. and of a by very we opportunity mineral And the quarters. We that fourth the will also had larger than potentially level be are activity timing quarter will. would not minerals in specific They of vary can divide by

$XXX quarter, range. to For the somewhere type going are the be million we in first

down obviously that's significantly. So

than the Second horizon just here. I But earlier. up third is as and It's then lower we $X.X a of It is indicated significantly and the that. projects up driven moved and And by spoke enables that. lower view well good feel is timing fourth quarter, than and quarter them the to billion. little as about has as then do bit earlier, very us we Price we higher completion. grow five-year stable to to set quarter

I think the accelerate paydown quicker. you would us debt see

of our chose where good ability the to in to invest could to market be about do ultimately, the go at option little up a dollars we feel about more that the feel is But are more to set year an we later But there. stronger, that. good and XXXX we So would even deliver. if we if

John Aschenbeck

That's Great. me. for time. it appreciate Thank you. Okay. the I

John Hart

John. you Thank

Jack Stark

you. Thank

Operator

Markets. The next the Brad from Heffern from RBC question of line comes Capital

You may begin.

Brad Heffern

Hi. you called XX% that average wanted Good just of over to the plan. in guys I morning five-year on out the dig rate everyone. return figure

all last for oil at major So figure. type were year, plays above just looking the curves you that have that

what degradation for else there well wondering was the something type below performance is bring costs of there, if in XXXX? were will maybe if service I there average or that curves So

Jack Stark

Sure. are development. here. into the here has company Brad, be that, really question moved unit as the blending this transpiring to And going is Jack. that to you I multizone zones. What's that different appreciate see is you going you full are do

about gas are and units that of definitely But curve and other talking type all economically can. given these as are then out a that are will some getting wells unit. You we multiple and zones these be zones much as from will within there about possibly the we zones not. oil the are And developed in being value there maximizing as

XX% rate we So when Bakken, many this, blending for for go three we there are of example the return drill and $XX the the at in give year in be, you all we different okay. we in do would a good average up say, And are program, zones areas. Bakken. the a zones When drilling

are X from X times Forks Forks And often Three the zones vary each each We X. poor with Bakken, will of the drilling EUR Forks on depending the and being returns obviously Three performer. on Middle those Three the

recovery and net but the PV want value in we you for go do the say, the unit really these everything and it get to by overall it And shot average down, develop to unit can that and units. and at units maximize one that are so you that the will of those the you value time. present maximizing bring Because to developing for

for year really are you development. And of is next that parent going Bakken actually from multizone we at unit the full So we going forward, that development, like kind moving transition need look I this essentially some talking into full unit to wells to the five like put here this this the vision. are phase plays that a It's are wells into. and development unit think about out returns here

think returns and But I out you it to obviously fact it. returns are values takes fantastic. that people degraded creating if the it's may be look but are guess of just used I that's a the get production. need growing the value some, of to so we the bit, units, at these And kind And

you that top last of on growth our at debt year-over-year. And XX% it $XXX saw think year, about I down was. paying million, look a take is You production growth that

horsepower can is or units we just expect in generate the production. XXXX And have look can of that going grow to kind cash it's and just for good see these you forward. so template what you And a

Brad Heffern

acreage I appreciate any follow-up, Or Thanks. packages I guess, no conversely, anywhere? as my just at And are guys the A&D? shopping? any Are you Okay. that looking new answer. detailed there are then thoughts you

Harold Hamm

looking. always is Continental

Operator

line Lipke the Stephens. Thank question you. And from from our next comes Drew of

begin. You may

Drew Lipke

and Good thank questions. Yes. for you morning taking the

John Hart

Good morning.

Drew Lipke

we could about flush that be XX.X% the maybe about XXXX around I the all Just the five-year thinking there, And also thinking about reasonable and tied how appreciate the production the that then is SCOOP XXXX average? just amount growth, lower activity production that think XX.X% levels maybe of variability the with to average assume Project should in given color SpringBoard, plan Bakken? over production it below to

John Hart

years lower We think in very is is XXXX of fine. the say good feel all wouldn't about really I level I plan. Bakken activity. five-year

getting per alluded rig those well have. script, we productivity the well. exceptionally cost are in than are we Jack more The We some dollar ever improvements, and the to spent of doing

low year in that are kind or we varies that. we is it even a solid but XX% throughout XX% those than end. to of the good horizon, out the growth that As average, better over XX.X% seeing and little frankly five look

year more will we will we plan, dollar the through As out the through will get and we we improve and per optimize go spent.

the If our made we we you And this almost of those plan back previous quickly. two a windows, will that the and company. double targets made look them size of to is five-year

throughout. production strong good and results consistent requires growth that So

So I at. are think we we are with where very comfortable

Jack Stark

equivalent for on year our I had to last too, rig to rigs eight We six. really off were count that year. we to Drew, backed equivalent ramped in at average up the What mentioned the now and is Bakken where is year-end basically

that point very is on really is it so full year basis, And comparable. activity of a our

John Hart

pickup growth that also the in different. gas growth Drew, XXXX, are And like oil and the

overcoming ratio are volumes decline a X:X a them So in at gas you and oil. replacing with

a the side BOE So basis we than are on CAGR. our more and weighted here it is the plans oilier getting crude side. we But are still oil the in that towards growing in with XX.X% that's gas

think So good. feel I we

Drew Lipke

quick And it. then helpful. XXXX the follow-up just That's Got on guide.

low mentioned BOE expense albeit down a might per to higher just on come would Oklahoma is in levels weighted have on? more But You basis, allocated still the year-over-year. expenses thought else Or anything very production weighted XXXX, all oil relative composition? capital going being attributable for at that production to Is oil heavily operator. just I with

John Hart

oil. It's company, you are dividing, versus gas you composition. but When your the oil get gas a on are X:X you

a That's margin. to So that gives the you different reference why I made the BOE.

point four out, will last press that. release also You in one of our XX% the years. need lower that It's general. in we the in to I talked headlines look just just LOE had beyond than about

your $X. gas even the to point, towards oil the to So shifting $X.XX than used Oklahoma, Oklahoma, in But more side. It's around $X side Bakken be to are below we the around $X. now. is

we very maybe commodity. a little but are higher the still realizations on So price on getting so the a is perspective, strong, BOE

Drew Lipke

the guys. appreciate Thanks. color all I

John Hart

Sure.

Operator

our line Neal question SunTrust. next Dingmann comes And the from from you. of Thank

You may begin.

Neal Dingmann

full wondered you you bit $XXX guys. more me comment million your around on I given $X.X year you first just about and said I think little morning details Good how are maybe if quarter could billion, that the the CapEx, more give be a for thinking what down on and bit bit the might I little timing I production, maybe is how year? that I the CapEx in said, XQ. the impact might think for large of projects hoping little am a guess you of

John Hart

that exited where level, very XXX,XXX a the be day. at XXXX We in sure down production almost healthy I one not say wouldn't am from. QX. I will came a

us then you the see a timing or oil bit focusing maintaining year. on you earlier are project. see think more and growing I we that later will of Again, this growth in and the on stronger

they XXXX So before. like over We it's and on talked just through of when certainly the SpringBoard. next, be large They on. are It come beyond. cadence units will coming the SpringBoard about

on I first that coming declining. wouldn't cost, the of those impacts the production. timing the quarter the But impacts say it see capital we So

some I and there. go it's maintain then grow going will we think from to or

Neal Dingmann

then year? CapEx pretty well to throughout be the And the spread seem evenly

John Hart

don't is band, we got The portfolio. I early just the just mean amount units fair until have timing that's because a come across within is these dollars a quarter the to when pretty activity in Yes. start that real completions it's spread. that lower of some completion XXXX evenly fourth our some and of

first So than and than they, quarters XXXX. second lower the fourth four quarter are of lower all quarter are

Neal Dingmann

you just Okay. regarding overall wells could, is massive My just And great follow-up, question to activity. last if allocation rig inventory have and one regarding how I there continue those and the Obviously, the outperform. then just Bakken.

running on the you at MidCon? six what XX Your were just XX rigs there or just thoughts why the versus

Jack Stark

our ahead grow with SpringBoard project. capacity ability takeaway see go We are six right our manage and and now the comfortable we we think balance it's with as and what a good the to and

that. So we clearly have the increase to ability

when go if it choose back us. we for eight year-end. to we rigs make We up to to and the could justify sense You it would right if were at that market can

a always So balance. about it's

Harold Hamm

with unreal of and units time. drilled are that at fast six through And year our they how rigs many how these wells it's Yes. a up go much, there, how

Gary? So

Gary Gould

though is rigs, So this And this more drill going Gary we than we to in year. last down coming wells expect year Gould. even are

a in that really of rig efficiency it's count. drilling So matter terms of

Neal Dingmann

you. you. from all details Great of Thank

John Hart

Thanks Neal.

Operator

comes Whitfield our Derrick from And Stifel. from the line of question next

You may begin.

Derrick Whitfield

Thanks. Good morning all.

John Hart

Good morning

Jack Stark

morning Good

Derrick Whitfield

five five one of to through six different than well vision, would the first associated XX and say comments are through with years in years years? five inventory five not your materially that the year it the or Regarding returns following be fair years productivity

Jack Stark

Yes.

return blended a you doing because think about you have are was comment talking that's when that are multizone over kind inventory that I time. period earlier when of the we what get great of type perpetuating development, longer much into I unit is we there of a this full

so years as first the And look second five as performance concerned. similar years year this see to that are in five after we to return as far do very

Derrick Whitfield

your of design in then for XXXX? speak Very shifting the to testing enhanced helpful. And specifically, Bakken, beyond initiatives you the really over your testing fairway Williams Divide? could appraisal northern current to and And am I completions core in thinking

Jack Stark

Yes.

We in the that have Q.

testing we as right, you step out continue stimulations are some to we and on out north, stepping and our have south are We with and going optimized west.

Derrick Whitfield

for details Thanks the guys. Good. Okay.

Jack Stark

Thank you.

John Hart

you. Thank

Operator

from And our Paul next comes Mizuho. of question from line the Sankey

begin. may You

Paul Sankey

you that much years against shifted? ago, very say pursuing how all I afternoon. Good returns look appreciate six and years four comments. Continental and back you. If are you. step Thank a ago, further your take you Thank we at now today two over has would years your ago, strategy growth

Harold Hamm

full of be would do about the those that. where through one testing And here we go are unit with about discovery, basically deal development. basically development And into with each delineation, I to leadership that's Paul, Yes. then glad We we talked and [indiscernible], Bakken. at get stages. and four field

with We SCOOP there STACK. and are also

is we most HBP I those dealing Continental all about. with And steps with that those first in. trying and talked stages, hold are you that of position HBP in the go through And acreage just you that's are here So to position.

return rate across unit We good are and developing field these of at wise very wide.

itself. cash So a is and and all situation. a This very off has Relative churn is of debt good in Continental dividend. contemplating paying free a lot low we flow written

Jack Stark

the drilling just the looking that those the they of already And started evolving. capital first start And are reductions into down for another well heard X% talk have SCOOP gathering of reduction wells then XX go one result complete me SpringBoard, being cost our further great project. and mode, targeting within cost, our And from case things after anywhere point drilling on that, really take a that and is, of mode row in with row multizone And there SpringBoard well previously concentrated top you ahead teams we an knocked have have us. those XX% mile oil efficiencies from full center the right project. a $XXX,XXX teams Paul, in in along in development All are per you to effort and well in facility to this unit XX% get the at of development. this down $XXX,XXX about unit cost got Springer square you our this when development efficiencies

direct You to have pipeline connectivity refinery.

development direction. one, piped. oil water now are on You have XXX%, And takes to in And same the under three some we by gas then got two Texas. are distance markets all row Cushing. And on our pipe heading a down just have transportation about row short to premium own in what our right that are and our we of based consider to firm right now, down that right XX% and basically pipe be

recycled the facility, completion of being we through all recycling have our so cetera. fluid, the et own And all water is

and built it process. really very a cost-effective it point start that's do that only on also where And are but reserves So you efficiencies turned and at get the the get we production, being the Gary? get the we not translates,

Paul Sankey

comments. appreciate Thank these you. I

Sorry. Sorry, was else? there someone

Gary Gould

add see that's five-year five-year by our Jack. efficiencies. Continental area, lot what important ability forward. by of And and to type would talked whether this have with to realized. the improve our again. about on Gould. to completion I curve it's talked think it's very but more CapEx plans be zone it a over like a has efficiencies is designs history to on Harold we and continue is or about you thing out that go meeting have this is point thing based them I we efficiencies, as operational we already And that detailed to lot over Earlier, plan Gary how Jack So a one one about

our look conservative a have is what CapEx. this based a five-year for so it's on witnessed that we type curves on And already and plan in to-date

Paul Sankey

you XX%, I be if said should would cut But comment? what that CapEx by Yes.

Gary Gould

should I XX%? by CapEx If cut

Paul Sankey

Yes.

Harold Hamm

up it come cash Well, that. to we that we have from suggest flow. first got limit of free people back would And have all, the several that

important that with about. it's I that John resonates us real a well. very as certainly It's think here. balance program, And talked

John Hart

Let's would good same numbers, strong the be a say, growing. if we XXXX above and cut maintenance shape. level a still in by very still but that's XX%, are our number capital obviously, our relative for we we to still would also Not industry. That's be

Paul Sankey

right Iran Sorry your DC to go on but have? like Thank the perspective Washington, big you further on thoughts sanctions. is any It you. now? feels what's But threat

Harold Hamm

big grant Well, that several happen. But time somebody And things I work. President extensions those a President think that thing. carries was will there at This were the Iran the and sanctions way, witnessed along what Last says. obviously, he there out we he what to did. is think I that's

putting important energy to well. I and industry in believes and well that America pro-business bodes in He America for very he first think is a as first is President him.

Paul Sankey

you Harold. Thank

Harold Hamm

you. Thank

Operator

question Thank next you. comes of from line Wai our Barclays. And the Jeanine from

You may begin.

Jeanine Wai

afternoon Good everyone. Hi.

John Hart

afternoon. Good

Jeanine Wai

Hello.

that a just was the it and mature more RORs Continental. I I I of question. of So commentary Bakken expecting If to right, in blended be kind and surprised Bakken SCOOP. little bit for was a skewed thinking the is I included wanted the a you Brad's the play more the follow-up on to towards lower that am STACK about

what's XXXX ROR was change an given driving sounds in what the that the the I So like especially Bakken a program of has style, just wondering development XXX%. in

enough you more versus more do lower to a the selective? So to any economics the Bakken? improved inventory am you Just is this now more are you updated zones style of in to right. I have willing see Or that have related trying being this development maybe wholesale assumptions really thinking more the if about

Harold Hamm

Basically, as basically if It's first development we we style developed to are and we don't while it makes Three have the develop Forks, get same said, we makes second those of not still pads, where you behind. there moderate a it. is when economics up today, leave and at units. Like it. don't change. develop And Jack own And too of it's much it to had valuable prices you even sense lot

Jack Stark

are there. a XXXX different Bakken example take is change. because can performance see people Jeanine, an and familiar that at are we I there would see seeing Harold I And Yes. look as Bakken. the we say, don't and slide you nine XXXX the and to expect as with used no said, most But performance the in

Jeanine Wai

Okay. Great. is That's the second prepared Thanks. to back remarks really And then your helpful. question five-year on plan. my

same $XX WTI. annual between of billion, $XXX $X cash all range the and the that mentioned You somewhere flow free on million is

are versus what the discuss you of the can So the end range? driving high factors end low

John Hart

we the larger cycle. It's a base as grow production through

growth are higher average you range take I XX.X% that's script $XXX and out million double million the million The was year, Jack five-year obviously company, cash indicated just is the that of comment, the billion, and we where $XXX that the you from And at size almost that, through I plus. five-year CapEx amount cash significant it are growth that increasing to tack million. getting to quarter five-year was Harold's up today. question fourth into you you now that an we to we going from factor of of are got the think extrapolate from think But on flow and on then being to first a a just you the to cadence horizon. said. can mid-$X as billion the $XXX back $XXX flow think than if amount you $X it

Jeanine Wai

you Okay. my the Great. questions. for Thank taking

Harold Hamm

you. Yes. Thank

Operator

Thank you. the And our of next Singer question Brian Goldman line from from Sachs. comes

You may begin.

Brian Singer

afternoon. Good Thank you.

John Hart

Hi Brian.

Brian Singer

projected more you five, of here. planning it, much CAGR? say to Would in case what's free it of number? on below I like But just and $XX, flow a that. Or prices flow end more I of you $XX commodity guess relative point was would of respond bottom five, guess for let's question longer cash free higher $XX a you of in slide the maybe upper rate sounds average verify just slide Maybe which anchor would that the the to term? a have sake to the you growth the I cash anchor philosophically, could range, you $XX If the how there.

John Hart

question. Good

we the the the about First out. low-end think on all, is talked of low chart there just I range that taking chart, the and of end

very to something we reflective we a probably update would conservative of seeing. need it's are I really So more what to look, That's be say.

I chart so answer there. On on your $XX, appreciate overly great is the there. That is comment And the question. the conservative question

with on usage callable I would That's approximately the that think bonds. in down pay total $X.X towards debt. continue we to terms of range that billion would we see, of certainly the cash,

as the down our pay plans. flat can us if It So $XX as why compared a environment, speak quite to flow us significant off And much as a of dividends continue amounts for fashion sustainable on targets we and That's put $XX. down we to type fairly continuing dividend. then have but to comfortably gives cash in math, wouldn't as plenty debt. flow, it execute $XX. just low amount to to cash then free That's our debt get it's achieve and left to

Brian Singer

And Thank I But your made Great. that to then great expect earlier you be over mix. but sure And back regards would it follow-up you think clarify comment company can mix heard the to oil next a I the if you rise. you for with few total said years goes that, if I right. the to Okay. But the you. oil my wasn't of over you the the could a catching producing maybe and decline? starts some to mix whether oiliness base reserves is of talk whether or you between time point mix and reserves up think relative and production see about mix which I oil and production lagging production to versus little and the bit at the that dynamic

John Hart

reserve reporting, will our you several percentage up percentage at year that If oil by points. went this year-end see you look our

there gas, even in And I go NGLs. have in within that forward. a condensate our lot of we a as is we of there, still think some opportunities lot

So liquids liquids you at a XX% a a from total on total from if today it just standpoint. standpoint, look pure

I the volumes and ratio, for the oil separately In terms gas of gave XXXX.

as guidance. are continue year-by-year granular that to We going doing the give we

where Both been in gas. and we growing at are on forward, see be right have we oil do And oil our side. now, growing, will move our we five-year volume sets As focused certainly, ratio we horizon. very the oil

Brian Singer

And gas I Great. that breakout. it. for and thanks appreciate oil

Operator

you. of our comes question line next the Mariani KeyBanc. from Leo And from Thank

begin. may You

Leo Mariani

the could end Hi XX% saying that low kind around relatively know are year. guess, the to more closer versus I oil this guys you XX% bit a this me key I wide. were guys year? of clarity sort the be end top around What was to hoping influence guys. to your growth growth, I of give little variables you target you

John Hart

We variables. deal with a of lot

you that considerations XX the year. Bakken, the months the in of have weather instance, any For that of frankly impact

scenarios. always we the got And types So basin. of in infrastructure factor we those of coming lot have a

And timing or so impact associated up factor side. we move back of that. infrastructure that the Projects with the on can in a production. of And bit a risking can month

production risking then our type overall we just in. factor in. we factor normal So that And

what see target in So of is of of you I there upside and somewhere internal range. you in degree we the and some then opportunity our degree that of that we kind a risking think midst gives are there a got set on

Leo Mariani

that your in really or anything moving increasing around spending Okay. But not is like XXXX. on based range that

John Hart

of terms be spending have based timing in I on of around It's the deployed. projects individual there moving we what might a the impact in No. can of mean, little bit your actual there period. moves any that these obviously our couple units months can of production by forward year. project this for If benefit in a large of on one a in a plays production

movement considered of certainly is our range. in type that So

size that last can overall. if the sooner, on quarters, of at look have few material months on Well, you some a the brought things have imagine. can the two you So impact the have that we of you

Leo Mariani

Yes.

No, a would some here was talked Okay. of potential you just like makes like about of lot sense. that clarify. to kind that I in to It new And that design. reductions you XXXX. guess well I sounds well based achieve on wanted more some cost

I well reductions XXXX that's five-year that's am well there's if have factored in to more I well. the into cost not just component a budget. as to some guys service And not if just I get So a any of trying sense am this year? into or you the those assuming efficiencies guess, design that, factored cost of outlook

Pat Bent

our and would reduction, of is, things Yes. those are Pat. a the This to bring organization. I well is like of And the efficiency the one function cost of up technical operational

So those not price related. are

with design have respect And to on done wellbore so job our great the work teams a designs.

portion And that built-in. we costs answer a mono-bore so those based have in savings Sycamore included referenced your previously to $X our the are design. per in of And on a million program question, We Woodford, SCOOP, in well budget.

anticipating are incremental. an We

into half well the of XXXX $XXX,XXX that's We set have second built not in that on realized another same budget. been our already

we addition, will rate design. in That cetera. our as wellbore table. STACK, tubular as are They per much In penetration, $XXX,XXX to a lower the costs, of well contemplating bring our new et increase could gross

not And contemplated budget the as so well. that's in

isn't. portion a and it of a is it of portion So

Leo Mariani

quarter wells third on They IP XX on versus color. materially sample stronger your wells. quarter operated size, and Okay. That's I Bakken a you fourth guess have helpful with XX-hour just pretty And quarter. very levels rates looked big your I guess, this lastly

get increase XQ? what that Just to kind heady versus of production a trying drove sense, in there rates

Gary Gould

us. record was Yes. This is Gary Gould. for quarter And yes, a it

XX well. to things from feet. perspective, what XX perforating around as the from if larger of you are you and wells our cluster expand can see with above the in that points Bakken would had at quarter contact we production go is XXXX have XXXX working we multiple entry fourth are we our area. on like at we limited that same top on the are doing see still slide continue even you we the amount I And points our core If order is nine, When tell list same up they quarter but as average, per being stages talk entry far spacing about slide just of then completion four that. this what you in looking to to look And hit the a continue XX, what amount and to average you, look you is,

Leo Mariani

Okay. core? you helpful. get these and completing just a the it just activity drilling moving to is not whether of at or kind closer trying No, wells. Or that by that's to better more I was sense maybe of was guys getting driven

Jack Stark

our those of it's Well, say, slide are would guys a spotting have show XX, putting that. achieved. the On at to footprint been getting, agree there, better of broad as I folks I are the all is where with on there these and results key getting wells our it, point just

picked just we like not cherry particular went a it's so And and area.

Leo Mariani

Okay. Great. Thanks guys.

John Hart

you. Thank

Jack Stark

Leo. Thanks

Operator

the I would further like questions closing time. And you. turn am I at Thank call to showing no Rory this for back to Sabino remarks.

Rory Sabino

today please and further you your IR Thank to with very for any much time questions. reach out the team

Operator

gentlemen, and participating you you in day. program a This today's and for does great have thank may Ladies conference. the all conclude Everyone, disconnect.

Continental Resources Inc (CLR) 19 Feb 192018 Q4 Earnings call transcript