Continental Resources’ 3Q17 Earnings and Revenue Beat Estimates



CLR’s 3Q17 revenue

Continental Resources (CLR) held its 3Q17 earnings conference on November 8. CLR released its earnings the day before after markets closed.

CLR’s revenue for 3Q17 was $726.7 million, which was higher than analysts’ estimates of $704 million. A year ago, in 3Q16, CLR reported revenue of $526.2 million. In 2Q17, CLR reported revenue of ~$661.5 million.

As you can see from the image above, CLR’s revenue was higher both on a year-over-year basis as well as on a sequential basis. Crude oil and natural gas sales made up 97% of CLR’s total revenues in 3Q17. They totaled $704.8 million, compared to ~$505.9 million in 3Q16 and $626.5 million in 2Q17.

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Higher crude oil and natural gas sales resulted from higher realized prices in 3Q17 versus 3Q16 and 2Q17. Average realized prices on a crude-oil-equivalent basis (excluding the effect of hedges) in 3Q17 were $31.86 per boe (barrels of oil equivalent) compared to $26.42 per boe in 3Q16 and $30.31 per boe.

CLR’s 3Q17 earnings

For 3Q17, Continental Resources reported adjusted EPS (earnings per share) of $0.09, compared with Wall Street analysts’ consensus estimate of $0.04. In comparison, in 3Q16, CLR reported EPS of -$0.22, while in the previous quarter, in 2Q17, the company reported EPS of $0.00

Like its revenues, CLR’s 3Q17 earnings beat Wall Street analysts’ estimates and were higher on a year-over-year as well as a sequential basis.

CLR’s 3Q17 earnings were driven by higher revenue, as we saw above, and lower impairments in 3Q17.

In comparison, CLR’s peer Concho Resources (CXO) announced 3Q17 adjusted earnings of $0.45 per share, and Apache (APA) reported adjusted 3Q17 earnings of about $0.04 per share.

To learn more about how these companies performed in 3Q17, see Concho Beats 3Q17 Earnings Estimates, Sees Upgrade and Apache Reported Upbeat Earnings, Stock Fell.


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