The Continental Resources office building is seen in downtown Oklahoma City, Oklahoma September 22, 2014. REUTERS/Steve Sisney
Continental Resources, Inc. announced first quarter 2020 operating and financial results with a net loss of $185.7 million or 51 cents a diluted share. The company wrote down $222.5 million in property impairments for the quarter compared to $25 million a year ago.
“This has been an unprecedented global market environment, which has seen crude oil demand fall by approximately 30% due to the COVID-19 pandemic. Continental is committed to preserving value over volumes. Our assets are secure and we are confident that this deferred production will bring more value to our shareholders in the months to come,” said Bill Berry, Chief Executive Officer.
Adjusted net loss for first quarter 2020 was $27.6 million, or $0.08 per diluted share (non-GAAP). Net cash provided by operating activities for first quarter 2020 was $663.8 million and EBITDAX was $594.2 million (non-GAAP).
Like many other oil and gas companies, Continental cut its spending as a result of the coronavirus pandemic and the oil crisis. Despite those cuts, the company’s first quarter total production increased 9% over a year earlier averaging 360,841 Boepd. First quarter 2020 oil production grew by 3% over the first quarter 2019. First quarter natural gas production increased 16%.
Continental Resources reported it has only 5 rigs operating and expects to cut the number to four by the end of 2020, an 80% reduction from the start of the year.
Two of those rigs are in the Bakken where the company completed 47 gross operated wells with first production. The company does not anticipate adding any more rigs through the rest of the year.
The Company is currently tracking 3% to 5% below its previously revised $1.2 billion Capex budget. The Company also expects to reduce 2020 G&A by approximately $55 million through its ongoing cost savings evaluation. The Company currently has zero stim crews running in the Bakken and expects to average 1 stim crew in the South for the remainder of 2020.
Click here to view entire report.