CLR's 4Q12 and Full Year Financial Report

From the press release:

Significant fourth quarter and full-year 2012 accomplishments included:

• Net income of $1.19 per diluted share for the fourth quarter of 2012, compared with a net loss of $0.62 per diluted share for the fourth quarter of 2011;
• Full-year 2012 net income of $739.4 million, or $4.07 per diluted share, a 72 percent increase compared with net income of $429.1 million, or $2.41 per diluted share, for 2011;
• Record EBITDAX for the fourth quarter of 2012, which was 44 percent higher than the fourth quarter of 2011 and 21 percent higher than the third quarter of 2012;
• Record production of 106,831 barrels of oil equivalent per day (Boepd) for the fourth quarter of 2012, a 42 percent increase from fourth quarter 2011 production.

Total production in February 2013 is on track to exceed 120,000 Boepd.

As a result of the Company's improved differential to NYMEX, Continental has reduced its 2013 oil differential guidance range to $5 to $7 per barrel, compared with previous guidance of $8 to $11.
Continental reported net income of $220.5 million, or $1.19 per diluted share, for the fourth quarter of 2012. Net income for the quarter included several non-recurring items, including a $42.7 million after-tax gain on sale of assets and a $4.3 million non-cash unrealized gain on derivatives. Partially offsetting these items were two after-tax adjustments – a charge of $18.1 million for property impairments and a small charge related to the relocation of the Company's headquarters to Oklahoma City. Without these items, adjusted net income for fourth quarter 2012 was $191.8 million, or $1.04 per diluted share, an increase of 18 percent compared with adjusted net income per share of $0.88 per diluted share for the fourth quarter of 2011.

Continental reported full-year 2012 net income of $739.4 million, or $4.07 per diluted share, an increase of 72 percent over net income of $429.1 million, or $2.41 per diluted share, for 2011. Adjusted net income for 2012 was $3.36 per diluted share, without the effects of gains on sales of assets, non-cash unrealized gains on derivatives, property impairment charges and relocation expenses.

So, what did "the market" think of this? Up 2% before the close; up almost 5% after hours.

Kent sent this in from the press release: the second TF2 well is even better than first

Continental's reported its second 3-Forks well (Angus 2-9H-2) in the second bench with initial production of 1,556 boepd, substantially better than the first (Charlotte 2-22H at 1,396 boepd). In what was a 27-mile step-out well, this should arguably strengthen confidence in the viability of deeper benches of the Three Forks as providing a second development area.

Separately CLR has initiated the first of four increased density pilot program targeting the middle & lower benches with 3 wells completed and 2 currently being drilled. Encouraging results from these tests could significantly increase future reserve bookings through down spacing. CLR currently has less than one well per 1280 acre spacing on average versus 4-8 wells per zone required for full development of the field.

Kent asked whether the "estimate of 50,000 wells was before the lower benches of the Three Forks." See this post.