Investor Update Heikkinen Energy Investor Conference August 2016 - PowerPoint PPT Presentation

Investor Update Heikkinen Energy Investor Conference August 2016 NYSE: CLR

Forward ‐ Looking Information Cautionary Statement for the Purpose of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995 This presentation 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 presentation 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 presentation, the words “could,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “budget,” “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 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 exploration, drilling and production and the availability of insurance to cover any losses resulting therefrom; difficulties in estimating proved reserves and other revenue ‐ 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, 2015, 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 presentation 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 expressly stated above or 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 presentation, 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. In particular, 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 potentially recoverable oil and natural gas hydrocarbon quantities. We include these estimates to demonstrate what we believe to be the potential for future drilling and production on our properties. These estimates are by their nature much more speculative than estimates of proved reserves and require substantial capital spending to implement recovery. Actual locations drilled and quantities that may be ultimately recovered from our properties will differ substantially. EUR data included herein remain subject to change as more well data is analyzed. 2

2Q 2016 Highlights Updating guidance due to strong outperformance • Full ‐ year production guidance raised to 210,000 to 220,000 Boe per day • Exit rate production guidance raised to 195,000 to 205,000 Boe per day • Production expense lowered to $3.75 to $4.25 per Boe • Total G&A (cash and non ‐ cash) lowered to $1.85 to $2.45 per Boe • NYMEX WTI crude oil differential lowered to ($7.00) to ($8.00) per Bo $613 million in divestitures announced YTD – non ‐ strategic asset sales, with proceeds to be applied to reduce debt Excellent results extend over ‐ pressured STACK oil window west • Madeline 1 ‐ 9 ‐ 4XH IP: 3,538 Boe per day (71% oil), 9,600’ lateral • Frankie Jo 1 ‐ 25 ‐ 24XH: IP 2,627 Boe per day (56% oil), 9,700’ lateral Enhanced completions uplift SCOOP Woodford oil EURs by ~30% • 1.3 MMBoe EUR (62% oil) for 9,800 ‐ foot lateral • 32% ROR at $9.8 million CWC, $45 WTI and $2.50 gas Operational efficiencies continue to translate to the bottom line • STACK oil window target CWC down $500,000 to $9.0 million • Production expense down 13% over 2015 average and down 33% over 2014 average 3

CLR Capital Efficiency Taken to New Level Structural Improvement Since 2014 (1) Production and Cash G&A Costs $10 $7.87 $7.76 From FY 2014 to 1H 2016: $7.64 $8 $6.00 $2.38 $2.07 • Combined Production and $2.06 $6 $/Boe $4.90 $1.70 Cash G&A (1) costs DOWN 36% $1.16 $4 $5.69 $5.58 $5.49 $4.30 $2 $3.74 $0 2012 2013 2014 2015 1H 2016 (1) Cash G&A Production Expense EUR Per Operated Well 1,400 From FY 2014 to FY 2016 target: 160 1,206 Net Boe/$1,000 (2) 140 1,200 1,110 • EUR per operated well UP 70% 120 1,000 126 • Capital efficiency (2) (Boe/$ 100 711 800 Boe/$1,000 104 80 MBoe invested) UP 133% 506 600 470 Boe/$1,000 60 400 40 54 47 41 200 Boe/$1,000 20 Boe/$1,000 Boe/$1,000 0 0 2012 2013 2014 2015 2016 Target 1. See “Cash G&A Reconciliation to GAAP“ on slide 37 for a reconciliation of GAAP Total G&A per Boe to Cash G&A per Boe, which is a non ‐ GAAP measure 2. Average net revenue interest of 82% assumed for net capital efficiency Note: Capital efficiency based on reserves developed per dollar invested 4

CLR Production Expense and Cash G&A (1) Comparison $20 CLR Lowest Among Select Peers $18 (As of 1Q 2016) $16 $14 $12.08 $11.43 $12 $10.64 $10.50 $10.35 $10.23 $10.26 $/Boe $9.98 $10 $8 $6.14 $5.73 $6 $4.90 $4 $1.16 $3.74 $2 $0 CLR CLR Peer A Peer B Peer C Peer D Peer E Peer F Peer G Peer H Peer I Peer J (1H 2016) (1) Production Expense Cash G&A Peers include: CXO, DVN, EOG, NBL, NFX, OAS, PXD, WLL, WPX and XEC Note: Production expense for peer group includes gathering expense where applicable; cash G&A excludes equity based compensation Source: GMP Securities, June 2016 1. See “Cash G&A Reconciliation to GAAP“ on slide 37 for a reconciliation of CLR GAAP Total G&A per Boe to CLR Cash G&A per Boe, which is a non ‐ GAAP measure 5

CLR Delivering Exceptional Shareholder Value Key Strengths Top quartile assets in U.S. (1) Capital efficiency more than doubled since 2014 (2) Lowest production expense per Boe among select oil ‐ weighted peers (3) Key Catalysts STACK Meramec Adds up to 25% to CLR net unrisked resource potential Bakken DUCs ~190 gross operated wells at YE 2016, ~850 MBoe average EUR per well Bakken core 10+ years of drilling ~775 MBoe average per well (assuming 15 rigs) SCOOP Springer Oil asset ready for full ‐ field development Enhanced completions Improving well performance in all plays 19 operated rigs Maintained momentum and grew expertise during the last 18 months Strong balance sheet Ample liquidity 1. See slide 7 for supporting detail 2. See slide 4 for supporting detail 3. See slide 5 for supporting detail 6