Continental Resources announced Monday that 2021 delivered record cash flow generation for the Oklahoma City-based company. As a result, the company intends to devote more money into Oklahoma and North Dakota operations.
The company had $1.66 billion in net income or $4.56 per diluted share and a record $3.97 billion cash flow from its operations. Adjusted net income for full-year 2021 was $1.70 billion, or $4.66 per diluted share.
“In 2021, Continental achieved a record level of annual adjusted earnings per share alongside a nearly 15% return on capital employed and a Company record $2.6 billion of free cash flow. Given operational excellence across our premier asset portfolio, we will continue to strongly compete by expanding return of capital to shareholders while providing above average S&P 500 and industry return on capital employed through 2022 and beyond,” said Bill Berry, Chief Executive Officer.
For the fourth quarter 2021 that ended Dec. 31, Continental had net income of $742.7 million or $2.04 a diluted share. Adjusted net income for the quarter was $651 million or $1.79 per diluted share. Net cash provided by operating activities for fourth quarter 2021 was $1.25 billion and EBITDAX was $1.39 billion (non-GAAP).
Full-year 2021 total production averaged 329.6 MBoepd. Full-year 2021 oil production averaged 160.6 MBopd. Full-year 2021 natural gas production averaged 1,014 MMcfpd.
Fourth quarter 2021 total production averaged 340.2 MBoepd. Fourth quarter 2021 oil production averaged 166.7 MBopd. Fourth quarter 2021 natural gas production averaged 1,041 MMcfpd.
The break down in production showed the company’s Oklahoma operations in the fourth quarter totaled an average of 146,131 barrels of oil equivalent a day, down slightly from a year earlier.
The company’s operations in the Bakken were its largest with 175,585 barrels of oil equivalent on average a day in the quarter compared to 183,141 boe in the fourth quarter 2020. Its 2021 year average production in the Bakken was 169,636, up from the 158,604 a year earlier.
In its quarterly report, Continental announced it is also increasing its existing share repurchase program from $1.0 billion to $1.5 billion, which is inclusive of $441 million repurchased to date. The company has repurchased 17 million shares to date at an average price of $26.00, which includes 3.2 million shares repurchased in 2021 at an average price of $38.74.
Continental said it is projecting a $2.3 billion capital expenditures budget and is allocating nearly $1.8 billion to D&C (drilling and completion) activities.
The capital expenditures budget includes a 15% increase to legacy spending in the Bakken and Anadarko Basins combined with an approximately $500 million increase attributed to the Company’s recently acquired positions in the Permian and Powder River basins.
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