Continental 2020 Q4 earnings

Continental Resources Logo. (PRNewsFoto/Continental Resources)

Continental Resources, Inc. CLR reported fourth-quarter 2020 adjusted loss of 23 cents per share, wider than the Zacks Consensus Estimate of a loss of 6 cents. In the year-earlier quarter, the upstream energy player reported a profit of 55 cents per share.

Revenues of $838 million beat the Zacks Consensus Estimate of $770 million. However, the figure declined from $1,195 million in the year-ago quarter.

Oil Production Declines

Production from continuing operations averaged 339,307 barrels of oil equivalent per day (Boe/d) for the quarter (52% oil) versus 365,341 Boe/d in the year-ago period. Production volumes declined primarily due to lower output from Bakken assets.

Oil production for the quarter came in at 176,639 barrels per day (Bbls/d), down from 206,249 Bbls/d a year ago. Natural gas production, however, increased from 954,556 thousand cubic feet per day (Mcf/d) in fourth-quarter 2019 to 976,011 Mcf/d.

Crude Equivalent Price Realization Falls

Crude oil equivalent price for the quarter fell to $24.63 per barrel from $33.49 in the prior-year period. However, natural gas was sold at $1.81 per Mcf, up from $1.73 in the year-ago quarter. Notably, average realized price for oil was $37.34 a barrel, down from $51.33 in the prior-year quarter.

Total Expenses Plunge

Total operating expenses of $869.3 million for the fourth quarter fell from $901.3 million in the December quarter of 2019. Total production cost fell to $87.4 million from $111.2 million in the year-ago quarter. Exploration costs for the quarter were $3.1 million compared with $7.3 million in the year-ago period. Transportation costs fell to $48.6 million from the year-ago level of $61.1 million.

Financials

For fourth-quarter 2020, total capital expenditure (excluding acquisitions) was $168.1 million. It generated free cash flow of $332.4 million in the fourth quarter.

As of Dec 31, 2020, the company had total cash and cash equivalents of $47.5 million. It had long-term debt of $5,530.2 million (excluding current maturities). It had a debt to capitalization of 46.3%.

Guidance

The company expects 2021 average oil production at 160,000 to 165,000 barrel per day (Bbl/d). It projects natural gas production for 2021 at 880,000 to 920,000 Mcf/d. Notably, the upstream player has set a capital budget for 2021 at $1.4 billion.

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