Business Strategy and Outlook| Dave Meats, CFA |
Continental Resources played a key role in the early development of the Bakken Shale in North Dakota's Williston Basin. Continental's Bakken footprint encompasses around 800,000 net acres, with a large portion in "core" counties (McKenzie, Dunn, Mountrail, and Williams). The company has demonstrated success with optimized completions over a wide area and well performance has been holding steady for several years, with no sign yet of resource exhaustion. As these wells are relatively cheap on a cost-per-foot basis, and because Continental enjoys lower unit costs than most upstream peers, the economics are extremely competitive (individual wells are NPV-positive with West Texas Intermediate prices under $40).