CLR reports very strong 4th quarter

[dan_s]

Primarily due to an unrealized mark-to-market loss on derivatives, Continental reported a net loss of $112.1 million, or $0.62 per diluted share, for the fourth quarter of 2011. This included a $399.4 million pre-tax unrealized loss on mark-to-market derivative instruments, a $42.1 million pre-tax property impairment charge and a small pre-tax gain on sale of property. The combined effects of the non-cash, unrealized derivatives loss, property impairment charge and the gain on sale reduced net income by $1.50 per diluted share for the fourth quarter of 2011.

So, "Adjusted EPS" of $0.88 was 10 cents higher than my forecast.

More important: CLR is now estimating that production in 2012 will go up 40% (I had 33.5% growth in my forecast model).

Combined with higher oil prices, CLR's Fair Value is going up. I will have the new forecast on the website tomorrow.