Continental offered strong 3Q report as Hamm continues with private takeover

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Just as billionaire Harold Hamm and his family prepare to take full control of Continental Resources and end public control, the Oklahoma City company reported a strong third quarter earnings.

Cash flow from operations totaled $2.22 billion while free cash flow was $1.01 billion. Net income for the quarter came to $1.01 billion or $2.80 per diluted share. Adjusted net income was $2.88 per adjusted share.

The company had total liquidity of more than $4 billion and according to its earnings report “is on track to achieve full year 2022 production guidance.”

Continental’s third quarter production averaged 414.4 MBoepd. Its quarterly oil production averaged 200.5 MBopd while natural gas production averaged 1,284 MMcfpd.

Boe per day 2022 2021 2022 2021
Bakken 175,383 167,604 169,889 167,632
Anadarko Basin 162,829 152,522 155,861 147,626
Powder River Basin 31,234 4,937 23,438 4,477
Permian Basin 38,948 40,903
All other 6,047 6,344 6,197 6,367
Total 414,441 331,407 396,288 326,102

During the quarter, Continental averaged a net sales price of $89.46 per barrel of oil while the net sales price for the nine months of the year was $95.51 per barrel.

Natural gas sales included a quarterly average of $8.56 per Mcf while the nine-month average price was $7.63 per Mcf.

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Because of Hamm’s takeover, which was approved by the company’s board of directors, there was no conference call following the announcement of the earnings report.

Hamm’s takeover, achieved through the merger of Continental with his Omega Acquisition, Inc., was approved Oct. 17 of this year and is expected to be finalized by Dec. 31, 2022.

The earnings report offered no details of rig operations in the plays where Continental is active. But it describes itself as the largest producer in the Anadarko Basin of Oklahoma and the second largest leaseholder in the Powder River Basin of Wyoming.

The company says it is the tenth largest operator in the Permian Basin of Texas and the largest leaseholder and producer in the Bakken play of North Dakota and Montana.

The company did not offer any explanation but because of the private takeover by Hamm and family, the fourth quarter earnings report might be the last to be made publicly known.