CONTINENTAL RESOURCES ANNOUNCES 2Q22 RESULTS, DECLARES QUARTERLY DIVIDEND, & UPDATES VARIOUS 2022 GUIDANCE METRICS & DIFFERENTIALS

Cision

OKLAHOMA CITY, July 28, 2022 /PRNewswire/ --

Strong 2Q22 Results
• $1.74 B Cash Flow from Operations (CFO) & $1.23 B Free Cash Flow (FCF) (Non-GAAP)
• $1.21 B Net Income; $3.35 per Diluted Share ($1.25 B Adj. Net Income; $3.47 per Adj. Share (Non-GAAP))
• $265.2 MM Total Debt Reduction and $814.2 MM Net Debt (Non-GAAP) Reduction in 2Q22

Declaring $0.28 per Share Quarterly Dividend (Payable 8/22/22 to Stockholders of Record on 8/8/22)

Updating Various 2022 Guidance Metrics & Differentials
• Increasing Projected Return on Capital Employed (ROCE) to ~32% from Previous ~31%
• Improving 2022 Crude Oil Differentials per Barrel of Oil to Average ($2.25) to ($3.25) from ($2.50) to ($3.50)
• Improving 2022 DD&A per Boe to $12.00 to $14.00 from $14.00 to $16.00
• Updating 2022 Production Expense per Boe to $3.75 to $4.25 from $3.50 to $4.00

Continental Resources, Inc. (NYSE: CLR) (the "Company") today announced its second quarter 2022 operating and financial results, declared a quarterly dividend, and updated various 2022 guidance metrics and differentials.

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The Company reported net income of $1.21 billion, or $3.35 per diluted share, for the quarter ended June 30, 2022. In second quarter 2022, typically excluded items in aggregate represented $42.8 million, or $0.12 per diluted share, of Continental's reported net income. Adjusted net income for second quarter 2022 was $1.25 billion, or $3.47 per diluted share (non-GAAP). Net cash provided by operating activities for second quarter 2022 was $1.74 billion, and EBITDAX was $2.20 billion (non-GAAP).

Adjusted net income, adjusted net income per share, EBITDAX, free cash flow, net debt, net sales prices, and cash general and administrative (G&A) expenses per barrel of oil equivalent (Boe) presented herein are non-GAAP financial measures. Definitions and explanations for how these measures relate to the most directly comparable U.S. generally accepted accounting principles (GAAP) financial measures are provided at the conclusion of this press release.

2Q22 Production Update

Second quarter 2022 total production averaged 400.2 MBoepd. Second quarter 2022 oil production averaged 198.3 MBopd. Second quarter 2022 natural gas production averaged 1,211 MMcfpd. The following table provides the Company's average daily production by region for the periods presented:

		2Q		2Q		YTD		YTD
Boe per day		2022		2021		2022		2021
Bakken		162,840		174,637		167,097		167,646
Anadarko Basin		160,583		151,813		152,319		145,137
Powder River Basin		27,211		6,002		19,475		4,243
Permian Basin		43,527		—		41,896		—
All other		6,007		6,247		6,275		6,379
Total		400,168		338,699		387,062		323,405

2Q22 Financial Update

	2Q 2022 Financial Update	Three Months Ended June 30, 2022		Six Months Ended June 30, 2022
	Cash and Cash Equivalents			$553.3 million
	Total Debt			$6.30 billion
	Net Debt (non-GAAP)(1)			$5.75 billion
	Average Net Sales Price (non-GAAP)(1)
	Per Barrel of Oil	$106.41		$98.70
	Per Mcf of Gas	$7.75		$7.09
	Per Boe	$76.02		$70.96
	Production Expense per Boe	$4.23		$4.16
	Total G&A Expenses per Boe	$1.73		$1.97
	Crude Oil Net Sales Price Discount to NYMEX ($/Bbl)	($2.30)		($2.88)
	Natural Gas Net Sales Price Premium to NYMEX ($/Mcf)	$0.52		$0.95
	Non-Acquisition Capital Expenditures attributable to CLR	$648.5 million		$1.17 billion
	Exploration & Development Drilling & Completion	$504.7 million		$930.9 million
	Leasehold and minerals	$31.6 million		$56.4 million
	Workovers, Recompletions and Other	$112.2 million		$185.1 million
	Minerals attributable to FNV	$1.8 million		$3.7 million

	(1) Net debt and net sales prices represent non-GAAP financial measures. Further information about these non- GAAP financial measures as well as reconciliations to the most directly comparable U.S. GAAP financial measures are provided subsequently under the header Non-GAAP Financial Measures.

Declaring $0.28 per Share Quarterly Dividend

The Company today announced that its Board of Directors has declared a quarterly dividend of $0.28 per share on the Company's outstanding common stock, payable on August 22, 2022 to stockholders of record on August 8, 2022. This equates to an approximately 1.7% dividend yield¹.

Updating Various 2022 Guidance Metrics & Differentials

The Company is updating various 2022 guidance metrics and differentials. The Company's projected 2022 return on capital employed is increasing to approximately 32% from approximately 31%. The Company is improving its 2022 DD&A per Boe to $12.00 to $14.00 from $14.00 to $16.00, reflecting strong well productivity, capital efficiency and an upward revision in proved reserves due in part to higher commodity prices. The Company is improving its 2022 crude oil differentials guidance per barrel of oil to average ($2.25) to ($3.25) from ($2.50) to ($3.50), given strong pricing realizations. Finally, the Company is updating its 2022 production expense per Boe to $3.75 to $4.25 from $3.50 to $4.00, given increased workover activity and inflationary pressure.

The Company's full 2022 guidance can be found at the conclusion of this press release.

1 Annualized dividend yield is calculated as the annual dividend per share, based on the July 2022 dividend, divided by the stock price per share as of July 26, 2022. All future dividends require Board approval.

		Three months ended June 30,				Six months ended June 30,
		2022		2021		2022		2021
Average daily production:
Crude oil (Bbl per day)		198,313		166,765		196,550		159,350
Natural gas (Mcf per day)		1,211,125		1,031,603		1,143,068		984,334
Crude oil equivalents (Boe per day)		400,168		338,699		387,062		323,405
Average net sales prices (non-GAAP), excluding effect from derivatives: (1)
Crude oil ($/Bbl)		$106.41		$62.37		$98.70		$57.95
Natural gas ($/Mcf)		$7.75		$3.06		$7.09		$4.24
Crude oil equivalents ($/Boe)		$76.02		$39.99		$70.96		$41.47
Production expenses ($/Boe)		$4.23		$3.14		$4.16		$3.24
Production taxes (% of net crude oil and natural gas sales)		7.4 %		7.7 %		7.3 %		7.3 %
DD&A ($/Boe)		$12.33		$15.33		$12.98		$16.76
Total general and administrative expenses ($/Boe) (2)		$1.73		$1.81		$1.97		$1.85
Net income attributable to Continental Resources (in thousands)		$1,208,747		$289,325		$1,806,504		$548,967
Diluted net income per share attributable to Continental Resources		$3.35		$0.79		$4.99		$1.51
Adjusted net income (non-GAAP) (in thousands) (1)		$1,251,543		$332,766		$2,211,534		$611,657
Adjusted diluted net income per share (non-GAAP) (1)		$3.47		$0.91		$6.11		$1.68
Net cash provided by operating activities (in thousands)		$1,737,656		$672,858		$3,242,274		$1,713,118
EBITDAX (non-GAAP) (in thousands) (1)		$2,200,063		$990,938		$4,044,301		$1,953,574

(1) Net sales prices, adjusted net income, adjusted diluted net income per share, and EBITDAX represent non-GAAP financial measures. Further information about these non-GAAP financial measures as well as reconciliations to the most directly comparable U.S. GAAP financial measures are provided subsequently under the header Non-GAAP Financial Measures.
(2) Total general and administrative expense is comprised of cash general and administrative expense and non-cash equity compensation expense. Cash general and administrative expense per Boe was $1.32, $1.37, $1.34, and $1.33 for 2Q 2022, 2Q 2021, YTD 2022, and YTD 2021, respectively. Non-cash equity compensation expense per Boe was $0.41, $0.44, $0.63, and $0.52 for 2Q 2022, 2Q 2021, YTD 2022, and YTD 2021, respectively.

2Q22 Earnings Summary Presentation

The Company plans to publish a second quarter 2022 summary presentation to its website at www.CLR.com on Thursday, July 28, 2022. The Company does not intend to host a conference call in connection with its second quarter 2022 results.

Previously Announced Offer to Acquire Outstanding Shares for Cash

As previously announced on June 14, 2022, the Company received a non-binding proposal from Harold G. Hamm, on behalf of himself, the Harold G. Hamm Trust and certain trusts established for the benefit of Mr. Hamm's family members (collectively, the "Hamm Family"), to acquire for cash all of the outstanding shares of common stock (the "Common Stock") of the Company, other than shares of Common Stock owned by the Hamm Family and shares of Common Stock underlying unvested equity awards issued under the Company's long-term incentive plans, at a price of $70.00 per share. The Company's board of directors has formed a special committee of independent directors (the "Special Committee") to evaluate and consider the Hamm Family's proposal. The Special Committee has hired independent legal and financial advisors, and the Special Committee's evaluation is ongoing.

The Company cautions its shareholders and others considering trading in its securities that the Hamm Family's proposal constitutes only an indication of interest and does not constitute a binding commitment with respect to a proposed transaction. Moreover, no assurance can be given that such proposal will result in a transaction occurring or its timing or ultimate terms.

About Continental Resources

Continental Resources (NYSE: CLR) is a top 10 independent oil producer in the U.S. and a leader in America's energy renaissance. Based in Oklahoma City, Continental is the largest leaseholder and the largest producer in the nation's premier oil field, the Bakken play of North Dakota and Montana. The Company is also the largest producer in the Anadarko Basin of Oklahoma and has newly acquired positions in the Powder River Basin of Wyoming and Permian Basin of Texas. With a focus on the exploration and production of oil, Continental has unlocked the technology and resources vital to American energy independence and our nation's leadership in the new world oil market. In 2022, the Company will celebrate 55 years of operations. For more information, please visit www.CLR.com.

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

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements included in this press release other than statements of historical fact, including, but not limited to, forecasts or expectations regarding the Company's business and statements or information concerning the Company's future operations, performance, financial condition, production and reserves, schedules, plans, timing of development, rates of return, budgets, costs, business strategy, objectives, and cash flows are forward-looking statements. When used in this press release, the words "could," "may," "believe," "anticipate," "intend," "estimate," "expect," "project," "budget," "target," "plan," "continue," "potential," "guidance," "strategy," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.

Forward-looking statements are based on the Company's current expectations and assumptions about future events and currently available information as to the outcome and timing of future events. Although the Company believes these assumptions and expectations are reasonable, they are inherently subject to numerous business, economic, competitive, regulatory and other risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control. No assurance can be given that such expectations will be correct or achieved or that the assumptions are accurate. The risks and uncertainties include, but are not limited to, commodity price volatility; the geographic concentration of our operations; financial market and economic volatility; the effects of any national or international health crisis; the inability to access needed capital; the risks and potential liabilities inherent in crude oil and natural gas drilling and production and the availability of insurance to cover any losses resulting therefrom; difficulties in estimating proved reserves and other reserves-based measures; declines in the values of our crude oil and natural gas properties resulting in impairment charges; our ability to replace proved reserves and sustain production; our ability to pay future dividends or complete share repurchases; the availability or cost of equipment and oilfield services; leasehold terms expiring on undeveloped acreage before production can be established; our ability to project future production, achieve targeted results in drilling and well operations and predict the amount and timing of development expenditures; the availability and cost of transportation, processing and refining facilities; legislative and regulatory changes adversely affecting our industry and our business, including initiatives related to hydraulic fracturing and greenhouse gas emissions; increased market and industry competition, including from alternative fuels and other energy sources; and the other risks described under Part I, Item 1A. Risk Factors and elsewhere in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, registration statements and other reports filed from time to time with the SEC, and other announcements the Company makes from time to time.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which such statement is made. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, the Company's actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. Except as otherwise required by applicable law, the Company undertakes no obligation to publicly correct or update any forward-looking statement whether as a result of new information, future events or circumstances after the date of this report, or otherwise.

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

We use the term "EUR" or "estimated ultimate recovery" to describe our best estimate of recoverable oil and natural gas hydrocarbon quantities. Actual reserves recovered may differ from estimated quantities. EUR data included herein, if any, remain subject to change as more well data is analyzed.

Investor Contact:	Media Contact:
Rory Sabino	Kristin Thomas
Vice President, Investor Relations	Senior Vice President, Public Relations
405-234-9620	405-234-9480
Rory.Sabino@CLR.com	Kristin.Thomas@CLR.com
Lucy Spaay
Investor Relations Analyst
405-774-5878
Lucy.Spaay@CLR.com

Continental Resources, Inc. and Subsidiaries Unaudited Condensed Consolidated Statements of Operations
	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Revenues:	In thousands, except per share data
Crude oil, natural gas, and natural gas liquids sales	$2,829,173		$1,282,914		$5,103,434		$2,530,447
Loss on derivative instruments, net	(195,744)		(62,178)		(671,682)		(105,685)
Crude oil and natural gas service operations	17,045		14,389		34,960		26,178
Total revenues	2,650,474		1,235,125		4,466,712		2,450,940
Operating costs and expenses:
Production expenses	153,238		96,504		290,518		189,569
Production and ad valorem taxes	204,246		94,293		362,611		178,269
Transportation, gathering, processing, and compression	76,352		52,445		151,201		102,701
Exploration expenses	4,634		2,291		17,651		6,936
Crude oil and natural gas service operations	10,444		5,663		19,005		10,153
Depreciation, depletion, amortization and accretion	446,633		471,858		905,662		981,466
Property impairments	15,826		11,610		40,074		23,046
General and administrative expenses	62,574		55,553		137,411		108,401
Net (gain) loss on sale of assets and other	10		(260)		(155)		(467)
Total operating costs and expenses	973,957		789,957		1,923,978		1,600,074
Income from operations	1,676,517		445,168		2,542,734		850,866
Other income (expense):
Interest expense	(72,236)		(60,951)		(144,791)		(125,902)
Gain (loss) on extinguishment of debt	(403)		(94)		(403)		(290)
Other	1,240		298		13		550
	(71,399)		(60,747)		(145,181)		(125,642)
Income before income taxes	1,605,118		384,421		2,397,553		725,224
Provision for income taxes	(389,271)		(94,947)		(580,355)		(175,475)
Income before equity in net loss of affiliate	1,215,847		289,474		1,817,198		549,749
Equity in net loss of affiliate	(76)		—		(76)		—
Net income	1,215,771		289,474		1,817,122		549,749
Net income attributable to noncontrolling interests	7,024		149		10,618		782
Net income attributable to Continental Resources	$1,208,747		$289,325		$1,806,504		$548,967
Net income per share attributable to Continental Resources:
Basic	$3.38		$0.80		$5.05		$1.52
Diluted	$3.35		$0.79		$4.99		$1.51

Continental Resources, Inc. and Subsidiaries Unaudited Condensed Consolidated Balance Sheets
In thousands		June 30, 2022		December 31, 2021
Assets
Cash and cash equivalents		$553,260		$20,868
Other current assets		2,383,766		1,543,522
Net property and equipment (1)		17,881,055		16,975,465
Other noncurrent assets		110,991		51,256
Total assets		$20,929,072		$18,591,111
Liabilities and equity
Current liabilities (2)		$2,969,603		$1,500,127
Long-term debt, net of current portion (2)		5,662,567		6,826,566
Other noncurrent liabilities		2,911,078		2,408,093
Equity attributable to Continental Resources		9,007,927		7,475,456
Equity attributable to noncontrolling interests		377,897		380,869
Total liabilities and equity		$20,929,072		$18,591,111

(1) Balance is net of accumulated depreciation, depletion and amortization of $17.38 billion and $16.48 billion as of June 30, 2022 and December 31, 2021, respectively.
(2) The Company's $636 million of outstanding 2023 Notes are scheduled to mature in April 2023 and, accordingly, are included in the caption "Current liabilities" at June 30, 2022. The Company's total debt, including the current portion, amounts to $6.30 billion at June 30, 2022.

Continental Resources, Inc. and Subsidiaries Unaudited Condensed Consolidated Statements of Cash Flows
		Three months ended June 30,				Six months ended June 30,
In thousands		2022		2021		2022		2021
Net income		$1,215,771		$289,474		$1,817,122		$549,749
Adjustments to reconcile net income to net cash provided by operating activities:
Non-cash expenses		671,282		640,370		1,748,373		1,274,311
Changes in assets and liabilities		(149,397)		(256,986)		(323,221)		(110,942)
Net cash provided by operating activities		1,737,656		672,858		3,242,274		1,713,118
Net cash used in investing activities		(807,365)		(343,130)		(1,848,359)		(771,214)
Net cash used in financing activities		(381,275)		(275,747)		(861,523)		(839,336)
Net change in cash and cash equivalents		549,016		53,981