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Continental Resources’ 2Q17 Earnings: What to Expect

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Jul. 26 2017, Published 3:56 p.m. ET

Continental Resources’ 2Q17 revenue estimate

Continental Resources (CLR) plans to release its 2Q17 earnings after markets close on August 8, 2017. The company’s revenue estimate for 2Q17 is ~$660 million in comparison to revenue of $685 million in 1Q17. A year ago, in 2Q16, CLR had reported revenue of $451 million.

As the graph above notes, Continental Resources’ 2Q17 revenue estimate is mostly higher than its revenue in the previous quarters in 2016, although slightly less than its revenue in the previous quarter. We also note that in 1Q17, CLR’s revenue had come in higher than analysts’ expectations.

However, Continental Resources’ revenues have mostly missed analysts’ estimates in the past quarters. Keep watching Market Realist to see which of these trends continue in CLR’s 2Q17 earnings, especially with volatility in energy prices (USO) (UNG).

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2Q17 EPS estimates

Continental Resources’ 2Q17 EPS (earnings per share) estimate is $0.01 compared to its 2Q16 EPS of -$0.18. CLR’s EPS in 1Q17 was $0.02. Continental’s peers Concho Resources (CXO) and Anadarko Petroleum (APC) are expected to report EPS of $0.44 and -$0.23, respectively, for 2Q17.

These three companies make up 6.3% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

Key focus areas in 2017

Continental Resources plans to focus on strengthening its Bakken, SCOOP (South Central Oklahoma Oil Province), and STACK (Sooner Trend Anadarko Canadian Kingfisher) acreage positions in 2017. In the Bakken, the company pointed out that growth will be driven by “infrastructure enhancements.” CLR’s management noted in the 1Q17 earnings release, “In the Bakken, we have seen industry-wide basin wellhead netbacks strengthen by approximately $2.00 per barrel with new pipeline capacity and additional markets becoming available. This will begin to positively impact our economics over the next several months.”

CLR also noted that the company continues to expand its “strategic scope” via the Sycamore reservoir in Oklahoma’s SCOOP play. In 1Q17, the company announced the addition of ~300,000 net reservoir acres in Sycamore, a new reservoir layer within the SCOOP.

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