Let’s take a look at crude oil price sensitivities on Continental Resources’ (CLR) proved reserves at standardized measures and PV-10 (present value) measures in different crude oil price environments. All other factors are held constant.
CLR’s 2016 average crude oil price was $42.75. At this level, the company had proved reserves of 1.3 MMboe and a standardized or discounted value of $5.5 billion, as we noted in the previous article.
The graph above shows how these measures change when crude oil prices rise or fall. For context, crude oil is currently trading at $48 per barrel.
Next, we’ll look at the progress made by CLR in reducing its costs.