Continental Posts $119 Million Loss for 2Q, Increases Production Guidance

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Oklahoma City-based Continental Resources Inc. reported a loss of more than $119 million or 32 cents a share for the second quarter, according to a company press release issued on Wednesday.

Earnings before interest, taxes, depreciation, amortization and exploration expense was $528.1 million, down from $647 million in the second quarter of 2015. Total revenue was $451 million, down from $796.3 million just a year ago.

While the company remains committed to the STACK and SCOOP plays, Continental also announced it has signed a purchase agreement to sell 30,000 acres of non-strategic property on the eastern side of the Oklahoma SCOOP for $281 million. After the divestiture, Continental will retain 384,000 acres in the SCOOP.

“Proceeds from this sale and the previous sale of Wyoming assets will total nearly $400 million,” said Jack Stark, President and Chief Operating Officer. Continental previously announced the sale of 132,000 acres in Wyoming’s Washakie Basin area for $110 million in May.

“We have additional opportunities to sell non-strategic assets for continued debt reduction,” said Stark.

Continental’s production in the SCOOP rose 3.3 percent while the company’s STACK play jumped 231 percent.

Continental reported five new Meramec completions in Blaine County including the Madeline 1-9-4XH flowed 2,513 Bo and 6.1 MMcf of natural gas (3,538 Boe) per day at 4,500 psi flowing casing pressure; Frankie Jo 1-25-24XH flowed 1,484 Bo and 6.9 MMcf of natural gas (2,627 Boe) per day at 4,320 psi; and Gillilan 1-35-26XH flowed 1,703 Bo and 4.4 MMcf of natural gas (2,439 Boe) per day at 2,030 psi.

“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,” said 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.”

Continental also increased its 2016 production guidance to a range of 210,000 to 220,000 Boe per day, according to the company’s press release.

In 2016, the company will celebrate 49 years of operations.

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