Continental Resources (CLR)

[dan_s]

CLR crushed my 3rd quarter forecast! Most important, production was higher by over 3,000 boepd than what I was expecting. The company is now on-track for close to 40% year-over-year production growth. I am now working on updating my forecast and the Fair Value estimate is sure to go up. - Dan

ENID, Okla., Nov. 2, 2011 /PRNewswire/ -- Continental Resources, Inc. (NYSE:CLR - News) today reported average production of 66,289 barrels of oil equivalent per day (Boepd) for the third quarter ended September 30, 2011. This was 23 percent higher than production of 53,984 Boepd for the second quarter of 2011 and 48 percent higher than production for the third quarter of 2010.

Total production growth from the second quarter of 2011 to the third quarter this year included:

•27 percent growth to 34,505 Boepd in the Bakken play of North Dakota and Montana from the second quarter consecutively to the third quarter of 2011;
•78 percent consecutive quarter growth to 7,164 Boepd in the Oklahoma Anadarko Woodford; and
•Four percent consecutive quarter growth to 14,954 Boepd in the Red River Units of Montana, North Dakota and South Dakota.

Continental reported third quarter 2011 net income of $439.1 million, or $2.44 per diluted share, compared with $39.1 million, or $0.23 per diluted share, in net income for the third quarter of 2010.

Third quarter 2011 net income reflected the effects of an after-tax unrealized gain of $332.5 million on mark-to-market derivative instruments and an after-tax charge of $16.3 million for property impairments. Third quarter 2011 earnings were increased by $1.76 per diluted share by the combined effect of the non-cash, unrealized derivatives gain less the impairments charge.

The Company reported EBITDAX of $337.8 million for the third quarter of 2011, a 72 percent increase over EBITDAX of $196.9 million for the third quarter of 2010.

[dan_s]

Crude oil accounted for 72 percent of Continental’s third quarter 2011 production. The Company’s average realized crude oil price was $84.02 per barrel for the third quarter of 2011, while the average realized natural gas price was $5.50 per Mcf, yielding a blended realized price of $69.57 per Boe. In the third quarter of 2010, the Company realized a blended price of $56.92 per Boe.

The Company’s crude oil price differential was $5.62 per barrel below West Texas Intermediate for the third quarter of 2011, compared with $8.93 per barrel in the third quarter of 2010. A significant portion of its oil production is being delivered to premium-priced markets instead of Cushing, Oklahoma.

Continental’s third quarter 2011 natural gas price differential was a premium of $1.30 per Mcf, reflecting the high liquids and BTU content in Anadarko Woodford and Bakken natural gas. In the third quarter of 2010, the Company’s average gas differential was a negative $0.08 per Mcf.

[dan_s]

Continental Resources (CLR) reported strong production growth in the 3rd quarter. An updated Net Income and Cash Flow Forecast is now available under the Sweet 16 Tab.