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Continental Resources’ 2016 Production and Capex Guidance

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Nov. 4 2016, Updated 3:04 p.m. ET

Key operational highlights

Continental Resources’ (CLR) 3Q16 production volumes totaled 207.8 Mboepd (thousand barrels of oil equivalent per day). This volume was 9% lower than its production levels a year ago and 5% lower than 2Q16.

CLR’s 3Q16 earnings release noted that the decline in its production level came mostly from the Bakken play. CLR noted that it had curtailed its Bakken production by ~12,000 net barrels of oil equivalent per day in August and September due to low energy prices. However, CLR removed these production curtails at the end of 3Q16.

CLR’s 3Q16 production mix was made up of 56% oil and 44% natural gas.

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3Q16 realized prices and production guidance

Continental Resources’ average realized price of crude oil (OIL), excluding hedges, fell from $38.95 per barrel in 3Q15 to $37.66 per barrel in 3Q16. Its average realized price for natural gas (UNG), excluding the effect of hedges, fell from $2.23 per thousand cubic feet in 3Q15 to $2.02 per thousand cubic feet in 3Q16.

2016 production growth guidance

The company’s 2016 production growth guidance range was updated from 210 Mboepd–220 Mboepd in 2Q16 to 215 Mboepd–220 Mboepd. CLR expects to finish 2016 with production ranging between 205,000 and 210,000 Boe per day.

CLR increased its capex budget for 2016 from $920 million to $1.1 billion, owing to increased well completion activity and an increase in CLR’s average working interest across its plays.

Continental reduced its 2016 guidance for production expenses and G&A (general and administrative) expenses per Boe. Production expenses are expected to range between $3.50 and $4.00 per boe, compared to the previous guidance of $3.75 to $4.25 per boe from 2Q16.

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