CONTINENTAL RESOURCES, INC. (NYSE:CLR) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02 – Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On February22, 2013, the Compensation Committee of the Board of Directors (the “Compensation Committee”) of Continental Resources, Inc. (the “Company”) approved a cash bonus plan (the “CLR Bonus Plan”) that applies to employees of the Company, including the Company’s executive officers. The CLR Bonus Plan is designed to reward the Company’s employees for achieving annual performance and strategic goals. The CLR Bonus Plan provides for the annual payment of cash bonuses, subject to the discretion of the Compensation Committee. A description of the CLR Bonus Plan, as last updated in March of 2017, is filed as Exhibit 10.1 to the Company’s Form 10-Q for the quarter ended March31, 2017, filed with the Securities and Exchange Commission on May3, 2017 (the “Plan Description”).
On March19, 2018, the Compensation Committee approved a change to the factors used to set the size of the annual bonus pool (the “Bonus Pool Factors”) from the factors used to set the annual bonus pool in prior years. The newly approved factors include: net cash provided by operating activities (weighted at 30%); return on capital employed (weighted at 25%); relative total shareholder return (weighted at 15%); production growth (weighted at 15%); reserve growth (weighted at 10%); and proved developed finding and development cost per barrel of oil equivalent (“Boe”) (weighted at 5%). The newly approved factors replace the following factors: production growth (weighted at 40%); net cash provided by operating activities (weighted at 30%); proved developed finding and development cost per Boe (weighted at 15%); and reserve growth (weighted at 15%).
The Bonus Pool Factors will first apply to the bonuses for 2018 expected to be paid in February 2019. The Bonus Pool Factors will remain in effect until changed by the Compensation Committee.
Other than as set forth above, the Plan Description remains unchanged. The Compensation Committee retains complete discretion to increase, decrease or leave the size of the annual bonus pool unchanged.
About CONTINENTAL RESOURCES, INC. (NYSE:CLR)
Continental Resources, Inc. is an independent crude oil and natural gas exploration and production company with properties in the North, South and East regions of the United States. The North region consists of properties north of Kansas and west of the Mississippi River and includes North Dakota Bakken, Montana Bakken and the Red River units. The South region includes Kansas and all properties south of Kansas and west of the Mississippi River, including various plays in the South Central Oklahoma Oil Province (SCOOP), Sooner Trend Anadarko Canadian Kingfisher (STACK), Northwest Cana and Arkoma Woodford areas of Oklahoma. The Company’s estimated proved reserves are approximately 1,230 million barrels of crude oil equivalent (MMBoe) with estimated proved developed reserves of over 520 MMBoe. The East region includes undeveloped leasehold acreage east of the Mississippi River. The Company’s crude oil production is sold to crude oil refining companies at market centers.
