Increasing Shareholder Returns through Share Repurchases & Dividend + 2019 Production Guidance Increased; LOE and G&A Expense Guidance Decreased
- Releasing 7 Rigs in the South by Year-End 2019 Due to Springer & Woodford Efficiency Gains
$92 Million of Share Repurchases Executed through August 2, 2019
$236.6 Million in Net Income in 2Q19, or $0.63 per Diluted Share
- $219.1 Million Adjusted Net Income in 2Q19, or $0.59 per Diluted Share (Non-GAAP) < This compares to my forecast of $206.8 million Net Income.
193,586 Average Daily 2Q19 Oil Production; up 23% over 2Q18 < Slightly above my forecast of 196,500 BOPD.
331,414 Boepd Average Daily 2Q19 Production; up 17% over 2Q18 < Compares to my forecast of 330,000 Boepd for Q2.
I will be posting my updated forecast/valuation model for CLR to the EPG website this afternoon.
Continental Resources Q2 Results - Aug 6
Continental Resources Q2 Results - Aug 6
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Continental Resources Q2 Results - Aug 6
$92 Million of Share Repurchases Executed through August 2, 2019
As previously announced, the Company's Board of Directors authorized an initial share-repurchase program of up to $1 billion. The share-repurchase program commenced in the second quarter 2019 and is expected to continue through 2020. Share repurchases will be made at times and levels deemed appropriate by Company management. The Company intends to purchase shares under the program opportunistically using available funds while maintaining sufficient liquidity to fund operating needs, capital program, and dividend payments. As of August 2, 2019, the Company has executed $92 million of share repurchases for 2.4 million shares.
As also previously announced as part of the Company's total shareholder return strategy, the Company's Board of Directors approved the initiation of a quarterly dividend of $0.05 per share on the Company's outstanding common stock, payable on November 21, 2019 to stockholders of record on November 7, 2019.
As previously announced, the Company's Board of Directors authorized an initial share-repurchase program of up to $1 billion. The share-repurchase program commenced in the second quarter 2019 and is expected to continue through 2020. Share repurchases will be made at times and levels deemed appropriate by Company management. The Company intends to purchase shares under the program opportunistically using available funds while maintaining sufficient liquidity to fund operating needs, capital program, and dividend payments. As of August 2, 2019, the Company has executed $92 million of share repurchases for 2.4 million shares.
As also previously announced as part of the Company's total shareholder return strategy, the Company's Board of Directors approved the initiation of a quarterly dividend of $0.05 per share on the Company's outstanding common stock, payable on November 21, 2019 to stockholders of record on November 7, 2019.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Continental Resources Q2 Results - Aug 6
CLR in a nutshell:
> Generating more than enough free cash flow from operations to cover capex budget, fund a $1 billion stock repurchase program and start paying a dividend.
> Grew production 23.0% in 2018 and on-track to grow production 12.5% in 2019 and 12.5% in 2020. < ALL WITHIN CASH FLOW.
> Not in the Permian Basin, so not exposed to the West Texas takeaway capacity issues.
> Lots of running room in North Dakota (Bakken) and Oklahoma (SCOOP & STACK).
> Strong Balance Sheet and access to several $Billion in liquidity if they need it, but they don't.
> NONE of their oil is hedged, so if you believe oil prices are heading then CLR is for you.
> NONE of their NGL is hedged, which in Q2 was bad but could flip to a good thing in Q4.
Q2 results and fresh guidance put my valuation at $76/share.
> Generating more than enough free cash flow from operations to cover capex budget, fund a $1 billion stock repurchase program and start paying a dividend.
> Grew production 23.0% in 2018 and on-track to grow production 12.5% in 2019 and 12.5% in 2020. < ALL WITHIN CASH FLOW.
> Not in the Permian Basin, so not exposed to the West Texas takeaway capacity issues.
> Lots of running room in North Dakota (Bakken) and Oklahoma (SCOOP & STACK).
> Strong Balance Sheet and access to several $Billion in liquidity if they need it, but they don't.
> NONE of their oil is hedged, so if you believe oil prices are heading then CLR is for you.
> NONE of their NGL is hedged, which in Q2 was bad but could flip to a good thing in Q4.
Q2 results and fresh guidance put my valuation at $76/share.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group