CLR Reports 2Q16 Results -- August 3, 2016
CLR press release:
- Outstanding STACK Well Results Increase
2016 Production Guidance to 210,000 to 220,000 Boe per Day
- Capital
Budget Remains Unchanged
- Production Expense Outlook Reduced $0.50 per Barrel of Oil Equivalent (Boe)
- New STACK Completions Extend Oil Window West: Madeline
1-9-4XH Flows at 3,538 Boe per Day (71% Oil); Frankie Jo 1-25-24XH Flows
at 2,627 Boe per Day (56% Oil)
- Enhanced Completions in SCOOP Woodford Oil Window Increase
Estimated Ultimate Recovery (EUR) by ~30% to 1.3 Million Boe per Well
(62% Oil) for 2-Mile Laterals
- Company Agrees to Sell Non-Strategic SCOOP Leasehold for $281 Million, with Proceeds to Be Applied to Debt Reduction
The company reported a net loss of $119.4 million, or $0.32 per diluted share, for the quarter ended June 30, 2016.
The Company's net loss includes certain items
typically excluded by the investment community in published estimates,
the result of which is often referred to as "adjusted net loss." In
second quarter 2016, these typically excluded items in aggregate
represented $53.5 million, or $0.14 per diluted share, of Continental's reported net loss.
EBITDAX for second quarter 2016 was $528.1 million.
"Continental once again outperformed production guidance
in the second quarter thanks to the exceptional quality and performance
of our Bakken, SCOOP and STACK assets, as well as exceptional execution
by our teams," commented Harold Hamm, Chairman and
Chief Executive Officer. "We are also on track to reduce long-term debt
with our agreement to sell a second non-strategic asset for $281 million."
Based on strong operating results in first half
2016, the Company now expects production for the year will be in a
range of 210,000 and 220,000 Boe per day, an increase of 5,000 Boe per
day from previous guidance. Continental expects to exit the
year with production between 195,000 and 205,000 Boe per day, also
reflecting a 5,000 Boe per day increase.
Continental also reduced 2016 guidance for production
expense per Boe and cash general and administrative (G&A) expense
per Boe. Production expense is now expected to be in a range of $3.75 to $4.25 per Boe for the year, down approximately 11% ($0.50
per Boe) from the previous range. Efficiencies contributing to the
lower guidance include reducing produced water expense and increasing
artificial lift efficiency in the Bakken and reducing compression,
saltwater disposal and chemical costs in Oklahoma.
Total G&A expense, including cash and non-cash G&A expense, is expected to be in a reduced range of $1.85 to $2.45 per Boe for 2016. Of this total, cash G&A expense is expected to be in a range of $1.20 to $1.60 per Boe for 2016, a reduction from the previous range of $1.25 to $1.75 per Boe.
Finally, the Company improved its outlook for oil price differential,
reflecting increased crude oil production in Oklahoma, where it has
lower transportation costs, and reduced transportation costs from the
Bakken. Average crude oil price differential for 2016 is expected to be
in a range of $7.00 to $8.00 per barrel of oil (Bo), compared with the previous range of $7.00 to $9.00.
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