U.S. shale producer Continental Resources Inc. on Feb. 14 posted a fourth-quarter profit that topped Wall Street expectations, as a recovery in economic activity and travel lifted oil prices to multiyear highs.
Global crude prices jumped over 50% last year, averaging $80/bbl for the last three months of 2021 as demand rebounded from a pandemic-led slump. U.S. crude futures are currently trading close to $95/bbl.
Continental Resources’ fourth-quarter adjusted average net sales price more than doubled to $55.27 per boe from a year earlier.
Read an exclusive Q&A with Continental Resources CEO Bill Berry in the February 2022 issue of Oil and Gas Investor.
The company, which closed a $3.25 billion acquisition of rival Pioneer Natural Resources Co.’s Delaware Basin assets in the Permian during the quarter, said it targets full-year oil production to average 195,000 to 205,000 bbl/d of oil, after churning out 160,600 bbl/d in 2021.
Natural gas output is expected to be 1.04 to 1.14 Bcf/d in 2022. Continental produced 1.01 Bcf/d of natural gas in 2021.
Shares were down 1.4% to $57.07 in after-hours trading.
The company said it expects to spend $2.3 billion in 2022, which includes a 15% increase to legacy spending in the Bakken and Anadarko basins, as well as a $500 million increase related its Permian acquisition and recent purchase of Chesapeake Energy’s Powder River Basin assets in Wyoming.
Its capital spending totaled $1.56 billion in 2021.
Continental said last week it was raising its quarterly dividend by 15% to 23 cents per share. It will also increase a planned share repurchase program to $1.5 billion from $1 billion.
Adjusted net income for the quarter was $651 million, or $1.79 per share, beating analysts’ expectations of $1.70 per share, according to Refinitiv IBES. Last year, it reported a loss of $82 million, or 23 cents per share for the fourth quarter.
Recommended Reading
Push-Button Fracs: AI Shaping Well Design, Longer Laterals
2024-11-26 - From horseshoe wells to longer laterals, NexTier, Halliburton and ChampionX are using artificial intelligence to automate drilling and optimize completions.
From Days to Minutes: AI’s Potential to Transform Energy Sector
2024-11-22 - Despite concerns many might have, AI looks to be the next great tool for the energy industry, experts say.
Fugro’s Remote Capabilities Usher In New Age of Efficiency, Safety
2024-11-19 - Fugro’s remote operations center allows operators to accomplish the same tasks they’ve done on vessels while being on land.
Range Resources Counters M&A Peer Pressure with Drilling Efficiencies
2024-11-14 - Range Resources doesn’t feel the need to give into M&A peer pressure as it focuses on the efficient development of its current asset base, President and CEO Dennis Degner tells Hart Energy.
EnerMech Secures Contract with Major North Sea Operator
2024-11-13 - EnerMech will monitor the condition of the U.K. assets in accordance with safety and operational standards.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.