Inside Continental’s 2Q17 Earnings and Revenue
CLR’s 2Q17 revenue
Continental Resources (CLR) held its 2Q17 earnings conference on August 9, 2017. CLR released its earnings the day before, after markets closed.
CLR’s revenue for 2Q17 came in at ~$661.5 million, which was in line with analysts’ estimates. One year ago, CLR reported revenue of $451 million. In 1Q17, CLR reported revenue of $685 million.
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CLR’s 2Q17 earnings
For 2Q17, Continental Resources reported an adjusted net loss of ~$1.8 billion, compared with its adjusted net loss of $65.9 million in 2Q16. CLR’s adjusted EPS (earnings per share) in 2Q17 was $0.00, compared with the Wall Street analysts’ consensus estimate of $0.01. In 2Q16, CLR reported EPS of -$0.18.
Key 2Q17 highlights and key management comments
CLR announced its intention to sell its non-strategic assets for $147.5 million, the proceeds of which will be used to reduce its debt. CLR also lowered its capital expenditure or capex budget from $2 billion to the range of $1.75 billion–$1.95 billion, with the goal to achieve cash flow neutrality at crude oil prices the range of $45–$51 per barrel.
Continental’s management commented in the 2Q17 earnings release: “The results have been exceptional, raising our production guidance for 2017 and lowering our guidance for operating costs. We now expect to exit 2017 with production up 24%–31% over the fourth quarter of 2016, with a lower range of capital expenditures for the year targeting cash neutrality between $45 and $51 WTI.”
Continue reading this series (below) for a closer look at CLR’s operational performance in 2Q17 and production guidance.