Comment on Continental Resources posts $239.3 million loss for second quarter

Continental Resources posts $239.3 million loss for second quarter

By Jack MoneyBusiness writerjmoney@oklahoman.comContinental Resources posted a net loss of $239.3 million for the second quarter of 2020, it announced after markets closed Monday. That loss, based upon total revenues of $175.7 million, shook out to about 66 cents per share. The second quarter of 2019, the company posted a net income of $236.5 million, or 63 cents per share, on total revenues of about $1.2 billion. The difference between two periods provides a stark illustration of how the COVID-19-induced collapse in global energy demand impacted commodity prices and the company’s response to the situation. Given that Continental Resources doesn’t hedge the value of any of its oil production, the company instead opted during the second quarter of the year to curtail about 55% of its crude production, or about 7.8 million barrels of oil. Its average daily production of crude oil, natural gas and natural gas liquids during the second quarter was 202,815 barrels of oil (equivalent). Officials said the company intends to relax those restrictions in the third and fourth quarters. Continental expects to boost its average daily production to between 280,000 and 300,000 barrels equivalent during the third quarter and expects to exit 2020 producing between 310,000 and 330,000 barrels equivalent a day. Assuming the price of West Texas Intermediate crude oil averages $40 a barrel or better during that time, it forecasts it will generate about $1.3 billion in annual cash flow from its operations, with about $200 million of that free cash flow. “We kind of value the production value over volume, and that is what we did here,” said Harold Hamm, Continental Resources’ executive chairman.Read more on NewsOK.com

 

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