Ahead of its upcoming quarterly financial release, Continental Resources announced Wednesday an increased quarterly dividend of 28 cents a share as well as improved oil and gas production and guidance.
Payable on May 23 of this year to stockholders of record on May 9, the dividend is a 22% or 5 cent increase over the 23 cent a share quarterly dividend paid in the first quarter of 2022. It also equates to a nearly 1.8% annualized dividend yield as of April 21 of this year. Continental pointed out the dividend yield is better than the S&P 500 average yield.
The Oklahoma City-based company also said its first quarter 2022 total production averaged nearly 373.8 MBoepd. Oil production for the quarter averaged 194.8 MBpod and natural gas production averaged 1,074 MMcfpd.
As a result, Continental said it updated its 2022 annual oil production guidance to 100 to 210 MBpod from 195 to 205 MBopd. It also projected a December 2022 oil production exit rate of nearly 220 to 230 MBopd.
Additionally, the Company is updating its 2022 annual natural gas production guidance to 1,100 MMcfpd to 1,200 MMcfpd from 1,040 to 1,140 MMcfpd.
The company stated that its modified 2022 capital program of $2.6 to $2.7 billion from $2.3 billion is enhancing its projected return of capital employed by 2.0% over its original 21% return on capital employed at $80 WTI and $3.50 HH. Adjusting for current commodity prices, Continental’s projected return on capital employed is increasing to approximately 31% in 2022.
Continental said it was projecting a 40% or lower reinvestment rate versus a nearly 45% in the original capital program. It also plans to allocate nearly $125 million to activity tied to the newly closed bolt-on acquisition of nearly 75,000 acres in the Permian Basin.
Additionally, the company is allocating $100 to $150 million to outside operated spending. Finally, the company said it is allocating $100 to $125 million toward inflation and securing high quality rigs and crews for future years.
“Our well-executed corporate returns driven and opportunity-based capital investment strategy is resulting in a significant improvement to our already strong balance sheet, shareholder return of capital and return on capital employed,” said Bill Berry, President & Chief Executive Officer.
Continental’s quarterly earnings will be released next week with a conference call the morning of Thursday, May 5 at 9 a.m. Central Time.