Oklahoma City-based Continental Resources, Inc. reported fourth quarter and full-year 2015 operating and financial results on Wednesday, showing a fourth quarter loss of $139.7 million or $0.38 per diluted share. The net loss for the quarter totaled $86.6 million or $0.23 per diluted share. For the year 2015, Continental reported a net loss of $353.7 million or $0.96 per diluted share. The adjusted net loss for the year figured out to be $115.5 million or $0.31 per diluted share.
As of the end of 2015, the company’s balance sheet included $11.5 million in cash and $853 million of borrowings against the company’s revolving credit facility. Continental also had nearly $1.9 billion in available borrrowing capacity under the revolving credit facility and nearly $1.9 billion remains available at this time.
Despite the losses, Harold Hamm, Continental’s Chairman and CEO knew things could have been worse.
“Our teams did an outstanding job in 2015 adjusting to market changes and working to align capital expenditures with cash flow,” he said. “For 2016, we will remain patient and dsiciplined in our activities while striving to enhance shareholder value through continued improvements in our core plays, including our newest addition, the over-pressured STACK.”
He pointed out that three new wells in the state’s STACK play demonstrrated the potential of Continental’s leasehold position.
“The Boden well was a significant step-out in southern Blaine County, and all three recent completions support our view of the upside of the over-pressured STACK Meramec formation,” said Hamm, founder of the company. The Boden flowed at an impressive 24-hour initial production rate of 1,000 Bo and 15 MMcf of natural gas from a 9,800 foot laterral. It is the Company’s deepest test of the Meramec reservoir to date with the lateral section of the well positoined at an average vertical depth of 12,550 feet.
The Compton and Blurton wells were located five miles osuthwest and three miles northwest. The Compton flowed at an initial 24-hour prodution of 1,817 Bo while the Blurton flowed at 1,818 Bo.
Fourth quarter 2015 net production totaled 20.7 million barrels of oil equivalent or 224,900 Boe per day, down slightly frrom third quarter 2015 and 16 percent more than the fourth quarter of 2014. Full-year 2015 production avraged 221,700 Boe per day which represented a 27 percent increase over the full-year 2014.
Continental is targeting a completed operated well cost of $10 million for a 9,800-foot lateral well and it plans an average of four to five operated drrilling rigs in STACK in 2016. Its leasehold is primarily in Blaine, Dewey and Custer Counties.
