OKLAHOMA CITY, July 31, 2019 /PRNewswire/ -- Continental Resources, Inc. (NYSE: CLR) ("Continental" or the "Company") today announced the sale of its eastern STACK water gathering and recycling system in Blaine County, Oklahoma for $85 million to Lagoon Water Solutions ("Lagoon"). Along with the divestiture, Continental has entered into a long-term arrangement with Lagoon to provide water sourcing, gathering and disposal services for Continental's future development in the area.
Continental owns and operates three additional water infrastructure systems in Oklahoma, as well as ten additional systems in the Bakken. "The divestiture of this water handling facility for $85 million underscores Continental's ability to innovatively generate value from its assets. This system represents a small portion of the water handling facilities Continental owns, which we value at approximately $1 billion," said Harold Hamm, Chairman and Chief Executive Officer. "These facilities contain significant added value for our shareholders."
The Company also announced the following strategic initiatives:
- Bolt-On Acquisition: The Company has acquired additional leasehold in SCOOP from an undisclosed party for $79.5 million. This acquisition adds up to 150 gross operated Woodford and Sycamore locations to the Company's inventory. Associated drilling and completion activity on this acquired position is expected to add an estimated $20 million of unbudgeted spend to the Company's 2019 capital expenditures.
- Acreage Trades: Year-to-date, Continental has executed several strategic acreage trades that have added 3,000 net acres within the Company's core operating areas. These trades have increased the Company's working interest in several high valued operated units being developed this year, adding an estimated $35 million of unbudgeted spend to the Company's 2019 capital expenditures.
- Minerals Update: The Company's mineral acquisitions activity for the year has been front end loaded, with over 75% of the allocated $125 million spent in the first half of 2019. To capitalize on favorable market conditions, Continental and Franco-Nevada have agreed to increase the total mineral spend in 2019 from $125 million to $150 million. Continental will recoup 80% of the total spend from Franco-Nevada throughout the year.
These strategic initiatives will add significant value for the Company's shareholders in 2020 and beyond. The Company remains disciplined and is committed to its corporate objectives. Excluding the aforementioned unbudgeted items, the Company is tracking towards its $2.6 billion capital expenditures budget.
Cautionary Statement for the Purpose of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements included in this press release other than statements of historical fact are forward-looking statements, including, but not limited to, statements, information, forecasts or expectations regarding the Company's business and future plans. When used in this press release, the words "could," "may," "believe," "anticipate," "intend," "estimate," "expect," "project," "budget," "target," "plan," "continue," "potential," "guidance," "strategy," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.
Forward-looking statements are based on the Company's current expectations and assumptions about future events and currently available information as to the outcome and timing of future events. Although the Company believes these assumptions and expectations are reasonable, they are inherently subject to numerous business, economic, competitive, regulatory and other risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control. No assurance can be given that such expectations will be correct or achieved or that the assumptions are accurate. The risks and uncertainties include, but are not limited to, commodity price volatility; the geographic concentration of our operations; financial market and economic volatility; the inability to access needed capital; the risks and potential liabilities inherent in crude oil and natural gas drilling and production and the availability of insurance to cover any losses resulting therefrom; difficulties in estimating proved reserves and other reserves-based measures; declines in the values of our crude oil and natural gas properties resulting in impairment charges; our ability to replace proved reserves and sustain production; the availability or cost of equipment and oilfield services; leasehold terms expiring on undeveloped acreage before production can be established; our ability to project future production, achieve targeted results in drilling and well operations and predict the amount and timing of development expenditures; the availability and cost of transportation, processing and refining facilities; legislative and regulatory changes adversely affecting our industry and our business, including initiatives related to hydraulic fracturing; increased market and industry competition, including from alternative fuels and other energy sources; and the other risks described under Part I, Item 1A. Risk Factors and elsewhere in the Company's Annual Report on Form 10-K for the year ended December 31, 2018, registration statements and other reports filed from time to time with the SEC, and other announcements the Company makes from time to time.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which such statement is made. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, the Company's actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. Except as otherwise required by applicable law, the Company undertakes no obligation to publicly correct or update any forward-looking statement whether as a result of new information, future events or circumstances after the date of this report, or otherwise.
About Continental Resources
Continental Resources (NYSE: CLR) is a top 10 independent oil producer in the U.S. Lower 48 and a leader in America's energy renaissance. Based in Oklahoma City, Continental is the largest leaseholder and the largest producer in the nation's premier oil field, the Bakken play of North Dakota and Montana. The Company also has significant positions in Oklahoma, including its SCOOP Woodford and SCOOP Springer discoveries and the STACK plays. With a focus on the exploration and production of oil, Continental has unlocked the technology and resources vital to American energy independence and our nation's leadership in the new world oil market. In 2019, the Company will celebrate 52 years of operations. For more information, please visit www.CLR.com.
SOURCE Continental Resources