Continental Resources Inc. reported a first quarter net loss of $198 million, or 54 cents per share, after cost-cutting measures failed to offset declining oil prices, according to a press release issued by the company.
The larger-than-expected drop compares with a loss of $132 million, or 36 cents per share, posted a year ago. Revenues were posted at $453 million, down from $626 million when compared with the first quarter of 2015.
While the Oklahoma City-based company took a loss, it announced an increase of 10,000 Boe per day in its 2016 production guidance. Continental expects to close out the year between 190,000 and 200,000 Boe per day, according to a company press release.
“We started 2016 with record quarterly production, lower operating costs and excellent results in STACK,” said founder and CEO Harold Hamm. “The resilience of our production has allowed us to increase our production guidance for 2016 without increasing capex. This reflects the quality of our assets and the success of our enhanced completion technology. Our new production guidance includes curtailing production approximately 10,000 Boe per day from early April through July. The majority of the reduced production is in STACK and SCOOP. We are managing production volumes for higher oil and natural gas prices that we expect in second half 2016,” commented Hamm.
Continental also announced the April sale of a large non-core, non-producing undeveloped leasehold in Wyoming’s Washakie Basin for $110 million. Proceeds from this sale were used by the company to reduce outstanding debt. Continental reported that it has other options for additional non-core asset sales.
