2017 production growth guidance
Continental Resources’ (CLR) 2017 production growth guidance range is 220 Mboepd–230 Mboepd (thousand barrels of oil equivalent per day), compared to 217 Mboepd in 2016. CLR expects to finish or exit 2017 with production of 255 Mboepd.
CLR expects its production to grow at a CAGR (compound annual growth rate) of 20.0% from 2017 to 2020.
Oil growth drivers
As we’ve noted, CLR’s completion of its inventory of uncompleted wells in the Bakken, its additional drilling in the Bakken, and its continued STACK (Sooner Trend Anadarko Canadian Kingfisher) development are expected to be the key growth drivers of its crude oil volumes in 2017.
The company’s oil production is expected to rise ~29% by the end of 2017 compared to the end of 2016. Its natural gas production is expected to rise ~12% in the same period.
CLR’s 4Q16 results
Continental Resources’ production volumes totaled 210 Mboepd in 4Q16. This level was ~7.0% lower than its production levels a year earlier and 1.5% higher than its 3Q16 volumes.
CLR’s 4Q16 earnings release noted that the fall in its production levels came mostly from the Bakken region, which was affected by severe weather conditions. The company noted that it had curtailed its Bakken production in the previous year in response to lower energy prices (USO) (UNG). However, it had removed these production curtailments at the end of 3Q16.
Next, let’s see how oil volumes as part of total of production have evolved for CLR.