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A Look at Continental Resources’ Cash Flows and Capex

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Continental Resources’ cash flow

In 3Q17, Continental Resources (CLR) reported cash flow from operations of ~$431 million, which was 18% higher than 3Q16 and 3.3% lower than 2Q17.

However, while CLR’s cash flows have improved since last year, they are still considerably lower than its current debt obligations. Read the previous parts of this series to find out about CLR’s debt position.

Capex in 2017

CLR’s cash flows have also been lagging its capex (capital expenditure). Capex for 3Q17 was ~$572 million. In line with the improvement in commodity prices, CLR expects its fiscal 2017 capex budget of ~$2 billion to be cash flow positive for the year, including the proceeds from its asset divestitures this year.

In its 3Q17 earnings conference, CLR management said that capital discipline and maximizing shareholder value would be its key focus in 2018, adding that it could execute its plans in various price environments.

“The bottom line is our focus will be to generate positive cash flow with strong capital-efficient production enabling that cash flow,” CLR management concluded.

In the following part, we’ll talk more about CLR’s free cash flow trends and expectations for next year.

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