At their analyst day Continental Resources (NYSE:CLR) said they have a target of increasing production by three times what they are now, along with their reserves.
One concern by those attending was the capital expenditure needed to generate that type of growth.
Attending the function, Ticonderoga Securities said, "The two keys to the puzzle for CLR are the Bakken, where it has 865,000 net acres and 540MM boe of net unrisked reserve potential, and the Anadarko Woodford, where CLR boasts 252,000 net acres and 1.5B boe of net unrisked reserve potential. Additionally, there is another 228MM boe of net unrisked reserve potential in the Arkoma Woodford and the Niobrara.
"If there has been disappointment at the meeting, it stems from investors
expecting that the growth would not come at so steep a cost. We were modeling capex within cash flow for 2011 (approximately $1B), but CLR is now guiding toward $1.36B (91% earmarked for drilling, and 92% of the drilling is earmarked for the Bakken and the Woodford)."
Ticonderoga said they maintain a "Neutral" on CLR.
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