Continental Resources (CLR) Q1 Results - May 11

[dan_s]

OKLAHOMA CITY, May 11, 2020 /PRNewswire/ --

360,841 Boepd Average Daily 1Q20 Production; up 9% YoY (56% Oil) < Compares to my Q1 forecast of 353,000 Boepd with oil 671 BOPD above my forecast.

Lowest Cost Producer amongst Oil-Weighted Peers
• $3.61 Production Expense per Boe and $1.31 Total G&A per Boe in 1Q20

Approx. $55 MM Reduction to 2020 G&A through Ongoing Cost Savings Evaluation

$650.7 MM Capex in 1Q20; 2020 Capex Tracking 3% to 5% below Previously Revised $1.2 B Budget
• Zero Stimulation Crews in the Bakken and Averaging 1 Stimulation Crew in OK through Remainder of 2020
• Rigs Reduced to 4 by YE20 (80% Reduction from Jan 2020)

$139 MM of Bonds Retired in March/April at a 53% Weighted Average Discount to Par

Strong Portfolio Optionality and Liquidity: Positions Company for Market Recovery
• 70% of Operated Oil Production Voluntarily Curtailed in May (60% Boepd Curtailed)

Continental Resources, Inc. (NYSE: CLR) (the "Company") today announced first quarter 2020 operating and financial results.

The Company reported a net loss of $185.7 million, or $0.51 per diluted share, for the quarter ended March 31, 2020. In first quarter 2020, typically excluded items in aggregate represented $158.1 million, or $0.43 per diluted share, of Continental's reported net loss. Adjusted net loss for first quarter 2020 was $27.6 million, or $0.08 per diluted share (non-GAAP). < Compares to my forecast of $13.6 net income, $0.04/share.
Net cash provided by operating activities for first quarter 2020 was $663.8 million and EBITDAX was $594.2 million (non-GAAP). < BEST NEWS. My forecast was $563.6 million cash flow from operations.

"This has been an unprecedented global market environment, which has seen crude oil demand fall by approximately 30% due to the COVID-19 pandemic. Continental is committed to preserving value over volumes. Our assets are secure and we are confident that this deferred production will bring more value to our shareholders in the months to come," said Bill Berry, Chief Executive Officer.

Mr. Berry continued, "Our first quarter results underscore the capital efficient and low cost nature of our assets. Continental is financially strong with ample liquidity and no imminent debt maturities. We remain keenly focused on preserving both our assets and shareholder value for better commodity prices in the future. I want to thank our teams for their safe, efficient and best-in-class operations during this time. We look towards a bright future for both Continental and the U.S. oil and natural gas industry."

I am updating my CLR forecast/valuation model that will be posted to the EPG website this afternoon.